Hey there little Red Riding Hood
.
That Vladimir Putin has quite a sense of humor. When asked about the progress of reform, and the need for Russia to perform a serious overhaul of the structures of its economy and state institutions, President Putin agreed wholeheartedly: "This is most important and it will certainly meet with favorable response from our partners." (ITAR-TASS 1206 GMT, 13 Aug 03; FBIS-SOV-2003-0813 via World News Connection)
He also seemed aware of the failure of previous attempts at reform that were just cosmetic: "The wolf remained a wolf even in Grandma's disguise and swallowed Little Red Riding Hood after all," quipped Putin, who was noted by ITAR-TASS (Ibid.) as being "jovial" in that descriptive comment. (Now if Russia was the wolf, who do you suppose was Red? Moreover, his version of the story has an "FSB ending.")
But reform really has been the talk of the town of late: getting serious about reform; undertaking profound reform projects; finishing with reform and getting back to work; and reforming the bodies assembled to oversee reform projects to make them more flexible to the needs of reform. It almost sounds like any other modern political bureaucracy.
One of the major bureaucratic headaches of both the Yel'tsin and Putin regimes has been the task of administrative reform. The basic premise underlying the reform attempts is that corruption among state officials is too widespread, and there should be some clear manner of screening, monitoring, or investigating officials at all levels in order to quash the graft that is siphoning resources from state coffers, allowing rampant 'shakedowns' by government employees (the police, for instance), creating a "protected" wealthy class of Oligarchs, and discouraging would-be dutiful tax-payers from fulfilling their obligations.
One of the innovations of the Yel'tsin years was a proposal by the Chubais-Nemtsov team to increase the salaries of state employees while insisting on a full disclosure of income and tax records by the civil servants. The plan worked in part, but many so-called reformers were caught in dubious 'cash transfer' schemes (advances on unwritten books and donations to non-existent foundations spring to mind), and forced to resign or at least weakened in the bureaucratic battles, thus enervating the administrative reformers.
Putin has established a new commission to study, make recommendations on and eventually oversee his own brand of administrative reform. He lobbed the project over to the Government, Prime Minister Kasyanov, who then dropped the ball in Deputy Prime Minister Boris Aleshin's court, despite the history of attempts at administrative reform by other ministers and departments within the government. As one (clearly cynical) analyst noted: "A newly created superfluous structure will analyze superfluous functions." (Report by Yelena Lashkina, ROSSIYSKAYA GAZETA (RG) 13 Aug 03; FBIS-SOV-2003-0813 via World News Connection)
Aleshin convened the new reform commission to discuss the best approach to streamlining the burgeoning government structures. After a two hour discussion of the task at hand, it was decided: The issue of state reform was too complex for one commission, seven would be needed, each with its own Chief and staffs. The divisions of the new state reform group are as follows: Industry and Science, to be headed by Anton Danilov-Danilyan; the Natural Resources Utilization and Agriculture section, headed by Viktor Tolokonsky; the Energy, (Tele)Communications, Transport and Construction group, headed by Andrei Sharonov; the Foreign Economic Activity sector overseen by Yevgeni Primakov; the group for Ensuring State Security by Vladislav Putilin; the Social Obligations, Health Care, Education, Sport and Information section headed by Aleksandr Pochinok, and the State Market Regulation group led by Anton Drozdov. [RG (Ibid)]
There is some disappointment that no state group to Eliminate the Duplication of Peripheral Functions was established, but there are probably several similar groups at work already.
For Sale: Presidential apt with panoramic views
Those looking for a second home away in the mountains might consider a five room, fourth floor apartment in Yekaterinburg with views of a city pond and dam. The realtor's gem, listed with the local Atomstroikompleks agent, comes complete with a swimming pool, billiard room, private security, and oh yes, was also the former digs of the Yel'tsin family. The home is not as luxurious as one might expect of a presidential retreat since it dates from Boris Yel'tsin's days as a local Communist Party leader in the region, but it looks likely to fetch a fair farthing. Apparently souvenir-hungry Russians "of means" are no longer satisfied with flags or posters as remembrances from the Soviet days. The home of a former Soviet official now commands a significant price as the latest trend in nostalgia turns to real estate. (MOSCOW TIMES, 12 Aug 03 via Johnson's Russia List #7286 12 Aug 03)
Dashing through the snow
.
After dealing with new trends among Russia's monied class, it is perhaps only fair to consider the trends among the political/state elites. It seems a certain Sports and Equestrian Factory is being kept in business by the demand from politicians and their businessmen friends for horse-drawn carriages.
The factory is apparently capable of turning out a full line from the simple, yet elegant sleigh to a horse-drawn carriage with television and air conditioning; former Prime Minister Viktor Chernomyrdin is said to have bought one, so has the former Kremlin Manager Pavel Borodin (allegedly for his boss, former President Yel'tsin). (FINANCIAL TIMES, 20 Feb 03; BBC Monitoring via Lexis-Nexis) Moscow Mayor Luzhkov may establish a special zone in the park for horse drawn carriages, and the Presidential Administration is said to be buying them in bulk. Better get them quick before the Administrative Reform Commission hears about this!
By Susan J. Cavan (sjcavan@bu.edu)
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FOREIGN RELATIONS
Russia looks for a foothold in Southeast Asia
On 4 August Russian President Vladimir Putin arrived in Kuala Lumpur, Malaysia the first Russian head of state ever to visit that Southeast Asian country. Officially, the summit was to finalize arms purchases, sign agreements on communication and technology, and witness the initiation of the Russian-Malaysian Business Forum. (BERNAMA NEWS AGENCY, 1 Aug 03; BBC Monitoring via ISI Emerging Markets Database) Even given the $900 million deal for 18 Russian-made Su-30MK fighter aircraft, Malaysia, two-thirds of which is covered by jungle, may seem like an out-of-the-way location for a visit from the President of the Russian Federation. Taking into account, however, the potential benefits for Russia in this part of Asia, it is clear that this two-day official visit was part of a calculated effort to continue and to enhance Russias decades old policy of seeking stronger influence in the region.
The trip, which was originally scheduled for 8 July but postponed due to the bombing at the Moscow rock concert, comes just over a month after Putins Prime Minister, Mikhail Kasyanov, met in Moscow with another Southeast Asian prime minister, Bounyang Vorachith of Laos. During those talks the Kremlin agreed to forgive 70% of the debt which Laos owes to Russia and to allow the remaining $380 million to be paid gradually and at a favorable interest rate over the next 33 years. (ENGLISH.PRAVDA.RU, 24 Jun 03) This, may seem odd considering the debt that Russia owes its own creditors. Laos, however, like Malaysia, is a useful foothold for Russia in the promisingly profitable region.
The idea of Russian engagement in Southeast Asia and the Asia Pacific region in general is not new. In the late 1980s Russia established ties with the states of the Association of South East Asia Nations (ASEAN) as part of President Mikhail Gorbachevs revised Third World policies that emphasized relations with Asian countries of various economic stages of development. Former Russian Foreign Minister Yevgeni Primakov in 1996 also stressed the region as a priority of Russian foreign policy and in 1997 won acceptance for Russia into the Asian-Pacific Economic Cooperation organization (APEC), despite indications that Russia did not meet the organizations standards for membership. (ENGLISH.PRAVDA.RU, 23 Oct 02)
There are many possible benefits for Russia to having a position of power and influence in the Far East; among them are potential profits from these military hardware and oil markets and, in some cases, useful business-like relations with elements of the Muslim world. As prospects for increased American and Chinese influences grow, the Kremlin has realized the necessity for stepping up its own activity there.
Russia has made significant efforts already to strengthen relations between itself, India and China in an attempt not only to secure stability on the continent but also to counterbalance U.S. endeavors to increase influence in Asia. Moscow and Delhi have been conducting joint military exercises and a vigorous arms trade. Sino-Russian relations have also been dynamic in the diplomatic, economic and security arenas. In May 2003, Chinese President Hu Jintao made a state visit to Moscow where he and President Putin blessed a major oil deal between Russias Yukos and China's National Petroleum Corporation worth $150 billion which envisions a pipeline to China to ship up to 700 million tons of oil from 2005 to 2030. Moreover, China has become the top customer for Russian arms sales, (ASIA TIMES, 3 June 03 via Johnsons Russia List (JRL) #7208, 3 Jun 03) with an overall level of trade between the two countries reaching $12 billion in 2002. (RFE/RL, 26 May 03 via JRL #7196, 27 May 03)
Russia and China also are working to counterbalance outside influences through the Shanghai Cooperation Organization (SCO), which in its May 2003 summit set up a permanent secretariat in Beijing, appointed its first executive secretary and emphasized security measures through the establishment of its own anti-terrorist organization. (RUSSIAN CHANNEL ONE TV, 29 May 03; BBC Monitoring via ISI Emerging Markets Database) According to various international press sources, the organization may be considering expanding its membership.
Stressing the importance of the bond between Russia, China and India, Russian Foreign Ministry spokesman A.V. Yakovenko announced that President Putin had met with his Chinese and Indian counterparts during the 57th Session of the UN General Assembly in New York (ITAR-TASS, 26 May 03; BBC Monitoring via ISI Emerging Markets Database), where they discussed the importance of mutual ties and cooperation between them for ensuring stability and security in Asia. The three countries reportedly have given strong signals that they would like to join ASEANs Treaty of Amity and Cooperation that is essentially a non-aggression treaty. (AGENCE-FRANCE PRESS (AFP), 18 June 03 via JRL #7227, 18 June 03) Indeed, Russia has already engaged ASEAN in the security arena, as in April 2002 when ASEAN and Kremlin officials met to discuss security in Southeast Asia; in June 2003 Russia signed a joint declaration with ASEAN for a partnership of peace, security, stability and cooperation in the Asia-Pacific region.
China and India are certainly the major components of Russias plan for Asia, but Moscow is playing the entire field in the Asia-Pacific region. In addition to its efforts with Laos, Malaysia and ASEAN, where Moscow is a "dialogue partner," Russia continues its business and diplomatic dealings with South Korea. In July 2003 the Joint RussianSouth Korean Intergovernmental Commission on Economic, Scientific and Technical Cooperation met in Seoul for its fifth annual meeting, the most significant results of which included South Koreas expressed interest in new small energy projects in Siberia, access of South Korean automobile and automobile parts manufacturing to the Russian market, and final settlement of Soviet debts owed to South Korea. The agreement, which, in September 2003, will be finalized and signed by the respective finance ministers in Moscow, writes off $600 million of the $2.24 billion owed to Seoul and allows the remainder to be paid by 2025. (ITAR-TASS, 21 Jul 03; FBIS-SOV-2003-0721 via World News Connection) Indications of improved relations on a lower level include an information sharing agreement also reached at a separate meeting in July 2003 between Russian and South Korean maritime law enforcement agencies. (ITAR-TASS, 21 Jul 03; FBIS-SOV-2003-0721 via World News Connection)
Russia also has continued a working dialogue with Japan, although it gives Japan a noticeably lower priority than other Asia-Pacific countries. In June, Moscow dispatched Deputy Prime Minister Viktor Khristenko to Vladivostok to host Japanese Foreign Minister Yoriko Kawaguchi. In these discussions, Japan expressed interest in building an oil pipeline from eastern Siberia to the Asia-Pacific region [(an idea not necessarily in Russias best interest given the more lucrative plan to build a pipeline to China), (REUTERS, 27 May 03 via JRL #7198, 27 May 03)] and in improving communication between Sakhalin and the Japanese islands; the two countries also signed a bilateral agreement under which Japan will help Russia to recycle its nuclear submarines. (RFE/RL Vol. 4, No. 26, 1 Jul 03).
The Russian Defense Ministry has also maintained communication with Japan. In April 2003, Defense Minister Sergei Ivanov visited Japan to discuss possible joint military maneuvers. Then, in July 2003 General Yuri Yakubov, commander of the Russian Far Eastern Military District, followed up with a visit to his Japanese counterparts on the Japanese island of Sapporo where he and the commander of Japans Northern Army discussed further details of what would be historic joint ground and naval maneuvers. (ITAR-TASS, 16 Jul 03; FBIS-SOV-2003-0716 via World News Connection) Indeed, the Japanese government has since announced that its self-defense forces will take part in joint exercises with the Russian Pacific Fleet in late August 2003. (ITAR-TASS, 8 Aug 03; BBC Monitoring via ISI Emerging Markets Database)
Although Khristenko, in an interview following his talks in Vladivostok with the Japanese Foreign Minister, (ROSSISKAYA GAZETA, 15 Jul 03; FBIS-SOV-2003-0716 via World News Connection) played up a (previously resolved) decision to launch the next part of the Sakhalin-2 project, which involves a $4 billion Japanese investment, it is clear that Russias relationship with Japan remains tainted by the continuing dispute over the Kuril Islands. Furthermore, considering Japans well established ties to the U.S., Russia may be less willing to expend energy on improving relations with Tokyo when it could be focusing on more fertile, profitable and susceptible territory elsewhere in the region.
If Russia wants to be able to compete in this expanded "Great Game," it must focus on establishing its own role concerning the regions stability. This may explain Moscows recent efforts to soothe the tensions on the Korean Peninsula, where the Kremlin may see the possibility of reasserting itself as a regional and global power by playing a leading role in ongoing negotiations. Indeed, Russia most recently has proposed that such talks be conducted in a four-sided forum (U.S., North Korea, Russia and China) or a six-sided one (with the inclusion of South Korea and Japan). (INTERFAX via the Wall Street Journal, 14 Aug 03) Moreover, preventing conflict may also preclude an increase in U.S. military power and presence in the region.
Russia lacks the military might to compete even with the current level of U.S. military presence and capabilities in the area, although it attempts to create the perception of a Russian military presence by means of its military cooperation with Japan and India, including a June 2003 deployment of a Russian naval task force to the Indian Ocean (RTR RUSSIA TV, 27 May 03; BBC Monitoring via ISI Emerging Markets Database). However, Moscow's real strength consists of its arms export industry and its oil export. Russia would like to exploit its Muslim population to strike a chord. During his visit to Malaysia, President Putin, noting that Russia is home to over 20 million Muslims, announced his desire for Russia to become a member of the Organization of the Islamic Conference (OIC), an organization of Muslim states that aims at protecting the interests of all the worlds Muslims. (RFE/RL, Vol. 4, No. 32, 12 Aug 03) If Russia were accepted, as a member it might give Moscow a competitive edge in the race for influence in the region, at least if its actions in Chechnya were overlooked.
It remains to be seen however, if there is enough long-term support in Moscow to maintain such an Eurasianist foreign and economic policy approach or if the Atlanticist attitude will keep Russia's energy focused on becoming part of Europe and the West.
by Scott C. Dullea (dulleas@bu.edu)
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