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Editorial

Enemy within

8 October, 23:26 | Editorial, Kyiv Post
Enemy within
Now that worldwide recession seems inevitable, Putin is again on the prowl for scapegoats to hide his economic mismanagement.

 

Russian Prime Minister Vladimir Putin, a bully with no respect for free markets, a free press or democracy, has been feeling more unrestrained than usual.

He pities Ukraine for its political disorder. He blames the United States for the sharp decline in Russia’s main stock market and creating a lack of confidence among foreign investors. “Everything happening now in the economic and financial sphere began in the United States,” Putin told a televised government meeting. “This is not the irresponsibility of specific individuals but the irresponsibility of a system which claims leadership.”

He should save the pity for himself and the nation he is misruling. But Putin’s mistakes and abuses in office come with no domestic cost. There are legitimate reasons for Putin’s popularity, but far more illegitimate ones – such as his browbeating of the press and political opposition into submission.

Creating enemies abroad is Putin’s stock in trade, a specialty he honed during his KGB days. Thanks to the Kremlin propaganda machine, recent polls show that more Russians have negative attitudes about Americans and Ukrainians. The European Union evidently doesn't bother Putin so much, because he can play a divide-and-conquer game. Germany Chancellor Angela Merkel, for instance, came through for him in Moscow on Oct. 2 by publicly nixing Ukraine's chances of getting a NATO Membership Action Plan in December.

What really bothers Putin, of course, are pesky democracies. American and Ukrainian societies, far from perfect, have strong democratic features that a Putin-controlled Russia will never have. Deep down, under what must be one of the heaviest coats of cynicism, Putin must know that his power is illegitimate.

Now that worldwide recession seems inevitable, Putin is again on the prowl for scapegoats to hide his economic mismanagement.

Americans aren’t responsible for foreign investors leaving Russia in droves. The Kremlin is to blame for its heavy-handed tactics in squeezing companies such as British Petroleum in the TNK-BP deal. Putin must now find a way to come up with much-needed capital investment to reverse sagging oil and natural gas production.

The Kremlin plays by its own rules and should suffer the consequences. If there is justice, international condemnation will mount against Putin and he’ll find Moscow to be an even colder, darker and lonelier place this winter.

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Guest  (Guest) | 16.10.2008, 03:30
Americans are responsible for the current World Financial crisis and the most certainly played a significant role in the Georgian conflict/aggression which has destabilised the region and global security. THE US push for Ukraine to join NATO against the expressed will of the people of Ukraine is another example of US policy of destabilisation. Europe would be better off if it created an European security organization independent from US domination. Ukraine MUST ALSO remain independent from US domination. It needs to adopt a position similar to Sweden, Finland, Austria and Switzerland and maintain close friendly relations with Russia and other neighbouring states.
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Guest  (Guest) | 12.10.2008, 19:09
In short, the Russian democracy might not be so different from Ukrainian one at this point in time, but clearly they are moving in different directions. Ukraine is moving towards a more democratic and liberal society whereas Russia is moving towards an more authoritorian state
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Guest  (Guest) | 16.10.2008, 03:48
Where have y9u been. Ukraine\'s democratic development has been trashed by its \"democratic in name alone President whose policies and actions seek to reinstate Presidential authoritarian rule over Ukraine\'s democratically elected Parliament.

If I had a vote in Russia I also would have votes for Putin\'s Party. Putin has provided stable and effective government and without any doubt represents the vast majority (over 65%) of the Russian people. The same can not be said for Yushchenko whose political party, according to recent public opinion polls, represents less then 5%.
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Guest  (Guest) | 19.10.2008, 18:40
\"democratic in name alone President whose policies and actions seek to reinstate Presidential authoritarian rule over Ukraine\\\'s democratically elected Parliament\" which actions and policies specifically? I hope you dont mean dismissing the parliament as one of these actions as that was a completely justified move, however it may have not beeing the best one.

Soviet Union also provided stable and effective goverenmnet which represented the majority over 80%, at this pace Russia will soon return to the level of freedom that people enjoyed under the Soviet rule.
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Guest  (Guest) | 12.10.2008, 19:07
Ukrainian Democracy vs. Russian democracy
It would be an incorrect assumption to say that Ukraine is an ideal democracy. It is still plagued by corruption on all levels, judicial system, polytical system and everyday business dealings are subjected to shady events. But no one is claiming that Ukraine is an ideal democracy, however it is an emerging democracy which needs strong support form international community to continue it\'s development. Compared to Russia which is a one party system, Ukraine boasts a large number political parties which represent the interests of the people in theirs respective regions. It is vital for any democarcy to have an oppostion party with strong support, i.e Britain, US, Canada. I also highly doubt that 80% of Russians actually voted for Putin / Medvedev, considering Russian or even Ukrainian history of fixing elections dating back to Soviet Union times. Media is a whole other issue that needs a whole acrticle in its own right..
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Guest  (Guest) | 16.10.2008, 03:37
Ukraine will continue to suffer as long as Ukraine\'s head of state continues to act against the interests of Ukraine,undermining its democratic development.Ukraine must take collective responsibility for its own future and governance. If Ukraine wants to be a part of Europe then it needs to adopt a full parliamentary system of governance in line with other European States as other former soviet states had done when they first declared independence. A parliamentary system is by far better then a Presidential dictatorship. The USA is not a democracy. In spite the one party system Russia is by far more democratic then the USA.
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Guest  (Guest) | 19.10.2008, 18:25
Presidential dictatorship, thats a good one, did you make theat one up your self? First president is democratically elected dictator seizes power by force, so a statement like presidentioal dictatorship sounds like a joke. Second after a presinet\'s term expires he/she is supposed to leave the office instead of becomeing \"prime minister\" and continuing to run the country. In case of Russia it did not matter who won the election it was clear the winner would be Putins puppet. How about workers beeing told to vote for a certain party or risk losing their jobs? I am sure that was never the case in Russia. And despite all this you still claim Russia is by far more democratic then US? You should read some literature before making such claims, I suggest J.S. Mill, John Locke.
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Mike  (Guest) | 11.10.2008, 23:08
Si should have invested is USA real estate? :-)
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Guest  (Guest) | 11.10.2008, 20:25
BP should have just walked away. There is little point negotiating with thieves. The power of the market is just now beginning to teach Russians about what capitalism really is and what long term business is all about. Ukraine may have been the breadbasket of the Former Soviet Union but Russia and Belarus under the current leadership of their respective Presidents are vying for the title Basket Case of the the FSU! And Recently Stalin was voted the second most popular man in Russian history! What a pity for an intelligent people.
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FromUSAwithLove  (Guest) | 11.10.2008, 21:17
Stalin was voted the second most popular man in Russian history? Where was the vote held - in Georgia?

I haven\'t heard that. Can you please share your source on that. I\'d like to read up on that.
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FromUSAwithLove  (Guest) | 11.10.2008, 22:03
If you are talking about \"Name of Russia\" project, no intelligent person can take that vote sireously as there are numerous problems with the project. Biggest problem is that people can vote numerous times without limit, although they are trying to prevent that. Also, as voting is still in progress, Stalin is in fifth place, not in second place. Also, he only got 11,000 votes, which is hardly representative of country with population of 140M. So, spare the pity for the unintelligent people.

X
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Guest  (Guest) | 10.10.2008, 18:27
Good editorial. To all those asking \"what mismanagement\", you perhaps may buy the claim that investors\' quick abandonment of Russia\'s market is \"all America\'s fault\". I do not. They are fleeing because the commodities bubble has burst, the catalyst being a financial crisis (a.k.a. investment firms having to take a long hard look at their rosy expectations when faced with tightening credit). They are also fleeing because Russia\'s government has shown time and time again that it has no respect for investors and can take property away whenever it desires, using its sham of a legal system. In a situation where risky investments are suddenly out of favour, Russia suffers, and rightly so, as one of the riskiest places to invest.

As oil drops below $80 a barrel, hopefully Putin will realize the long-term downside to being a commodity price-driven bully.
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FromUSAwithLove  (Guest) | 10.10.2008, 18:36
Just so that you know, stock markets in US, Aisia, and EU are all falling in line with Russia\'s murket. Investors are selling all around the world. You can blame leaders of the rest of the world for \"financial mismanagement\" as well then.

I\'m sure that it will be news for many, but Russia\'s energy income accounts for only about 5% of its GDP.

You are fool of hot air.
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Guest  (Guest) | 10.10.2008, 18:56
from http://en.wikipedia.org/wiki/ Russian_economy: \"Payments from the fuel and energy sector in the form of customs duties and taxes accounted for nearly half of the federal budget\'s revenues.\", or, from the original source:

http://en.rian.ru/an alysis/20080301/100381963.htm l
\"2. A commodities-based economy. The Russian economy so far remains commodities-driven despite its growth. Payments from the fuel and energy sector in the form of customs duties and taxes reached 3.1 trillion rubles ($128 billion) last year, or nearly half of the federal budget\'s revenues.

Besides, a substantial share of companies in manufacturing and trade process oil and market oil products, and are therefore part of the fuel and energy sector. Raw materials and fertilizers make up the overwhelming majority of Russia\'s exports. Machinery and equipment account for only $17 billion of the $352 billion export revenues. \"

Also notice how I talked about commodities in general, as in raw materials, not just energy.
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FromUSAwithLove  (Guest) | 10.10.2008, 19:43
Russian GDP is $2T. Revenues from commodities is a drop in a bucket. Small percentage of GDP. You fail to identify the missmanagement. Where is the missmanagement?
Guest  (Guest) | 12.10.2008, 00:28
\"Russian GDP is $2T. Revenues from commodities is a drop in a bucket. Small percentage of GDP. You fail to identify the missmanagement. Where is the missmanagement?\"

I really don\'t know what to add to the quote from Russia\'s official news agency, RIAN, that I produced before: \"Payments from the fuel and energy sector in the form of customs duties and taxes reached 3.1 trillion rubles ($128 billion) last year, or nearly half of the federal budget\\\'s revenues.\" So we all noted that it\'s nearly half of the federal budget? Ok, good, moving on: \"Besides, a substantial share of companies in manufacturing and trade process oil and market oil products, and are therefore part of the fuel and energy sector.\"

So, once again, you\'re for some reason looking at government revenues from commodities as a ratio of GDP. That makes no sense. Look at the commodity tax/customs revenues as ratio of budget revenues, or look at combined effect of all refineries, mines, raw materials processing plants, etc.
FromUSAwithLove  (Guest) | 12.10.2008, 02:19
I don\'t see how you can make a point that if government gets half of its budget revenue from commodities exports qualifies as mis-management. Most of the world\'s governments would kill to have such an inflow of cash in to their budgets. Can you elaborate on what \"economi cmismanagement\" this you and author are talking about. Please, be specific.
Guest  (Guest) | 16.10.2008, 03:40
Right wikipedia is a source of factual information. lol
Guest  (Guest) | 10.10.2008, 19:07
As for the Russian stock market, you didn\'t pay enough attention to the argument you so boldly set out to refute. I did not doubt that the catalyst for Russia\'s stock market crash was a worldwide crisis. I simply said that Russia is being hit harder than many other countries because its economy is more commodities-driven than most, and its lack of respect for investors\' rights means it is a much riskier investment destination than, say, Canada. So while Canada will lose some economic steam if commodities prices fall and stay down, it will be in a better position to make up the loss through other sectors. But what else can Russia export? Building up a tech sector takes much longer than digging up some nickel and selling it at sky-high prices while the world is in boom mode. Problem is, the bust always follows.
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FromUSAwithLove  (Guest) | 10.10.2008, 19:50
I agree with you that many investors flee because of perceived political risk - comments about Mechele and action in S.Ossetia doesn\'t help either. But any economist will tell you that calling it economic missmanagement is a gross overstatement. In today\'s volatile markets it remains to be seen were markets can recover quicker. I beleive that countries with larger cash reserves will recover quikcer than those those that have to borrow to stimulate the economy, which is like rubbing \"Peter to pay Paul\".
FromUSAwithLove  (Guest) | 09.10.2008, 22:52
\"Economic Mismanagement\"?

All of the world is in debt up to their eyeballs and Russia has third largest cash reserve in the world. Whoever wrote this has absolutely no clue. I don\'t even know what mismanagement this person is talking about. Can someone comment on \"economic mismanagement\" please.
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FromUSAwithLove  (Guest) | 09.10.2008, 22:30
The author of this editorial provides many accusations but lacks even one fact so that readers can see what author\'s opinion is based on. Typical nationalistic propoganda.
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Guest  (Guest) | 09.10.2008, 19:03
The people of the Ukraine should understand that freedom and self determination are the goals. When in the history of Russia did it\'s government care about the freedom of anyone?
The Ukraine has every right to be an independent country. Putin understands that Russia is losing population ( only 100 million Russians in twenty years) and it has NO export economy besides energy. So he must, sometime in the future, take control of the southern and eastern Ukraine. You folks had better have a plan or you are in deep trouble.
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Guest  (Guest) | 10.10.2008, 21:31
Oh please. All these doomsday predictions are based on *current* birth/mortality rate, which are subject to change. All these would-be Nostradamuses that claim that they can read 20 years into the future are full of hot air.
Mind you these were the same Nostradamuses that predicted that Russia was a has-been in terminal decline a few years back. Now it looks like the Russians will start bailing other countries out.
These same Nostradamuses predicted that the Russian armed forces would never recover from the Soviet collapse. Now this Nostradamuses are scrambling to explain how the innefectual and decrepit Russian army managed to wipe the floor with the \"rather fine\" US-trained Georgian army (google Pavel Felgenhauer) in only 5 days.
Russia has proved these doomsday Nostradamuses wrong time and time again over the past years. It would be silly to continue listening to them.
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Guest 1 (cont.)  (Guest) | 09.10.2008, 02:18
In the long run, Putin won\'t find Moscow any colder than normal - he\'s got the gas, after all. As sad as that may be, he\'ll be warmed by the thought that the recent financial scandals in the U.S.A. - though painful for his country, too (and Ukraine) may cause some reflection about Western \"values\" hegemony (invisible hand amputated,) or may share a cognac with the pals of the U.S.A. in the development of democracy worldwide TM, like Saudi Arabia, Iraq, Jordan ad nauseum.

Kudos for a hilarious editorial, but it clearly should have been placed on your new \"humor\" page.
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Guest  (Guest) | 09.10.2008, 04:16
???
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