Comments on: The Russian Model http://blogs.the-american-interest.com/contd/2007/07/20/the-russian-model/ Continuing the Conversation Thu, 08 Sep 2011 20:35:51 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Alexander http://blogs.the-american-interest.com/contd/2007/07/20/the-russian-model/comment-page-1/#comment-514 Alexander Tue, 31 Aug 2010 23:25:39 +0000 http://the-american-interest.com/contd/?p=626#comment-514 Dear Anatoly Ostrovsky, It is naive to think that all profits from sales of energy resources end up in the foreign bonds. Russian, so called, economic success is determined by high oil and gas prices - nothing more (the percentage of export of grain and chemical components is quite mediocre to stimulate a significant booming of the economy). Russia doesn't produce and doesn't sell anything competitive in the world's market (well, except for oil, gas, and weapons). American strategy of the world's political and economic instability has been gladly supported by Putin and Co. Why? Because such plan maintains high prices on oil and gas. When, approximately a year and a half ago, oil prices in the world market dropped, Putin and Co. increased them in the domestic market of Russia to satisfy the difference in their incomes. Ordinary people have never profited from that scheme - the temporary well-being of the non-existent middle class (yes, there's none, Mr. Fukuyama) was a product of the snowball effect of extensive spending by the rich in the local market. The majority of the population has lived, and still lives, in poverty. By the way, Anatoly, the current assets of the Stabfund are invested solely under second scheme (allocation to the Federal Treasury’s accounts with the Bank of Russia): http://www.minfin.ru/en/stabfund/about/ To Mr. Fukuyama I wonder how you have come up with an idea of foreign investors rushing to Russia with their money? :))) As far as I know, they have been fleeing from it, terrified by the absense of law and abundance of corruption. The latest example is IKEA (look it up). And besides, the foreign companies in the Russian market produce their goods only for the Russian inner consumption, because it is non-profitable to export the product to other countries from Russia. It is simply too expensive to produce there for export!However, the local market can be filled with that stuff at an acceptable price! I can hardly call such tactics an investment. And how come will the foreigners invest in Russia, if the Russian government has no interest in investing it its own country?!!! Ex.: only $1 billion per year is spent on Russian agriculture, but $30 billion per year goes toward importing food from other countries. Also, Mr. Fukuyama - when and where did you hear about decent collection of taxes by the Russian government? Not long ago, Putin was complaining about the fiscal impotence of the State in collecting taxes, saying it affected the deficit of the budget. I would show you links to this information, but it the once I have I only in Russian. I think you won't have much problem finding English equivalents... Therefore, I'd think twice before praising the Russian economic model. It is quite parasitic and pittiful. Dear Anatoly Ostrovsky,

It is naive to think that all profits from sales of energy resources end up in the foreign bonds. Russian, so called, economic success is determined by high oil and gas prices – nothing more (the percentage of export of grain and chemical components is quite mediocre to stimulate a significant booming of the economy). Russia doesn’t produce and doesn’t sell anything competitive in the world’s market (well, except for oil, gas, and weapons).

American strategy of the world’s political and economic instability has been gladly supported by Putin and Co. Why? Because such plan maintains high prices on oil and gas. When, approximately a year and a half ago, oil prices in the world market dropped, Putin and Co. increased them in the domestic market of Russia to satisfy the difference in their incomes.

Ordinary people have never profited from that scheme – the temporary well-being of the non-existent middle class (yes, there’s none, Mr. Fukuyama) was a product of the snowball effect of extensive spending by the rich in the local market. The majority of the population has lived, and still lives, in poverty.

By the way, Anatoly, the current assets of the Stabfund are invested solely under second scheme (allocation to the Federal Treasury’s accounts with the Bank of Russia):
http://www.minfin.ru/en/stabfund/about/

To Mr. Fukuyama

I wonder how you have come up with an idea of foreign investors rushing to Russia with their money? :) )) As far as I know, they have been fleeing from it, terrified by the absense of law and abundance of corruption. The latest example is IKEA (look it up).

And besides, the foreign companies in the Russian market produce their goods only for the Russian inner consumption, because it is non-profitable to export the product to other countries from Russia. It is simply too expensive to produce there for export!However, the local market can be filled with that stuff at an acceptable price! I can hardly call such tactics an investment.

And how come will the foreigners invest in Russia, if the Russian government has no interest in investing it its own country?!!! Ex.: only $1 billion per year is spent on Russian agriculture, but $30 billion per year goes toward importing food from other countries.

Also, Mr. Fukuyama – when and where did you hear about decent collection of taxes by the Russian government? Not long ago, Putin was complaining about the fiscal impotence of the State in collecting taxes, saying it affected the deficit of the budget. I would show you links to this information, but it the once I have I only in Russian. I think you won’t have much problem finding English equivalents…

Therefore, I’d think twice before praising the Russian economic model. It is quite parasitic and pittiful.

]]> By: Lukas Zagnojus http://blogs.the-american-interest.com/contd/2007/07/20/the-russian-model/comment-page-1/#comment-157 Lukas Zagnojus Sat, 22 Dec 2007 00:45:28 +0000 http://the-american-interest.com/contd/?p=626#comment-157 I'd dear to state that Russia's recent success has done more harm to the rampant ideology of liberal democracy than the collapse of USSR has helped to fostered its sanctity. The simulacrum of liberal democracy is being revealed not so by the shame of Iraq, doubtful success of Chinese pseudo-communism, new eastern European illiberal democracies as by the qualitatively "new" way of Putin's Russia. It is certainly not authoritarianism or totalitarianism. It is something that can only be found in the Xenophon's "Cyropedia" and certainly not Machiavellian "Prince" or Hobbs's "Leviathan" . The very idea that something that foramlly looks as authoritarianism but is actually more democratic than liberal democracy is an embarrassing as it can be to West in general and something that has to be discredited by the strongholds of democracy (U.S. and E.U.) by any cost. It would declare the death of the so called values of democracy if international community and more to that the struggling third world itself would finally recognize that liberal democracy is not the cause but certainly the effect if not only the by-product of the state's economic wealth . I’d dear to state that Russia’s recent success has done more harm to the rampant ideology of liberal democracy than the collapse of USSR has
helped to fostered its sanctity. The simulacrum of liberal democracy is being revealed not so by
the shame of Iraq, doubtful success of Chinese pseudo-communism, new eastern European illiberal
democracies as by the qualitatively “new” way of Putin’s Russia. It is certainly not authoritarianism or totalitarianism. It is something that can only be found in the Xenophon’s “Cyropedia” and certainly not Machiavellian “Prince” or Hobbs’s “Leviathan” . The very idea that something that foramlly
looks as authoritarianism but is actually more democratic than liberal democracy is an
embarrassing as it can be to West in general
and something that has to be discredited by
the strongholds of democracy (U.S. and E.U.)
by any cost. It would declare the death of the so called values of democracy if international community and more to that the
struggling third world itself would finally
recognize that liberal democracy is not the
cause but certainly the effect if not only the by-product of the state’s economic wealth .

]]> By: Vizuina Tapirului » fukuyama http://blogs.the-american-interest.com/contd/2007/07/20/the-russian-model/comment-page-1/#comment-137 Vizuina Tapirului » fukuyama Mon, 05 Nov 2007 06:50:57 +0000 http://the-american-interest.com/contd/?p=626#comment-137 [...] descoperit blogul pe care scrie Francis Fukuyama (l-am pus la RSS-uri). Recomand, deocamdata, The Russian Model si In St. Petersburg with [...] [...] descoperit blogul pe care scrie Francis Fukuyama (l-am pus la RSS-uri). Recomand, deocamdata, The Russian Model si In St. Petersburg with [...]

]]> By: Emin http://blogs.the-american-interest.com/contd/2007/07/20/the-russian-model/comment-page-1/#comment-144 Emin Fri, 02 Nov 2007 15:28:46 +0000 http://the-american-interest.com/contd/?p=626#comment-144 I'm Russian and I'm 26. I want to be rich and secure. I'm not care about all the rest countries in a world, democratice they are or not. I'm not care about US and EU, as they have short mind and do not understand what peaple in Russia thinking and what they wanting. US now have the same problem as USSR 30 years ago, they pay more attention what happing outside of the world than inside of the US. I'm as a lot of young Russians care only about me, my family and my country, that is it. I’m Russian and I’m 26. I want to be rich and secure. I’m not care about all the rest countries in a world, democratice they are or not. I’m not care about US and EU, as they have short mind and do not understand what peaple in Russia thinking and what they wanting. US now have the same problem as USSR 30 years ago, they pay more attention what happing outside of the world than inside of the US.

I’m as a lot of young Russians care only about me, my family and my country, that is it.

]]> By: Eunomia · There’s A First Time For Everything http://blogs.the-american-interest.com/contd/2007/07/20/the-russian-model/comment-page-1/#comment-156 Eunomia · There’s A First Time For Everything Fri, 31 Aug 2007 20:39:45 +0000 http://the-american-interest.com/contd/?p=626#comment-156 [...] Fukuyama actually makes some sense about Russia: What the West needs to do is watch Russia’s actual behavior, and not project onto it the West’s own hopes and fears as occurred over the past fifteen years. Many Westerners are angry with Putin and the Russia he is creating in part because they are jilted lovers: they hoped in the 1990s that the country would transition in short order to a full-fledged liberal democracy, and when it didn’t, they felt cheated. But the fact that a fully democratic Russia did not emerge does not means that a fully authoritarian Russia is now inevitable. Russia’s future will not be inevitably shaped by its past, but by the decisions that contemporary Russians will make, and the opportunities that the international environment provides them to make the right choices. [...] [...] Fukuyama actually makes some sense about Russia: What the West needs to do is watch Russia’s actual behavior, and not project onto it the West’s own hopes and fears as occurred over the past fifteen years. Many Westerners are angry with Putin and the Russia he is creating in part because they are jilted lovers: they hoped in the 1990s that the country would transition in short order to a full-fledged liberal democracy, and when it didn’t, they felt cheated. But the fact that a fully democratic Russia did not emerge does not means that a fully authoritarian Russia is now inevitable. Russia’s future will not be inevitably shaped by its past, but by the decisions that contemporary Russians will make, and the opportunities that the international environment provides them to make the right choices. [...]

]]> By: jose oscategui http://blogs.the-american-interest.com/contd/2007/07/20/the-russian-model/comment-page-1/#comment-141 jose oscategui Thu, 30 Aug 2007 01:09:34 +0000 http://the-american-interest.com/contd/?p=626#comment-141 Fukuyamea, certainly does not understand that in this world of so rich and powerful multinational enterprises the only counterbalancing force is the national state. It is true that the West wished to see Russia not only submitted but also partitioned, and its riches at the disposal of western powers. Fukuyamea, certainly does not understand that in this world of so rich and powerful multinational enterprises the only counterbalancing force is the national state.
It is true that the West wished to see Russia not only submitted but also partitioned, and its riches at the disposal of western powers.

]]> By: Vitaly http://blogs.the-american-interest.com/contd/2007/07/20/the-russian-model/comment-page-1/#comment-155 Vitaly Sat, 25 Aug 2007 21:09:27 +0000 http://the-american-interest.com/contd/?p=626#comment-155 Russophobia. The reason Americans can get away with picking on Russia, and not China, is the same reason you can criticize your wife but not your neighbours wife. Criticizing China is cultural-imperialism, scolding Russia is like scolding a wayward concubine. Its politically correct, and acceptable. In a perfect world, it would be called Russophobia, and stand somewhere between racism and anti-semitism. Russophobia.

The reason Americans can get away with picking on Russia, and not China, is the same reason you can criticize your wife but not your neighbours wife. Criticizing China is cultural-imperialism, scolding Russia is like scolding a wayward concubine. Its politically correct, and acceptable. In a perfect world, it would be called Russophobia, and stand somewhere between racism and anti-semitism.

]]> By: semiramis http://blogs.the-american-interest.com/contd/2007/07/20/the-russian-model/comment-page-1/#comment-150 semiramis Sat, 25 Aug 2007 21:04:40 +0000 http://the-american-interest.com/contd/?p=626#comment-150 Read Amitai Etzioni, before you start your liberal-la-la engines. Most of the world is illiberal. People don't or can't tell the difference between "free societies" and authoritarian. But they do know the difference between a Buick and a Cadilac. Or is Fukayma one of those clowns who still clings to the notion that history ended due to the declaration of independence (by Russia from the USSR)? It ended due to Coca-Cola, not Madison and Comp. The american world view is warped, out of touch and out of stride with reality, producing nincompoops and oracles prouncing funnier prattle than Delphi or Delos. Only americans can go about thinking that foreign policy consists of values, not geostrategy. Yet, the very same ameriacns then bugger everyone about capital account liberalisation, structral adjustments, and access to hard, solid, miasmic hydrocarbons. Which one are you, Fuky? Read Amitai Etzioni, before you start your liberal-la-la engines. Most of the world is illiberal. People don’t or can’t tell the difference between “free societies” and authoritarian. But they do know the difference between a Buick and a Cadilac. Or is Fukayma one of those clowns who still clings to the notion that history ended due to the declaration of independence (by Russia from the USSR)? It ended due to Coca-Cola, not Madison and Comp. The american world view is warped, out of touch and out of stride with reality, producing nincompoops and oracles prouncing funnier prattle than Delphi or Delos. Only americans can go about thinking that foreign policy consists of values, not geostrategy. Yet, the very same ameriacns then bugger everyone about capital account liberalisation, structral adjustments, and access to hard, solid, miasmic hydrocarbons. Which one are you, Fuky?

]]> By: blabbo http://blogs.the-american-interest.com/contd/2007/07/20/the-russian-model/comment-page-1/#comment-154 blabbo Sat, 25 Aug 2007 20:17:17 +0000 http://the-american-interest.com/contd/?p=626#comment-154 There are three great experiments in authoritarian power, Japan, EU, and America. These are called managed democracies. Other forms of democracy, are piffled as populist, or chaotic. The elites in Washington-New York, Tokyo, and London-Paris-Brussels, are no different from the oleagenous slobs in Ryiad-Jedda, or Moscow-St. Petersburg. Except, that they run the world, while the latter, want to run it. There are three great experiments in authoritarian power, Japan, EU, and America. These are called managed democracies. Other forms of democracy, are piffled as populist, or chaotic. The elites in Washington-New York, Tokyo, and London-Paris-Brussels, are no different from the oleagenous slobs in Ryiad-Jedda, or Moscow-St. Petersburg. Except, that they run the world, while the latter, want to run it.

]]> By: Anatoly http://blogs.the-american-interest.com/contd/2007/07/20/the-russian-model/comment-page-1/#comment-146 Anatoly Mon, 20 Aug 2007 13:49:38 +0000 http://the-american-interest.com/contd/?p=626#comment-146 Dear Shedd First off, inflation is a devaluation of the currency; not its rise. Secondly, current inflation levels are due to FDI and consumer credit on the demand side which the economy cannot absorb precisely because it requires massive investments ("national projects" if you may) into the supply side that are instead being used to finance American and European budget deficits. A drop in oil prices will only (duh) slow the growth rate of StabFund, while holding 45% percent of it in US T-Bills only exposes Russian savings to inflation risk in case US defaults (which is inevitable). In case I did not make myself clear in the previous post - Stabfund props up the US dollar and helps to finance F-22s, Iraq, and democracy, not the ruble, Topol-Ms, or the Eeevil Putin regime (emphasis added). In 2008 the Stab will be split in half but it is unclear exactly how it will be spent and I do not think there is a consensus on this issue yet. They say it will cover budget deficits but those are going to be ruble deficits, and as I said - nowadays rubles are not being printed with IMFs permission. In either case, petrodollars are not going to be spent on Russian-made weapons which will be mainly purchased by governments other than Russian. Dear Shedd

First off, inflation is a devaluation of the currency; not its rise.

Secondly, current inflation levels are due to FDI and consumer credit on the demand side which the economy cannot absorb precisely because it requires massive investments (“national projects” if you may) into the supply side that are instead being used to finance American and European budget deficits. A drop in oil prices will only (duh) slow the growth rate of StabFund, while holding 45% percent of it in US T-Bills only exposes Russian savings to inflation risk in case US defaults (which is inevitable). In case I did not make myself clear in the previous post – Stabfund props up the US dollar and helps to finance F-22s, Iraq, and democracy, not the ruble, Topol-Ms, or the Eeevil Putin regime (emphasis added).
In 2008 the Stab will be split in half but it is unclear exactly how it will be spent and I do not think there is a consensus on this issue yet. They say it will cover budget deficits but those are going to be ruble deficits, and as I said – nowadays rubles are not being printed with IMFs permission. In either case, petrodollars are not going to be spent on Russian-made weapons which will be mainly purchased by governments other than Russian.

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