February 20, 2008 |  9 comments |  Print this Article | E-Mail Pro & Con  

Putinism: Good or Bad for the West?

Natasha Doff

With the world’s attention now focusing on the unpredictable outcome of the American elections, it is easy to forget about their more predictable, but equally important equivalent in Russia. Recently named Time's "Person of the Year," President Vladimir Putin cannot stand for the presidential elections in March for constitutional reasons. Nevertheless, it is almost certain that Putin’s chosen candidate, Dmitry Medvedev, will be elected and that Putin will remain a key figure in Russian politics when he steps down to become prime minister. Putin’s popularity rating within Russia of around 70 percent shows that most Russians support the continuation of a Putin based government. But what will its implications be for the West? Is Russian stability advantageous for the United States and EU countries or would a new style of governance be better for Russian-Western relations?

PRO:

  • Political Stability
    From a foreign perspective, Putin retaining power means a certain degree of stability. In contrast to the chaos of the post-Soviet Yeltsin years, Putin’s Russia is relatively calm. Russians feel themselves to be safer, more secure and better off than in the 90s and many consider that to be a result of Putin’s leadership. Putin also has good intentions for the future of Russia, like fighting corruption, a serious restricting factor for both foreign and Russian businesses. Although he hasn’t had a very good track record on this issue in the past, Putin’s authoritative leadership may, in the long run, be the only solution to this problem. To a certain extent, the global community knows what to expect from Putin and though they may not be able to ‘look into his soul,’ as President Bush once claimed to do, his past actions can certainly be used as an indicator of what path Russia may follow in the years to come.
  • Economic Stability
    Mainly as a result of the rising oil prices, the Russian economy has grown by 6.7 percent since Putin became president and the country has paid off foreign debt that once neared $200 billion. Workers' salaries have more than doubled since 2003. Nevertheless, rising inflation, a large income gap and persistent poverty still prevail and Russia needs the stable leadership which Putin provides to tackle these problems. A big part of Putin's next stage for Russia is also to develop the hugely lacking infrastructure of the country. This, combined with a growing and stable economy will create potential business opportunities for Western companies.
  • Third Power Base
    Putin’s Russia acts as a counter-weight to the other global powers. These days, Russia views itself as a world player and reacts badly when it thinks that its opinion is not being considered, or being undermined by other countries. Many believe that Russia has recently thrown its weight around in international politics just to show it can. Russia opposed Kosovo’s independence to show that a strong Russia has the ability to restrict the actions of the major super powers. Recent deals with North Korea, the Middle East and Iran reveal that Russia is keen to offer alternatives to America’s waning influence. If commodity prices remain high and the Russian economy grows even further, we may see the rise of an even more assertive Russia. This has the advantage of acting as a control against over-exertive American foreign policy.

CON:

  • Backtracking on Democracy
    In the years since the beginning of Putin’s presidency, Russia has seen a serious backtracking in democracy. This is an issue which has and will continue to lead to conflicts and tensions between Russia and the West. The Kremlin now controls all of Russia’s media outlets and there have been 21 murders of journalists since 2000. Putin promulgated a law in his second term giving the state means to harass, weaken, and close down NGOs considered too political. Political opposition itself has become almost non-existent. If Putin retains his power base in Russia, this backtracking on democracy is likely to continue and make relations with the pro-democracy Western powers increasingly more difficult.
  • Increasingly Anti-Western Sentiment
    At his eighth annual address to parliament in April 2007, Putin attacked unnamed foreign political influences in Russian politics. This was just a continuation of Russia’s increasingly anti-Western agenda which has grown along with the economy and has so far affected relations with both the United States and Britain, and has attempted to hinder pro-Western aspirations in former USSR countries. The threat on February 12th to target missiles at Ukraine, if the country joined NATO, is an extreme example of this. Putin’s state controlled press is being used as a vehicle for promoting anti-Western ideas by increasingly asserting Russian nationalism and regained pride from Russian assertiveness. The recent appointment of Dmitry Rogozin, a former head of the anti-immigration Russian Motherland party as Russia’s new ambassador to NATO is a further indication of Russia’s growing nationalism and the problems it may cause.
  • Corruption
    During Putin’s eight year presidency there has been a fall in Russia's international rankings for economic competitiveness, business friendliness, and transparency. In 2006 Russia was ranked 121st out of 163 countries on corruption, 62nd out of 125 on the World Economic Forum's Global Competitiveness Index, and 96th out of 175 on The World Bank's 2006 "ease of doing business" index. These statistics show that, despite the steady growth of the Russian economy, corruption and increasing state control are hindering potential foreign investment in Russia and making the day to day running of existing foreign companies extremely difficult.

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Natasha Doff is a student of Russian and German at the University of Bristol and will be spending the next six months working for an NGO in Russia after her internship with the Atlantic Community.


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Comments
Cosmo  Macfarlane

Mon, Feb 25th 2008, 16:17

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Economic stability? Agreed, the economy in Russia has boomed over the last few years, but as you correctly point out, this is because of high oil prices. It has nothing to do with Putin and I find it hard to agree that this situation is stable.

The Russian economy is commodity dependent and lacks the dynamism of a modern economy. Statistics in Russia claim the economy is growing across all sectors. This is misleading. Transfer pricing has led to growth in the oil and gas industries "appearing" in the service sector where taxes are lower. Balanced growth isn't likely in the future either. Dutch-disease has rendered the manufacturing base uncompetitive as a result of high wages, low innovation and an unfavourable exchange rate.

Meanwhile the weak governing structure has encouraged rent seeking and hence high levels of corruption, instead of improvemnts in innovation and efficiency. According to Transparency International, corruption has actually got far worse since Putin came to power.

Regarding Russia's foreign policy, I can't see anything in the "third power base" argument. How has Russian foreign policy helped the West? - the US is after all part of the West and even Russian policy makers would be disgusted by this statement. If anyone has countered US policy constructively, it has been the big EU countries - Germany and France - on issues such as Iraq. I dont expect US policy makers are interested in Russian opinion when they make foreign policy decisions, as Kosovo's recent independence testifies.

Russian foreign policy has, if anything, destabalised the West, making deliberate efforts to fracture Europe by using its oil and gas muscle. While the West has made efforts to increase global security (although not always successfully), Russia has consistently countered and weakened such moves. Most importantly, how on earth is this good for the West? European opinion may be anti-US, but it is far far further from being pro-Russia.

In the long run, I am concerned for Russia's future, both economically and politcally. I can't see Russia emerging as a separate power base in the future either. The US, Europe and China are the future superpowers; Russia will not be able to act alone, and will soon find itself sidelined if it does not cooperate internationally. And that, I fear, is the way things are going.
Tags: | EU | US | Russia |
 
Cosmo  Macfarlane

Tue, Feb 26th 2008, 12:23

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An interesting essay on Russia's virtual economy can be found here:

http://www.brookings.edu/articles/2008/02_virtual_economy_gaddy.aspx

There is a good description of "relational capital" - companies invest to protect themselves from the market, instead of becoming more competitive by investimg in human and physical capital. It also takes a technical but clear approach to reforms in the Russian economy.
Tags: | economic reform | Russia |
 
Till H. Hennig

Thu, Feb 28th 2008, 08:16

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The Russian state under Vladimir V. Putin’s reign can’t by far be said to be unstable. Yet it is more or less visible that the new post-Soviet constancy, the managed democracy, is owed the same factors, which were applied decisively for securing power in the Bolshevist dilemma: control and banishment of foreign interference concerning economic affairs, for example, or the elimination of internal antipodes – be it the media, be it politically active individuals.

The transfer of main parts of the Yukos group to the state-owned company Rosneft was an excellent example for this. M. Khodorkovski, meanwhile imprisoned since 2003, has not only given cause for the assumption that he would have intervened increasingly against President Putin’s policy, but has had serious intentions to put parts of the group into the hands of American investors.

It is a merit of the Putinistic tactics in home affairs (including also the shrewd use of environmental policy), that the Russian state is at the helm of the national gas and oil production, a multi-purpose entity.

There was no more effective, no more efficient way to clear the arrears towards the Paris Club creditors and to restore a manoeuvrable state.

The since 2005 from Russia expelled NGOs have been replaced in the meantime by state-controlled associations with officially as comparable delineated settings.

Informations (German) concerning the forthcoming Russian presidential election:
http://www.internationalepolitik.de/archiv/jahrgang-2008/februar/pu...

Informations concerning the institutionalized accumulation of assets under Vladimir V. Putin:
http://www.guardian.co.uk/world/2007/dec/21/russia.topstories3

Finally, it may be considered to be more than doubtful, whether the OEF on a large scale would have been realized, if the room for manoeuvre for Moscow would have been different. The American (+ British) military bases in Georgia, Uzbekistan and Kyrgyzstan wouldn’t have been so.

Which Russian values would become exposed on the ground if one clears away economic and strategic behaviour? What makes up specifically Russian nationalism?

Reason demands to hope that the next President of the United States of America will develop a rather steadfast understanding, that might, sometimes, open up to her/him, too, to “look into his [Vladimir V. Putin’s] soul”.
Tags: | Putin | Russia | oil | NGO | OEF | Georgia | Uzbekistan | Kyrgyzstan | nationalism |
 
Cosmo  Macfarlane

Fri, Feb 29th 2008, 12:51

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I can't agree that the state accumulation of the oil and gas industries in Russia has been a "merit of Putinistic tactics". Before these industries were nationalised on a major scale there was widespread evidence that the private oil and gas industries were totally superior in their efficiency and of greater benefit to Russia.

Between 1999 and 2004 private oil and gas companies invested $36 billion or 88% of net profits into improving technology and developing oil and gas infrastructure (including massive pipline projects). This lead to 47% growth in produciton over this period, in contrast to 14% for the state. Between 2001 and 2004 growth in oil and gas production averaged 8.5% a year. In 2005 and 2006, when large scale nationalisation began, growth averaged just 2%.

Growing state control over oil and gas has simply been the transfer of wealth and power form one small group of individuals to another. State firms are also significantly less transparent than their private predecessors were towards the end of their existence, one of the many reasons for their low efficiency. Furthermore the state now depends far more on oil and gas revenues than tax revenues. This has hindered reform in the tax system and left the government less accountable to the taxpayer.

Gas and oil in Russia is in fact still underdeveloped, and this could have been alleviated through FDI from foreign investors. State ownership has a bad record in Russia, and a better solution would have been to continue to improve transparency and the governing structures. The long run price that Russia will pay for nationalising oil and gas assets is far too great to justify the small short term gains.
Tags: | Russia | Putin | oil | gas |
 
Till H. Hennig

Thu, Mar 6th 2008, 09:51

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Pascoe, Your thoughts are comprehensible.

Regarding increases in productivity, regarding democratic transparency, regarding public welfare the developments in Russia can barely be termed "merits".

In my afore written comment I apply the disputed term to the quick successful implementation of their objectives by Vladimir V. Putin and the Siloviki.

The American form of policy of détente, which pressed down the Soviet Union, enabled the West to arrange the former Soviet satellite states as parts of the NATO. For the EU it was during the time of Russian convalescence possible to widen the political and economic sphere of influence up to the Russian borders. The process is not brought to a close – the Ukraine may suffice as an example.

Hence I consider it to be adequate to assess it as quite an achievement of Vladimir V. Putin's policy, that nowadays Russia is in the position to oppose external forces decisively more confident, than it could ever since the collapse of the Union of Soviet Socialist Republics.
Tags: | Putin | Russia | Ukraine |
 
Marek  Swierczynski

Fri, Mar 21st 2008, 13:26

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I would add a serious CON, which actually counters what you outlined to be PRO, namely business culture that has been largery subdued to KGB/Kremlin/Putin lobby and important parts of which have been made tools for external policy rather than making money, even if those two go hand in hand for the time being. This is most striking of course in the energy and fuel sector, but spans wide across other sectors of economy. In this regard russian corruption means very often political control by the KGB/Kremlin/Putin lobby which makes it impossible to start any serious business without the help, support and ultimately also paying off "friends in high places".
Another CON you must take into account is de-stabilizing role in former and new areas of political influence. Take the Balkans and Russia's role in Serbia/Kosovo relations. I am not claiming the West has been particularly wise on this and has not made mistakes - it's just that Russia on one hand wants to be portrayed as the West's friend, at least as far as the old EU members are concerned and on the other plays a very vicious part. Take Iran for another example. Take their role in the Greater Middle East and Central Asia, take Cucasus, with very openly stated threats to national security of independent states. Take Moldova, just on the EU's doors. That's a bit too many, don't you think?
Of course Russia as an independent state has every right to counter threats to its own security and act politically in favour of its interests. But claiming to be equal partner to world's leading democracies takes more than just hand-shaking of their leaders.
Tags: | Putinism | Russia |
 
ilyas m mohsin

Wed, Jun 11th 2008, 08:19

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All reports, generally, project that the Russian economy is doing well despite its lack of innovation/ scientific giant-strides. Putin' policy of forcibly building up the fuel industry since taking over from Yeltsin has paid rich dividends financially as well as politically/ diplomatically.
Thanks to the suicidal policies adopted by the US Administartion over the last 7 years, Russian clout appears to have redoubled since the breakup of the Soviet Union. Putin is lately upgrading his mineral exploitation which has vast potential. As the neregy-crunch rules the Globe, nobody would like to be on the wrong side of Russia. While he governs, he has Medvedev to pedal Russian influence in Europe etc. A similar approach is at work in staging a grand reconciliation with China which suits both the parties.
Putin or any Russian leader would erode US' influence/ power if the US remains bogged down in quagmires like Iraq/ Afghanistan which has alraedy killed almost 2 million people besides destroying those countries. It was Afghanistan which heraled the collapse of the Soviet Union with massive help from US/ Pakistan. We should dread the day when the shoe is on the wrong foot because Afghans, as history has poved, hate 'occupation/ foreign surrogates under any garb.
 
Heinrich  Bonnenberg

Sun, Jun 15th 2008, 18:24

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The Russians are very proud and thankful to be Russians. They are right. Really Russia is a great nation.

But also some chauvinism has been come to be, also with odd skin head abstruseness, as it is existing in some Western countries, too. It is worthwhile to study the reason for this. One obvious reason is that some internal political, social and economical insecureness has to be covered by the elite by exaggerating own merits and presenting enemies which escalate nationalistic feelings, sometimes in the wrong direction, too. But above all it is mainly something like the answer to the misunderstanding of Russia by foreign policy and press, often calculated, which understandably affronts and violates the Russians.

The West should try to understand better the Russian internal situation and feelings, be less untactful and not weigh all Russian words. And frankly spoken, the West also has often too little humor.
 
Unregistered User

Sat, Jun 21st 2008, 12:06

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Russia was an empire even before the Soviet one was born. So the emepire may be defucnt but the empire-complex appears to stand. As Such it is no surprise ther they are a proud people and, generally, should be good too despite their blatant democracy-deficit.
Whatever the current phraseology and media-hype, the fact remains that Russians would not easily forget their humiliation at the hands of the Afghans/ US/ Pakistan about 20 years back. It led to the collapse of their empire in Europe. Hence their sensitivity about Ukraine, Georgia etc.
It 'll be advisable if the Europeans can cultivate a sense of humour but that may not change the Russian mindset as well as history.
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