Russia’s Budget Is Getting More Transparent

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.

Continue reading

The Flight From Reason – The West’s Cold War Against Russia

My latest contribution to the US-Russia.org Expert Discussion Panel this one focusing on whether the West foregoes “incalculable benefits” by continuing the Cold War. Unlike previous Panels, on which I aimed for balance, here I make no apologies at pointing a finger straight to where I believe the blame belongs:

I recently began reading Martin Malia’s Russia under Western Eyes. One of the key points he makes early on is that the Western view of Russia has rarely corresponded well with its objective strength or the actual threat it posed. To the contrary, it is when “institutions and culture” converge that the West’s “evaluation of Russia tends toward the positive”; when they diverge, the reverse. So by that theory, relations should be pleasant: After all, not only is it no longer a military threat, but in terms of political systems and values, the West and Russia are far closer now than they have even been in history.

This makes it all the more puzzling that half the US foreign policy establishment remains entrenched in Cold War thinking. Romney belongs to them. A man who now has a 39% chance of becoming President, according to Intrade, declared Russia to be a “our number one geopolitical foe.” But unlike the case in the Cold War, it is a divergence that now most afflicts the US and its satellites – namely, the idée fixe that it is globally “exceptional”, and thus called forth to express global “leadership.” This translates into the belief that it can dictate its terms – from support for the Iraq War to the pursuit of Wikileaks – to other powers without negotiation (anything else is appeasement!), and woe unto the VIRUS’s that oppose it (a cute neocon acronym standing for Venezuela, Iran, Russia).

Needless to say, such attitudes make mockeries of any genuine democracy promotion. As long as you pay the requisite cultural tribute, you get off scot free – “Bahrain’s bosses understand modern symbolism about minorities so well that the Arab kingdom’s ambassador to Washington is a Jewish woman.” They might not understand the Hippocratic Oath near so well, imprisoning doctors for treating wounded protesters, but that is of little consequence next to anti-Iranian orientations and the US naval base there. Meanwhile, Venezuela is demonized by the Cold Warriors for daring to elect a socialist to power in Latin America, even though it has some of the structurally freest and fairest elections in the world. Their hatred of Russia ultimately boils down to the same roots: It resists.

There are three ways this impasse can end. The first, and most incredible way, would be for the residual Cold Warriors to stop thinking of the world in Manichean terms, with themselves playing God’s role. The second would be for Russia to become a client state of the US. This is not going to happen short of the likes of Gary Kasparov and Lilia Shevtsova coming to power.

The third possibility is by far the likeliest, as it is already occurring. Back in the 1990’s, Western Diktat politics in relation to Russia typically worked because it was in crisis, and had no other powers to work with. They believe this is still the case, and not only the neocons: In 2009, Biden said Russia had a “shrinking population base… a withering economy”, and a banking system unlikely to “withstand the next 15 years.”). This would presumably give Russia no choice but to fall in line. They are wrong. In real terms, the Chinese economy may have overtaken the US as early as in 2010; a constellation of other sovereign, non-Western powers such as Brazil, Turkey, India, and South Africa are attaining new prominence. With the EU in permaslump, the US and Japan under accumulating mountains of debt, and oil futures now permanently sloped upwards, a new world is arising in which modernization is no longer synonymous with Westernization. Russia is one of its key players, just like the other BRIC’s.

One can’t resist gravity forever. Once the requisite relative political, economic, and cultural mass is no longer there, ideological Cold Wars will become as unsustainable as Western hegemony itself.

Russia’s Brain Drain Abates, Just As Western Media Starts Hyping It

Everything’s going badly in Russia. Medvedev’s reforms are failing. The economy isn’t growing. It is moving from authoritarianism to totalitarianism (in stark contrast to civilized Western countries), and the motto “We cannot live like this any longer!” once again becomes an article of faith in the land – or well, at least among “the blogs on LiveJournal” and “the sites of the top independent and opposition groups” (who are of course totally representative of Russian public opinion). Citizens are fleeing the country like rats from a sinking ship.

Anyhow, unlike Eugene Ivanov who argues that media coverage of Russia has improved of late, I think the Western punditocracy remains every bit as wrong, idiotic and venal on Russia as it always was, and in this post I’ll use the recent WSJ article “Why Are They Leaving?” by Julian Evans as my foil (it’s illustrated with soc-realist posters of the worker and collective farm girl harkening back to the Soviet era; excusez-moi for crashing the party, but WTF do they have to do with anything in a story about Russian emigration of all things???).

“Russia’s small but educated middle-class is deserting the mother country in search of opportunities and freedoms elsewhere…” Thus from the get go the author makes the strong impression - and one that is decisively reinforced throughout the rest of the article – that Russia has a big emigration problem that is draining it of brains and talent. But let’s consult the statistics (as opposed to anecdotal evidence and online polls at Novaya Gazeta asking Russians whether they want to emigrate; yes, Mr. Evans cites the online readership of a paper written by liberal ideologues in support of his argument). Too bad for Mr. Evans, the statistics reveal his article for the sham it really is.

Continue reading

Russia Arming The Rest, And US Views On This

Another Wikileaks cable – a secret one, not merely confidential – from our Caucasus ethnologist and bestest bud at the State Department, William Burns. Dated October 2007, it describes America’s perception of Russia’s global arms trade and emphasizes its concerns that many of its partners are “rogue” or “anti-American” states like Syria, Iran and Venezuela. However, Burns is intelligent enough to acknowledge that the Russians have their own economic, political and cultural reasons for doing things they way. Though obliged to provide suggestions on how to make Russian politicians see eye to eye with the US on the matter, it is likely a quixotic endevour.

Russia is expanding arms exports, seeking ties beyond its traditional partners India and China. (Burns correctly predicted that the Russia – China arms relationship will wane due to Chinese reengineering, copying and reproduction of Russian military products). The capture of most NATO and former Soviet markets by US and European military companies is the primary economic agent behind Russia’s courting of states that Washington has bad relations with. In reply to Western objections, Russia tends to reference “multilateral arms controls regimes (e.g. Wassenaar Group, MTCR, etc.), UN resolutions, or Russian law” in justification; and US protests against its entertainment of “Chavez’s grandiose regional visions” are believed, by the RF Foreign Ministry and Russian defense experts, to spring from “a “Monroe doctrine” mentality, and not real concerns over regional stability.” Finally, a lack of economic diversification actively PUSHES Russia into the arms trade: as Anatoly Kulikov pithily notes, ”Russia makes very bad cars, but very good weapons.”

Continue reading

Hubris in the Heartland

The Western MSM (mainstream media) was abuzz the last few weeks about how Obama’s apparent extension of a hand to Russia did not make them willing to unclench their fist, citing the closure of the Manas airbase in Kyrgyzstan. This was linked to Russia’s announcement of 150mn $ in aid and 2bn $ of credit to Kyrgyzstan, which was widely interpreted to be a bribe, a snub to the US or in some particularly nutty cases open support of the Taliban – as SWP put it, “objectively chosen to aid 8th century religious fanatics”.

Kyrgyzstan is a poor state relying on remittances from its workers in Russia, workers who are now being laid off as construction grinds to a halt. It is the only country in post-Soviet Central Asia to have rejected the status of a “developed” country to be eligible for more funds from the World Bank and other international development organizations. Coupled with the economic crisis sweeping the globe, this money is small change to Russia but a life-saver to Kyrgyzstan.

The perception that this is a Russian anti-American machination arrogantly dismisses Kyrgyzstan’s own incentives. It has not been happy with the American presence (see below). It is in their interest to play off Washington against Moscow for more aid; but ultimately, Russia is far more important to their economic development. Nonetheless, it would make sense for them to announce the shutdown of Manas in Moscow, immediately after getting promised these loans and aid, because then American ire would be deflected towards Russia. (After all, the US does have a penchant for sponsoring color revolutions in countries it doesn’t like).

Continue reading

Da Russophile, a Year On

As of today, it’s been exactly one year since I started the Da Russophile blog. Although I have been aware of hostile or condescending Western attitudes towards Russia for a long time, reflected in its mass media, I was finally provoked into joining battle by a particularly annoying and dishonest ‘editorial’ on the La Russophobe hate-blog.

This was and remains its motto:

Their Thesis: the Western media tells us Russia is in a death spiral,
its economy is one giant oil bubble, suffers from endemic corruption,
inequality and lawlessness and is presided over by a KGB kleptocrat
dead-set on resurrecting the USSR and launching Cold War II.

Our Antithesis: Russia is a normal country with a booming non-hydrocarbons
economy underpinned by a well-educated and secular workforce.
The Putin administration has affirmed democratic values, worked to improve
human rights and pursued Russia’s national interests abroad.

Your Synthesis: ?

I started off by writing serious ‘core articles’ on Reading Russia Right and Towards a New Russian Century, to demolish some common bearish stereotypes and illustrate how its inherent strengths (natural resources, a well educated population, etc) stood it in good stead for a twenty-first century characterized by economic convergence, technological growth, climate change and resource depletion.

Continue reading