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Sunday, April 29, 2007

Another Original Translation: Illarionov on Failing Russia

La Russophobe is delighted to have received the services of a third expert translator of Russian, Mr. David Essel. Dave offers the following translation of another article from the Russian press by Andrei Illarionov (pictured), following up on last week's "Approaching Zimbabwe" (Dave is also providing us with his own original analysis of the Russia question, starting with last week's essay on Leonid Brezhnev; look for a second essay from Dave on Tuesday, dealing with the Russophile "mind"set).

Note how Illiarionov, surely one of Russia's greatest living patriots, makes reference to a number of statistics on Russian peformance previously reported by La Russophobe. Maybe he's a reader too! We'd be honored.

The Authoritarian Model of Governance:
Preliminary Results

Andrei Illiarionov

April 2, 2007

Kommersant


(A. Illarionov is the President of the Moscow Institute for Economic Analysis, Senior Fellow of the Cato Institute, Washington D.C.. In 1993-94, he headed the Group for Analysis & Planning in Viktor Chernomyrdin’s government and from 2000 to 2005 was economic advisor to Vladimir Putin)

The new structure model for Russia has been created. It is a brute force model, the main aspect of which is the use of force unfettered by any restraints – legal, traditional, or moral. That is the essence of brute force politics [силовая политика]. Thus we have brute force enterprise, brute force jurisprudence, brute force foreign policy. And the first fruits of this may now be examined.

Collapse of the institutions of the modern state.

In terms of the quality of the most important institutions of the modern state, today’s Russia is at the bottom of any list. With regards to political rights and civic freedoms, our country stand in 158t place out of 187 countries of the world – between Pakistan, Swaziland, and Togo. With regards to freedom of the press, Russia is 147th out of 179, ranking alongside Iraq, Venezuela, and Chad. In corruption, Russia occupies 123rd place out of 158, next to Gambia, Afghanistan, and Rwanda. In protection of private property rights – 89th out of 110, on the same level as Mozambique, Nigeria and Guatemala. Quality of legal system: 170th out of 199 alongside Burundi, Ethiopia, Swaziland and Pakistan. Effectiveness of civil service: 170th out out of 203, giving us Niger, Saudi Arabia, Cameroon, and Pakistan as neighbours.

The brute force state model legalises violence in our society. The number of murders per thousand inhabitants in Russia is the world’s 7th highest among 112 countries, lying between Ecuador and Guatemala, a little better that South Africa and a touch worse than Mexico. In overall physical security Russia’s inhabitants occupy 175th place out of 185 countries, ranking in the same group as Zimbabwe, Sudan, Haiti, and Nepal. The siloviki have no care for their fellow-countrymen’s safety.

And what, one may ask, about the financial, technological, and operational abilities of the “force” sectors of the state – the armed forces, the police, and the special services? Hasn't the fact that they have undergone reinforcement in recent years strengthened the state?

Unlike the institutions of any modern state which exist to ensure the safety of its citizens; to guarantee their equality before the law and the powers that be; to maintain the supremacy of the law and checks and balances; to provide freedom of the press; to protect private property, freedom of speech and of public and political organisation and the right to participate in the political life and running of one’s country, the “force” sectors differ because they are elements of the traditional state apparatus. Reinforcing them does not necessarily lead to a strengthening of the institutions of a modern state. The fact that the “force” sectors are flourishing is evidence of change in the opposite direction, of the degradation of the institutions of a modern state such as we see, for example in Somalia and Afghanistan, Iraq, Sudan, Cuba and North Korea.

Where are we heading? Is it that the low rankings on Russia’s state institutions are the result of the oligarchic past, of the “collapse” and “chaos” period in the 1990s and that these things are now being overcome by the stubborn work of brute force civil servants?

Complete myth. The sharp fall in the quality indices of state institutions has occurred in recent years. In 1998 (the last year before the advent to power of the siloviki), the level of civic freedom in Russia was 58% of the mean figure for the OECD countries. In 2002 (on the eve of the arrest of P. Lebedev and M. Khodorkovsky and just before the destruction of Yukos), this had dropped to 47% and by 2006 to 37%. The press freedom index in that time dropped from 55% to 47% and 33% while the political rights index fell accordingly from 57% to 45% and 27%.

The freedom from corruption index which back in 2002 was only 35% of the mean for the OECD countries dropped to under 30% by 2006. Safety of property rights, which had reached 54% of the mean level for developed countries by 2002, dropped to a mere 14% by the end of 2006. The World Bank gives the following figures for the fall of Russia indices (based on OECD levels for the period 1998 to 2005: government accountability – down from 60% to 43%; political stability – down from 51% to 43%; quality of civil service management – down from 59% to 56%.

The number of murders per 1000 inhabitants in Russia was 12 times the OECD level in 1998; by 2004 – 14 times. The number of serious crimes against the person more than doubled between 1998 and 2006. In 2006, in “conditions of political stability”, with record prices for oil and gas, unprecedented economic growth, a fantastic rise in wealth, and with absolute power in the hands of the siloviki, the level of crime in the country is more than twice what it was in 1998. And 1998, let’s not forget, was the year of the greatest crash of the economy at a time of low oil prices but greater democracy.

This is total failure. The deterioration in the field of foreign affairs is no less marked. Having successful quarrelled with nearly all our foreign partners, the brute force state has created a situation not seen for a long time in Russia’s history: it would seem that today we have no allies at all. The army and the navy remain, but not a single ally for our foreign policies remains. Trumpet as we may of diplomatic successes, Russia is to all intents and purposes isolated in its foreign policies. This became particularly clear after the murder of Anna Politkovskaya and the poisoning of Alexander Litvinenko. A comparison with the previous seven years shows that the average level of meetings between Russian officials and their foreign peers halved during the winter of 2006-2007. The number of meetings with heads of Western states was down to a third of the previous level and with heads of CIS states down 3.4 times. As a well-known television personality said: that is failure.

True, the reduction in the number of contacts with traditional partners in Europe, North America, and the CIS has been partially counterbalanced by a 50% increase in contacts with Eastern leaders – Indonesia, Mongolia, Lebanon, Syria, India, Guyana. Qatar, Saudi Arabia, and China. The evolution of Russia’s internal political institutions is complemented by an evolution of the country’s foreign policy preferences.

What about the economic boom?

Isn’t the growth at least impressive? Growth there has been, but it should be judged in context. Mean GDP growth for 2004-2006 amounted to 6.8%, higher in actual fact than that of some European countries. But it is lower than the 8.2% growth achieved by Russia in 1999-2000 at the start of the oligarchies and before the brute force model got under way. At the same time oil – at $52 per barrel – has tripled in price since 1999-2000 ($19 p.b.), a gift to the country’s foreign trade figures worth 15-18% of GDP which was totally absent in 1999-2000.

The real example of economic growth in the last 30 years is not anaemic Europe but dynamic China. Russia lagged behind China back over the last decades and continues to lag behind today. While Russia GDP grew by 58% between 2000 and 2006, China’s rose by 88%. Seven years ago, China’s economy was 5 times the size of Russia’s, today it is 6 times.

Thanks to the brute force model, the country has been turned into an economic invalid even when viewed against the background of the other countries of the former USSR. Only two countries of the 14 former republics had growth rates higher than Russia’s in 1999-2000. For 2004-2006, 12 of them did better than Russia. With the brute force model ruling, Russia is being overtaken not only by other oil-and-gas exporting countries such as Kazakhstan (GDP growth of 94% over seven years) and Azerbaidzhan (153%). Russia is now also being overtaken by oil-and-gas-importing countries such as Armenia, Tadzhikistan, Latvia, Estonia and Lithuania.

Even Georgia, which has no energy resources of its own and is furthermore subject to a total trade, transport, energy, travel and postal blockade by Russia, saw a GDP growth of 9% last year whereas Russia, swimming in petrodollars, achieved only 6.7%. One could not ask for a clearer demonstration of the total failure of the brute force model!

Catastrophe

All crises have serious consequences. When economic policies fail even a serious cataclysm (like, for example, the 1998 crisis in Russia) can be overcome by responding with a responsible policy line. However, if institutions of state are destroyed, the force of their own inertia can lead to catastrophe, the depth, duration and consequences of which are of a quite different scale to political crises.

The institutions of a modern state are the most important factor for economic growth and for giving the country its standing and its citizens a place in the modern world. The brute force government model has been tried dozens of times and we have been convincingly shown to what it leads. Vide: North and South Korea, East and West Germany before the 1990s, China and Taiwan before the 19809s, North and South Vietnam before 1975.

The countdown for the new historical experiment is already under way. It has not taken long for it to become clear how badly the brute force model of government in Russia does in comparison with the freer models in the Ukraine and Georgia. If the experiment is continued, we will have the opportunity to see how Russia is sidelined by all our freer close neighbours.

In foreseeing crisis, out of habit we narrow our focus to energy resources: what if the price of oil falls? Versions of this can be heard all over the place. But the problems does not lie in tomorrow but in today. It’s not a matter of the price of oil but rather of today’s government institutions, not external factors but internal ones. The problem comes from the brute force, raptorial and hierarchical state model imposed on Russia today.

Its creators promised a rebirth of the Russian state but the brute force model is killing it. Its creators promised security to the country’s citizens but the brute force model is delivering the opposite. Its creators promised to strengthen Russia’s sovereignty but the brute force model is leading to her isolation. Its creators promised faster economic growth but the brute force model guarantees it will lag behind. Its creators promised a stronger country but the brute force model is making it weaker.

There is nothing more important for today’s Russia than a change of government system.


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