Tag Archives: romania

Russia’s Budget Is Getting More Transparent

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Not often that you see Russia in some color other than bloody red on a world map of corruption or institutional quality. But according to the Open Budget Index (2012 results), the Russian budget is actually pretty transparent as far as these things go.

Of the major countries, only the UK (88), France (83), and the US (79) are ahead. The other major developed countries in the survey like Germany (71), Spain (63), and Italy (60) are all behind Russia (74), as are its fellow – and supposedly far cleaner – BRICs fellows Brazil (73), India (68), and China (11). Of perhaps greater import, only the Czech Republic (75) edges above Russia in the CEE group, whereas all the others – Slovakia (67), Bulgaria (65), Poland (59), Georgia (55), Ukraine (54), Romania (47), etc. – lag behind it. Also noteworthy is that Russia’s typical neighbors on Transparency International’s CPI, such as Zimbabwe (20), Nigeria (16), and Equatorial Guinea (0), reveal almost nothing in their national budgets.

Now of course the Open Budget Index is not the same thing as corruption. You can have an open budget but still steal from it (and this does happen in Russia frequently), and you can also have a closed budget from which few people steal, at least directly (as was the case in the USSR… or to take a more modern example, while Russia’s OBI is now higher than Germany’s, it is inconceivable that state corruption is even in the same league in these two countries).

Nonetheless, there is surely a very significant degree of correlation between the two. Having an open budget means that it is can be subjected to scrutiny; were Russia’s budget closed like China’s or Saudi Arabia’s, Navalny’s work to expose corrupt state tenders would be simply impossible (as it is, the latest ploy corrupt bureaucrats have been forced to resort to is to sprinkle Latin characters into the Cyrillic texts of state tenders so as to confound search engines).

Second, a high OBI score demonstrates the state’s commitment to fighting corruption. If Putin and Co. really didn’t care and were truly the kleptocrats they are repeatedly labeled as by the Western media, they would instead do everything in their power to hide the budget so as to remove the possibility of scrutinizing it. But they don’t. To the contrary, Russia’s OBI has increased from year to year.

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Was Russia In A Demographic Apocalypse In The First Place?

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And just as the Guardianistas and K.F. & Co. bury their heads ever deeper in the sand, real world statistics show confirm my thesis from the beginning of this year that Russia’s demographic crisis has for all intents and purposes come to an end. As of May there was a y-y increase of 17% (!) in births, a 2% increase in deaths, and virtually zero natural decrease; accounting for the entire Jan-May period, there was a 7.6% increase in births, a 2.2% decline in deaths (including an 18% decline in deaths from alcohol poisoning), and an overall population decrease of -57,000. However since natural decrease is typically biggest in Jan-May (see graphs here) the rest of the year may well see continuous natural population growth; it is also not beyond the realm of possibility that overall natural population growth, i.e. before accounting for immigration, will be positive in 2012.

Still instead of the usual dry demographic update post I want to do something different here and delve into comparative and historical issues. For instance, now that we can pretty confidently say it has ended, how ultimately “bad” were Russia’s two lost decades?

The Russian population peaked at 148.5mn in 1992. After that it declined at an increasing rate, especially after 1998 when the supply of ethnic Russian emigrants coming back from the Near Abroad dried up; then, in the mid-2000′s, it began to slow as core demographic indicators improved, and Russia started getting substantial numbers of Gastarbeiter. In retrospect stabilization was achieved in 2008, and since then Russia’s population rose for 142.9mn in 2010 to 143.0 in 2011 and 143.1/143.2mn this year. Peak to nadir this was a decline of less than 4% (or in chronological terms, 1985), with recovery already in motion. How does this compare with other transition countries?

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Are Russians As Rich As Czechs?

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In terms of new cars, they now are. According to 2011 statistics, Russians bought 17.6 new automobiles per 1000 people. This indicator is still quite a bit below most of Western Europe, such as Germany’s 38.5, France’s 33.4, Britain’s 31.9, Italy’s 30.1, and Spain’s 20.0. However, it has already overtaken most of East-Central Europe, whose figures are: Czech Republic 17.0, Slovakia 12.5, Estonia 11.7, Poland 7.2, Hungary and Ukraine both 4.5, Romania 3.7. Likewise, some countries that by the 1990′s came to be regarded as natural parts of affluent Europe are now behind Russia on this measure: Portugal 14.4, Greece 9.0.

Now this is just one example, and the market for one consumer durable good isn’t going to be perfectly reflective of the overall situation. The crises in the PIGS may be temporarily dissuading nervous consumers from making large purchases; another factor to consider is that their overall car fleets are bigger and newer than Russia’s, so there is not as much of an incentive to get new cars. And taking into account a much larger basket of goods, the World Bank estimates Russia’s GDP per capita (at PPP) to be $20,000, which is still considerably behind $25,000 in Portugal and the Czech Republic, and $32,000 in Spain.

What’s all the better is that the current improvements in Russia’s relative position are happening against the background of extremely benign debt dynamics; aggregate debt is only 74% of Russian GDP, compared to 184% in China, 280% in the US, and more than 300% in most of Europe. This leaves it with a great deal of fiscal and monetary wiggle room in the event of a renewed global crisis that is no longer available to the developed world or lauded emerging markets such as Brazil, India, Poland, Turkey, and Poland. While the affluence gap between Russia and the most developed nations remains large it is nonetheless being steadily and sustainably closed.

Twitter Terror: Unraveling the Unrest in Moldova

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Riding on the apathy of the masses, crony Communists rig the elections in a small, corrupt post-Soviet backwater to retain their iron grip on power. But their dastardly plans to crush democracy and draw benighted Moldova back into the Eurasian darkness are foiled by the heroic students of Chisinau.

Inspired by their boudiccan (and photogenic) figurehead Natalia Morari, heroine of past struggles against corrupt authoritarianism, they flutter out into the city center and Tweet their nation back into the light of Western iCivilization, toppling the old guard under a colorful cascade of fruits and flowers.

This is the kitschy Western narrative of color revolutions, in which electronic networking technologies marry the springtime national aspirations of peoples suppressed by corrupt satraps from Muscovy to produce a verdant and fertile liberal democracy – Atlantean outpost and bulwark against Eastern tyranny.

Yet one would have to wear rose-tinted spectacles (or read fantastic literature to excess) to subscribe to this interpretation. The Rose Revolution in Georgia withered away and died under the chill of Saakashvili’s quasi-authoritarian rule and the heat of aggressive war against Russia in summer 2008. Meanwhile, the Orange Revolution putrefied into mush, succumbing to the sickly moist of endemic chaos, corruption and economic decline that characterized Ukraine after 2005.

A dispassionate analysis of the “Grape Revolution” in Moldova reveals that its fruit was rotten from the beginning.

The Centrality of Romanian Nationalism in the Moldovan Opposition

Although it is true that many of the protesters were genuinely disaffected university students and migrants, it is also clear that certain elements were Romanian nationalists, liberast provocateurs and common hooligans.

The three parties which won 35% of the vote have a “distinct nationalistic flavor”, according to Natalia Sineaeva-Pankowska writing in Moldova: Torn between the Communists and the far right1. The nationalists criticize the Communist plans to revise ethnic Romanian-centered history textbooks to better reflect Moldova’s multi-ethnic identity and extend the Holocaust interpretations taught in schools to include the role of Romanian collaboration, from its current limitation to the “German extermination of Jews and Roma”. They favor closer ties to and reunification with Romania.

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Comprehensive Outline of Russia’s Point of View on 2008 War of Ossetia

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So let’s get this straight – breaking their own ceasefire, Georgia attacked Russian citizens and peacekeepers, and there are grounds to believe they committed war crimes, in violation of the latters’ peacekeeping mandate. All Russian military action is aimed at repelling the Georgian military from South Ossetia and Abkhazia, which at times involves bombing the source of attacks originating in Georgia proper. Saakashvili mounts a pathetic, whiny PR campaign of “Russia murdering poor democratic Georgia” and the Western media swallow it line and hooker, despite their own governments’ complicity in making this happen (i.e. offensive arms’ sales).

Putin: ”The very scale of this cynicism is astonishing — the attempt to turn white into black, black into white and to adeptly portray victims of aggression as aggressors and place the responsibility for the consequences of the aggression on the victims.”

Interview by Minister of Foreign Affaires of the Russian Federation Sergey Lavrov to BBC, Moscow, August 9, 2008. Granted, a bit dated as of today, but none the less important for understanding Russia’s reasons for getting involved in maintaining peace. I have highlighted in bold Lavrov’s most important points.

Question: What is Russia’s aim in South Ossetia?

S.Lavrov: Russia’s aim is to keep peace. This is not just Russia’s aim, this is Russia’s obligation. Russian peacekeepers have been brought there under the agreement between the parties after the war which started in the early nineties. The late President Gamsakhurdia who was the leader of Georgia at that time declared his policy “Georgia for Georgians”. He cancelled autonomies of Southern Ossetia, Adjaria and of Abkhazia. He brought his troops into these areas and then the resistance took place. And Georgian army was wiped out of those regions. It was then that after quite nervous and intense negotiations a peacekeeping mechanism was established comprising Georgians, Ossetians and Russians. The peacekeeping force was established and this peacekeeping force has a mandate. The mandate is to make sure that there is no violation of quiet in the zone of conflict and the peacekeepers are required by this document to prevent any violations and to put out any violations. Since Georgian forces for the second time are engaged in aggressive actions in full violation of the obligations under those international agreements and international humanitarian law by attacking civilians, residential quarters, humanitarian convoys, attacking the convoys trying to remove the wounded from the area of the fighting and even, by some reports, finishing off the wounded. So this is absolutely unacceptable and the responsibility of Russia as a peacekeeper could be only sustained by responding to this aggression.

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