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Analysis & Opinion
29.10.08 The Opportunity In Difficulty
Comment by Ethan Burger

In mid-October, Western government officials, journalists and specialists on Russia assumed that it was true that poison was placed in Russian human rights lawyer Karina Moskalenko's car in Strasburg–the home of the European Court of Human Rights. Moskalenko is a prominent human rights activist with a worldwide reputation. It was widely assumed at the time that this "event" was the result of a conscious decision on behalf of members of the Russian government, persons who enjoyed their backing, or Russian organized crime.

The next week, however, it was reported by the Associated Press that "French police are suggesting that mercury found in the car of a Russian lawyer who defends Kremlin foes was spilled accidentally." The BBC noted that "Fears that a lawyer representing several critics of Russia's government may have been poisoned appear unfounded, French authorities say,” and in his blog, Peter Lavelle of Russia Today wrote that "When it comes to Russia, the West's commentariat refuses to use logic or attempts to investigate. The fact is, writing sensational stories about Russia sells and serves time-honored stereotypes, prejudices, and reinforces a sense of Western hubris."

In this instance, it appears that Lavelle's analysis is correct. Nonetheless, it is important for the Russian political leadership to use this episode as a learning experience leading to more enlightened and effective policies. Informed Western officials and decision-makers are currently willing to believe the worst about Russia's intentions. In many, but not all cases, they seem to be in the right. This situation could not have been predicted back in 1992, except maybe by a small percentage of the Russian population.

What accounts for this change? Realistic Western observers would acknowledge that Russia has every right to pursue its own national interests in the same manner as any other country. At the same time, those judging Russia are understandably troubled when its political leadership appears to be taking actions that violate the country's international treaty obligations, when Russian corporations (with the connivance of certain government officials) do not honor their business commitments, or when the Russian government ignores the needs of the Russian people (as guaranteed by the Russian Constitution).

I am reminded that nearly 50 years ago, then-student and subsequently journalist George Feifer wrote in the beginning of his book "Message from Moscow" that before living in the Soviet Union, he was inclined to disbelieve those with anti-Soviet attitudes. He thought they were exaggerating the amount of political repression in the country and the population's low standard of living. At the other extreme were the Soviet Union's “apologists,” who tended to be domestic liberals or socialists.

Feifer was inclined to believe that the "truth" lay somewhere between the extremes. Nonetheless, after spending a semester in the Soviet Union, he noted that upon his return to the United States, he saw that those individuals on the liberal side of the political spectrum did not understand the Soviet reality—that is, the right-wingers had a more accurate view of the country. He found himself embarrassed by having previously agreed with certain individuals when discussing the Soviet Union. The situation is the same to a great extent today.

The degree and pace at which Russia will change is a vital issue. The idea that Gazprom seems to be experiencing financial problems due to the "Western" financial crisis is telling. Gazprom is a state monopoly and the largest gas company in the world. It engages in considerable investment activities outside of Russia. In fact, many of Russia's wealthiest individuals and enterprises invest abroad and not in their own country. What is the reason for this?
Apart from a desire to avoid taxes or risk the discovery of arguably criminal activity, much of the capital’s flight from Russia is due to the government's lack of respect for private property and to the absence of the rule of law in the country. Hernando de Soto, the president of the Institute for Liberty and Democracy located in Lima, Peru, analyzes this issue in his book "The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else,” both in respect to the developing world as well as to formerly "socialist" countries.

Now capitalism is in crisis. It is an ideal opportunity for Russia to play a constructive role in the world economy and in international politics. Its political leadership, however, must come to understand that if Russia is to ameliorate its pariah status in many circles, it must play by the economic rules largely established by the Organization for Economic Cooperation and Development (OECD), and to stop viewing foreign relations as a "zero-sum" game.
Failure to do so will ultimately jeopardize the country's economic and political future, when Russia's real friends will remain states like Belarus, Iran and Venezuela.
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