Tuesday, December 2, 2008

Why the global elite do not like an economically strong Russia



I just had to comment on the Economist's Special Report on Russia by Arkady Ostrovsky. The report appears factual but it wreaks with propagandistic rhetoric evident from the so-called Western "commentariat" - a term I prefer to call the liberal globalist media as coined by Russia Today's Peter Lavelle.

Ostrovsky appears in various British print as an "expert" on Russian affairs but the rhetoric is typical of the Economist. I am sure the editor made sure of that since the Economist has always predicted for decades that "pro-Western" countries like Ukraine, Georgia, etc., would become economic successes whilst Russia remain a basket case. Just pick up any old Economist from the 1990's or early 2000's and you will see that the reality of today does not resemble their predictions then. This is what happens when people under the ideology of liberal globalism wrongly define what is right and what is wrong. Now they are faced to explain why Russia has been rising economically and politically. Anything you can find wrong with Russia on the other hand is Putin's fault. However, if there are positive economic reports, it means Putin is using nationalism and oil to allow Russians to get rich unfairly. It is all nonsense.

Ostrovsky at least is more realistic than most of the commentariat that the current Russia is not the Second Soviet Union. The commentariat has led the average American to believe that Putin is trying to re-create another Soviet Union through the KGB. Firstly, Putin is not the Commander in Chief any longer, and secondly as even Ostrovsky rightfully reports, Russia does have a market economy moving away from socialism.

Ostrovsky is wrong on other points as well. Mainly he is wrong by saying that Russia is merely copying the West by "unilaterally" invading Georgia, and suggesting that Russian style capitalism is leaving out the "masses" in the cold who are falling into poverty. Firstly, I don't think Russia had any other choice than to attack Georgia in order to protect its own security. Instead it was the unilateral intention of the U.S. to interfere with Georgian-Russian relations. Secondly, there does not seem to be any dispute in regards to fact the quantity of millionaires and billionaires in Russia is growing. Where do these millionaires come from? Of course we all know a good number of billionaires or oligarchs as the Russians call them got rich in the 1990's by pillaging Russia. Men like Berezovsky or the jailed Khodorkovsky got rich without really creating anything. However, there are plenty of newly created legitimate millionaires who during the same 1990's were making $40 per month, then $100 per month, etc., but used their great talents to harness opportunities that built the consumer economy now present in Russia. Prosperity has only until recently begun to spread to the provincial areas of Russia which in time will also see their standards of living improve. There is much evidence of this happening already. However, there will always be certain Russians, especially older retirees of the USSR era who will be just happy living in their villages and dachas as long as nobody bothers them. Whereas oil and gas has helped make some very rich billionaires in the energy sector and caused state coffers to fill with mountains of cash which the Kremlin has put in its reserves, the implementation of a flat tax, reduction of government and establishment of private property are the real reasons for the rise of the middle class and why there is a growing legitimate millionaire class.

What is lacking in the Economist and most other reports on Russia coming from the commentariat is that they never use real logic or investigate why things are really the way they are. They cannot report the real story because they know that the opposite is happening in the West where there is an unprecedented economic crisis. If you report the facts in Russia, you would discredit the entire elite establishment and their policies of the last 20 or so years.

And lastly the author is dead wrong on the facts about the population decreasing in Russia. According to what I have read, Russia has begun to report positive demographic growth. In fact, Russia (and Ukraine, Belarus, etc.) is among the few European countries with positive birth-rate growth. It is true that Russia has a high mortality rate, but the generation dying currently were born during the 1930's and 40's. Much of this population did not have basics like baby's milk or proper food and were living under severe trauma from the Nazis and the policies of Stalin. Babies exposed to malnutrition may have shorter life spans which now is affecting Russian demographic statistics. But this does not take into consideration the health of young people today who will most certainly enjoy longer life spans.

The Economist and rest of the commentariat love to preach about how Russia is just dying off when it is the West that is really dying off - literally with negative demographic growth in the United Kingdom and all the rest of the major Western nations. It is true, that Russia will need to increase its population in order to survive the realignment of the world order, and that is still to early to tell if Russia will succeed in this arena. While Russia is at least trying to address this problem, the West has not even acknowledged that this as a problem.

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