What Russia did right, wrong and what could it do better since 1990.

 

New era for Russia has started while Gorbachev was in power. Gorbachev had caused insubordination of Baltic Republics, unsatisfaction and the coup. Yeltzin gains popularity and power at the cost of USSR integrity. CIS created but unclear boundaries exist in political sense, as some republics are stronger and more independent, like Ukraine and Uzbekistan. Economics created by elite, managed by elite, and used by elite. Other people fall out of natural life circle. Oil and gas corrupts those who have access to it, thus helpful to the government but not to the people. In general, oil and gas exports should be restrained for economical advantage for present and for future. Elite is corrupted, ignorant of the rest of the country but it is the only ruling system for now in Russia. Finances are unstable, because unstable economy results in unstable currency, and will stay so until blooming of the national economy.  Privatization is only possible upon replacement of the elite, which prohibits natural growth of the economy. Society has unheard of phenomena in Russia facing the nude poverty, which is due to the ignorance of elite to state economy development and reduced to zero standards of living in majority of population. Elections are unfair and controlled by elite, and were more democratic in the communistic Russia. Politics in military are such that president as any member of the government apparatus primarily concerned with his own interests. Military has problem that America continues its aggressive NATO expansion in Eastern Europe, despite Russia’s unwillingness to continue cold-war style engagement. Foreign policy should be such that distribution of economic connections should be increased with the countries more willing to depend on Russia.

 

Gorbachev was the first and the last president of former Soviet Union. He has done a great deed in its sense but not for Russia. He has introduced “glasnost” and opened gates for democracy into not-so-ready-for-it Russia. The fact that he himself did not believe in democratic government does reduce significance of his efforts to a simple political tactic in Russian style of tendency to achieve grand results first on the world scale. The fact that he did not believe in democracy can be concluded from the fact that he still tends to unite with communist members of the parliament, and from his past mistake of never running a democratic vote in a not-yet but ready-to-be democratic country. This would prevent caused by his actions separation of Baltic republics, national unsatisfaction and the revolutionist coup.

 

Yeltzin has proved himself to be an outstanding politician. He was able to become promoted by Gorbachev, following which he was able to outwit Gorbachev's attempts to eliminate him from political scene. However, he was not able to maintain a successful coup even though he was proclaimed as commander in Chief of Russia. He should have organized a better system of implementing the new laws proclaimed or to be proclaimed by him.

 

Yeltzin's wit have assisted him in gaining control over Russia as president of Russian Federation, while USSR still existed, and while acting president of USSR Gorbachev was in power. However, this was done at the cost of integrity of the USSR. Yeltzin did not tolerate poor representation of RSFSR in the republics, which oppressed the republics and led them to escape chains of USSR at the earliest convenient moment. He allowed Russia to fall apart but that was in accordance with his own interests. A solution to find a conscientious political leader would be naive and impossible to realize.

 

CIS was created due to the favorable economical and political reasons in December 7-8, 1991 by Russia, Ukraine and Belarus. It has been extended to eleven republics on December 21, 1991 in Alma-Ata. However, years of suppression, the unfavorable example set by Baltic republics, and the mood of “glasnost” and democracy set by Gorbachev did it, and republics were torn from USSR to be never returned back under normal circumstances. Even though departure was peaceful, infrastructure was irreparably damaged. And only years of cooperation will revive unity amidst the republics. A more gentle and slow process of breaking away of the republics from the main stream of USSR economy could have eased economic situation in both Russia and the rest of former republics.

 

Economics in Russia since fall of USSR were created by elite and for elite. All food, fashion, automotive and entertainment industries have become highly attractive but unreachable for the ordinary public. Everything appeared in stores but its price is always uncoordinated with regular salaries. This significantly lowers the standard of living in Russia. An availability of less expensive and less qualificative goods imported from such countries as China, Brazil, would allow relatively reasonable distribution of consumers with combination of allowing non-elite members to participate in the market industry. Those changes would be more likely to revive Russian economy, than all the efforts to convince elite to assist its own nation.

 

Gas and oil usually make the country from which they are exported rich and prosperous, but in Russia's case it only makes rich and prosperous people who are in government and/or in business of gas and oil export. If only a fraction of these people would decide to donate some of this money to public schools, medical care, transportation and to any publicly useful purpose, it would not only revive lives of many people, but the money also would serve its intended purpose. In general, the best solution would be to freeze the export of gas and oil and to allow natural growth of small-businesses economy. Also, this would conserve the oil until the times when other major sources of oil in the world would run out.

 

Elite has a few tendencies that exist in Russia today. First, the near symbiosis between the government, mafia and business has led to the failure of most elite members to distinguish between the national interest and their own. Second, the more the government attempts to control internal affairs, the weaker it grows - as demonstrated by its inability to control crime, collect revenues, maintain public order, mount an effective military, and ensure that its authority is respected in the periphery. Although they consider these tendencies a distinct threat to the future of democracy in Russia, it is possible to acknowledge that these developments have partly democratic roots, insofar as they are efforts by the elite to respond to the wishes of the electorate, which favours stability after a period of extreme volatility. To date both the elite and the population have been self-restraining. The people have been battered by economic losses, deteriorating public order, reduced international prestige of their state, and fear of interethnic conflict. Nonetheless, they appear to prefer the present system, whatever its faults, to uncertainty. People agree with current conditions when they don't have a choice. If there would be more honestly conducted elections and people would have more control over what government they choose, there would be natural development of socio-democratic system within the country over time. Which by itself is a slow process, plus there is always someone trying to abuse power and freedom. So giving equal distribution of power to the democratically elected political figures who are to fairly represent electorate would be the solution for the problem. To allow fair democratic vote would require taking back the power from elite, which would require some assertive action of applying legal power to deprive elite from their power.

 

Finance has not become any easier with unstable political situation causes devalvation of currency. Liberalization of prices in January 2, 1992 should have boosted economy but unstable politics have caused an instability in economics as well. In June 1, 1992 Russia joined International Monetary Fund (IMF). However, already in July 1992 Russia signs a standby agreement with IMF, which fails immediately. The greatest fall was to come on October 11, 1994 as "Black Tuesday", when exchange rate of ruble has collapsed completely. It will take time and slow economical growth of the stabilizing small-business development and redistribution of gas and oil money towards economic and national development to stabilize the economy and currency.

 

Privatization appears to be the most common sense and logical solution leading to the rise of economy. However, it has become symbol of corruption, because big fortunes that ever made in government subsidies and regulations, were used by the elite in market economy giving more money to the rich and closing the market for the middle class, or whatever is left of it after capitalization of the country. In reality, privatization may work only upon replacement of the elite, which withholds natural growth of the national economy.

 

Society from socialistic one, or better to say, from state capitalism with super monopoly, was transferred into a capitalistic one. Russia achieved what it desired but at a high human cost, at the cost of completely abolishing and bringing down to poverty entire middle class in Russia. As the result, homeless people and beggars have appeared on the streets of cities, which was once unheard of in Russia. This nude poverty is due to ignorance of elite to the existence and needs of the rest of the country. This crying-out disaster can be solved by reintroducing socialistic elements into society, like welfare, encouragement to start private businesses, loans for starting businessmen.

 

Elections seem to be a very important part of life in any democratic society. And so, democratization in Russia has led to many elections and to high vote participation in them. The disturbing anomaly is that these elections brought little replacement of power elite from Soviet era, neither at federal nor at regional levels. The elections were more democratic in 1991 in communistic Russia, than the unfair elections held in 1996, which were controlled by the elite. There is no economic way that powerful and rich elite can be replaced, only by implementing legal action on the political level it is possible to accomplish.

 

Politics in military were consistent in Russia since times of Stalin. The country leaders fired competent military leaders when they became too popular. Competent general Lebed signed treaty between Russia and Chechnya, becoming very popular by putting end to the national disaster. Yeltzin dismissed him for his popularity. President as any member of the government apparatus primarily is concerned with his own interest. To avoid such happening president’s decisions should be approved by Duma, which in turn should be fairly elected by the people, not by the elite.

 

Military has its own problems in Russia. Other than insufficient, or rather lack of, food and ammunition supplies, there are also national and international problems. On national level, it has been five years since Russian withdrawal from Chechnya, the centre and periphery, however, still continue to contest each other's chains to power and authority, but the competition seems almost certain to remain a peaceful one. On international level, the power in Russian military continues to wane, but NATO enlargement went from a threat to a reality without a fundamental redefinition of US-Russian strategic relations. Despite that, angry Russian leadership is reluctant to return to a cold-war style engagement with Americans. In addition, these relations were strained further in 1999 by NATO engagement with Yugoslavia. One reasonable solution will be to avoid oppositions in Russia-US relations, one to which Russia has come now. Putin has recently started process of Russia's joining NATO.

 

Foreign policy towards newly evolved states from former Soviet republics is now named the 'near border' should differ from policy toward ever-foreign countries. The question arises how shall they be treated? Weak CIS states Tajikistan, Kyrgyzstan, Belarus, and Armenia cling to Russia for support. Stronger neighbours, such as Uzbekistan and Ukraine, are forging new regional identities and orientations that make their participation in CIS irrelevant. So, distribution of Russian economic connections with other countries, which are former republics, should be increased in countries willing to depend more on Russia.

 

The main direction that the emphasis of support should be directed to is to change the centre of power of Russia and to allow to power members of parliament other than former Soviet era power elite. Money flow then should be redirected from pockets of the elite from oil and gas business into rebuilding infrastructure among Russia and former republics, education facilities, government social support institutions, military, encouragement of small businesses and development of agricultural supply for the nation. Next step would be emphasis on valuable export of products in large enough schema to produce stable economy within Russia and increase its competing ability on the international market.

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June, 2001

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