September 21, 2007

Russian Corporatism


This ran in the Wall Street Journal yesterday and was circulated on the esteemed Johnson's List. It is so intriguing, I felt it deserved quoting in its entirety.


The Board Members of Russia, Inc.


By Garry Kasparov

It has been both amusing and disturbing to watch the Western media chase its tail after the appointment of Viktor Zubkov to the post of Russian prime minister.

Amusing because these are the same experts and pundits who wrote countless articles discussing whether the next prime minister, and potential successor to President Vladimir Putin, would be Sergei Ivanov or Dmitry Medvedev. The world press fell for this KGB sleight of hand like children before a birthday-party magician.

As close to Mr. Putin as those two inconsequential cronies were, they have been supplanted by someone even closer. The only thing that matters in a mafia structure like the one Mr. Putin oversees is loyalty. Criminologists, not Kremlinologists, are required to understand the Putin administration.

As the March 2008 presidential election nears, Mr. Putin is surrounding himself with an ever-tighter inner circle. In February 2005, in these pages, I wrote that Mr. Putin could, like a modern Caligula, appoint his horse to the cabinet if he so desired. He opened the stable door by bringing in Messrs. Medvedev and Ivanov, and the sudden appearance of Mr. Zubkov is much more horse than dark horse.

It is infuriating that even now the so-called Russia experts are analyzing Mr. Zubkov's statements -- as if they are relevant to what is really going on in Russia. The media has been operating under an entirely false rationale. There are no public politics in Russia under the Putin regime. Indeed, democratic politics are dead in Russia and Mr. Zubkov represents the flowers on the grave. There is no pressure from the public so there is no need to manipulate, convince or appease the electorate. The coming elections are sure to be a charade and the media is under tight control. Who cares about Mr. Zubkov's political biography?

What is important, as ever, is business. Mr. Zubkov is a senior member of the St. Petersburg "Ozero," or Lake, the joint-ownership group of a small real-estate project whose members are today in charge of the most lucrative state-generated businesses in Russia and of channeling their revenues into private accounts. Former St. Petersburg gasoline mogul Vladimir Smirnov controls the nuclear tech deals with Iran, Gennady Timchenko is the largest "independent" oil trader in Russia, and Mikhail Kovalchuk has recently been put at the head of a $5 billion government-backed nanotechnology project.

Now an Olympic Corporation with a budget of $12 billion has been set up for the Sochi Winter Olympic Games of 2014. The parliament is considering giving this entity the power to expropriate property without a court order. The list could go on. This is Mr. Putin's famiglia, and they no longer have to worry about their public image.

The Russian government is increasingly irrelevant to Mr. Putin and his chosen few. The state apparatus has been subverted to serve a corporate apparatus that operates above the law and behind the scenes. The Putin regime has steadily channeled funds into state-controlled corporations that serve the ruling clique. It is a super-oligarchy that has largely superseded the state.

Money is what matters, not the cabinet sideshow on television.

The Russian budget has already been approved for the next three years, locking in the continued "privatization" of the state. Mr. Putin doesn't need a third term as president when he can continue in his true role as capo di tutti capi.

As journalist Yulia Latynina recently noted in Novaya Gazeta, we have a two-party system in Russia: the Oil Party and the Gas Party. Gazprom and Rosneft now have their own security forces, further allowing them to operate independently of whatever administration exists in the Kremlin next year. The ruling factions will continue to fight with each other and protect their own. The various departments of this multilevel criminal organization -- judiciary, defense ministry, etc. -- will also continue their internal battles for funds.

In blunt remarks to the foreign press last weekend in Sochi, Russia, Mr. Putin made this remarkable statement: "We will participate in any debate with our partners, but, if they want us to do something, they must be specific. If they want us to resolve Kosovo, let's talk Kosovo. If they are worried about nuclear programs in Iran, let's talk about Iran, rather than talking about democracy in Russia."

This is an open invitation to foreign leaders to do business with a "sovereign managed democracy" in Russia. It says, "Let's make a deal and stop wasting time with the principles of individual rights and democracy upon which your nations are based."

Could it be made any clearer? Yes, actually. Mr. Putin went on to say the West should drop its "foolish Atlantic solidarity" in order to make progress with Russia.

All the masks have been removed and the curtain has been raised. The Putin Democracy Show is over.
Like this post? Get a weekly email digest + member-only deals

Some of Our Books

93 Untranslatable Russian Words

93 Untranslatable Russian Words

Every language has concepts, ideas, words and idioms that are nearly impossible to translate into another language. This book looks at nearly 100 such Russian words and offers paths to their understanding and translation by way of examples from literature and everyday life. Difficult to translate words and concepts are introduced with dictionary definitions, then elucidated with citations from literature, speech and prose, helping the student of Russian comprehend the word/concept in context.
Okudzhava Bilingual

Okudzhava Bilingual

Poems, songs and autobiographical sketches by Bulat Okudzhava, the king of the Russian bards. 
Davai! The Russians and Their Vodka

Davai! The Russians and Their Vodka

In this comprehensive, quixotic and addictive book, Edwin Trommelen explores all facets of the Russian obsession with vodka. Peering chiefly through the lenses of history and literature, Trommelen offers up an appropriately complex, rich and bittersweet portrait, based on great respect for Russian culture.
Stargorod: A Novel in Many Voices

Stargorod: A Novel in Many Voices

Stargorod is a mid-sized provincial city that exists only in Russian metaphorical space. It has its roots in Gogol, and Ilf and Petrov, and is a place far from Moscow, but close to Russian hearts. It is a place of mystery and normality, of provincial innocence and Black Earth wisdom. Strange, inexplicable things happen in Stargorod. So do good things. And bad things. A lot like life everywhere, one might say. Only with a heavy dose of vodka, longing and mystery.
At the Circus (bilingual)

At the Circus (bilingual)

This wonderful novella by Alexander Kuprin tells the story of the wrestler Arbuzov and his battle against a renowned American wrestler. Rich in detail and characterization, At the Circus brims with excitement and life. You can smell the sawdust in the big top, see the vivid and colorful characters, sense the tension build as Arbuzov readies to face off against the American.
Moscow and Muscovites

Moscow and Muscovites

Vladimir Gilyarovsky's classic portrait of the Russian capital is one of Russians’ most beloved books. Yet it has never before been translated into English. Until now! It is a spectactular verbal pastiche: conversation, from gutter gibberish to the drawing room; oratory, from illiterates to aristocrats; prose, from boilerplate to Tolstoy; poetry, from earthy humor to Pushkin. 
Faith & Humor: Notes from Muscovy

Faith & Humor: Notes from Muscovy

A book that dares to explore the humanity of priests and pilgrims, saints and sinners, Faith & Humor has been both a runaway bestseller in Russia and the focus of heated controversy – as often happens when a thoughtful writer takes on sacred cows. The stories, aphorisms, anecdotes, dialogues and adventures in this volume comprise an encyclopedia of modern Russian Orthodoxy, and thereby of Russian life.
White Magic

White Magic

The thirteen tales in this volume – all written by Russian émigrés, writers who fled their native country in the early twentieth century – contain a fair dose of magic and mysticism, of terror and the supernatural. There are Petersburg revenants, grief-stricken avengers, Lithuanian vampires, flying skeletons, murders and duels, and even a ghostly Edgar Allen Poe.
Tolstoy Bilingual

Tolstoy Bilingual

This compact, yet surprisingly broad look at the life and work of Tolstoy spans from one of his earliest stories to one of his last, looking at works that made him famous and others that made him notorious. 

About Us

Russian Life is a publication of a 30-year-young, award-winning publishing house that creates a bimonthly magazine, books, maps, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955