Category: Eastern Europe

  • TRADE WITH ARMENIAN DIASPORA

    TRADE WITH ARMENIAN DIASPORA

    business mans view of ……..

    As Turks and Armenians wait for 24th April to see whether U.S. President Barack Obama will utter “genocide”, a new period takes start for Turkish-Armenian relations. Business worlds of two countries launch different projects one after another.

    President of Turkish-Armenian Business Development Council (TABDC) Kaan Soyak said that there are many projects are waiting to be launched. Soyak stated that “qualified industrial zone” with Armenia and customs free exportation to Russia might form good chances for Turkish businessmen. Soyak said that the biggest trade initiative between two countries will be exportation of Turkey to Armenian diaspora of 7 million population in the World. Soyak said that Turkey will be able to reach Brazil, Argentina and Canada markets through Armenian diaspora in those countries, by establishment of good relations with Armenian diaspora. Soyak underscored that Armenia is the most active country in Caucasus in which Turkey can boost its volume of trade and said, “Now the amount of exportation to Armenia is about $100 million. This amount could be increased to $500 million in short term.

    Establishment of relations with Armenian diaspora and with usage of qualified industrial zone this amount would be even much higher.”

    Kaan Soyak believes that Turkey and Armenia will make a new start if American President Barack Obama does not use the word “genocide” during his speech on 24 April. Turkish and Armenian businessmen are on the alert for possible opening of Turkey-Armenia state border and they have projects ready to be launched in case. Soyak said that the process that is started by Yerevan visit of President Abdullah Gul last year, made Turkish and Armenian businessmen to take action. Soyak said, “There were many projects on our agenda. Their infrastructures are completed, now the project that we deal with is reaching Armenian diaspora.”

    Soyak said that Armenian diaspora is the richest diaspora in the World after Jewish diaspora. He said, “There are 1.2 million Armenian in U.S. and 2 million in Russia. Besides we are interested in the diaspora of Canada, Argentina and Brazil. These people speaks Turkish language with Anatolian dialect and their economical status are very well. More than any other thing, they are ready to cooperate with Turkey.”

    Soyak said that Turkey can reach to the markets that it cannot find place for itself with the help of Armenian diaspora. He said that this new markets can form a new hope against recession.

  • RUSSIA: MOSCOW HOSTS CONFERENCE ON AFGHANISTAN

    RUSSIA: MOSCOW HOSTS CONFERENCE ON AFGHANISTAN

    RIA Novosti

    Russia is ready to actively contribute to normalization of the situation in Afghanistan, President Dmitry Medvedev said Friday in a welcome message to the participants of an international conference, RIA Novosti reports.

    The Moscow conference on Afghanistan was held under the auspices of the Shanghai Cooperation Organization (SCO) – a regional security organization comprising Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan and Uzbekistan.

    The conference participants – SCO ministers and representatives of G8 members, Turkmenistan, Turkey, Iran, the UN, the Collective Security Treaty Organization (CSTO), the OSCE, the EU and NATO – gathered to discuss the situation in Afghanistan and in the Middle East and work out a strategy of fight against terrorism and drug production.

    The CSTO comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Uzbekistan and Tajikistan.

    “I am convinced that the conference results will become a weighty contribution to the efforts by member countries and observers of the SCO, other states and international organizations to assist Afghanistan,” said the president’s message, which was read by Foreign Minister Sergei Lavrov.

    “For its part, Russia is ready for active joint steps aimed at normalizing the situation in the country and ensuring its peaceful and creative development,” it said.

    Medvedev said the conference was a very important event and noted that its participants would have to discuss a number of serious problems touching upon the interests of Afghanistan and other countries.

    The president said Russia is interested in wide cooperation with the international community to resolve Afghanistan’s problems.

    Lavrov, heading the Russian delegation, said the SCO and CSTO proposed forming belts of drug, terrorist and financial security in Afghanistan.

    The Foreign Ministry said Lavrov would attend an international conference on Afghanistan in The Hague on March 31, which will bring together foreign ministers of states involved in Afghanistan, as well as representatives of international organizations.

    “The minister will outline the main results of the conference on Afghanistan in Moscow,” the ministry said.

    At Friday’s conference in Moscow, a Chinese deputy foreign minister said China had provided $180 million assistance to Afghanistan and written off all its outstanding debts.

    The Turkish foreign minister said Turkey intended to contribute to SCO efforts on an Afghan settlement and an Iranian deputy foreign minister said it was time to switch over from declarations to actions in the Afghan settlement.

  • A New World Order

    A New World Order

    An end of hubris

    Nov 19th 2008
    From The World in 2009 print edition

    America will be less powerful, but still the essential nation in creating a new world order, argues Henry Kissinger, a former secretary of state and founder of Kissinger Associates

    Reuters

    The most significant event of 2009 will be the transformation of the Washington consensus that market principles trumped national boundaries. The WTO, the IMF and the World Bank defended that system globally. Periodic financial crises were interpreted not as warning signals of what could befall the industrial nations but as aberrations of the developing world to be remedied by domestic stringency—a policy which the advanced countries were not, in the event, prepared to apply to themselves.

    The absence of restraint encouraged a speculation whose growing sophistication matched its mounting lack of transparency. An unparalleled period of growth followed, but also the delusion that an economic system could sustain itself via debt indefinitely. In reality, a country could live in such a profligate manner only so long as the rest of the world retained confidence in its economic prescriptions. That period has now ended.

    Any economic system, but especially a market economy, produces winners and losers. If the gap between them becomes too great, the losers will organise themselves politically and seek to recast the existing system—within nations and between them. This will be a major theme of 2009.

    America’s unique military and political power produced a comparable psychological distortion. The sudden collapse of the Soviet Union tempted the United States to proclaim universal political goals in a world of seeming unipolarity—but objectives were defined by slogans rather than strategic feasibility.

    Now that the clay feet of the economic system have been exposed, the gap between a global system for economics and the global political system based on the state must be addressed as a dominant task in 2009. The economy must be put on a sound footing, entitlement programmes reviewed and the national dependence on debt overcome. Hopefully, in the process, past lessons of excessive state control will not be forgotten.

    The debate will be over priorities, transcending the longstanding debate between idealism and realism. Economic constraints will oblige America to define its global objectives in terms of a mature concept of the national interest. Of course, a country that has always prided itself on its exceptionalism will not abandon the moral convictions by which it defined its greatness. But America needs to learn to discipline itself into a strategy of gradualism that seeks greatness in the accumulation of the attainable. By the same token, our allies must be prepared to face the necessary rather than confining foreign policy to so-called soft power.

    Every major country will be driven by the constraints of the fiscal crisis to re-examine its relationship to America. All—and especially those holding American debt—will be assessing the decisions that brought them to this point. As America narrows its horizons, what is a plausible security system and aimed at what threats? What is the future of capitalism? How, in such circumstances, does the world deal with global challenges, such as nuclear proliferation or climate change?

    America will remain the most powerful country, but will not retain the position of self-proclaimed tutor. As it learns the limits of hegemony, it should define implementing consultation beyond largely American conceptions. The G8 will need a new role to embrace China, India, Brazil and perhaps South Africa.

    The immediate challenge

    In Iraq, if the surge strategy holds, there must be a diplomatic conference in 2009 to establish principles of non-intervention and define the country’s international responsibilities.

    The dilatory diplomacy towards Iran must be brought to a focus. The time available to forestall an Iranian nuclear programme is shrinking and American involvement is essential in defining what we and our allies are prepared to seek and concede and, above all, the penalty to invoke if negotiations reach a stalemate. Failing that, we will have opted to live in a world of an accelerating nuclear arms race and altered parameters of security.

    In 2009 the realities of Afghanistan will impose themselves. No outside power has ever prevailed by establishing central rule, as Britain learnt in the 19th century and the Soviet Union in the 20th. The collection of nearly autonomous provinces which define Afghanistan coalesce in opposition to outside attempts to impose central rule. Decentralisation of the current effort is essential.

    All this requires a new dialogue between America and the rest of the world. Other countries, while asserting their growing roles, are likely to conclude that a less powerful America still remains indispensable. America will have to learn that world order depends on a structure that participants support because they helped bring it about. If progress is made on these enterprises, 2009 will mark the beginning of a new world order.

    Source: www.economist.com, Nov 19th 2008

    “New World Order” transmutes into “Age of Compatible Interest”

  • ARMENIA RUSSIA TO MINE URANIUM STIRS

    ARMENIA RUSSIA TO MINE URANIUM STIRS

    Marianna Grigoryan 3/26/09

    It is not just railways, energy and telecommunications that unite Russian and Armenian business interests. This summer, a controversial joint project to mine uranium is expected to break ground; a prospect that some Armenian environmentalists warn could turn Armenia into “an environmental disaster zone.”

    The project, launched in February 2008, means fuel for Armenia’s nuclear power plant and for export. Details about financing are sketchy, although Armenia and Russia were originally said to be equal partners in the venture. Russia’s atomic energy agency, Rosatom, has claimed that it will put in “several million dollars” for research up until 2010. But the joint enterprise handling the project cannot elaborate.

    Exploration began last fall in the southern region of Syunik, known for its metal ore riches. The project has so far relied primarily on Soviet-era data. Rosatom Senior Director Sergei Kirienko projected in 2008 that the sites could contain “up to 60,000 tons” of uranium ore.

    Academician and geochemist Sergei Grigorian, who oversees the geological survey of the Syunik uranium deposits, told EurasiaNet it is still too soon to speak about exact figures concerning the deposits. The work, though, he affirmed, “is on the right track.”

    “I personally suspended exploration work [at this same location] during the Soviet era, because I believed the exploitation of uranium mines [in Armenia] was senseless since there were larger deposits in other Soviet republics,” said Grigorian. “But today, when uranium costs up to $300 per kilogram, exploitation of the [Armenian] deposits will bring benefits, if the ore is used carefully.”

    The director of the joint company set up to oversee the project, the Armenian-Russian Mining Company, adds that for the next two years the focus will be on geological surveys alone.

    “We can’t tell the exact amount of available deposits, but the extraction will cover quite a large territory in both the northern and the southern regions of Syunik,” said director Mkrtich Kirakosian. The start of underground survey work, originally expected for this spring, “might be somewhat delayed” some months as the project waits for government authorization for the work, he added.

    Despite the lack of specifics, environmentalists are already issuing dire warnings. Syunik already is home to the copper mining works of Kapan and Kajaran. Inga Zarafian, chairman of the non-governmental organization Ecolur, said that opening a uranium mine in the area would greatly increase the ecological hazards.

    Traces of heavy metals such as mercury and arsenic have already been found in the hair of children living near what is expected to be the uranium project’s primary mining site, Lernadzor, some three kilometers away from Kajaran. Surveys by the Armenian National Academy of Science’s Ecosphere Research Center show that ground radiation in the area exceeds the permitted level by more than three and a half times; ground contamination by heavy metals is several times higher than allowed.

    Given the risks, public discussions on the mining project are a must, Zafarian affirms. “Talking about this tomorrow may be too late,” Zarafian said. “The territories are already environmentally endangered. . . . Now, they are going to exploit uranium mines there. Imagine what’s going happen to the place!”

    Lernadzor village head Stepan Poghosian says that locals are worried about the health risks once actual mining begins. “Everybody knows what uranium is. . . . People don’t want to live in a place that may cause diseases in their children,” Poghosian said. “The exploitation of uranium is not rain, a mudslide or hail, things that villagers can handle.”

    Both experts involved in the survey work and the Ministry of Environmental Protection insist that the project involves no hazards, and that mining operations will be “transparent.”

    The uranium deposits are mostly hidden within the ground’s crust and will be extracted via tunneling, said survey overseer Grigorian, who seconds the call for a public hearing on the matter. “The mining might be dangerous if it were, say, in the basin of Lake Sevan, but there is no such danger because Syunik is a mountainous region,” said Grigorian. “Maybe a very small area is threatened there, at the entrance to the tunnel, but the rest of the work will be done underground. So, the population’s fears of radiation are groundless.”

    Armenian-Russian Mining Company Director Kirakosian echoes that line. “It’s too soon to talk about environmental problems because, so far, it’s just about the survey,” he said, adding that all work follows existing legislation and “observes all environmental requirements.”

    Environmentalist Hakob Sanasarian, chairman of the Greens’ Union of Armenia, counters that uranium prospecting at the Syunik site was stopped for a good reason during the Soviet era. “The suspension . . . was not a decision that just happened,” Sanasarian said. Grigorian, who worked on the site in Soviet times, however, maintains that the work stopped only because other sites had larger deposits. “The environmental hazards threaten to cause genetic modifications in humans, as well as cancer, and other defects. Nature will have its revenge one day.”

    Meanwhile, local residents say they are left in a quandary about whether to go or to stay. “I don’t know what is going to happen,” said Lernadzor’s Petrosian. “We have lived here our whole lives . . .”

    Editor’s Note: Marianna Grigoryan is a freelance reporter based in Yerevan.

    Posted March 26, 2009 © Eurasianet

    Source:  www.eurasianet.org, 26 March 2009

  • Great game in Eurasia

    Great game in Eurasia

    In the Trenches of the New Cold War: The US, Russia and the great game in Eurasia

    By M K Bhadrakumar

    Curiously, it had to be on the fateful day when Russia had begun brooding over former president Boris Yeltsin’s final, ambivalent legacy that US Defense Secretary Robert Gates arrived on his first official visit to Moscow.

    Hardly had Yeltsin, archetypal symbol of post-Soviet Russia’s “Westernism”, departed than Gates, one of spymaster John le Carre’s “Smiley’s people”, arrived on a mission to let the Kremlin know that no matter Russian sensitivities, Washington was going ahead with its deployment of missile-defense systems along Russia’s borders. Gates reminded the Russians how little had changed since the collapse of the Soviet Union in 1991.

    Gates and Putin in Moscow

    Yet how different Russia is in comparison with the Soviet Union that Gates spied on. Yeltsin was being buried in Moscow’s Novodevichy Cemetery, the final resting place of Russia’s heroes, beside the grave of Raisa Gorbacheva, the wife of Yeltsin’s bitterest political adversary Mikhail Gorbachev – something inconceivable in the annals of Soviet history.

    Gates’ mission was clear-cut. The Russians must realize that in the past two decades since Gorbachev wound up the Warsaw Pact and Yeltsin unilaterally disbanded the Soviet Union, Russia never was, never could have been, and just wouldn’t be accommodated in the common Western home – certainly not until the home was thoroughly refurbished with American decor, for habitation by post-modern Europeans.

    The missile-defense controversy has gone beyond a mere Russian-US spat. It is assuming three distinct templates. First, profound issues of arms control have arisen, and along with that the role of nuclear weapons in security policies gets pronounced. Most certainly, the controversy relates to the United States’ trans-Atlantic leadership in the post-Cold War era. And, finally, quintessentially, it is all about the United States’ global dominance, of which the unfolding Great Game in the Eurasian theaters forms the salience.

    The ABC of missile defense

    The missile-defense controversy assumed a habitation and a name on April 18, when the US State Department released in Washington a “Fact Sheet” detailing the technical parameters of the deployments that the US is contemplating in Poland and the Czech Republic. It said that the US is planning to field 10 long-range ground-based missile interceptors in Poland and a mid-course radar in the Czech Republic to counter the growing threat of missile attacks from the Middle East.

    US Missile Interceptor

    The Fact Sheet revealed that the approximate size of each interceptor missile site (in Poland) and radar site (in the Czech Republic) will be 275 hectares and 30 hectares respectively, and that US military and civilian personnel numbering 200 and 150 would be deployed in each of the interceptor sites and radar sites.

    It said the interceptor missiles will be stored in underground silos in Poland and each base will have facilities for electronic equipment for secure communication, missile assembly, storage, maintenance and security. “They [missiles] carry no warheads of any type, relying instead on their kinetic energy alone to collide with and destroy incoming warheads. Silos constructed for deployment of defensive interceptors are substantially smaller than those used for offensive purposes. Any conversion would require extensive modifications, thus precluding the possibility of converting the interceptor silos for use by offensive missiles,” it said.

    The Fact Sheet explained that intercepts occur at very high altitudes (above the atmosphere) with the vast majority of the threat warhead and the interceptor reduced to small pieces that burn on re-entry. “A few small pieces may survive, but pose little threat to people and property. The odds of damage or injury from an intercept are very small. European interceptors would not be used for flight tests, and would only launch during an actual attack on the United States or Europe,” it said.

    The US statement insisted that the missile-defense system has been proved effective through repeated testing and that 15 of the last 16 flight tests were successful.

    The Fact Sheet attempted to substantiate the main US arguments in the missile defense controversy, which are: (a) the European missile shield is meant to counter possible attacks from Iran or North Korea; (b) the US is puzzled by Russia’s anxiety, since the rockets to be deployed in Central Europe are no match for Russia’s arsenal; (c) Russia itself should be worried about the missile threat from “rogue states”; (d) the US is prepared to cooperate with Russia on missile defense; (e) the US is open to the idea of merging the missile shield with the Russian system; (f) Washington would like Moscow to take part in research and development, though it is unlikely the Russians will consider such cooperation; and (g) the US has endeavored to be “transparent” and is prepared to hold consultations with Russia to explain its case for the deployments in Central Europe.

    Prima facie, the US stance sounds eminently reasonable and conciliatory. But the Russians point out that ever since December 13, 2001, when President George W Bush announced that the US was unilaterally pulling out of the 1972 Anti-Ballistic Missile (ABM) Treaty, Washington has followed a consistent pattern of deploying along Russian borders radars capable of spotting missile launches and sending targeting data to interceptors. (The first such radar, code-named Have Stare, was stationed in Norway.)

    Russia says these deployments by far predated Bush’s “axis of evil” thesis or the threat perceptions of “rogue states” such as Iran. Russian experts explain that neither Iran nor North Korea could possibly have the scientific or technical capability within the next 20-30 years to develop intercontinental ballistic missiles (ICBMs) capable of reaching the US. Thus Moscow concludes that the real purpose of the US deployment is to cover the European part of Russia as far as the Urals.

    Russia reacts

    First Deputy Prime Minister Sergei Ivanov told The Financial Times in an interview last week, “Since there aren’t, and won’t be, any ICBMs [with North Korea and Iran], then against whom, against whom, is this system directed? Only against us.”

    And on Thursday, Russia announced that it is considering withdrawing from the Soviet-era Conventional Forces in Europe treaty, under which NATO and the Warsaw Pact agreed to reduce their conventional armed forces at the end of the Cold War. The North Atlantic Treaty Organization (NATO) had failed to implement the treaty, President Vladimir Putin said, and unless it did so, Russia would dump it unilaterally. Putin described the US defense plan as a “direct threat”.

    Moscow doubts the sincerity of US pledges to be cooperative with Russia. Ivanov said, “I see no reasons for that,” referring to the logic of Russian-US cooperation in missile defense. Foreign Minister Sergei Lavrov derisively said at a press conference on Tuesday in Luxembourg, “We are against any proposal that turns Europe into a playground for someone. We do not want to play these games.”

    Clearly, the Russians are also not taken in by the US plea that the proposed deployments in Central Europe are modest. As prominent Russian commentator Viktor Litovkin (editor of the Russian publication Independent Military Review) put it, “It would be naive to think that Washington will limit its appetites to Poland and the Czech Republic, or to the modest potential that it is now talking about.”

    He continued, “Nobody can guarantee that there will not 20, then 100, or even more of them [interceptor missiles] or that they will not be replaced with their upgraded versions that are being developed in the US.” Besides, Russian experts have assessed that the US may expand this system in future to include sea-based elements and space-based monitoring equipment.

    In the words of the chief of the Russian Air Force Staff, General Boris Cheltsov, the proposed US deployments have “the potential to destroy Russian strategic nuclear forces at the most vulnerable stage: the initial, ascending leg of the trajectory”.

    The “asymmetrical” countermeasures being debated by Russian experts in recent weeks include shortening the boost phase of Russian missiles by converting liquid-fueled missiles to solid-propellant ones; enhancing the maneuvering capacity of the missiles both in the vertical and horizontal planes; using depressed trajectories that practically never rise above the dense layers of the atmosphere; and so on.

    Gates, who met with Putin on April 24, invited Moscow to cooperate on a host of issues related to the missile-defense system. In his public comments, Gates gave a positive spin to his discussions at the Kremlin. He said he was ending his visit on a “very positive tone … We made some real headway in clearing up some misunderstanding about the technical characteristics of the system that are of concern to the Russians.”

    But Russia’s top brass reacted swiftly to Gates’ upbeat tone, maintaining that the proposed US deployments in Central Europe are aimed at Russia and that there is hardly any scope for cooperation. The chief of the Russian General Staff, General Yury Baluyevsky, said: “The real goal [of the US deployment] is to protect [the US] from Russian and Chinese nuclear-missile potential and to create exclusive conditions for the invulnerability of the United States.”

    Gen. Yury Baluyevsky

    He warned that Moscow will monitor the US deployments closely, and “if we see that these installations pose a threat to Russia’s national security, they will be targeted by our forces. What measures we are going to use – strategic, nuclear or other – is a technical issue.”

    All the same, the Russian reaction has been restrained. The Kremlin seems to have a pragmatic diplomatic strategy in mind. As Putin has said, the Russian reaction may be “asymmetrical” but highly effective. Evidently, Putin is averse to getting on to a collision course with Washington. His priorities at the moment are that he remain focused on the development of Russia’s economy and on the acute social problems affecting Russia’s progress. In the final year of his presidency, Putin is conscious of his political legacy.

    Russian politics are increasingly revolving around the change of leadership at the Kremlin next March. Meanwhile, the US presidential campaign has begun. As Moscow would see it, traditionally, a “hardline” policy toward Russia wins more support for the US Republican Party.

    Objectively speaking, Russian-US relations have no reason to deteriorate the way they did during the Cold War. The two countries are not hostile toward each other. On the contrary, they need to cooperate on a variety of issues of common concern, such as terrorism and nuclear proliferation, including the Iran and North Korea nuclear issues. Their economic ties are also increasing.

    All the same, significant rifts exist in Russian-US relations and the missile-defense controversy has “plunged relations with Russia to their lowest since the end of the Cold War”, to quote The Guardian. Behind the facade of the conciliatory noises during Gates’ visit to Moscow, unnamed US officials accompanying the defense secretary are quoted as saying, “We’re going to continue to make this effort with Russia, but we’re also very clear, whether Russia cooperates with us or not is really up to Russia.” The feeling in Moscow is that the US has reneged on an agreement after the collapse of the Soviet Union to abandon Cold War politics.

    US rallies European support

    Moscow feels disheartened to note that US diplomacy has largely succeeded in getting NATO on board. After a special meeting in Brussels on April 19 at NATO headquarters with high-level representatives from Washington, which was followed by a meeting of the NATO-Russia Council, it was announced that NATO has a united missile-defense approach; that the territory of all member countries must be protected from missile threats; that the threat of missile attacks is real; and that the US deployments in Central Europe “would not affect the strategic balance with Russia”.

    Of course, beneath the veneer of unity, it appears there are differences. German Deputy Foreign Minister Gernot Erler told the Berliner Zeitung newspaper on Wednesday that at least six NATO allies, including Germany, had raised doubts about the project at the NATO meeting on April 19.

    But the discussion among NATO allies is no longer between the “new” and the “old” Europeans, as Russian commentators would have us believe. The German daily Handelsblatt pointed out that the issue now is whether the planned US system can protect all of Europe or not. It added, “So far it can’t … But if the US can offer a working missile shield for a viable price that would also include southern Europe, the resistance in most European countries will fall away.”

    Indeed, there is a considerable body of skeptics who feel, like Philip Coyle, a weapons testing and evaluation specialist who served in the administration of US president Bill Clinton, the US missile-defense system is “like trying to hit a hole in one in golf … [when] the hole is going 15,000 miles an hour [24,000 km/h] … as if the hole and the green were both going 15,000 mph, the green covered with black circles, and you do not know what to aim for”. Yet, Coyle admits, “If Russia were installing missile-defense systems in Canada or Cuba, we [Washington] would react much the same way. We are surrounding them and getting closer to their territorial boundaries.”

    On the other hand, Washington is counting on the shift to the right in the locus of European politics. It is much to Moscow’s disadvantage that Nicolas Sarkozy is on course to succeed Jacques Chirac as French president. That leaves Romano Prodi in Rome as the lone ranger from Moscow’s side. Moscow would have assessed that German Chancellor Angela Merkel is already playing for time. She refuses to be pinned down on the missile-defense controversy. In essence, Merkel believes in the benefits of closer trans-Atlantic cooperation.

    Der Spiegel reported last week in an exclusive report that Merkel, Bush and European Commission President Jose Manuel Barroso have agreed to set up a wide-ranging economic partnership between the European Union and the United States that “would have the aim of dismantling the non-tariff barriers to trade”. The German daily revealed that a confidential draft has already been drawn up for a treaty establishing a “new trans-Atlantic economic partnership” that will be signed at the EU-US summit in Washington next week.

    The rationale behind the initiative, which originated from Washington, is that Western governments must act quickly to combat the rise of China (“dark superpower”) and Asia. To quote Der Spiegel, “The role NATO played in an age of military threat could be played by a trans-Atlantic free-trade zone in today’s age of economic confrontation. The two economic zones – EU and the US (perhaps with the addition of Canada) – could stem the dwindling of Western market power by joining forces. Together the Europeans and the Americans are still a force to be reckoned with. Representing about 13% of the world’s population and 60% of today’s global economic power, they stand ready to act as producers and consumers not only of goods, but also of values.” Interestingly, Merkel used her keynote speech at the World Economic Forum in January to push for closer trans-Atlantic economic links.

    Clearly, Washington has reason to be confident that the residual opposition in Europe to US missile-defense deployments, too, may prove to be nebulous. Meanwhile, Russia’s relations with the EU as such have entered a difficult phase. In a recent speech, EU Trade Commissioner Peter Mandelson, a highly respected voice of moderation in Europe, bemoaned that mistrust and a lack of respect in relations between the EU and Russia are at their worst since the Cold War. “Unless we comprehend our different perceptions of the landscape left behind by the last century, we risk getting the EU-Russia relationship badly wrong,” he said.

    The EU’s blueprint of its new Central Asia strategy, to be adopted at the EU summit in June, will likely be viewed in Moscow as an unwelcome encroachment, especially given its thrust on developing energy cooperation with the region by bypassing Russian transportation routes.

    Russian oil and gas routes

    In immediate terms, a virtual EU-Russia standoff is building up over Kazakhstan’s participation in a US$6 billion gas-pipeline project that is an extension of the South Caucasus pipeline, linking Azerbaijan, Georgia and Turkey, and which is expected to run from Turkey to Austria via Bulgaria, Romania and Hungary. The 3,400-kilometer pipeline across the Caspian bypassing Russia, which is to be built from early next year so as to go on stream in 2011, will have a capacity of 30 billion cubic meters and promises to be a rival to Russian Gazprom’s Blue Stream-2 (scheduled to be commissioned in 2012).

    Moscow is well aware that Washington is the driving spirit behind the EU’s energy policy toward Central Asia. Washington calculates that Moscow will be inexorably drawn into a standoff with the EU over the latter’s increasingly proactive policies in Eurasia.

    Without doubt, there are contradictory tendencies in trans-Atlantic relations. Of course, there is a degree of queasiness in Europe about US power and influence on the continent in the post-Cold War era. Much of Europe doesn’t think that the US missile-defense system works, let alone that an apocalyptic Iranian threat exists. Even in Poland and the Czech Republic there is widespread public opposition to the US deployments. The major European capitals resent that Washington is negotiating bilaterally with Warsaw and Prague, as if a coherent European security and defense policy independent of NATO is never achievable for Europe.

    The European sensibility watches with dismay that not only has the EU dream of a big, peaceful post-modern federation receded but the specter of new Cold War-like divisions has begun haunting Europe. Many in Europe would agree with Gorbachev when he said last week that the missile-defense controversy “is all about influence and domination”.

    To be sure, trans-Atlantic relations are undergoing a major transformation. Despite all the talk of kindred values and similar social systems, the US is no longer supportive of the European project of integration. True, the Americans were at one time the promoters of the European project. But now they have developed distaste for the idea of European integration. And the Europeans remain uneasy about US “unilateralism”.

    On the other hand, Europe also faces an identity crisis. The Berlin Declaration, which was adopted last month on the 50th anniversary of the European Economic Community, completely overlooked the objective of the pan-European project. Translated into EU-Russia relations, all this means is that neither side seems to know what it wants from the other side. As things stand, it is highly unlikely that the Partnership and Cooperation Agreement of 1999 between the EU and Russia, which expires at the end of this year, will be extended or replaced by a new treaty.

    Arms race in the making?

    After Gates’ mission to Moscow, Russian Deputy Defense Minister Sergei Kislyak warned that the controversy has the potential to create obstacles to the development of bilateral relations for a long time. “It will be a strategic irritant for years to come,” he said. Defense Minister Anatoly Serdyukov went a step further: “The Russian position on this issue remains unchanged. The strategic missile defense system is a serious destabilizing factor that could have significant impact on regional and global security” (emphasis added).

    Serdyukov’s reference to “global security” gives an altogether different dimension to the missile-defense controversy. Russian experts feel that the deployment of the missile-defense system is the first step in a carefully thought-out US strategy toward overcoming the mutual strategic deterrence that formed the basis of Russian-US strategic stability in the Cold War era.

    They estimate that Washington’s unilateral withdrawal from the 1972 ABM Treaty formed part of a series of unilateral actions in simultaneously building up the United States’ offensive forces (not only nuclear but also non-nuclear precision attack systems) and active defense assets, including missile-defense systems. In short, they apprehend that the US is aiming at replacing the “balance of terror” with total military superiority.

    Besides, Russian experts estimate that the Bush administration has created a selective arms-control situation. Writing in the Russian military journal Nezavisimoye Voyennoye Obozreniye, the influential director of the USA and Canada Institute of the Russian Academy of Sciences, academician Sergei Rogov, pointed out last month in a lengthy article that the Bush administration has been selectively abrogating arms-control treaties that it considers as interfering with the United States’ “military organizational development”.

    Sergei Rogov

    “But if agreements limit Moscow to a greater extent than Washington, then they continue to be in force, i.e., strategic stability based on ‘mutual nuclear deterrence’ is being impaired gradually, step by step,” Rogov wrote. That is to say, the Bush administration has been “building up US military superiority and weakening Russia’s nuclear deterrence potential”.

    However, Rogov pointed out, “The deployment of space-based weapons cannot begin earlier than the second half of the next decade. On the whole, the echeloned, multi-tiered strategic missile defense system, including relatively effective ground-based, sea-based, air-based and space-based intercept assets, will take on real outlines in the 2020s, but the process of its formation most likely will drag on right up until the middle of this century. We repeat that all this will require a solution to a large number of very difficult technical problems as well as a manifold increase in funding.”

    Rogov noted that Moscow already has its own missile-defense system with 100 interceptor missiles, and its S-300 and S-400 air-defense assets also have specific capabilities for intercepting missiles. In other words, Moscow can draw comfort that the situation of “mutual assured destruction” will prevail for at least the next 10-15 years in Russian-US relations. Rogov argues that in the interim, instead of knee-jerk reactions or resorting to “a ruinous arms race”, Russia must coolly ensure through mutually reinforcing politico-diplomatic and military-technical steps that the overall strategic balance with the US based on “mutual nuclear deterrence” is preserved.

    From this perspective, Rogov proposed several measures in the nature of Russia accelerating its program for outfitting its Strategic Nuclear Forces with weapons systems capable of penetrating the US missile-defense system. He suggested that the road-mobile Topol-M ICBM be fitted with MIRVs (maneuverable re-entry vehicles). Again, Russia must concentrate on precision air-launched cruise missiles (ALCMs) capable of destroying missile-defense facilities. Russia’s present fleet of Tu-95MS and Tu-160 strategic bombers and Tu-22M3 medium bombers are potentially capable of carrying about 1,500 ALCMs. Rogov argued that measures such as these will be cost-effective insofar as mass production of ICBMs and ALCMs will cost less than US$1 billion per year – a tiny fraction of the US expenditure in developing the missile-defense system.

    Russia’s TU-95MS strategic bomber

    Rogov also called for an “auditing” of the arms-control agreements that Russia inherited from the Soviet era so that a cool assessment is made as to how Russia’s interests will be served by the preservation of these agreements in their present form. He wrote, “Who needs such selective arms control? We will support ‘mutual nuclear deterrence’, playing a game without rules like the Americans, as at the height of the Cold War before 1972.”

    Talking to the Russian media on Thursday after Gates’ talks in Moscow, Rogov said Russia and the US “are still hostages of mutual nuclear intimidation … We are on the brink of a new ‘cold war’ if one looks closely at our present-day relations.” He warned that unless the negative tendencies in Russian-US relations are arrested soon, “I do not rule out that at the 2008 presidential elections in the US, both Republicans and Democrats may bring forward a thesis on the need for a Russia-containment policy.”

    The new cold war

    Moscow has repeatedly warned in the recent period that enough is enough and that it is not prepared to be pushed around anymore. There is deep resentment over NATO’s continued expansion in contravention of promises held out to Moscow that this would not happen. But ignoring Russian sensitivities on this score, Bush signed a new law on April 10 (the NATO Freedom Consolidation Act of 2007) urging admission of Albania, Croatia, Georgia, Macedonia and Ukraine into the alliance and authorizing new funding for military training and equipment for them.

    Washington is also aggressively pursuing a policy of rollback of Russian influence in the former Soviet republics. On the same day that the new law on NATO expansion was signed, US Secretary of State Condoleezza Rice told the media that Washington has “tried to make very clear to Russia … that the days when these [Commonwealth of Independent States] states were part of the Soviet Union are gone, they’re not coming back.” Already by the end of 2007, Georgia is poised to start its NATO-membership program. Georgian President Mikheil Saakashvili has said, “We expect to receive the status of an official NATO candidate in the next few months.”

    Again, Washington’s line on the status of the breakaway Serbian province of Kosovo has hardened. Senior US officials have threatened that regardless of Russian opposition, and whether the United Nations Security Council agrees or not, Washington proposes to go ahead and recognize Kosovo’s independence. There is also a distinctly familiar pattern in the sustained political turmoil in Kyrgyzstan bankrolled from Washington. The instability in Kyrgyzstan has added significance for Russia insofar as Bishkek is expected to host the next summit of the Shanghai Cooperation Organization.

    Moscow maintains an air of passivity but is deeply concerned. In a thinly veiled reference to the US backing for the so-called “color revolutions”, the secretary general of the Collective Security Treaty Organization, General Nikolai Bordyuzha, said in a speech in Almaty on April 19, “Today, it is not only Afghanistan that the entire post-Soviet space is concerned about. There is a problem of the export of revolutions – the problem of attempts to intentionally bring about their elements. And we can see it. Today, there are recognizable people, exporters of revolution, the so-called contemporary revolutionaries – new Che Guevaras – in the post-Soviet space.”

    Russia and Central Asia

    The change of leadership in Turkmenistan has opened a window of opportunity for the US to make overtures to Ashgabat. Significantly, the new Turkmen leader, Gurbanguly Berdymukhammedov, chose Saudi Arabia for his first visit abroad. The EU has already offered the new Turkmen leadership 1.7 million euros ($2.3 million) for undertaking a feasibility study on a trans-Caspian gas-pipeline project that would obviate the need for Turkmen gas to be exported via Russia.

    The US is using the EU to curry favor with Uzbekistan and somehow let bygones be bygones. The EU is showing signs of getting down from its high horse and unilaterally dismantling tje sanctions regime that it imposed on Uzbekistan after the Andizhan incidents in May 2005. Again, the US is relentlessly working at loosening Russia’s grip in the South Caucasus – Georgia, Azerbaijan and Armenia.

    But the ferocity with which the US has reacted to the revival of Russian influence in Ukraine has no precedent. The Ukraine developments show that Washington is determined at any cost to surround Russia with a ring of countries that are hostile to it. Washington has assessed that, if only by subverting the constitutional processes and by discrediting the fledgling political institutions (which are actually a legacy of the “Orange Revolution”) the US can bring about “regime change” in Kiev, so be it.

    The present turmoil began soon after Yulia Timoshenko, the darling of the “Orange Revolution”, visited Washington two months ago and was received by senior US officials, including Rice. The stakes are indeed high in Ukraine. Unless Kiev is brought back under a subservient pro-American setup, how can Ukraine possibly become a NATO member and how can US missile-defense systems be deployed on Ukrainian soil, given widespread opposition to the idea among the people of that country?

    Professor Stephen Cohen, the venerable doyen of Sovietologists, recently surveyed the topsoil of the newly dug trenches in Russian-US rivalry: “Relations between Russia and the United Sates are very bad at present. I think we’re already seeing a cold war. At least, that is America’s policy on Russia. Your country [Russia] is being fairly passive. Understandably, the Kremlin doesn’t want to escalate tension again. But it isn’t clear that the Kremlin is capable of preventing that. Much will depend on how NATO’s relations with Ukraine and Georgia develop. This is the new front of the new Cold War.”

    It is appropriate that the working group set up on Thursday as a joint initiative by Putin and Bush, against the backdrop of these growing tensions, focus on relations between the two great powers, will be headed as co-chairmen by two formidable veterans of the Cold War era – Henry Kissinger and Yevgeny Primakov.

    Yet the People’s Daily might well have had a point when it commented last week with an acerbic tone of detachment and disdain, “The core of the US-Russian oral spat is a conflict of interests. Naturally, both countries want maximum benefits. That explains why the US supports anti-government forces within Russia, promotes ‘democracy’ – a one-sided wish – in foreign lands, continues to support eastern expansion of NATO, and asks for missile-defense deployment in Eastern Europe, while Russia exercises a measured US policy. It can be predicted that, facing US attacks, Russian-US ties featuring both contention and cooperation will not change in the short term.”

    M K Bhadrakumar served as a career diplomat in the Indian Foreign Service for more than 29 years, with postings including ambassador to Uzbekistan (1995-98) and to Turkey (1998-2001).

    This is a slightly edited version of an article that appeared in Asia Times on April 28, 2007. Posted at Japan Focus on April 29, 2007.

    Source: www.apanfocus.org

  • Is Russia able to Handle the Crisis?

    Is Russia able to Handle the Crisis?

    Introduced by Vladimir Frolov
    Russia Profile

    Contributors: Vladimir Belaeff, Stephen Blank, Ethan S. Burger, Vlad Ivanenko, Eugene Kolesnikov

    A debate on whether the Russian political system needs an overhaul has turned into a shouting match between senior Kremlin officials. Last week, First Deputy Head of the presidential administration Vladislav Surkov criticized Dmitry Medvedev’s senior advisors Arkadiy Dvorkovich and Igor Yurgens, who had the audacity to criticize the government’s approach to handling the crisis, and even went as far as to suggest that Russia’s political system has become too rigid to enable Russia to withstand the crisis. What does this debate reveal? Does it show that there is room for a healthy debate at the highest levels of power in Russia? What could be a realistic adjustment of Russia’s political system now that would not bring the house down?

    Surkov took issue with Yurgens’ thesis that the political bargain of Vladimir Putin’s era, when Russian society renounced some of its rights and freedoms in exchange for the petro-dollars trickling down, is no longer viable, and that now, when prosperity is over, the society would like to have some of its abdicated rights back.

    A week before that, Presidential Aide Arkadiy Dvorkovich said that the authorities were ill-prepared to handle the crisis due to the institutional deficiencies in the system.

    Surkov ridiculed Yurgens and Dvorkovich by arguing that their position lacks credibility and substance. “A host of conclusions follows from this suggestion,” he said. “We should get together somewhere for some kind of forum — what kind is unclear; and discuss something — no one says what; we should remake everything from scratch and create new institutions. The ‘old’ political system was either not created for these tasks and can no longer fulfill its functions, or it was the fruit of the previous plenty, and everything now will be different, and it is apparently necessary to change this system urgently.”

    Former Prime Minister Mikhail Kasyanov and the Solidarity coalition have called for the government’s resignation, early elections, elections of governors, and a new Constitution, all by the end of 2009. This is obviously not serious.

    Surkov scoffed at the notion that prosperity limits freedom. “Freedom has a material dimension,” he argued, “and the prosperity of citizens increased in recent years not in order to take away people’s freedom, but in order to make people free.” He defended Russia’s political system as “working” in these challenging times. Its rigidity, he asserts, is its strength, not its weakness, because it will hold the country together during the crisis and won’t allow it to come apart at the seams, as it once nearly did in 1990s.

    Surkov is right in saying that calls for a complete overhaul of Russia’s political system are downright irresponsible. Now is probably not the time to engage in soul searching. Action is needed more than words. “It is always much more fun to change everything, to reject everything, and to try something new,” Surkov said. “This, in my view, is our biggest vice: we are unwilling to finish anything off, we are ready to abandon everything at the half-way stage — sweepingly and without thinking about the consequences. At the same time, no one has calculated how the new political system will look, or what the cost of introducing it, yet another new system, will be.”

    But Surkov is wrong in claiming that the system is working well enough. It is not. The Duma and the Federation Council, as well as all major political parties, have been emaciated by their utter irrelevance in developing the response to the crisis. Surkov’s claim that no parliament in the world can produce effective solutions is simply ill-informed. A political system where the nation’s parliament is an irrelevant institution needs more than a facelift.

    What does this debate reveal, other than that there are conflicting groups in the Kremlin vying for the right to set the agenda of Medvedev’s presidency? Does it show that there is room for a healthy debate at the highest levels of power in Russia? If so, could it be proof that the system may indeed be working? How viable and politically savvy are the opposition calls for razing the Putin/Medvedev system to the ground, before something good actually happens in Russia? What could be a realistic adjustment of Russia’s political system now that would not bring the house down? Are there similar calls for reforming the political system to better withstand the crisis in Western democracies? Surely people in Iceland, Latvia, Lithuania, Bulgaria and Greece went to the streets to demand a better response from the government? Do political systems in these troubled nations deserve a complete overhaul? And could the election of Barack Obama count as such in the United States?

    Vlad Ivanenko, Ph.D., Economist, Ottawa:

    Several years ago I informally rated people in then-president Putin’s entourage according their ability to view things strategically. According to my estimates, Vladislav Surkov was at the top, while Arkady Dvorkovich occupied the middle position and Igor Yurgens was not considered. Judging by the account given above, I do not see the need to change my previous estimates: again, Surkov outclasses his opponents. In order to see the logic of this argument, it is necessary to regard the current Russian situation in the context of the global economic crisis and the Russian government’s binding constraints.

    In the situation of general uncertainty, two national governments seem to outperform their peers: the Chinese and the Russian. True, their relative success is largely based on huge foreign currency reserves that they have accumulated, but also on the quality of their public decision-making. I am more knowledgeable of Russian affairs, to which I return now.

    Data demonstrates that Russia performs relatively well in the areas where its government has a role to play. It has averted the collapse of its banking system and withstood speculative attacks on the ruble, contrary to popular expectations. The Central Bank registers modest growth in its foreign reserves ($387 billion in mid-March), while the Ministry of Finance reports that the federal budget continues, surprisingly in recessionary times, to be in surplus. I have had a look at the Russian plan to reform the “obsolescent” global financial system, which the country will present at the G20 meeting, and I have found the proposals sensible. Since the facts that I know indicate that the government has performed satisfactorily, I cannot agree with Surkov’s opponents that the Russian system does not work.

    The tradeoff between social well-being and democracy that Yurgens has postulated in his claim that “economic well-being is shrinking … (hence) civil rights should expand” is not substantiated. Globally, the crisis shows an acute deficit of leaders who can not only react to the problems, but also take a proactive stance, nipping appearing problems in the bud. The economic system that economists have learned in their schools is collapsing in front of our eyes. The time has come to review the recipes prescribed in current economic cookbooks, but they are exactly what the majority of the democratically-elected governments try to follow: to enlarge government expenditure, to provide fiscal stimuli, and to ease financial credit constraint. To make a definite break with established practices requires a charismatic leader who can take the sole responsibility for the consequences. Let us be honest here: democracy with its ingrained system of checks and balances is not suitable for a battlefield.

    I share Dvorkovich’s pessimism regarding “the present elite, which is above all bureaucratic,” but I do not see how he is going to replace it with “a new elite which will be more open to society,” save by the way of revolution. My opinion appears to be congruent with the view that Russian society at large exposes in opinion surveys: respondents continue to show a high degree of confidence in the ultimate representatives of the elite—that is, in national leaders. Surkov’s response shows that he is also aware of the problem, but leans toward an evolutionary replacement of the elite.

    Curiously, this debate within the Kremlin walls reveals a weakness of its economic camp. Apart from Finance Minister Alexei Kudrin, who is largely responsible for macroeconomic stability, there is no economist of a high caliber who would take the lead in developing an economic strategy for Russia. There are sensible ideas floating around, but I have yet to see what the government strategy is regarding the questions of Russian global specialization and the degree of its economic integration with its neighbors. Surkov needs to meet a formidable opponent on the economic flank before he starts losing points in the Kremlin’s games.

    Ethan S. Burger, Adjunct Professor, Georgetown University Law Center, Washington, DC :

    In recent weeks, the Russian policy-making process seems to have become slightly more transparent. Indeed, not merely political figures but their advisors are beginning to publicly engage in serious debate. Query to what audience they are addressing themselves. In is unlikely that the First Deputy Head of the Presidential Administration Vladislav Surkov (a former intelligence officer and then Deputy Chief of Staff to then-President Vladimir Putin) as well as Medvedev’s advisors Arkadiy Dvorkovich and Igor Yurgens are making spontaneous remarks to the Russian media. Are we embarking on a new era?

    Russian Constitution chapters four and six, respectively, set out the powers of the Russian president and the chairman of the Russian government (i.e. the prime minister). The Russian Constitution provides that the Russian president directs foreign and domestic policies; acts as the guarantor of the Constitution; appoints and fires the prime minister, as well as other federal ministers subject to parliamentary approval. Whereas, the Russian prime minister generally chairs the Russian cabinet; implements domestic and foreign policy as well as presidential edicts, laws and international agreements; coordinates economic and fiscal policy, manages federal property; sets prices for gas, electricity and domestic transportation; and controls domestic policies. Both the late President Boris Yeltsin and then-President Vladimir Putin had multiple prime ministers.

    A cursory reading of the Russian Constitution envisions that the prime minister is subordinate to the president. In practice, the line between determining policy and implementing it can be difficult to discern – the prime minister has a large amount of discretion with respect to the manner in which policy is carried out. Furthermore, when the prime minister is also head of the majority party in the State Duma, further complexity is added. The Russian Constitution was drafted in a fashion where the president was the most important political actor. Typically, in parliamentary governmental systems, the president (or monarch) has largely ceremonial functions, and the prime minister, as the leader of the largest party in the legislature, plays the most prominent role.

    Undoubtedly, at present the Russian Constitution does not seem to describe the Russian political reality. This situation appears to become increasingly problematic. The divide between policy and politics is not always clear, and may change over time. In fact, policy differences may give rise to political differences, as well as the reverse. The magnitude of the global economic crisis is so complex and enormous that it would be unrealistic to assume that two informed individuals would be in complete agreement on the proper approach to take to address the ramifications of the present situation, both in the short and long terms.

    The Russian President Dmitry Medvedev has noted that some Russian business persons had become extraordinarily wealthy in a short time. Almost as a moral imperative, he has called on those individuals who amassed great wealth not to downsize their workforces – in an ironic way, he seems to be implying that in the absence of a government-provided safety net, those who became wealthy (often as a result of their acquisition of the country’s natural resources) cannot act as if they have no social responsibility for the well-being of their employees and even the country as a whole. At present, one can only speculate as to whether this thinking is his own, or if it is shared by his mentor prime minister Putin.

    During the Putin presidency, political power became increasingly centralized and authoritarian.  In the aftermath of the disorder of the Yeltsin years, the majority of the Russian populace regarded this situation as tolerable, because the economic conditions seemed to be improving — largely a by-product of higher commodity prices. That era is certainly over with regard to economics – it remains to be seen whether Russian society has the capability to effectuate change in the country’s political system.

    The centralized Russian political system seems to make a smooth transition to another form of government difficult. The greatest uncertainties for Russia are how severe the current economic crisis is, and will something resembling a consensus on the steps that need to be taken develop.  If there is some form of consensus, will it be global, regional, or country specific. Can it be achieved peaceably and with a minimum of human suffering, or will economic stratification lead to political instability and insecurity? In any case, will the existing political framework both domestically and international prove sufficiently adept at managing the inevitable changes?  While a “mixed-economic” system may well emerge in many countries – will new political systems also be necessary? Unfortunately, in many countries, merely to raise these questions may involve great hardship for some.

    Eugene Kolesnikov, Private Consultant, the Netherlands:

    t is implied in the introduction to the panel, and has been stated recently by a number of public figures in Russia, that an effective response to the crisis requires more democracy. The argument goes as follows: a more democratic setup at all levels of society can help better capture numerous distress signals arising as the crisis unfolds, and it can also ensure flexibility and promptness in responding to such signals.

    Nothing can be farther from the truth than this unfortunate belief. Russia, as indeed all other countries, is fighting an economic and a related societal emergency that may escalate into an existential threat. Anyone who has ever worked in corporations or organizations that prepare for emergencies or had to respond to them knows full well that the first order of business in crisis management is centralization of control. Tighter control and centralized management of a crisis is essential for quick mobilization of resources, making hard decisions and maintaining discipline. The more organized and aligned the emergency response is, the better the chance that it will succeed.

    Fortunately, Russia’s current political system gives it major advantage and opportunity in crisis management. There is substantial centralization and discipline for the state to be able to mobilize resources, make unpopular decisions and respond to problems strategically rather than tactically in a populist fashion. The worst case scenario for the country and its people would be a democracy galore with populists, liberals and adventurists capitalizing on the difficulties, fueling popular discontent, and destabilizing the response to the unfolding crisis.

    It is really a big question whether the so-called developed democracies of the West can deal with a real crisis. They are generally slow, inflexible, obsessed with polls and elections and lacking stamina to make and carry out unpopular decisions. Western countries are stabilized by either prosperity or war, with almost no middle ground between these two poles. Not for nothing Zbigniew Brzezinski recently appealed to the rich to share with the poor and warned of possible riots in the United States if the situation is not changed.

    This crisis will test the strength of all systems and societies. I believe that Russia has a good chance to get through the crisis successfully thanks to the transformation of governance that took place during the last nine years. I have serious doubts that the touted western democracies are strong enough to emerge from this crisis unscathed or, indeed, as democratic as they had been before it started.

    Professor Stephen Blank, the U.S. Army War College, Carlyle Barracks, PA:

    It would take more than 600 words to answer all the questions posed here, but we should not make the mistake of thinking that because the debate is confined to high-ranking officials that it is not a serious debate. Unfortunately though, while liberalization could be in the offing, fundamental reform is not. As Anders Aslund once said, Russia has an exceptionally venal ruling class, and that has not changed, if anything it has probably gotten worse given the stakes involved and the ubiquity of corruption.

    This debate to my mind does not show that the “system is working.” If anything, it shows that it is not working as intended, because Russian leaders like Putin have a horror of public controversy. Of course, Medvedev or Putin could be orchestrating this to smoke out the opponents of each other’s policy. But it would be fair to say that it only betrays the ignorance and provincialism of the Russian elite to assert that no parliament in the world can produce effective solutions.

    Likewise, demonstrations against failed governments in Europe suggest that the democratic system, though not the government, is working. In Russia we’ve already seen the response to protests, and the idea that conflict must be kept in house only leads to a hot house which ultimately boils over, as it did in 1917 and 1991. Furthermore, there are so many places to begin when one contemplates what could be done to reform the system entirely that one could start anywhere, e.g., instituting genuine accountability of the government before the parliament and the law, ending political trials and what used to be called “telephone justice.”

    But I will use the opportunity here to suggest that as long as Russia has a political police whose real mission is not the defense of the state but suppression of dissent and domestic political intrigues, and which is not answerable to and accountable to the law and the parliament, it cannot be considered a democracy.

    Likewise a secure right of private property is another touchstone of a legal system (Rechtstaat) and market economy, neither of which exists in Russia. I know that a herd of political scientists and economists believe that Russia has a market economy, but they are wrong.

    Thus, it remains to be seen whether Medvedev will do more than tinker around the edges of the patrimonial or neo-Tsarist regime. And until he does, it will also remain the case that every such debate will be anxiously scrutinized to see if it heralds the beginning of the end of the system, a scrutiny that eloquently testifies to the archaic, neo-feudal nature of the Russian state and its inherent “dysfunctionality” for modern times.

    Vladimir Belaeff, President, Global Society Institute, San Francisco, CA:

    Sometimes perceptions originating inside a system can be clouded by too much proximity: “not seeing the forest for the trees.”

    The global economic crisis is extremely stressful to all countries, including those which are highly advanced,

    Organizationally. In these circumstances, in comparison, the performance of Russia’s political and governing system so far has been quite good. It must be remembered that the crisis is acknowledged as the worst in at least 60 years, possibly as many as 80. Yes, Russia experiences painful phenomena – growing unemployment, significant (although moderate: 14 percent in 2008) consumer price inflation, a drop in tax revenues, a draining of currency reserves.

    But – the Russian social safety net continues to function (unlike some other countries) there have been no spectacular corporate failures or financial scandals (unlike the United States, considered by many a paradigm of effective governance). Strategic economic sectors and major projects continue to work; there is growing import substitution; the devalued ruble is holding steady, and occasionally regaining lost ground relative to the dollar and the euro. Agricultural output grew substantially. In 2008 Russia’s current account balance dropped by 25 percent relative to the prior year – and remained strongly positive at $78 billion.

    In Western media there appear frequent alarmist comments forecasting “imminent” collapse in Russia; these forecasts migrate by a kind of news osmosis into some Russian domestic media as well. However, so far these dire predictions are fortunately false. Certainly, quite a few developed countries show evidence of a much deeper economic dislocation caused by the crisis, when compared with Russia. There is a view that the alarmist Western forecasts may be a kind of negative advertising, intended to create uncertainty about an economy that can obviously attract scarce liquidity in current capital markets. Capital that avoids Russia because of alarmist forecasts will be invested somewhere else.

    Therefore, in my opinion, the question of adequacy of Russia’s political institutions in the present severe crisis must be answered in the affirmative. Evidently, there is no perfect system, and just like in America, the European Union and other complex societies, Russia can and should continuously examine and work to improve its governance. Corruption is an issue – and at this time there are 40,000 corruption prosecutions in process: probably close to the saturation limit of Russia’s justice system.

    Russia’s economic governance in conditions of exceptional stress is generally effective and is shifting the economy in the direction of active survival, with positioning for post-crisis growth. Given recent events, like the AIG executive bonus scandal, one would rather challenge the effectiveness and results of the U.S. government’s response inside the original locus of the crisis. In comparison to other countries, Russia’s governance appears significantly more effective.

    On Sunday March 1 there were elections for local legislatures and city governments in major regions of Russia. These elections are correctly viewed as a kind of “referendum” on Russia’s governance. The results of these elections confirmed broad support for the governing party–United Russia. In some districts United Russia posted increases relative to prior polls. This result confirms that the electorate of Russia continues to approve the current policies of the government.

    Russia’s political system is responding well and better than in other countries to the extreme challenges of the global economic crisis. Although some impatience may be understandable, in my opinion it is misdirected. In other countries (the United States, UK, Portugal, Iceland, Greece) the effectiveness of the political system is questioned less, and yet recent governance experience in some of these countries is obviously disappointing.

    Source:  www.russiaprofile.org, March 20, 2009