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The Moscow Times, April 19, 2004

Flogging a Worn-Out Nag

By Andrei Piontkovsky

The myth of a struggle between so-called liberals and siloviki within the presidential administration has proven surprisingly durable. In fact, moral and political unity reigns among the political elite.

The liberals, after all, are people like Alexei Kudrin, German Gref and Anatoly Chubais, who have long nursed the dream of a Russian Pinochet implementing reforms with an iron fist, and who are perfectly happy with the authoritarian nature of the current regime.

And the well-heeled siloviki are hardly foes of private property. Their recent friction with the Yeltsin-era oligarchs is nothing more than a millionaires' rebellion against the billionaires.

Both groups are actively working to implement a model of authoritarian modernization that does not serve the country's strategic interests. This unity does not, however, exclude some healthy personal and clan feuds over the "control of revenue streams."

On the whole, this model fulfills the dream of the Soviet party and intelligence nomenklatura that dreamed up perestroika in the mid-1980s. In the last 20 years, this group has managed once more to concentrate power entirely in its own hands. Its members have amassed huge personal fortunes that were once off-limits. And it has achieved a completely different lifestyle than was possible in the Soviet era.

Most importantly, the ruling elite has shed any last remnant of social responsibility. It no longer needs to keep up the fiction of working for the good of the common man. Now it proudly declares that market reforms are the nation's top priority and mercilessly implements these reforms. Political types close to the Kremlin extol managed democracy, enlightened authoritarianism, bolstering the executive chain of command and subduing opposition media outlets.

What is the purpose of this massive ideological effort aimed at creating a unity of opinion and a regime of personal power? Why are generals moving becoming governors and presidential envoys? What enemy is this enormous, repressive ideological and police apparatus directed against?

The oligarchs? They've sworn loyalty to the regime, anxiously hand over their golden eggs and invest in ski resorts and presidential seaside retreats.

The millions of average people who lost their shirts as a result of reform? They're dispirited, apathetic and reconciled to life on the verge of poverty.

Intellectuals who make no attempt to conceal their aesthetic hostility toward the new regime and its leaders? The few who remain can easily be frightened into submission or exiled.

The solution to this riddle can be found on the Kremlin's own web sites. The court wizards have long considered the construction of the executive chain of command and the purge of the media a job well done. Now it's time to move forward with the "unpopular measures" contained in Gref's program like revoking subsidies for housing, education and healthcare, evicting people who don't pay their bills and raising the retirement age to 65. There is no need to fear a popular backlash because the fallout from these measures will not be televised, and that means it simply won't exist.

The political class has been promising "unpopular measures" throughout the last 20 years of reform. And in all that time they have been very successful in implementing measures that made them all rich, and were therefore wildly popular in their own narrow circle.

Liberal and chekist ideologues alike have clearly formulated the logic of the big push to modernize Russia in President Vladimir Putin's second term. By drastically cutting spending on social programs the government will be able to cut taxes as well. Freed from this burden, the business community will respond to such enlightened and liberal macroeconomic signals with robust growth and job creation. Stripped of government subsidies, the poor will work like the dickens in these new jobs. Wages will more than replace the handouts they have lost. All that's required is a little patience; a bright future is just around the bend.

At least that's what it says in Western economics textbooks. And that's actually what happens in developed countries and the few developing countries that those textbooks are based on. But Russian business, busy shuttling between Courchevel and Lefortovo, squeezed by organized crime and corrupt bureaucrats, will not react to these classic macroeconomic signals.

For the nth time in the last few centuries, the regime is bent on achieving a major leap forward by subjecting the people to terrible privation, driving them into the bright future with a whip.

The new lords of the Kremlin have it all planned out. But this time the obedient, emaciated old horse might not hold up under the strain.

The author is a member of the YABLOKO party

 

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The Moscow Times, April 19, 2004

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