Their regimes might change, but the Russian psyche manages to remain remarkably uniform no matter what. Russians are tough, enduring people, who have proved themselves admirably in the face of countless foes such as the Tartars, Swedes, French, Poles and Germans. Interestingly enough, their biggest enemy has always been from within, irrespective of the form of government (be it Communism, Democracy, Tsarism, etc.). The following paragraphs will uncover some of the putrescent aspects of Russian society, while "The Oil Tsars Part 2" will examine the effect this has on the current global state of affairs.
Democracy stems from the Greek word "demos," which means rule by the people. Sure, Russia is ruled by people; a pretty small group of people, that is. Due to the dangerous collusion between political and economic power in the Kremlin, few people truly have much to say. The real power rests in the hands of a small group; often ex-KGB oligarchs who profited handsomely through the prostitution of state companies and resources during the shock transition to free markets in the 1990's.
Although it seems that the Russian economy is back on track with a vengeance after contracting an estimated 40% between 1991 and 1998, the benefits of the economic recovery are not shared by the majority of Russian citizens. This is in large part due to the inefficiency of the economic system which, due to the corrupt nature of governance, disenfranchises the majority of Russian citizens. This very engine of inequality is polarizing Russian society and sowing the seeds of future instability.
The streets in Russia are also becoming poisoned with ultra right wing nationalism, where gangs and organized crime contest for control. State owned media is for a large part responsible for fueling this nationalist sentiment. The atmosphere is reminiscent of 1930's Nazi Germany, with minority groups being openly blamed and targeted for the social economic turmoil. In the past, being a dissident would get you deported to the Gulag somewhere far away in Siberia. In the new Russia, if you speak out or are perceived to be a threat or nuisance by the ruling elite, you could get the bullet. A professional assassination will only set you back about US$10.000, which for high-rolling criminals, gangs, oligarchs, agents, etc., is really not such a steep price to pay.
Gangsters are not only found in the street. In fact, the biggest gangsters are sitting comfortably in the Kremlin. With no respect for free markets, Russia is bullying out foreign companies who have significant stakes in Russia's oil wealth. Although this is arguably part of a global trend of energy nationalization, it must be said that those countries partaking in such measures are democratically bankrupt.
High oil prices will continue to beguile Russia to nationalize her natural resources. 30% of the Russian state budget comes from exporting energy wealth. Without it, Russia could never keep its expensive, corrupt bureaucracy intact. By using her oil wealth as a strategic state asset, Russia has turned around its economy from being a net debtor to becoming a creditor nation. However, if Russia remains a country where justice, conscience and power is for sale, its citizens will never reap the true potential of mother Russia and her abundant resource wealth.
Please click here for The Oil Tsars Part 2
Democracy stems from the Greek word "demos," which means rule by the people. Sure, Russia is ruled by people; a pretty small group of people, that is. Due to the dangerous collusion between political and economic power in the Kremlin, few people truly have much to say. The real power rests in the hands of a small group; often ex-KGB oligarchs who profited handsomely through the prostitution of state companies and resources during the shock transition to free markets in the 1990's.
Although it seems that the Russian economy is back on track with a vengeance after contracting an estimated 40% between 1991 and 1998, the benefits of the economic recovery are not shared by the majority of Russian citizens. This is in large part due to the inefficiency of the economic system which, due to the corrupt nature of governance, disenfranchises the majority of Russian citizens. This very engine of inequality is polarizing Russian society and sowing the seeds of future instability.
The streets in Russia are also becoming poisoned with ultra right wing nationalism, where gangs and organized crime contest for control. State owned media is for a large part responsible for fueling this nationalist sentiment. The atmosphere is reminiscent of 1930's Nazi Germany, with minority groups being openly blamed and targeted for the social economic turmoil. In the past, being a dissident would get you deported to the Gulag somewhere far away in Siberia. In the new Russia, if you speak out or are perceived to be a threat or nuisance by the ruling elite, you could get the bullet. A professional assassination will only set you back about US$10.000, which for high-rolling criminals, gangs, oligarchs, agents, etc., is really not such a steep price to pay.
Gangsters are not only found in the street. In fact, the biggest gangsters are sitting comfortably in the Kremlin. With no respect for free markets, Russia is bullying out foreign companies who have significant stakes in Russia's oil wealth. Although this is arguably part of a global trend of energy nationalization, it must be said that those countries partaking in such measures are democratically bankrupt.
High oil prices will continue to beguile Russia to nationalize her natural resources. 30% of the Russian state budget comes from exporting energy wealth. Without it, Russia could never keep its expensive, corrupt bureaucracy intact. By using her oil wealth as a strategic state asset, Russia has turned around its economy from being a net debtor to becoming a creditor nation. However, if Russia remains a country where justice, conscience and power is for sale, its citizens will never reap the true potential of mother Russia and her abundant resource wealth.
Please click here for The Oil Tsars Part 2
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