Letter From Russia – Part IV

The Daily Escape:

Moscow’s International Business Center

We have all sorts of prejudices about foreign countries, most of which we learn from our media and history texts. An example is our views of Mikhail Gorbachev, who was president of Soviet Union from 1985 – 1991, and Vladimir Putin, the current president of the Russian Federation.

Americans like Gorbachev, and Russians detest him.

We like him because he won the Nobel Peace Prize, and negotiated a nuclear weapons reduction with Ronald Reagan. We remember his policy of Glasnost, or openness, which moved the Russian state toward becoming a freer society, in part by allowing criticism of Stalin, and other Russian leaders.

We also remember Perestroika, Gorbachev’s policy of political and economic reforms meant to kick start the Soviet Union into a market economy.

Russians detest Gorbachev because Perestroika was catastrophic, both economically and socially. Many lost jobs at state-owned companies. Gorbachev closed the heavy industrial firms that had been an engine of Russian economic growth and employed millions, in favor of light manufacturing of consumer goods. But the light industries failed, in part because jobless people couldn’t afford new consumer goods. He closed the collective farms that Stalin had instituted, but the state-owned food stores remained. Without a source, food shortages appeared immediately, and WWII-style rationing returned. There was little product in the state shops, but lots of product in private shops that few could afford.

The budget deficit grew. Foreign debt grew, and the death rate exceeded the birth rate, a grim statistic that only recently has returned to equilibrium. Nearly 700,000 children were abandoned by their parents who couldn’t afford to take care of them. The average lifespan of men dropped to 59 years.

The terrible economy nearly broke the back of Russian society. It didn’t help that oil prices fell from about $60/bbl. when Gorbachev took office, to about $30/bbl. when he was succeeded by Yeltsin in 1991. At the time, oil accounted for about 65% of exports.

Fast forward to today: Americans hate Vladimir Putin, while Russians love Putin.

Americans hate Putin because he annexed Crimea in 2014. The US and Europe responded with economic sanctions. And many believe that Russia hacked the US presidential election in 2016, gifting the presidency to Donald Trump.

So, Americans have reasons to dislike Putin.

People in Russia love Putin. He was just reelected with more than 70% of the vote. The primary reason is a steadily improving economy. Russian GDP has averaged 3.01% from 1996 until 2018, but it took until 2008 for GDP to return to its pre-Gorbachev levels.

Putin increased tax revenues by implementing a 13% flat tax, a value-added tax on purchases, and a 6% corporate tax on gross revenues. Real estate taxes on the average person’s apartment are negligible.

Today, Moscow looks like any major western European city. There are high rise apartment buildings everywhere, the population is 15 million, and there are 5 million cars. Again, a key success factor in Putin’s economic record was rising oil prices. When Putin took over, oil was $25/bbl. Today, the price for Russian oil is about $82/bbl. Here is the famous GUM department store decorated for fall:

2018 iPhone photo by Wrongo

Americans believe that Putin’s annexing of Crimea was illegal. But the Russians draw a distinction between what’s legal, and what’s justified. It may have been illegal to annex Crimea, but Russians think that when Khrushchev gave Crimea to Ukraine in 1954, he shouldn’t have. And nobody asked the people of Crimea.

So, when Russia annexed Crimea, Russians saw it as a justified return of lands that were rightly theirs. When the people of Crimea soon overwhelmingly voted to approve returning to Russia, it gave a veneer of legality to a perceived act of justice.

Americans also differentiate between what’s legal and what’s just, as the Brett Kavanaugh appointment shows. Those who support Dr. Ford feel deeply that justice must be done in order to right a wrong that had occurred years ago.

Those who support Kavanaugh say that there is no evidence that supports her claim of attempted rape, so he should be appointed. They’ve always been strict constructionists of the law.

The age-old conflict between people who narrowly read what is legal, and those who broadly interpret what justice requires, again divides us.

But actions have consequences, regardless of which side you are on. No one knows what the political outcome of this emotional moment in American life will be. Deep fissures have been opened, and they may take a long time to heal.

Are we at a tipping point? Everyone thinks one is coming, but no one knows which way we’ll tip.

The Senate is showing that they believe half of Americans are second-class citizens.

It’s likely that those second-class citizens think justice matters.

And it’s likely that they won’t forget.

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Letter From Russia, Part III

The Daily Escape:

The Assumption Cathedral, Yaroslavl, RU. Originally built in 1210, it was  blown up by the Soviets in 1937 as part of their anti-religion policy. This new cathedral was constructed in 2010 on the same spot. In front is an eternal flame memorializing the soldiers and the workers of WWII.

Wrongo and Ms. Right spent the day in Yaroslavl, Russia. It’s a mid-sized town of about 600k residents, and an important port on the Volga River. The Volga is more than 2,000 miles long, tying the western Russian cities together. Yaroslavl is an ancient city, founded in 1010.

In Yaroslavl, we learned two interesting facts about Russian towns. Any town of size has a fortress that includes a church. In Russia, that space is called a “Kremlin”. Second, despite the collapse of the the Soviet Union, statues of the heroes of the revolution were not taken down. The idea is that young people should understand their history, both the good and the bad. Major streets have kept their revolutionary names as well.

Maybe there is a lesson in that for America.

In visiting both tiny towns and large cities, it quickly becomes evident that the peoples of Russia have suffered immensely over the centuries. They endured long periods of starvation, and their losses in blood and treasure at the hands of both their enemies and their rulers were truly extraordinary:

  • As many as 17 million died under Stalin in the Gulags. At their high point, there were thousands of Gulags across the Soviet Union.
  • In WWII, during the war with Germany, Russia lost 27 million people.
  • During the 400 years of serfdom, millions of serfs died during forced labor. They built the palaces, roads and waterways that remain in use today between Moscow and St. Petersburg.

If history teaches us just one thing about Russia, it is that its people know suffering. They have survived, and in Wrongo’s brief visit, appear to have thrived. Stores are full of product, markets are busy with the purchase of fresh vegetables, meats and fish. New cars are on the streets, theaters are open, and everything looks very clean.

How have a people who have endured so much suffering, succeeded in the modern world? How were they not irretrievably damaged by their multiple tragedies?

How are they so resilient?

Perhaps their legendary winters forge a determination to do whatever is necessary to survive a long, hard fight with limited resources. Perhaps Russia’s long history of invasion and occupation by hostile powers has played a role: Russians have been invaded by the Mongols, the Turks, the Poles, the Swedes, the Germans and the French. Their story is ultimately one of resilience despite tremendous loss of life, repeated destruction of infrastructure, and against long odds.

Another thing is that the people seem to have a profound and deep feeling for their homeland, Mother Russia. That seems to be true, regardless of who is in control in the Kremlin, or which Tsar was in charge at the time.

So they fought and died for the motherland, regardless of who was leading them.

Compare that with America’s resilience. How resilient are we, in the 21st Century? We have never faced invasion, but we have faced attack. On our homeland, we fought a seven-year revolution, and a bloody civil war. We’ve faced natural disasters.

After 9/11, we overreacted to the threat of Islamic extremists by weakening our First Amendment rights with the Patriot Act. We launched wars in Afghanistan and Iraq. But, we didn’t come together as a nation. In fact, 9/11 threw gasoline on the fire of America’s already factionalized politics.

When Japan attacked us at Pearl Harbor in 1941, we came together as a people. There were a few who said we shouldn’t go to war, but the vast majority of our people got behind a global war against fascism. We sent our fathers, brothers and husbands off to war. Women worked in the factories for the war effort. Some were on the front lines with the troops. We rationed butter and sugar.

Our people knew hardship, and pulled together in common cause.

The question is: Will today’s America still pull together in common cause? Do we have the strength of character, the grit, to fight for something larger than ourselves? Could we again sacrifice for what we believe to be the right thing?

Our response to the Great Recession of 2008 showed us that in an American financial crisis, it’s every person for themselves, unless that citizen happens to be a financial institution.

When you think about it, do you still love Lady Liberty enough to fight for her?

To send your kids to fight for her?

And, do you think that we love her as much as Russians seem to love Mother Russia?

 

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