Figure 1.--. |
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Russia the heart and soul of the Soviet Union is still struggling with democracy, There are still vestages of the old Soviet economic system and President Putin is moving the country toward a the controlled political system, but the new Russia has come a long way from Soviet-era totalitarianism. Even with Putin slowly under cutting the development of free enterprise and democracy, the country s evolving into a society very different than Soviet totalitarianism. Putin appears to have concluded that Russia's future is with the West economically, but appears to fear democracy, freedom of the press, and the rule of law. Where Russia is heading is a still largely unanswered question. There are conflicted views about the disolution of the Soviet Union. Many including President Putin see it as a serious mistake. Others miss some of the the social services formerly offered in the Soviet Union. Now that the Government again dominates the mass media, it is difficult to conduct openly conduct an impartial inquiry. A Russian reader discusses modern Russia with us. He points out that there were positive elements to the old Soviet Union to aspects of the Communist regime which he misses in modern Russia.
Over the course of world history, there have been a wide range of theological, political, social, and economic systems. Some authors contend that that there are many different ways of organizing productive socities. That is no doubt true. We believe, however, that there are substantial differences in the productivity of society based on the system selected. Now some writers like Jeremy Diamond argue that geography has much to do with the prodyctivity of society. We believe that there is much of value in Dianond's groynd breaking Guns, Germs and Steel. We also believe that he leaved out a key element and that is the force of creativity and the human mind. And we believe this creative force is most effectively released by open systems where men are free to discuss and exchange ideas. These forces were unleashed by the Renaissance in Italy and when the Conter-Reformation and Inquisition closed off contemplative thought in southern Europe, the poweful force of creativity shifted north. It was here where a mix of democracy, the rule of law, and open society allowing ideas to be freely discussed that the Industrial Revolution developed, leading to an exponential explosion of priductivity and wealth. The result is our modern industrial society and living sandards which could only be dreamed a few generations ago. Some might say that this was due to primarily to science and not social structure. But the Soviet Union which gave a huge emphasis to science proved that more was involved than science. And the comparison of America and Russia as well as East and West Germany and North and South Korea are stunning examples of the importance of social structure. The historical record is so clear that it is difficult to see why so many in both the East and West fail to comprehend the social forces at work.
Russia the heart and soul of the Soviet Union is still struggling with democracy, and related issues such as the rule of law, and private property. There are still vestages of the old Soviet economic system and President Putin is moving the country toward a the controlled political system, but the new Russia has come a long way from Soviet-era totalitarianism. Even with Putin slowly under cutting the development of free enterprise and democracy, the country s evolving into a society very different than Soviet totalitarianism. Putin appears to have concluded that Russia's future is with the West economically, but appears to fear democracy, freedom of the press, and the rule of law. Where Russia is heading is a still largely unanswered question. There are conflicted views about the disolution of the Soviet Union. Many including President Putin see it as a serious mistake. Others miss some of the the social services formerly offered in the Soviet Union. Now that the Government again dominates the mass media, it is difficult to conduct openly conduct an impartial inquiry.
A Russian reader discusses modern Russia with us. He points out that there were positive elements to the old Soviet Union to aspects of the Communist regime which he misses in modern Russia.
President Putin is moving the country toward a the controlled political system, but the new Russia has come a long way from Soviet-era totalitarianism. Even with Putin slowly under cutting the development of free enterprise and democracy, the country s evolving into a society very different than Soviet totalitarianism. Putin appears to have concluded that Russia's future is with the West economically, but appears to fear democracy, freedom of the press, and the rule of law. Where Russia is heading is a still largely unanswered question. There are conflicted views about the disolution of the Soviet Union. Many including President Putin see it as a serious mistake. Now that the Government again dominates the mass media, it is difficult to conduct openly conduct an impartial inquiry.
Many Russians miss some of the the social services formerly offered in the Soviet Union. And as a result reject democracy and free enterprise because they associate both with the loss of these services. The Soviet Union built on of the largest industrial bases in the world. They trained large numbers of competent engineers and scientists. One has to ask why none of these companies, except a few in the arms industry, are able to compete in the world market. One key answer of course is the controlled economy and the insulation of Soviet companies from market forces. Is is unclear what kind of economy will energe in Russia, in part because high oil prices are currently providing adequate foreign rserve earnings. We see progress in Russia toward a market economy that would energize Russian corporations.
Russia today has a oil-based econony. Almost all of Russia's export earnings come from the export of oil and gas and other raw materials. This is a starteling situation for a country that had not only one of the world's largest industrial base nd a modern education system training scientists and engineers. A HBC reader writes, "The oil is certainly an interesting issue - there is some debate here about what to do with the revenues. It seems that a lot of oil money has been put aside, but no-one can decide what to do with it. Some want infrastructure to be improved, but once you improve it, you have to keep paying for it. So far no-one seems to have a clear idea. One thing is certain - letting it pile up is hardly any better for the economy than wasting it on projects of dubious value."
One often overlooked institution in the West is the rule of law. America's heritage of English law was a key factor in America;s success. Compare North and South America and assess why the two developed so differently. One vital fifference is the rule of law and the English legal tradition in North America. President Putin with his KGB background seems to have no appreciation for the importance of the rule if law. Now Russia has come along way from the old Soviet days, both the Gulag and more genteel toltalitarianism of the post-Stalin era. There is no indication, however, that Rssia is developing a modern legal system. A reader writes, "You make an interesting point about the rule of law. The government is in no way as extreme as the Soviet and fascist governments of the 30s and 40s, but I can almost hear people saying 'At least Putin got the trains running on time.' Certainly, the country is often ruled by decree, and the freedoms are not what a westerner expects. Conversely, it took a long time and several violent wars to establish liberties in western countries. Russia has moved a long way down that path in a surprisingly short time, and I hope that the
move back to authoritarianism we are seeing at the moment will just prove to
be a temporary blip in the path to a free and successful Russia."
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