DATE=11/9/98
TYPE=BACKGROUND REPORT
NUMBER=5-41812
TITLE=CRIMINALIZING RUSSIA
BYLINE= ED WARNER
DATELINE= WASHINGTON
CONTENT=
VOICED AT:
INTRO: PESSIMISM HAS REPLACED OPTIMISM ABOUT THE FUTURE OF
RUSSIA. THE TRANSITION FROM COMMUNISM HAS NOT LED TO THE PEACE
AND PROSPERITY ONCE ENVISIONED. IN FACT, AN AMERICAN SCHOLAR
CLAIMS THAT RUSSIA, AS IT REVERTED TO CAPITALISM, BECAME
CRIMINALIZED. V-O-A'S ED WARNER REPORTS HIS REMARKS AT
WASHINGTON'S WILSON CENTER AND SOME COMMENTS BY THE DIRECTOR OF
THE KENNAN INSTITUTE.
TEXT: IF YOU ARE A WELL MEANING BUSINESSMAN, YOU MAY WALK INTO
AN OFFICE IN MOSCOW AND BE IMPRESSED WITH ITS COMFORTABLE WESTERN
APPEARANCE. A COMELY SECRETARY POLITELY SERVES TEA, AND THEN A
SMARTLY DRESSED EXECUTIVE ENTERS AND OFFERS A FRIENDLY HAND. ALL
GOES WELL UNTIL THE VISITOR BALKS AT SOME PROPOSAL. THEN, PERHAPS
JUST AS POLITELY, HE IS THREATENED WITH DEATH.
DOING BUSINESS IN RUSSIA TODAY IS AS SIMPLE AND DEADLY AS THAT,
ACCORDING TO DAVID SATTER, A SENIOR FELLOW AT WASHINGTON'S HUDSON
INSTITUTE AND A FORMER MOSCOW REPORTER FOR THE "FINANCIAL TIMES.
IN A DISCUSSION AT THE WILSON CENTER, MR. SATTER SAID THE RUSSIAN
ECONOMY HAS BEEN CRIMINLIZED:
// SATTER ACT //
THE RUSSIAN ECONOMY IS NOT ORGANIZED TOWARD
PRODUCTIVITY. IT IS ORGANIZED TOWARD THEFT. BUSINESSMEN
GO INTO BUSINESS NOT IN ORDER TO CREATE BUSINESS, NOT IN
ORDER TO CREATE THOSE ENTERRPISES, BUT TO DESTROY THOSE
ENTERPRISES, TO LIVE OFF THEM AS LONG AS THEY CAN AND TO
SEND THE MONEY OUT OF THE COUNTRY UNTIL THE DAY COMES
WHEN THEY WILL FOLLOW THAT MONEY.
// END ACT //
MR. SATTER SAID AN ESTIMATED 350 BILLION DOLLARS HAS BEEN
ILLEGALLY TAKEN OUT OF RUSSIA, ENOUGH MONEY TO SOLVE ALL THE
NATION'S PROBLEMS IF IT HAD BEEN INVESTED IN RUSSIA.
HE BLAMES COMMUNISM FOR DESTROYING THE MORAL BASE OF RUSSIAN
SOCIETY. WITHOUT MORALITY AND THE RULE OF LAW, HE SAID, NO FREE
ECONOMY IS GONG TO WORK, AND RUSSIA'S HAS NOT. A GROUP OF GREEDY
INDIVIDUALS, OBLIVIOUS TO THE SUFFERING OF THE MASS OF PEOPLE,
MANAGED TO SEIZE THE NATION'S ASSETS AND MILK THEM DRY.
THANKS TO CORRUPT TIES TO GOVERNMENT OFFICIALS, THE SO-CALLED
OLIGARCHS WON RIGGED AUCTIONS FOR BANKS AND INDUSTRIES. IF ANY
LEGITIMATE BIDDER SHOWED UP, HE WAS OFTEN DISCOURAGED AT GUNPOINT
BY TOUGHS RECRUITED FROM THE DREGS OF SOCIETY:
// SATTER ACT #2 //
BY THE TIME PRIVATIZATION REALLY GOT UNDER WAY, THE
COUNTRY WAS ALREADY DIVIDED INTO A GROUP OF PEOPLE WHO
HAD NO HOPE OF PARTICIPATING IN IT AND A GROUP OF PEOPLE
WHO, AS A RESULT OF THEIR ABILITY TO AMASS UNEARNED
WEALTH, WERE WELL POISED TO APPROPRIATE THE RESOURCES
AND THE ASSETS THAT WERE CREATED BY THE LABOR OF THE
ENTIRE POPULATION.
// END ACT //
MR. SATTER DESCRIBED A VARIETY OF OTHER SWINDLES ALL CARRIED OUT
UNDER THE NOT SO WATCHFUL EYES OF SO-CALLED REFORMERS IN THE
YELTSIN GOVERNMENT. THESE WERE NOT GENUINE REFORMERS, HE
INSISTED, BUT CAREERISTS WHO HAD BEEN THWARTED UNDER COMMUNISM
BUT HAD NO REAL QUARREL WITH IT. THEY WERE NOT DISSIDENTS.
THAT IS TOO HARSH A JUDGMENT, SAID BLAIR RUBLE, DIRECTOR OF THE
KENNAN INSTITUTE. AFTER ALL, MOSCOW REFORMERS TOOK THE ADVICE
OF AMERICANS WHO SCOFFED AT THE NOTION OF MORALITY BEING
NECESSARY FOR REVIVING THE ECONOMY:
// RUBLE ACT //
I WOULD HEAR FROM VERY DISTINGUISHED, TENURED FACULTY
MEMBERS OF THE BEST ECONOMICS DEPARTMENTS IN THE
COUNTRY, IN THE WORLD, THAT BASICALLY THIS ARGUMENT IS
WRONG. IT IS BACKWARDS. WHAT YOU HAVE TO DO IS CREATE A
CLASS OF PROPERTY OWNERS THROUGH PRIVATIZATION, AND
THOSE PROPERTY OWNERS WILL THEN CREATE THE MORAL AND
LEGAL STRUCTURES TO DEFEND THEIR OWN PROPERTY, AND THEY
WILL BE FORCED TO DO SO BY THE RIGOR OF THE
INTERNATIONAL MARKET PLACE.
// END ACT //
MR. SATTER SAID THERE IS A MORAL VACUUM IN RUSSIA WAITING TO BE
FILLED. A LEADER OF CLEAR INTEGRITY WOULD APPEAL TO THE STRONG
SENSE OF JUSTICE AMONG RUSSIANS WHO ARE REPELLED BY THE
OLIGARCHS. BUT GIVEN CONDITIONS IN RUSSIA, HE SAID SUCH A LEADER
COULD ALSO TURN OUT TO BE A RUTHLESS STRONG MAN. IT HAS HAPPENED
BEFORE. (SIGNED)
NEB/PT
09-Nov-98 10:14 PM EST (0314 UTC)
NNNN
Source: Voice of America
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