<?xml version="1.0" encoding="utf-8"?>
<feed xmlns="http://www.w3.org/2005/Atom" xml:lang="en-us">
<title type="text">Russia Blog</title>
<subtitle type="text">Russia Blog presents up-to-date news, facts and commentary on the state of events in Russia and the former Soviet Union. The blog is managed by Yuri Mamchur, Director of Discovery Institute&apos;s  Real Russia Project and a composer in his spare time. The blog is edited by Charles Ganske.</subtitle>
<id>http://www.russiablog.org/</id>
<link rel="alternate" type="application/xhtml+xml" href="http://www.russiablog.org/" />
<link rel="self" type="application/atom+xml" href="http://www.russiablog.org/atom.xml"/>
<author>
<name>ganske</name>

<email>ganske@discovery.org</email>
</author>
<rights>Creative Commons Attribution 2.5</rights>
<generator uri="http://www.sixapart.com/movabletype/" version="3.33">Movable Type</generator>
<icon>http://www.russiablog.org/favicon.ico</icon>
<logo>http://www.niallkennedy.com/alive.gif</logo>
<updated>2009-07-04T18:50:38Z</updated>
<entry>
<title type="text">Happy 4th of July America!</title>
<summary type="text"> Fireworks accompanied by...what else? Pyotr Ilyich Tchaikovsky&apos;s &quot;1812 Overture&quot;...</summary>
<content type="html"><![CDATA[<p><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/C4BGaWtDWuM&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/C4BGaWtDWuM&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br />
<b>Fireworks accompanied by...what else? Pyotr Ilyich Tchaikovsky's "1812 Overture"</b></p>]]></content>
<category term="/news" scheme="http://www.russiablog.org/" label="News" />
<id>http://www.russiablog.org/2009/07/happy_4th_of_july_america.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/07/happy_4th_of_july_america.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-07-05T07:00:00Z</published>
<updated>2009-07-04T18:50:38Z</updated>
</entry>
<entry>
<title type="text">U.S. Congressional Junkets:  Who&apos;s Number 1, Russia or Georgia?</title>
<summary type="text"> Congressional trips abroad paid for by U.S. taxpayers have increased 50% since 2006 and tripled since 2001, according to The Wall Street Journal Russia and Georgia are in the news again this week before President Obama&apos;s first visit to...</summary>
<content type="html"><![CDATA[<p><img alt="Capitol%20Hill.jpg" src="http://www.russiablog.org/Capitol%20Hill.jpg" width="360" height="270" /><br />
<b>Congressional trips abroad paid for by U.S. taxpayers have increased 50% since 2006 and tripled since 2001, according to <i>The Wall Street Journal</i></b></p>

<p>Russia and Georgia are in the news again this week before President Obama's first visit to Moscow. But the rumors of war in the Caucasus being <a href="http://online.wsj.com/article/SB124649267530483121.html" target="blank">promoted by certain U.S. pundits</a> should probably take a backseat to a report published by <i>The Wall Street Journal</i> on American Congressional trips to the two countries. <a href="http://online.wsj.com/article/SB124650399438184235.html" target="blank">Accordng to the WSJ</a>, last year Russia was the 10th most popular foreign destination for Congressional delegations funded by the American taxpayer. Georgia trailed as the 13th most popular destination, but still didn't do too badly, considering that it is a small country in the Caucasus with barely four million people. Not surprisingly, France, Switzerland, Germany, and the United Kingdom were well ahead, with only Kuwait, China and Israel proving exceptions to the overall Euro-Atlantic (and perhaps taxpayer funded Alpine skiing and wine and cheese tasting) bias.</p>]]><![CDATA[<p><img alt="ScheunemannPress.jpg" src="http://www.russiablog.org/ScheunemannPress.jpg" width="245" height="385" /><br />
<b>In August 2008 GOP presidential candidate John McCain came under criticism for having an aide (Randy Scheunemann, pictured above) who had previously worked as a lobbyist for Georgian President Mikhail Saakashvili. A <a href="http://www.spiegel.de/international/world/0,1518,630543,00.html">recent report commissioned by the European Union</a> alleging that Mr. Saakashvili ordered his troops to attack the Russian-backed separatist enclave of South Ossetia on August 7, 2008 has fueled more calls for his ouster by the Georgian opposition</b></p>

<p><br />
<b>Former McCain Advisor and Georgia Lobbyist Scheunemann Back in the News</b></p>

<p>One of the individuals in Washington who can claim the most credit for Georgia punching above its weight in the Congressional "delgos" stakes is Randy Scheunemann. Mr. Scheunemann is a former foreign policy advisor to Republican Senator and Presidential candidate John McCain who came under fire last August for his previous role as a lobbyist for the Georgian government. Critics of McCain and Scheunemann alleged last year that both figures had become too close to the Georgian President Mikhail Saakashvili, who led his country into an unsuccessful war with Russia. Mr. Scheunemann's public relations firm <a href="http://www.implu.com/lobby_firm/1197" target="blank">Orion Strategies LLC</a> received over $800,000 in recent years for lobbying Congressional leaders to support Georgia's admission into NATO, and also worked with the <a href="http://en.wikipedia.org/wiki/George_Soros#Activities_in_Eastern_Europe" target="blank">George Soros-funded</a> Open Society Policy Center in Washington D.C. </p>

<p>Mr. Scheunemann was back in the news this week, defending former GOP Vice Presidential nominee and Alaska Governor Sarah Palin from an article in the August 2009 issue of <i>Vanity Fair</i> magazine that Palin supporters such as <i>Weekly Standard</i> publisher William Kristol have denounced as a "hit piece". Mr. Scheunemann has denied previous reports that he was one of the sources for negative rumors about Governor Palin that have been reported in the mainstream media allegedly originating from former McCain campaign staffers. </p>

<p>As for Governor Palin, yesterday she stunned pundits in Juneau and Washington by announcing that she would resign from the Alaska Governorship and would not complete her term of office through 2012. Palin's resignation has <a href="http://www.guardian.co.uk/world/2009/jul/03/sarah-palin-steps-down-alaska-governor" target="blank">fueled speculation</a> that she will seek the Republican nomination for President in 2012. When asked by reporters last year what her foreign policy qualifications were for the Vice Presidency, Palin listed her state's geographic proximity and close economic ties to Russia as one of her answers.</p>]]></content>
<category term="/news" scheme="http://www.russiablog.org/" label="News" />
<id>http://www.russiablog.org/2009/07/us_congressional_junkets_whos.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/07/us_congressional_junkets_whos.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-07-04T10:00:01Z</published>
<updated>2009-07-04T06:39:16Z</updated>
</entry>
<entry>
<title type="text">Russia Agrees to More U.S.Transit for Afghanistan</title>
<summary type="text"> A Volga Dnieper Airways (VDA) Antonov 124 cargo plane on the tarmac Photo by: Boeing Next week U.S. President Barack Obama will meet Russian President Dimitry Medvedev and Prime Minister Vladimir Putin in Moscow. This week American and Russian...</summary>
<content type="html"><![CDATA[<p><img alt="Antonov124tarmacBoeing.jpg" src="http://www.russiablog.org/Antonov124tarmacBoeing.jpg" width="450" height="310" /><br />
<b>A Volga Dnieper Airways (VDA) Antonov 124 cargo plane on the tarmac</b><br />
<b>Photo by: Boeing</b></p>

<p>Next week U.S. President Barack Obama will meet Russian President Dimitry Medvedev and Prime Minister Vladimir Putin in Moscow. This week American and Russian negotiators reportedly reached an agreement to expand the transit of U.S. materiel through Russia in support of the NATO mission in Afghanistan. Not coincidentally, Russia's military chief of staff announced that the U.S. and Russian militaries had resumed direct talks that had been cancelled last year when relations chilled following the <a href="http://www.russiablog.org/2009/03/russia_produces_first_georgia.php" target="blank">August 2008 Russo-Georgian War</a>.</p>]]><![CDATA[<p><a href="http://www.russiatoday.ru/Politics/2009-07-03/US_to_supply_troops_in_Afghanistan_via_Russia.html" target="blank">According to Russia Today</a>, the American cargo scheduled to pass through Russian territory to Afghanistan via former Soviet Central Asia will be delivered "mostly by air". The new Russian-American transit agreement could mean more business for Russian companies that specialize in heavy airlift, like <a href="http://www.poletairlines.com/home.html" target="blank">Polet</a> and <a href="http://www.volga-dnepr.com/eng/charter/" target="blank">Volga-Dnepr Airlines</a> (VDA) and for U.S. third party logistics operators (3POs) that contract with these firms.</p>

<p>Back in September 2007 Russia Blog published an in-depth report on the brisk U.S.-Russia trade in heavy airlift services. You can read the whole thing (and watch YouTube videos of 120 decibel-level Antonov takeoffs) <a href="http://www.russiablog.org/2007/09/russia_ukraine_to_restart_an12.php" target="blank">here</a>.</p>]]></content>
<category term="/news" scheme="http://www.russiablog.org/" label="News" />
<id>http://www.russiablog.org/2009/07/russia_agrees_to_more_ustransi.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/07/russia_agrees_to_more_ustransi.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-07-04T07:00:01Z</published>
<updated>2009-07-04T18:51:20Z</updated>
</entry>
<entry>
<title type="text">From European to Euro-Atlantic Security</title>
<summary type="text"> Presidents Barack Obama and Dimitry Medvedev at their first meeting on April 1, 2009 in London, UK There is no shortage of solicited and unsolicited advisors and pieces of advice for the upcoming Obama-Medvedev summit this week in Moscow....</summary>
<content type="html"><![CDATA[<p><img alt="ObamaMedvedevFlags.jpg" src="http://www.russiablog.org/ObamaMedvedevFlags.jpg" width="450" height="332" /><br />
<b>Presidents Barack Obama and Dimitry Medvedev at <a href="http://www.russiablog.org/2009/04/high_expectations_on_a_potenti.php" target="blank">their first meeting</a> on April 1, 2009 in London, UK</b></p>

<p>There is no shortage of solicited and unsolicited advisors and pieces of advice for the upcoming Obama-Medvedev summit this week in Moscow. Some of the advice is pretty reasonable; for the most part it is best ignored. One’s first instinct is to stay away from this cacophony and try to moderate one’s expectations so as not to be hugely disappointed later.</p>

<p>However, the temptation to weigh in with one’s particular advice is very high. Since both Obama and Medvedev are Internet users one does not have to send a letter to the White House or the Kremlin and wait for the routine answer from some clerk. Chances are that both or at least one of them will surf the Net on the eve of the summit and pay attention to some of the items.</p>]]><![CDATA[<p><img alt="GorbachevReaganWatches.jpg" src="http://www.russiablog.org/GorbachevReaganWatches.jpg" width="276" height="300" /><br />
<b>While President Reagan was strongly anti-Soviet, he was not anti-Russian like many of those who would seek to claim his legacy</b></p>

<p>My message to Obama is very simple and straightforward. Some people compare him to John Kennedy. This is fine, Kennedy was definitely a remarkable figure – but why not try to raise the sights to the level of Ronald Reagan? Why not finish the job that Reagan started but his followers squandered away? Reagan wanted to confine Communism to the garbage dump of history, but at the same time he dreamed of making a liberated Russia an integral part of the West.</p>

<p>The two young leaders will do well to remember the feat performed by their predecessors Ronald Reagan and Mikhail Gorbachev: they ended the Cold War. Obama and Medvedev must be well aware that if it had not been for “Ronny and Gorby,” the Cold War would not have ended the way it did. The U.S.-Soviet confrontation could have extended well into 21st century, and the nuclear option could not have been ruled out. However, the overlapping visions of Reagan and Gorbachev ensured that the collapse of communism was relatively bloodless. These visions met with resistance from an array of forces, but both leaders succeeded despite trenchant opposition of their hawkish advisors.</p>

<p>Unfortunately, the collapse of Communism was not followed by what should have been a logical continuation of the process: Russia’s integration in the West. George Bush Sr. administration’s talk of transition to a new security paradigm “from Vancouver to Vladivostok” turned out to be just that: talk. Empty rhetoric.</p>

<p>Still, it is encouraging that this idea is not quite dead yet, and 20 years on there are some indications of it entering the reviving mode. President Medvedev’s repeated calls for a new European security architecture is a step in the right direction. However, the terms should be changed as soon as possible: America should be added to the equation, and the goal should be Euro-Atlantic, not just European security.</p>

<p>Perhaps Medvedev’s original idea was to win European hearts and minds and diminish America’s influence on the European continent. If this was the case, it was pretty naive. Europe and America sometime see things differently, but when push comes to shove, they are definitely together, with or without Russia.</p>

<p>Building a Euro-Atlantic security architecture is obviously not an easy job, but I am sure there are enough bright minds in the American, European and Russian military establishments who can handle it. If Obama and Medvedev can at least agree that Euro-Atlantic security is the logical way to go, then they can definitely claim success for the summit – and we would wholeheartedly agree. </p>

<p><br />
<i><a href="http://www.discovery.org/scripts/viewDB/index.php?command=view&id=240&isFellow=true" target="blank">Edward Lozansky</a> is president of American University in Moscow.</i></p>]]></content>
<category term="/articles_and_essays" scheme="http://www.russiablog.org/" label="Articles and Essays" />
<id>http://www.russiablog.org/2009/07/from_european_to_euroatlantic.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/07/from_european_to_euroatlantic.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-07-03T22:40:00Z</published>
<updated>2009-07-04T10:16:49Z</updated>
</entry>
<entry>
<title type="text">Iran: Desperately Seeking Yeltsin</title>
<summary type="text"> Boris Yeltsin, on top of a tank in Moscow, declaring an end to the Soviet regime in 1991 When the featured article was being written, the author and the Iranian people still had hopes to find leadership to their...</summary>
<content type="html"><![CDATA[<p><img alt="yeltsin-on-top-tank.jpg" src="http://www.russiablog.org/yeltsin-on-top-tank.jpg" width="450" height="224" /><br />
<strong>Boris Yeltsin, on top of a tank in Moscow, declaring an end to the Soviet regime in 1991</strong></p>

<p>When the <a href="http://townhall.com/columnists/CharlesKrauthammer/2009/06/26/iran_desperately_seeking_yeltsin?page=full&comments=true" target="blank">featured article</a> was being written, the author and the Iranian people still had hopes to find leadership to their quest for freedom. Unfortunately, Mir Hossein Mousavi has not appeared in front of the protestors since the elections of June 12, and yesterday rejected another vote recount. The <a href="http://www.russiablog.org/2009/06/irans_winds_of_change.php" target="blank">recent activities in Iran</a> are, undoubtedly, a huge step forward in fostering democracy in this majority Muslim nation. However, they will result in nothing without proper leadership. Russia and China did not have to recognize, much less defend, Ahmadinejad’s victory as soon as they did, but perhaps they knew the painful truth ahead of time: the Iranian opposition has no leader, and a leader is what is so desperately needed at this historic moment.</p>

<p>Charles Krauthammer’s article published over at Townhall.com on June 26 does a great job of describing the difference between Russia’s 1991 and Iran’s 2009: “They need a leader like Boris Yeltsin: a former establishment figure with newly revolutionary credentials and legitimacy, who stands on a tank and gives the opposition direction by calling for the unthinkable -- the abolition of the old political order.” Most Russians remember Yeltsin as a despot, a drunk, and a sometimes embarrassing grandpa. World history will remember him as the man who ended 70 years of an Evil Empire, permanently curing Russia's infection of Communism. Hopefully, four years from now, an Iranian Yeltsin will <a href="http://www.time.com/time/world/article/0,8599,1613579,00.html" target="blank">stand up on a tank</a> and prove that innocent protestors did not die in vain.</p>

<p><em>Visit the extended post to read the full version of the discussed article.</em></p>]]><![CDATA[<p><strong>Iran: Desperately Seeking Yeltsin</strong><br />
<em>Charles Krauthammer<br />
Friday, June 26, 2009</em></p>

<p>WASHINGTON -- Iran today is a revolution in search of its Yeltsin. Without leadership, demonstrators will take to the street only so many times to face tear gas, batons and bullets. They need a leader like Boris Yeltsin: a former establishment figure with newly revolutionary credentials and legitimacy, who stands on a tank and gives the opposition direction by calling for the unthinkable -- the abolition of the old political order. </p>

<p>Right now the Iranian revolution has no leader. As this is written, opposition candidate Mir Hossein Mousavi has not appeared in public since June 18. And the Khamenei-Ahmadinejad regime has shown the requisite efficiency and ruthlessness at suppressing widespread unrest. Their brutality has been deployed intelligently. The key is to atomize the opposition. Start with the most sophisticated methods to block Internet and cell phone traffic, thanks to technology provided by Nokia Siemens Networks. Allow the more massive demonstrations to largely come and go -- avoiding Tiananmen-style wholesale bloodshed -- but disrupt the smaller ones with street-side violence and rooftop snipers, the perfect instrument of terror. Death instant and unseen, the kind that only the most reckless and courageous will brave. </p>

<p>Terror visited by invisible men. From rooftops by day. And by night, swift and sudden raids that pull students out of dormitories, the wounded out of hospitals, for beatings and disappearances. </p>

<p>For all our sentimental belief in the ultimate triumph of those on the "right side of history," nothing is inevitable. This second Iranian revolution is on the defensive, even in retreat. To recover, it needs mass, because every dictatorship fears the moment when it gives the order to the gunmen to shoot at the crowd. If they do (Tiananmen), the regime survives; if they don't (Romania's Ceausescu), the dictators die like dogs. The opposition needs a general strike and major rallies in the major cities -- but this time with someone who stands up and points out the road ahead. </p>

<p>Desperately seeking Yeltsin. Does this revolution have one? Or to put it another way, can Mousavi become Yeltsin? </p>

<p>President Obama's worst misstep during the Iranian upheaval occurred early on when he publicly discounted the policy differences between Mahmoud Ahmadinejad and Mousavi. </p>

<p>True, but that overlooked two extremely important points. First, while Mousavi himself was originally only a few inches to Ahmadinejad's left on the political spectrum -- being hand-picked by the ruling establishment precisely for his ideological reliability -- Mousavi's support was not restricted to those whose views matched his. He would have been the electoral choice of everyone to his left, a massive national constituency -- liberals, liberalizers, secularists, monarchists, radicals and visceral opponents of the entire regime -- that dwarfs those who shared his positions, as originally held. </p>

<p>Moreover, Mousavi's positions have changed, just as he has. He is far different today from the Mousavi who began this electoral campaign. </p>

<p>Revolutions are dynamic, fluid. It is true that two months ago there was little difference between Ahmadinejad and Mousavi. But that day is long gone. Revolutions outrun their origins. And they transform their leaders. </p>

<p>Mikhail Gorbachev and Yeltsin both began as orthodox party regulars. They subsequently evolved together into reformers. Then came the revolution. Gorbachev could not shake himself from the system. Yeltsin rose up and engineered its destruction. </p>

<p>In the 1980s, Mousavi was Ayatollah Khomeini's prime minister, a brutal enforcer of orthodox Islamism. Twenty years later, he started out running for president advocating little more than cosmetic moderation. But then the revolutionary dynamic began: The millions who rallied to his cause -- millions far to his left -- began to radicalize him. The stolen election radicalized him even more. Finally, the bloody suppression of his followers led him to make statements just short of challenging the legitimacy of Ayatollah Ali Khamenei and the very foundations of the regime. The dynamic continues: The regime is preparing the basis for Mousavi's indictment (for sedition), arrest, even possible execution. The prospect of hanging radicalizes further. </p>

<p>As Mousavi hovers between Gorbachev and Yeltsin, between reformer and revolutionary, between figurehead and leader, the revolution hangs in the balance. The regime may neutralize him by arrest or even murder. It may buy him off with offers of safety and a sinecure. He may well prefer to let this cup pass from his lips. </p>

<p>But choose he must, and choose quickly. This is his moment and it is fading rapidly. Unless Mousavi rises to it, or another rises in his place, Iran's democratic uprising will end not as Russia 1991, but as China 1989. </p>

<p><em>Copyright © 2009 Salem Web Network. All Rights Reserved. </em></p>]]></content>
<category term="/articles_and_essays" scheme="http://www.russiablog.org/" label="Articles and Essays" />
<id>http://www.russiablog.org/2009/06/iran_desperately_seeking_yeltsin.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/06/iran_desperately_seeking_yeltsin.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-06-28T19:09:34Z</published>
<updated>2009-06-29T01:37:56Z</updated>
</entry>
<entry>
<title type="text">Michael Jackson Deeply Mourned in Russia</title>
<summary type="text"> Fans grieve Jackson’s death in downtown St Petersburg (image from NTV news report) Today, undoubtedly, the biggest world news is the unexpected death of Michael Jackson, the only true King of Pop. It was night time in Moscow when...</summary>
<content type="html"><![CDATA[<p><img alt="Michael-Jackson-St-Petersburg.jpg" src="http://www.russiablog.org/Michael-Jackson-St-Petersburg.jpg" width="450" height="340" /><br />
<strong>Fans grieve Jackson’s death in downtown St Petersburg (<em>image from NTV news report</em>)</strong></p>

<p>Today, undoubtedly, the biggest world news is the unexpected death of Michael Jackson, the only true King of Pop. It was night time in Moscow when the news reached Russia, and the sad event dominated the news reports around the country all day long since early morning. All Russian news channels, including the state-owned <em>Rossiya</em> and the <em>First Channel</em>, started their news reports with the details of Michael Jackson’s passing, his career, his visits to Russia, and tribute of his fans around the world and in Russian cities. Many finished the news with a “no comment” music video tribute to the singer. <em>Gazeta.ru</em> wrote that “only a lazy paralyzed person didn’t throw a rock at the idol in the last few years,” however they agreed that his death brought out the true feeling about the star in Russia and around the globe: unreserved love and admiration.</p>

<p>Among many Russian leaders, the president of Chechnya, Ramzan Kadyrov said “I deeply grieve with the musician's relatives, friends, and fans because of the untimely passing of the outstanding man, unmatchable singer Michael Jackson, whose death ends the entire epoch of the world music culture.”</p>

<p>Michael Jackson was a household name in the countries of the former Soviet Union. During his visits to Moscow in 1993 and 1996, he was greeted as a head of state. Radio Free Europe writes that “his live concert in Moscow in 1993 sparked near-hysteria among scores of Russians hungry for a taste of Western culture.” One of my brightest personal memories from the Nineties is attending Jackson’s History Tour concert at the Dynamo stadium in Moscow in 1996. Today, hundreds of fans laid flowers and toys near the American Embassy in Moscow and in downtown St Petersburg to honor the idol. We all deeply grieve the untimely passing of the musician who influenced our lives and cultures.</p>

<p><em>View the extended post for additional images</em></p>]]><![CDATA[<p><img alt="Michael-Jackson-Russia.jpg" src="http://www.russiablog.org/Michael-Jackson-Russia.jpg" width="267" height="400" /><br />
<strong>After a concert in Moscow, Russian generals gave Michael Jackson conductor’s baton of a military Kapellmeister.</strong></p>

<p><img alt="Michael-Jackson-vesti.jpg" src="http://www.russiablog.org/Michael-Jackson-vesti.jpg" width="500" height="254" /><br />
<strong>Russia news page of <em>Rossiya's Vesti</em> is dominated by the news about Michael Jackson</strong></p>

<p><img alt="Michael-Jackson-Moscow-1.jpg.psd" src="http://www.russiablog.org/Michael-Jackson-Moscow-1.jpg.psd" width="400" height="267" /><br />
<strong>Michael Jackson mourned near American Embassy in Moscow.</strong></p>

<p><img alt="Michael-Jackson-Moscow-2.psd" src="http://www.russiablog.org/Michael-Jackson-Moscow-2.psd" width="400" height="267" /></p>

<p><img alt="Michael-Jackson-Moscow-3.psd" src="http://www.russiablog.org/Michael-Jackson-Moscow-3.psd" width="400" height="267" /></p>]]></content>
<category term="/news" scheme="http://www.russiablog.org/" label="News" />
<id>http://www.russiablog.org/2009/06/michael_jackson_russia.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/06/michael_jackson_russia.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-06-26T17:58:24Z</published>
<updated>2009-06-28T20:08:32Z</updated>
</entry>
<entry>
<title type="text">Passengers from America Treated as Potential Health Threat in Russia</title>
<summary type="text"> Russian health official checking passengers’ body temperature onboard a flight from Atlanta to Moscow upon its arrival in Russia. The World Health Organization announced that the pandemic of swine flu (H1N1 influenza) is unstoppable; but so thought Napoleon and...</summary>
<content type="html"><![CDATA[<p><img alt="swine-flu-check-in-russia.jpg" src="http://www.russiablog.org/swine-flu-check-in-russia.jpg" width="450" height="338" /><br />
<strong>Russian health official checking passengers’ body temperature onboard a flight from Atlanta to Moscow upon its arrival in Russia.</strong></p>

<p>The World Health Organization announced that the pandemic of swine flu (H1N1 influenza) is unstoppable; but so thought Napoleon and Hitler about their offensives against Russia… "The world is moving into the early days of its first influenza pandemic in the 21st century," said WHO's director-general, Margaret Chan, “further spread [of H1N1] is inevitable.” Russian border and health officials think differently. If you are flying from the United States to Russia (as I did just two days ago), be prepared to fill out a form with your basic personal information and list all the geographic locations you visited in 10 days prior to your arrival to Russia.</p>

<p>While in flight, we were informed that no one would be able to leave the plane until Russian health officials checked everyone’s body temperature! If a single passenger had high body temperature, all of the passengers would have been put into quarantine until the doctors found out the origin of the disease onboard. A long flight and free servings of wine produced multiple jokes about the way our body temperatures would be checked. </p>

<p>However, upon the landing, we were truly concerned: How long would it take to check the body temperature of over 200 passengers onboard the Boeing 767 airliner? We expected to see people in white uniforms with a lot of little appliances taking an hour to complete the testing. Our suspense expectations were crushed when a young gentleman in casual clothes (in the picture) went around with a Star Trek tricorder-looking device, pointing it at everyone from far away. Upon exiting the plane, there were half a dozen officials to collect our forms. The temperature testing of the entire plane took less than five minutes. Coincidental or not, but only three swine flu cases so far have been confirmed in Russia.</p>]]></content>
<category term="/did_you_know" scheme="http://www.russiablog.org/" label="Did You Know" />
<id>http://www.russiablog.org/2009/06/america-russia-swine-flu-h1n1.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/06/america-russia-swine-flu-h1n1.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-06-25T06:41:04Z</published>
<updated>2009-06-25T16:05:09Z</updated>
</entry>
<entry>
<title type="text">Russia and Iran&apos;s Winds of Change</title>
<summary type="text"> Iranian protesters confronted by basij militias on the streets of Tehran Over at Discovery Blog, Ambassador Bruce Chapman is writing about the current upheaval of popular discontent against the Islamic Republic regime in Iran. Nearly three years ago, Discovery...</summary>
<content type="html"><![CDATA[<p><img alt="IranDemonstratorsMilitia.jpg" src="http://www.russiablog.org/IranDemonstratorsMilitia.jpg" width="465" height="340" /><br />
<b>Iranian protesters confronted by basij militias on the streets of Tehran</b></p>

<p>Over at <a href="http://www.discoveryblog.org" target="blank">Discovery Blog</a>, Ambassador Bruce Chapman is writing about the current upheaval of popular discontent against the Islamic Republic regime in Iran. Nearly three years ago, Discovery Institute <a href="http://www.discovery.org/scripts/viewDB/index.php?command=view&id=246&program=Discovery%20Institute&isEvent=true" target="blank">hosted</a> Amir Abbas Fakhravar at its Seattle offices. <a href="http://fakhravar.com/" target="blank">Mr. Fakhravar</a> is a former head of the Iran Student Confederation who was previously jailed and tortured for his opposition to the Islamic Republic regime. You can read Mr. Fakhravar's blog <a href="http://fakhravar.blogspot.com/" target="blank">here</a>.</p>

<p>So far, Russian diplomats have maintained a firm "no comment" policy concerning the ongoing power struggle inside Iran. [<b>UPDATE: The Russian Foreign Ministry <a href="http://www.presstv.ir/detail.aspx?id=98774&sectionid=351020101" target="blank">released a statement</a> concerning the post-election revolt today, not over the weekend when this story was written</b>]. But since Russia has already been mentioned in passing in some analysis of the crisis inside Iran, it's worth looking at the facts surrounding the complicated relationship between Tehran and Moscow.</p>]]><![CDATA[<p><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/GYINkOwUpHA&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/GYINkOwUpHA&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br />
<b>"Winds of Change" by The Scorpions. Will protests against the regime in Iran end like in the former Eastern Bloc in 1989-91...or will there be another Tiananmen Square?</b></p>

<p><br />
<b>Where's Mahmoud?</b></p>

<p>Iranian President Mahmoud Ahmadinejad, who won an election last week that various opposition groups both inside and outside the country believe was rigged, was scheduled to appear at the Shanghai Cooperation Organization (SCO) summit on Monday in the Urals city of Yekaterinberg. Ahmadenijad first delayed his appearance to deal with the unrest back home, then showed up to issue a defiant anti-U.S. statement, then promptly returned to Iran. A <a href="http://in.reuters.com/article/worldNews/idINIndia-40370520090616" target="blank">Reuters account</a> of Ahmadenejad's meeting with Russian President Dimitry Medvedev quoted a Kremlin spokeswoman saying that the two leaders "did not even sit down." after their photo-op. Anyone Googling media accounts of the summit this past weekend could come away quite confused about the whereabouts of the Iranian leader.</p>

<p><b>Shanghai'd in Yekaterinberg</b></p>

<p>At Yekaterinberg, Russian and Chinese leaders issued statements about the need for emerging economies to accumulate alternative currencies to the U.S. dollar -- as Washington goes on printing more money ($160 billion in the latest U.S. government bond auction). Vladimir Putin and Hu Jintao also called for more diplomacy to prevent the nuclearization of North Korea and a new arms race between the world's great powers in outer space. Russia's economic ministries dutifully announced that China had become the number one trading partner for Russian firms, surpassing European Union leader Germany, the same week Putin and Hu hailed a "breakthrough" in Sino-Russia relations.</p>

<p><b>Does Russia Have Any Actual Influence in Iran?</b></p>

<p>When it comes to Iran, however, it appears that the crystal balls/tea leaves in Moscow and Beijing are just as clouded as in Washington. All the talk of direct talks between the Obama Administration and the Iranian government (whoever that may be at the moment) will pivot on the outcome in the streets and smoke filled rooms of Tehran. </p>

<p>Regardless of how warmly welcomed Israel's Ambassador was to Moscow in recent weeks, or how much Washington's handful of realists yearn for grand U.S.-Russia bargains on Iran and Afghanistan, it remains unclear exactly how much influence Moscow has with Iran. Russia's repeated <a href="http://www.russiablog.org/2009/01/pipeline_politics_how_georgia.php" target="blank">waffling on plans to sell</a> S-300 surface to air missiles to Iran, and accusing the Islamic Republic regime of <a href="http://www.russiablog.org/2007/02/russia_to_iran_pay_up_for_buse.php" target="blank">failing to pay debts on time</a> to fund construction of the Bushehr nuclear reactor on the Persian Gulf, may be isolated incidents, or evidence of a general falling out between the Kremlin and Tehran. Few know the real answer, and those who do (parties to the deals) aren't talking.</p>

<p><b>The Overhyped Politics of Iranian Energy</b></p>

<p>Some hardcore Russophobes in Washington claim that Russia wants Iran to remain unstable in order to keep a potential competitor for European gas markets down. With Azerbaijan and Turkey both eager to ship Iranian gas to Europe if the financing existed for such a huge pipeline project, Moscow probably couldn't prevent such competition from emerging even if it tried. </p>

<p>At any rate, gas demand in Europe has been falling just like it has in the U.S. in the last few months, as the global economic crisis crushes industrial demand for gas around the world. This is a major reason why Ukraine recently found itself saddled with debt to Russia's Gazprom for natural gas that had been used to make Ukrainian steel that today is no longer in demand.</p>

<p><b>Iran May Actually Need Nuclear Power, But Not Nuclear Weapons</b></p>

<p>Iran's oil and gas production has actually been in decline for several years, despite record prices in 2008, which may indicate that the Iranians have a legitimate interest in peaceful nuclear energy, provided that the fuel is not diverted for making a nuclear bomb. The late Shah of Iran, in an advertisement that has been circulating around the Internet for several years, was once touted as a client of the U.S. nuclear power industry, back in America's pre-Three Mile Island days. If Iran's oil and gas fields are revived, most of the new production will flow to India and China, rather than to the West. So 21st century analogies to the 19th century "Great Game" between Russia and Great Britain over influence in Iran and Afghanistan are largely useless and ought to be labelled what they are -- geopolitical fantasies for policy wonks.</p>

<p><b>Russia and Iran: More Freedom Won't Necessarily Equal Complete Agreement with the West</b></p>

<p>At this point, Russian influence over Iran, much like the prospects for direct talks between Washington and a stable Iranian government, largely remain figments of policy makers imaginations. Let's hope the Iranian people can change their own regime and usher in a new era of prosperity and freedom for an ancient nation. </p>

<p>However, let's also remember that an Iran more liberated from the mullahs won't necessarily be a pushover for what America or Europe want in the Middle East, just as post-Soviet Russia has been reasserting itself in recent years. Yet if you ask any present or former U.S. Ambassador to Russia, they will tell you that the Russian Federation is still far more free and cooperative with the West than the late Soviet Union ever was. Now that NATO expansion is effectively frozen by the economic crisis and the results last summer's war between Russia and Georgia, the prospects for direct military confrontation between Washington and Moscow are almost non-existent. If the U.S. could say the same about Iran ten years from now, that would be an achievement for both sides.  </p>

<p><b>What America Can Hope For: An End to a Thirty Year Cold War</b></p>

<p>Even if a more liberal Iran proves to be reassertive of historic rights, it likely won't fund terrorist organizations like Hezbollah or Hamas or call for the annihilation of Israel (indeed, the regime of the late Shah was an ally of the Jewish State, and similar mutual interests might lead to at least quiet Israeli-Iranian talks in the future). Indeed, if reports from the demonstrators are correct, at least some of the Hezbollah thugs (who don't speak a word of Farsi), fresh from their stinging defeat in the Lebanese elections, have been flown in by the regime to brutalize students and other opposition members in Iranian cities. Such groups are unlikely to continue to receive largesse in the event of regime change.</p>

<p>As Russian President Dmitry Medvedev observed, "freedom is better than non-freedom". What was true for Russia will also hold true for Iran. Hopefully the Iranian people will learn from Russia's painful experiences during the Nineties when making their own transition to a market economy and a more free political system in the years to come. For all the criticism that President Obama has taken for not criticizing the mullahs crackdown more harshly earlier, at least he recognized that the protests are not about outside powers, but about the people of Iran.</p>

<p><br />
<i><b><a href="http://www.discovery.org/scripts/viewDB/index.php?command=view&id=236&isFellow=true" target="blank">Charles Ganske</a> is the editor of Russia Blog. The views expressed here are his own.</b></i></p>]]></content>
<category term="/articles_and_essays" scheme="http://www.russiablog.org/" label="Articles and Essays" />
<id>http://www.russiablog.org/2009/06/irans_winds_of_change.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/06/irans_winds_of_change.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-06-22T18:00:01Z</published>
<updated>2009-06-25T15:54:45Z</updated>
</entry>
<entry>
<title type="text">Barbarossa: 68 Years On</title>
<summary type="text"> A famous photo of a Red Army soldier in World War II Today is the 68th anniversary of the Nazi invasion of the Soviet Union. For a roundup of previous Russia Blog posts on Russia&apos;s role in winning World...</summary>
<content type="html"><![CDATA[<p><img alt="RedArmySoldierPistol.jpg" src="http://www.russiablog.org/RedArmySoldierPistol.jpg" width="400" height="326" /><br />
<b>A famous photo of a Red Army soldier in World War II</b></p>

<p>Today is the 68th anniversary of the Nazi invasion of the Soviet Union. For a roundup of previous Russia Blog posts on Russia's role in winning World War II, <a href="http://www.russiablog.org/2008/06/barbarossa_67_years_on.php" target="blank">click here</a> and scroll down. To watch a Russia Today video on the solemn commemorations that took place across Russia to mark this day, click on the extended post.</p>]]><![CDATA[<p><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/60GDqf876h8&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/60GDqf876h8&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br />
<b>Interestingly enough, much of the footage Russia Today uses for its report on the anniversary is taken from the American Frank Capra-produced World War II documentary <br />
<i><a href="http://www.russiablog.org/2006/12/65th_anniversary_of_the_battle.php" target="blank">Why We Fight: The Battle for Russia</a></i></b></p>]]></content>
<category term="/did_you_know" scheme="http://www.russiablog.org/" label="Did You Know" />
<id>http://www.russiablog.org/2009/06/barbarossa_68_years_on.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/06/barbarossa_68_years_on.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-06-22T17:07:21Z</published>
<updated>2009-06-22T18:49:56Z</updated>
</entry>
<entry>
<title type="text">Pravda on the Hudson</title>
<summary type="text"> In the Eighties, lots of folks who regarded themselves as true Reaganites often said that The Washington Post should more properly bear the title of &quot;Pravda on the Potomac&quot;. Indeed, the paper’s vicious anti-Ronny rhetoric, as well as its...</summary>
<content type="html"><![CDATA[<p><img alt="NewYorkPravda.jpg" src="http://www.russiablog.org/NewYorkPravda.jpg" width="330" height="78" /></p>

<p>In the Eighties, lots of folks who regarded themselves as true Reaganites often said that <em>The Washington Post</em> should more properly bear the title of "Pravda on the Potomac".  Indeed, the paper’s vicious anti-Ronny rhetoric, as well as its views on some other policy issues, were stylistically pretty close to Pravda in its heyday.</p>

<p>Ironically, with the collapse of Communism “Pravda on the Potomac” became a common epithet for <i>The Washington Post</i> not only among the people on the right but on the left and center as well. A recent Google search on this entry provided 13,100 links including articles and sites representing practically the whole spectrum of American politics.</p>]]><![CDATA[<p>The old Pravda, founded by Vladimir Lenin, is virtually out of business these days, as its pre-1991 staff has gone through multiple splits; it is but a blimp on Russia’s political radar. However, in this zero sum game of today’s politics, some Western papers have appropriated the old Soviet style of journalese and are now extremely Pravda-like in tone and vocabulary. Unfortunately, yet another flagship of American journalism, <i>The New York Times</i>, has also joined this dubious club, so that it might well be dubbed Pravda on the Hudson.</p>

<p>One could cite as many examples of Pravda-type rhetoric on NYT pages as one would wish. To save space, I will focus use on the latest editorial “Small Minds in the Kremlin” of June 19, 2009 (David Johnson's Russia List June 19, #44).</p>

<p>I cannot say much of the size of Kremlin folks’ brains, these being too distant from the circles I move in. However, individuals who produce over and over again such gems as “brutal Russian invasion of Georgia,” or “Moscow regularly bullies Ukraine and other neighbors and has even used its gas supplies to push around the Europeans,” as <i>The New York Times</i> editors do, the latter wouldn’t score high on any IQ test, that’s for certain.</p>

<p>It is common knowledge that it was the Georgian President Mikheil Saakashvili who started this bloody mess, by ordering the well-prepared and indiscriminate shelling of South Ossetian civilian targets and killing Russian peacekeepers who were stationed in South Ossetia under a UN mandate. The leading German magazine <i>Der Spiegel</i>, to cite just one source, has stated unequivocally that the latest European Union special commission's report on the conflict squarely blames Saakashvili for initiating the hostilities. </p>

<p>Then again, if asking Ukraine to pay market prices for gas instead of stealing it when it flows through its territory from Russia to Europe is called “bullying”, then the whole free market idea is total nonsense. In that case, instead of Hayek and Friedman, we should all be studying Marx and Lenin for political economy, and declaring the Somali pirates’ to be victims instead of thieves.</p>

<p>A few months ago I asked a good friend of mine who knows a lot of folks at <i>The New York Times</i> to help generate some publicity in that paper for my pet project, the Liberty Prize, which is awarded to outstanding American and Russian cultural figures trying to promote cooperation between the two countries. My friend did his best but was flatly turned down. One of the top guys at NYT said, quite bluntly, that the paper’s current policy on Russia is to “place it in the shit house,” and the Liberty Prize idea does not fit this agenda. </p>

<p>So, our winners – the world-famous ballet dancer Mikhail Baryshhnikov, Guggenheim Director Thomas Krenz, Librarian of Congress James Billington, and editor-in-chief of the New Yorker magazine David Remnick – were never mentioned by the NYT on that occasion. Ridiculously, Misha Saakashvili, whose resignation is daily demanded by tens of thousands of Georgians, including dozens of his former ministers and ambassadors, is featured in the paper more prominently than any Hollywood star. </p>

<p>No wonder NYT has over a billion dollar operating deficit and may go belly up as it follows good old Pravda on the road to oblivion.</p>

<p><em><a href="http://www.discovery.org/scripts/viewDB/index.php?command=view&id=240&isFellow=true" target="blank">Edward Lozansky</a> is president of American University in Moscow.</em></p>]]></content>
<category term="/articles_and_essays" scheme="http://www.russiablog.org/" label="Articles and Essays" />
<id>http://www.russiablog.org/2009/06/pravda_on_the_hudson.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/06/pravda_on_the_hudson.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-06-21T19:07:00Z</published>
<updated>2009-06-22T06:20:33Z</updated>
</entry>
<entry>
<title type="text">Russia’s Limousine Liberals</title>
<summary type="text">by Anatol Lieven Anatol Lieven is a Senior Research Fellow at the New America Foundation. Over the last several days, two pieces attacking the realist approach to Russia were published in prominent media outlets in the United States and Russia....</summary>
<content type="html"><![CDATA[<p><b>by Anatol Lieven</b></p>

<p><img alt="LievenAnatolNewAmericaFoundation.jpg" src="http://www.russiablog.org/LievenAnatolNewAmericaFoundation.jpg" width="467" height="350" /><br />
<b><a href="http://www.newamerica.net/people/anatol_lieven" target="blank">Anatol Lieven</a> is a Senior Research Fellow at the New America Foundation.</b></p>

<p>Over the last several days, two pieces attacking the realist approach to Russia were published in prominent media outlets in the United States and Russia. One, co-authored by Lev Gudkov of the Levada Center, Igor Klyamkin, vice president of the Liberal Mission Foundation, Georgy Satarov, president of the Russian NGO the Indem Foundation and Lilia Shevtsova, a senior associate at the Carnegie Moscow Center was featured on the editorial page of <i>The Washington Post.</i> </p>

<p>[<b>Editor's Note: This article is titled "<a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/06/08/AR2009060803496.html" target="blank">False Choices for Russia</a>", an excerpt of which was republished on Russia Blog earlier this month in the post "<a href="http://www.russiablog.org/2009/06/russia-liberals-chapman.php" target="blank">What Can Save Russia's Liberals</a>" by Ambassador Bruce Chapman</b>]. The other, by Andrei Piontkovsky, a visiting fellow at the Hudson Institute, was released in the <i>Moscow Times</i>.</p>

<p>I read these pieces concerning the moves to improve relations between America and Russia with a profound feeling of depression.</p>]]><![CDATA[<p><img alt="KasparovLimonov.jpg" src="http://www.russiablog.org/KasparovLimonov.jpg" width="450" height="326" /><br />
<b>Russian politician and former world champion chessmaster Garry Kasparov and National Bolshevik Party leader Eduard Limonov</b></p>

<p>This is not just because there is something bizarre and twisted about pro-Western Russian liberals attacking the recommendations of the Hart-Hagel Commission or statesmen such as <a href="http://www.realclearworld.com/articles/2009/06/whos_who_in_reset_with_russia.html">Henry Kissinger and James Baker</a>. It is also because their criticism serves as a mouthpiece for the agendas of the most bitterly anti-Russian and geopolitically aggressive liberal interventionists and neocons who help maintain tensions between Russia and the West—and actually between the United States and the rest of the world.</p>

<p>These tensions are extremely damaging to any hopes of the long-term liberalization and Westernization of Russia which these liberals want to further. Do Piontkovsky, Shevtsova and the others seriously think that the U.S.-Russian rivalry in the Caucasus, and the war over South Ossetia which resulted, helped the cause of liberalism in Russia? Do they ever actually talk to any ordinary Russians, one wonders? Or do their duties briefing Americans simply leave them no time for this?</p>

<p>My depression is also because Russia does in fact desperately need a strong liberal movement which can influence the state in a positive direction. Thus figures like Igor Yurgens, a leading businessman and adviser to President Medvedev, are playing an extremely valuable role in resisting moves to further authoritarianism, centralization and nationalization in response to the economic crisis. They could do much better if they had bigger support within the population at large.</p>

<p>Tragically however, many Russian liberals in the 1990s—through the policies they supported and the arrogant contempt they showed towards the mass of their fellow Russians—made liberals unelectable for a generation or more across most of Russia; and to judge by these and other writings of liberals like the ones under discussion, they have learnt absolutely nothing from this experience. They think that they form some kind of opposition to the present Russian establishment. In fact, they are such an asset to Putin in terms of boosting public hostility to Russian liberalism that if they hadn’t already existed, Putin might have been tempted to invent them.</p>

<p>Two aspects of their approach are especially noteworthy. The first is the profoundly illiberal—even McCarthyite—way in which Piontkovsky tries to disqualify views with which he disagrees by suggesting that they are motivated purely by personal financial gain, rather than conviction. Where, one wonders, would this leave all those Russian liberals, and U.S. think tanks, which took money from Mikhail Khodorkovsky and other Russian oligarchs in the past? Where would it leave those U.S. officials linked to leading U.S. private financial companies whose shares benefited so magnificently from the plundering of Russia in the 1990s? Where, indeed, does it leave Russians—like two of the writers under discussion—who draw their salaries from U.S. think tanks? Actually, I do believe that most are motivated by sincere conviction—but all the same, they would do well to remember the old adage about people who live in glass houses.</p>

<p>The other is the intellectual sleight of hand by which Shevtsova, Gudkov and the others suggest—without arguing or substantiating the suggestion—that the desire of ordinary Russians for greater democracy and the rule of law equates both with hostility to the present Russian administration tout court, and to acquiescence in U.S. foreign-policy goals in Georgia and elsewhere. According to every opinion poll I have seen, it is entirely true that most Russians would like to see more of certain elements of democracy in Russia, including, as the authors mention, the rule of law and a freer media.</p>

<p>But, according to the same polls, this certainly does not add up to approval of “democracy” as it was practiced under the Yeltsin administration, and praised by some of the authors. Georgy Satarov was, in fact, a top official in Yeltin’s political machine with direct responsibility for some of the undemocratic practices of that administration. What is also absolutely certain according to the same polls is that whatever their feelings about Russian domestic policies, the overwhelming majority of Russians support the basic foreign-policy line of the present Russian administration and oppose that of the United States vis a vis Russia. This is not to say that every American policy decision has been wrongheaded and Russia remains justified in all of its positions, but rather that people who blindly back a U.S. democracy-promotion line are doing an injustice to the very liberalization they seek.</p>

<p>They are also very bad for the interests of America. The military overstretch produced by Iraq and Afghanistan has now been compounded by the colossal burden on U.S. resources created by the present economic recession. In these circumstances, as the Obama administration has recognized, the United States needs firstly to identify its truly important international interests and prioritize them; to reduce the hostility of other states to America wherever this can be done without surrendering important U.S. interests and values; and to enlist the help of other states, including Russia, in dealing with truly important issues like Iran’s nuclear program and the long-term future of Afghanistan.</p>

<p>Do these Russian authors really think that U.S. interests and values are served by giving lectures on democracy that only infuriate ordinary Russians? By making further commitments to a regime such as that of Mikhail Saakashvili in Georgia? By pressing upon Ukraine a NATO membership which most Ukrainians oppose? The truth of the matter is that like Ahmed Chalabi and other “democracy promoters” who have sought U.S. aid, these writers care neither for American nor for Russian interests, but only to enlist U.S. help in trying to bring themselves and the groups they represent to power and influence in their countries—and do not even know enough about their countries to see that appealing for U.S. help in this way only reduces whatever popularity they still have.</p>

<p>By this kind of approach, foreign liberal informants like the Russians who authored these editorials have contributed to a deep flaw in Western journalism, reflecting in turn a tragic flaw in humanity itself: namely an extreme difficulty in empathizing with those whose background, culture, experience and interests differ from your own.</p>

<p>For of course, for better or worse, other peoples are just as nationalist as Americans themselves. They may well wish for democracy—but not always or necessarily if it comes with unconstrained capitalism and the assumption that to be a democrat means sacrificing your national interests to those of the United States. In the case of Russia, these American assumptions in the 1990s helped lead to the reaction of Vladimir Putin. And Putin’s Russia isn’t the worst we could see by a very long chalk. If the present Russian system falls, as the writers under discussion so ardently desire, we can be very sure of one thing: It would not be Russian liberals like them who would rise from the resulting ruins.</p>

<p>In none of the statements by the Hart-Hagel Commission or the likes of Henry Kissinger, is anyone an apologist for potential Russian aggression. Instead, they argue that compromise, when the West can afford it to get cooperation from Russia in the areas we need it, is the ultimate goal of sensible and realistic U.S. policy—not all or nothing strategies that will never achieve anything, and which these Russian liberals in any case never spell out in detail.</p>

<p>Understanding what narrative a specific nationalism is based on is key to creating better outcomes for U.S. policies in a number of countries of the world, including Iran and Pakistan. It is equally crucial in establishing better relations not just with the present Russian administration, but much more importantly with the Russian people; and thereby over time helping Russians get the freer media and more open elections they desire.</p>

<p>Part of the reason why both Russian liberals and many Western analysts tend to get Russia so badly wrong is that they instinctively compare that country with former Communist states, Soviet satellites in Eastern Europe and the Baltic nations. There, mass movements were generated in support of economic reform and democratization processes which, however flawed, spared them from the dreadful experience of Russia and Ukraine in the 1990s.</p>

<p>This comparison is dead wrong, and wrong for a reason that goes to the heart of the Russian liberals’ failure to win mass support in Russia. In Eastern Europe, successful democratization, the adoption of successful economic reform, and the eventual achievement of economic growth proceeded in tandem because they were backed up by very powerful mass nationalist drives in these countries that were directed first and foremost towards taking these countries out of the orbit of Moscow, and into their “rightful” historical place as members of the West.</p>

<p>The other aspect of Eastern Europe that cannot be replicated for Russia – or indeed, anywhere else in the world - is the pull, and the discipline, provided to the East Europeans and Baltics by the genuine offer of membership in the EU and NATO. The need to conform to the EU accession process in turn greatly limited opportunities for the kind of outright kleptocracy seen in Russia.</p>

<p>The failure to date to generate mass support for Westernizing reform in Russia has been a key factor in the extremely hesitant pace of such reforms compared to the central European countries and the Baltic states. This is due simply to the obvious fact that among Russians, anti-Russian nationalism cannot be a force of reform; and that, indeed, the whole drive to escape from the Soviet past has a completely different meaning.</p>

<p>If nationalism is to play a part in Russian development, then it will inevitably be along very different lines, and linked in some form to the restoration of Russia’s position as a great power (not of course a superpower) in the world. A key problem for Russia, however, is that given the geopolitical ambitions of both Russia and Western powers, such a course of development inevitably brings with it a strong measure of rivalry with the West.</p>

<p>That pro-Western Russian liberals like Lilia Shevtsova have the greatest difficulty confronting or even recognizing this dilemma stems from the tragic nature of their situation. They genuinely believe not only that their program is in Russia’s national interest, but that reform in Russia requires the closest possible relations with the West. This necessarily means that Russia has to sacrifice a range of lesser interests for the sake of their higher, indeed all-encompassing goal of “integration into the Western community” (a virtual leitmotif of her 2005 book <i>Putin’s Russia</i>).</p>

<p>But integration into the Western community, whether it be NATO or the EU, is not on offer at least for the foreseeable future. From the point of view therefore not only of Russian nationalists, but of ordinary nonideological Russians, there just are not enough benefits on offer in return for the concessions that Shevtsova and her allies are willing to make to the West in international affairs: like agreement to NATO membership for Ukraine and Georgia, reincorporation of Abkhazia and South Ossetia into Georgia, acquiescence in a U.S. missile shield in central Europe and so on. And indeed, even for a non-Russian, there is something a bit nauseating about Shevtsova’s determination in her published writings to agree with the United States and condemn her own country on every single issue on which they have disagreed.</p>

<p>This goes not only for issues where America was in the right, for example over past Russian interference in Ukraine’s presidential election campaign; but for issues where by far the greater part of the world supported Russia’s position, as over Bush’s abrogation of the anti-Ballistic Missile Treaty in 2002. The Putin administration’s efforts to maintain the treaty were, however, attributed by Shevtsova in her book to Soviet-style “complexes” and “neuroses.”</p>

<p>Nausea aside, the point once again is that such sentiments on the part of these sorts of liberals contribute to making them unelectable in Russia. And this of course is not the result of some form of unique Russian chauvinism or hatred of the West. Any American political grouping which openly and repeatedly identified with foreign interests over those of the United States would not, I think, be very likely to do well in an American election.</p>

<p>But then, Shevtsova and her allies do not really give a damn what ordinary Russians think or feel, and certainly take no interest in minor issues such as their incomes or living standards. The radical decline in the real value of state pensions in the 1990s, accompanied by long arrears in payments and the destruction of savings through devaluation, condemned many elderly Russians to hunger, despair and a premature death. Every reliable opinion poll on Putin’s popularity in his first years gave as one of the chief reasons the fact that under his rule pensions were paid on time, and their value had risen. The same was true of state wages.</p>

<p>By ignoring these issues, Shevtsova is able to write in her book that “For the intelligentsia, people who lived in large cities, and the politicized section of society, 2000 was much harder than 1999.” Statements of this kind consign the mass of the Russian population—including the elderly and the state-employed workers of the big cities—to non-existence. They implicitly state that the only sections of society whose opinions and interests should be of concern to the government are educated, young and dynamic urbanites. This was the approach of brash elite globalizers everywhere. They should not be surprised however if populations disagree, sometimes violently.</p>

<p>Gary Kasparov, treated by much of the Western media as the political face of Russian liberalism, has a very different approach. It has been to plan for Russian economic collapse, and with this in mind, to forge an alliance with savagely chauvinist neo-fascist groups, which will provide the tough street fighters who will exploit mass economic discontent. Shevtsova and her colleagues should take a close look at this repulsive but insightful strategy and ask themselves whether they really understand the country, and the world, that they are living in.</p>

<p> <br />
<i><b>Anatol Lieven, a senior editor at The National Interest, is a professor in the War Studies Department of King’s College London and a senior research fellow at the New America Foundation. This essay <a href="http://www.newamerica.net/publications/articles/2009/russias_limousine_liberals_14515" target="blank">originally appeared</a> at <i><a href="http://www.nationalinterest.org/" target="blank">The National Interest</a></i> website.<b></i></p>]]></content>
<category term="/articles_and_essays" scheme="http://www.russiablog.org/" label="Articles and Essays" />
<id>http://www.russiablog.org/2009/06/russias_limousine_liberals.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/06/russias_limousine_liberals.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-06-19T21:00:00Z</published>
<updated>2009-06-25T00:48:16Z</updated>
</entry>
<entry>
<title type="text">Through the Looking Glass on Russian Mortality</title>
<summary type="text">By Anatoly Karlin American Enterprise Institute demographer Nicholas Eberstadt&apos;s recent article on Russian hypermortality was titled &quot;Drunken Nation&quot; Editor&apos;s Note: This is a succinct summary of the article &quot;Rite of Spring: Russia&apos;s Fertility Trends&quot; previously published by Russia Blog on...</summary>
<content type="html"><![CDATA[<p><b>By Anatoly Karlin</b></p>

<p><img alt="VodkaMilitsiya.jpg" src="http://www.russiablog.org/VodkaMilitsiya.jpg" width="350" height="308" /><br />
<b>American Enterprise Institute demographer <a href="http://www.russiablog.org/2009/04/power_and_population_debating.php" target="blank">Nicholas Eberstadt</a>'s recent article on Russian hypermortality was titled "<a href="http://www.worldaffairsjournal.org/2009%20-%20Spring/full-Eberstadt.html" target="blank">Drunken Nation"</a></b></p>

<p><b>Editor's Note: This is a succinct summary of the article "<a href="http://www.russiablog.org/2009/04/russias_fertility_future.php" target="blank">Rite of Spring: Russia's Fertility Trends</a>" previously published by Russia Blog on April 29, 2009. To find more articles on Russian demographics, <a href="http://www.google.com/custom?domains=www.russiablog.org&q=Russia+demographics&sitesearch=www.russiablog.org&client=pub-7542212341370520&forid=1&channel=9723490740&ie=ISO-8859-1&oe=ISO-8859-1&flav=0000&sig=cv0brVo-FVS9TYtP&cof=GALT%3A%23008000%3BGL%3A1%3BDIV%3A%23336699%3BVLC%3A663399%3BAH%3Acenter%3BBGC%3AFFFFFF%3BLBGC%3A336699%3BALC%3A0000FF%3BLC%3A0000FF%3BT%3A000000%3BGFNT%3A0000FF%3BGIMP%3A0000FF%3BFORID%3A1&hl=en" target="blank">click here</a>.</b></p>

<p>In 1992, for the first time since the Great Patriotic War, deaths exceeded births, forming the so-called “Russian Cross”. Since then the population fell from 149mn to 142mn souls. Ravaged by AIDS, infertility and alcoholism, Russians are doomed to die out and be replaced by hordes of Islamist fanatics in the West and Chinese settlers in the Far East...or so one could conclude from reading many of the popular stories about Russian demography today.</p>]]><![CDATA[<p><img alt="HandsBabyFeet.jpg" src="http://www.russiablog.org/HandsBabyFeet.jpg" width="350" height="233" /><br />
<b>Reasons for hope...Russia's birth rate has quietly improved in the past few years</b></p>

<p>The total fertility rate (TFR), the average number of children a woman is expected to have, was 1.4 in 2007, well below the 2.1 needed for long-term population stability. Though current Russian birth rates per 1000 women are not exceptionally low, they will plummet once the 1980s youth bulge leaves childbearing age after 2015.</p>

<p>Meanwhile, Russia’s life expectancy is exceptionally bad by industrialized-world standards. Death rates for middle-aged men today are, amazingly, no different from those of late Tsarism – a phenomenon Nicholas Eberstadt termed “hypermortality”. This tragic development is almost entirely attributable to the extreme prevalence of binge drinking of hard spirits.</p>

<p>No wonder then that the recent UN report on Russian demography forecasts its population will fall by 10mn-20mn people by 2025. Set against these gloomy trends, the projections made by the Russian government (145mn) and state statistical service Rosstat (137-150mn) for the same year seem laughably pollyannaish.</p>

<p>However, things aren’t as bad through the looking glass. First, fertility expectations today are little different from those of the late Soviet era, when the TFR was still relatively healthy. According to numerous surveys since the early 1990s, Russians consistently say they want to have an average of 2.5 children. This is broadly similar to respondents from the British Isles, France and Scandinavia, who have relatively good TFR’s of around 1.7-2.1. This suggests Russia’s post-Soviet fertility collapse was caused by “transition shock” rather than a “values realignment” to middle-European norms, where people only want 1.7-1.8 children.</p>

<p>Second, a major problem with the TFR is that it ignores the effects of birth timing. A more accurate measure of long-term fertility is the average birth sequence (ABS), which gives the mean order of all newborn children. If in one fine year all women in a previously childless country decide to give birth for some reason, the TFR will soar to an absurdly high level but the ABS will equal exactly one.</p>

<p>In Russia the ABS remained steady at 1.6 children per woman from 1992-2006, little changed from Soviet times, even though the TFR plummeted well below this number. This indicates that many women were postponing children until they settled into careers and improved their material wellbeing – a hypothesis attested to by the rising age of mothers at childbirth since 1993.</p>

<p>Though this may be a false positive if many women remain childless, the  2002 Census indicated that only 6-7% of women did not have any children by the end of their reproductive years. This indicates that  childlessness is not in vogue and worries about widespread sterility are overblown.</p>

<p>Third, a new confident conservatism has recently taken hold in Russian society. After two decades of disillusionment, at the end of 2006 consistently more Russians began to believe the nation was moving in a positive than in a negative direction. It is likely no coincidence that it the TFR began to consistently rise just then – from 1.3 in 2006 to about 1.5 in 2008, though generous new child benefits helped.</p>

<p>Many pessimists see this as empty petro-fueled swagger, prone to derailment by the first economic crisis. Yet marriage rates continued soaring in early 2009, mortality fell by 5% in Jan-Feb 2009 in comparison to the same period last year, and national morale remains high – notwithstanding the severity of the recent economic contraction.</p>

<p>High mortality rates only have a direct impact on replacement-level TFR when significant numbers of women die before or during childbearing age, as in Third World countries. Russia’s infant mortality rate of 8.5 / 1000 in 2008 is close to developed-country levels and not statistically significant. Though tragic and unnecessary, its “hypermortality” crisis mainly affects older men and as such has negligible direct effects on fertility.</p>

<p>However, mortality rates must be curbed if Russia is to avoid severe population decline in coming decades. Contrary to prevailing opinion, plans to raise life expectancy to 75 years by 2020 or 2025 are feasible if approached seriously. From 1970-1995 in Finnish Karelia, better healthcare and lifestyle reforms reduced incidences of heart disease, Russia’s main cause of death, by over 70%. Considering the sheer size of the gap between Russia and the advanced industrial world, even modest improvements will have a big impact.</p>

<p>And speaking of which, Russia is now installing new equipment in oncology centers, aims to increase access to hi-tech medical services from 25% to 80% by 2012 and is implementing anti-smoking and anti-alcohol measures. Deaths from alcohol poisoning and violence, as well as overall life expectancy, recently improved to the pre-transition levels of 1992.</p>

<p>The percentage of pregnant women testing HIV positive plateaued in 2002, suggesting the epidemic remains contained among injecting drug users. Models projecting imminent mass deaths from AIDS unrealistically assume heterosexual, sub-Saharan Africa transmission patterns, which is unbacked by sociological analysis or surveillance data.</p>

<p>Fears of Islamization ignore the unremarkable birth rates among Tatars, the largest Muslim ethnic group, and the 1990s fertility transitions in the Caucasus. The idea that no more than 250,000 seasonal Chinese traders and laborers in the Far East pose a demographic threat is risible [see the previous article "<a href="http://www.russiablog.org/2009/04/post_15.php" target="blank">The Myth of the Yellow Peril</a>" for more on this topic].</p>

<p>After 2020, Russia will start experiencing severe demographic pressure due to a smaller youth cohort and population aging. It must use the next decade wisely to build the foundations for recovery through increased fertility, mortality reduction and continued immigration. Despite temporary setbacks, Russia retains solid prospects for growth – a well-educated people, an extensive industrial infrastructure, growing centers of innovation and big hydrocarbon reserves. If things go right, large-scale population decline is still avoidable.</p>

<p><br />
<i><b><a href="http://www.sublimeoblivion.com/about/" target="blank">Anatoly Karlin</a> is a San Francisco based independent writer, political analyst and media critic. He is the author of the blog <a href="http://www.sublimeoblivion.com" target="blank">Sublime Oblivion</a> focusing on the Russian economy, demography, and future global trends. This essay was <a href="http://www.sublimeoblivion.com/2009/06/13/thru-looking-glass/" target="blank">originally published</a> at Sublime Oblivion.</b></i> </p>]]></content>
<category term="/articles_and_essays" scheme="http://www.russiablog.org/" label="Articles and Essays" />
<id>http://www.russiablog.org/2009/06/through_the_looking_glass_on_r.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/06/through_the_looking_glass_on_r.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-06-17T23:00:01Z</published>
<updated>2009-06-18T02:11:38Z</updated>
</entry>
<entry>
<title type="text">Compare and Contrast</title>
<summary type="text"> Kendrick White speaking to ICANN, the International Community Organization of Nizhny Novgorod Editor&apos;s Note: This post originally appeared May 4, 2009 on Kendrick White&apos;s blog at the Marchmont Capital Partners website (www.marchmontnews.com). I had such an interesting set of...</summary>
<content type="html"><![CDATA[<p><img alt="WhiteKendrickICANNruphoto.jpg" src="http://www.russiablog.org/WhiteKendrickICANNruphoto.jpg" width="286" height="400" /><br />
<b>Kendrick White speaking to <a href="http://icann-nn.ru/en/?page_id=6" target="blank">ICANN</a>, the International Community Organization of Nizhny Novgorod</b></p>

<p><b>Editor's Note: This post <a href="http://marchmontnews.com/blog/?post=5&Kendrick-White's-Blog/Compare--Contrast#trips" target="blank">originally appeared</a> May 4, 2009 on Kendrick White's blog at the Marchmont Capital Partners website (<a href="http://www.marchmontnews.com/" target="blank">www.marchmontnews.com</a>).</b></p>

<p>I had such an interesting set of meetings last week. After long preparations and much organizational work, I finally had an opportunity to meet the CFO of a large industrial group with 10 factories spread across Russia.</p>

<p>While I could find little info on this group to prepare myself, one of our partners assured me that this was a very serious group with hundreds of millions of dollars in annual sales. They made big metal things with lots of electronics inside, nothing secret in their production, but you know, they had really serious owners behind this group “very well connected” as they say.</p>]]><![CDATA[<p>After such descriptions from my partners who were organizing the meeting, I had ideas of huge capital requirements for modernization and innovation. This was, after all, a potential national champion in the making – a future global leader. What a chance to be able to meet with one of the top managers, and discuss strategic planning…</p>

<p>What a let-down. The blank look on this guy’s face when I asked him about capital requirements, strategic plans, innovation R&D, improvements of any kind said it all... </p>

<p>“We only need new cheap credits to replace our current expense credits”, he drawled.</p>

<p>That’s it?</p>

<p>“What about competing in global markets.” I naively asked?</p>

<p>“We only need to fulfill government orders, from budget organs. This is what our owners told us to do.”</p>

<p>So I pressed on asking if they needed additional project financing or perhaps VC partners to help their suppliers to improve the quality of their inputs and lower costs, but all I got was “nyet!” Later that week, back in Nizhny Novgorod, I met with a group of young entrepreneurs. They were all excited and had fire in their eyes! They had continued to invest all of their profits from several trading businesses built over the last ten years into the development of a revolutionary new IT product, one that was seriously disruptive and exciting!</p>

<p>Now they needed about $ 1.0m in VC financing to take the project to the next stage. </p>

<p>Unfortunately there are few investors for such small projects here in Russia.</p>

<p>I was hard pressed to advise them so I told them about the upcoming Russian Tech Tour (www.techtour.com), which will invite over 50 European VC fund managers to review Russian projects later this year in September.</p>

<p>This is going to be a big deal for Russia and attract a lot of attention, but could they hold out for another six months?</p>

<p>But they needed the money ASAP. The crisis was sapping the profit out of their original businesses, and they didn’t have the cash flow to finance this project. Sadly. I had to tell them that in this environment, with so much money to be made in speculative Russian stock market plays on Russian “blue chips”, few funds were interested real innovation here.</p>

<p>What an irony--people are so used to making and losing money here quickly, that the culture of patient angel investor support for a fledgling business is considered too risky. I only know of a handful of such angels and even they are having difficulties in today’s environment.</p>

<p>So here we are in a country that has hundreds and even thousands of large scale enterprises that badly need innovation and new products, but for some reason are unable or unwilling to spend money to invest in their development and commercialization.</p>

<p>There are literally billions of dollars sitting in a larger number of mid-scale PE funds ready to finance expansion and large scale production for late-stage innovation, but many of the companies which SHOULD be seeking this money to upgrade themselves, show little interest to do so.</p>

<p>On the other hand, Russia has hundreds of thousands of brilliant young scientists and entrepreneurs in desperate need of start-up and early stage expansion capital and guidance, but there are few high net worth individual investors willing to take on the risk of such projects.<br />
Why are these two sides of a single coin unable to find a common ground? What’s wrong with this picture? If you have any ideas on how to unlock this secret, please fill me in!</p>

<p><br />
<i><b>Kendrick White is the Founder & Managing Principal of <a href="http://www.marchmontnews.com/index.php?" target="blank">Marchmont Capital Partners, LLC</a>, a financial services advisory boutique and bilingual business news company based in <a href="http://icann-nn.ru/en/?page_id=6" target="blank">Nizhny Novgorod</a> Russia, where he has resided full time since 1993.</b></i></p>]]></content>
<category term="/finance" scheme="http://www.russiablog.org/" label="Finance" />
<id>http://www.russiablog.org/2009/06/compare_and_contrast.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/06/compare_and_contrast.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-06-17T03:00:00Z</published>
<updated>2009-06-16T16:48:58Z</updated>
</entry>
<entry>
<title type="text">Twenty-First Century M&amp;A</title>
<summary type="text">by Philippe Der Megreditchian Editor&apos;s Note: This feature article was originally published on the Marchmont Capital Partners website, www.marchmontnews.com, on May 22, 2009 The recent financial crisis has sharply changed the financing options for mid-market and developing companies as the...</summary>
<content type="html"><![CDATA[<p><b>by Philippe Der Megreditchian</b></p>

<p><img alt="M%26ASky.jpg" src="http://www.russiablog.org/M%26ASky.jpg" width="402" height="364" /></p>

<p><b>Editor's Note: This feature article was <a href="http://www.marchmontnews.com/story.php?story_id=7832&story=Twenty-First-Century-M&A" target="blank">originally published</a> on the Marchmont Capital Partners website, <a href="http://www.marchmontnews.com/" target="blank">www.marchmontnews.com</a>, on May 22, 2009</b></p>

<p>The recent financial crisis has sharply changed the financing options for mid-market and developing companies as the market balance has been driven from one side of the pendulum to the other. In 2008, cash stockpiles from easy credit and windfalls from high natural resource prices created hungry buyers allowing sellers able to dictate terms unthinkable in more rational times. The sale of a solid mid-market company in a western country would generate dozens of bidders and less attractive businesses still had ample options. Normally cautious and even conservative investors, such as private equity funds had to either invest or return funds to their shareholders, found themselves accepting terms never considered in the past.</p>]]><![CDATA[<p>The crisis has created a buyers’ market and investors that have cash reserves are waiting to see where the bottom will be. Credit can no longer be relied upon to finance a company purchase, limiting the options for a leveraged or management buyout. The crisis also comes at a time when investors have unprecedented options to look outside their traditional market regions to find synergies with their investment strategies. Better businesses in emerging markets have become broadly sophisticated and have adopted stronger management tools, enabling them to find and develop better acquisition candidates.</p>

<p>Well into the 21st century the operation of much of the M&A services industry has been slow to adapt from a mid-20th century model. Tradition certainly carries value and basic principles will always be cornerstones for successful service providers: cultivation of sturdy relationships, attention to detail, independent judgment, freedom from interest conflicts. However, to attain or retain market, leadership will mean enhancing the service set offered to assist sellers and buyers. This means more than the purchase of an iPhone or putting up a website. Fortunately, today’s low cost of technology adoption means that even a small M&A boutique can compete and even lead technologically, and the tools that are and will be available can free the banker to spend more time on personal relationship building with clients.</p>

<p>While the need for personal hand-holding by experienced professionals, particularly with nervous business sellers, will always be a part of the industry, current market conditions and new technology are changing the landscape. Globalization is already a substantial influence and the market for a mid-sized business is no longer limited to neighboring states – there is now much greater potential that a buyer could be found on the other side of the globe. Growing businesses in emerging markets may now be potential buyers if there are strategic synergies, with funding from high rates of organic growth or non-traditional resources.</p>

<p>In an era of specialization, successful strategic or financial buyers are likely to know a lot about a target business and its industry potential. Investors looking at developing markets may also be more flexible about information requirements and able to rely on their internal expertise in an industry to evaluate an opportunity rather than expecting a pre-packaged formal set of documents.</p>

<p>Current market conditions require that the traditional timeline for M&A transactions be condensed as strategic and financial investors look more broadly for synergies with their own mission and goals. They require a means to an overview of real opportunities in the global environment and to obtain meaningful business and background information.</p>

<p>The traditional M&A service model has placed the search for a buyer or investor at the end of the process, with the M&A professional preparing extensive deal documentation for distribution to circle of buyers and investors. The global market has made this process less practical. And it is usually in the client’s interest to access as broad a market as possible, sooner rather than later.</p>

<p>There are a number of tools that could now be applied to streamline the M&A process including virtually free technologies that should already be in daily use by bankers, sellers and investors:</p>

<p><b>1. Skype</b> – this service and a good quality video camera should be installed for every person in the office that requires a telephone. With good broadband Internet service, the voice quality is no less than telephone and the video, depending upon the camera, is adequate. In addition to very significant international and national phone call savings, the video feature can significantly increase dimension of personal communication.</p>

<p><b>2. Google Maps and Google Earth</b> – both can be used on many levels from travel planning to information gathering during due diligence.</p>

<p><b>3. Flip Video Camcorder</b> – shirt pocket HD video that can be plugged into a USB port for instant transmission worldwide. Every traveling analyst should take one for site visits and interviews with key players.</p>

<p><b>4. Virtual data rooms</b> – allow examination of key information from a distance, reduce paper handling and can increase security of sensitive information. The technologies for systematic documentation and examination of information should rapidly develop.</p>

<p>The technology is already available to implement other technologies to bring down transaction costs and help investors to expand their horizons:</p>

<p><b>1. Advanced teleconferencing</b> – HD television and faster broadband communications will drive down the costs to have multi-site meetings with video quality that is so good that one can almost taste the cup of coffee on the table half the world away.</p>

<p><b>2. Street View Walk Through</b> – Google Street View already provides the ability to walk down the streets of major cities and get the flavor of a neighborhood. This same technology can be applied to create a real-time HD walk through of a manufacturing plant, construction site or office. An investor could meet and interview line managers and workers from the home office.</p>

<p><b>3. Translation technologies</b> – services like Babelfish already provide rough translations of text, usually adequate for basic understanding. Translation and optical character recognition technologies are areas that will benefit greatly from the vastly lower costs of data storage and computational power.</p>

<p>The potential to develop a new approach to M&A has been provided by the transformational technologies of 21st century technologies. These technologies can be used to enable efficient, multi-dimensional communications methods to bring together strategic and financial investors with target companies on a global scale.</p>

<p>Although nothing can replace personal contacts and local presence, the tools of today’s technology provide a more efficient way to access opportunities more broadly and with greater detail. In addition, after first contact they can facilitate negotiation among parties at different corners of the globe, reduce the wear and tear of travel and monitor investments at a distance more efficiently.</p>

<p><br />
<b><i><a href="http://www.linkedin.com/pub/philippe-der-megreditchian/0/1a5/9b4" target="blank">Philippe Der Megreditchian</a> was chief executive and partner of leading private equity companies in Russia, where he lived and worked for 16 years. He recently founded and manages a Paris based financial information service called OnLineMA, which provides investors with access to global mid-market opportunities including venture capital, private equity and company sales.</i></b></p>

<p><br />
<b>The opinions and sentiments expressed herein are those of the author only and not necessarily those of Marchmont Capital Partners or any other person.</b></p>]]></content>
<category term="/business" scheme="http://www.russiablog.org/" label="Business" />
<id>http://www.russiablog.org/2009/06/twentyfirst_century_ma.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/06/twentyfirst_century_ma.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-06-14T18:00:01Z</published>
<updated>2009-06-15T23:06:26Z</updated>
</entry>
<entry>
<title type="text">Cantor Compares Obama to Putin  Pravda Turns Paleocon Against Bailout USA</title>
<summary type="text"> Russian Prime Minister Vladimir Putin (left) and U.S. President Barack Obama (right) Last week Congressman Eric Cantor (R-VA), the number two Republican in the U.S. House of Representatives, compared President Barack Obama to Russian leader Vladimir Putin in an...</summary>
<content type="html"><![CDATA[<p><img alt="PutinObamaShirtless.jpg" src="http://www.russiablog.org/PutinObamaShirtless.jpg" width="420" height="306" /><br />
<b>Russian Prime Minister Vladimir Putin (left) and U.S. President Barack Obama (right)</b></p>

<p>Last week Congressman Eric Cantor (R-VA), the number two Republican in the U.S. House of Representatives, compared President Barack Obama to Russian leader Vladimir Putin in an interview with the Associated Press. Cantor did not mean the comparison in a flattering way. </p>

<p>While criticizing the Obama Administration's handling of the bankruptcy of General Motors and Chrysler, Cantor declared:</p>

<blockquote>"They said, 'Set aside the rule of law, let's strip secured creditors, bondholders, of their rights. Take them away outside of the bankruptcy process and give them to the political cronies and the auto workers' unions...it's almost like looking at Putin's Russia...you want to reward your political friends at the expense of the certainty of law?"</blockquote>]]><![CDATA[<p>Meanwhile, in an ironic twist on the usual U.S.-Russia war of words, an editorial published April 27, 2009 by the Russian tabloid <i>Pravda</i> has gained considerable circulation by accusing the United States of a rapid "descent into Marxism". The essay has been circulating among American conservatives on the Internet since the <i><a href="http://spectator.org/blog/2009/05/30/pravda-criticizes-usa-for-bein" target="blank">The American Spectator</a></i>, Cybercast News Service (<a href="http://www.cnsnews.com/public/content/article.aspx?RsrcID=48929" target="blank">CNS News</a>) and Fox News TV host <a href="http://www.glennbeck.com/content/program/about/" target="blank">Glenn Beck</a> all republished the column on their own websites (you can read more about <a href="http://www.russiablog.org/2009/02/russia_and_chinas_financial_wa.php#more" target="blank">Glenn Beck and his incredulity</a> that Russian leaders would be warning the U.S. against the dangers of excessive statism <a href="http://www.russiablog.org/2009/03/is_russia_a_conservative_count.php" target="blank">here</a>). </p>

<p>In a two page essay titled, "American Capitalism Gone With a Whimper", Russian writer Stanislav Mishin accuses the Obama Administration of turning America into a Marxist country along the lines of the old Soviet Union. Mr. Mishin savagely attacks what he perceives as fake evangelical megachurches, empty debt-enabled consumerism, and corrupt government bailouts in America. Along the way, he accuses "Wall Street" of propping up the old Soviet Union for seventy years, and apocolyptically predicts that Washington is going to set off Weimar Republic-style hyperinflation of the dollar. Mr. Mishin first published his essay on his Russian and English-language Orthodox nationalist blog, <i><a href="http://mat-rodina.blogspot.com/" target="blank">Mat Rodina</a></i> (Motherland) <a href="http://mat-rodina.blogspot.com/2009/04/american-capitalism-gone-with-whimper.html<br />
" target="blank">here</a>.</p>

<p><i><b>You can read an excerpt of this article below.</b></i> Regardless of how extreme Mr. Mishin's rhetoric appears to be, we are entering interesting times when Russian newspapers are accusing America of becoming Soviet and an ex-KGB man is warning the U.S. against too much government intervention in the global economy. After years of listening to Western NGOs and politicians' complaints about backsliding on democracy and the nationalization of the Yukos oil company by the Russian government, many Russians are happy to hurl these accusation back against Washington in spades.</p>

<p><br />
<b>American Capitalism Gone With a Whimper</b>  <br />
<i>27.04.2009 Source: Pravda.Ru</i></p>

<p>It must be said, that like the breaking of a great dam, the American decent into Marxism is happening with breath taking speed, against the back drop of a passive, hapless sheeple, excuse me dear reader, I meant people. </p>

<p>True, the situation has been well prepared on and off for the past century, especially the past twenty years. The initial testing grounds was conducted upon our Holy Russia and a bloody test it was. But we Russians would not just roll over and give up our freedoms and our souls, no matter how much money Wall Street poured into the fists of the Marxists. </p>

<p>Those lessons were taken and used to properly prepare the American populace for the surrender of their freedoms and souls, to the whims of their elites and betters. </p>

<p>First, the population was dumbed down through a politicized and substandard education system based on pop culture, rather then the classics. Americans know more about their favorite TV dramas then the drama in DC that directly affects their lives. They care more for their "right" to choke down a McDonalds burger or a BurgerKing burger than for their constitutional rights. Then they turn around and lecture us about our rights and about our "democracy". Pride blind the foolish. </p>

<p>Then their faith in God was destroyed, until their churches, all tens of thousands of different "branches and denominations" were for the most part little more then Sunday circuses and their televangelists and top Protestant mega preachers were more then happy to sell out their souls and flocks to be on the "winning" side of one pseudo Marxist politician or another. Their flocks may complain, but when explained that they would be on the "winning" side, their flocks were ever so quick to reject Christ in hopes for earthly power. Even our Holy Orthodox churches are scandalously liberalized in America. </p>

<p>The final collapse has come with the election of Barack Obama. His speed in the past three months has been truly impressive. His spending and money printing has been a record setting, not just in America's short history but in the world. If this keeps up for more then another year, and there is no sign that it will not, America at best will resemble the Wiemar Republic and at worst Zimbabwe. </p>

<p>These past two weeks have been the most breath taking of all. First came the announcement of a planned redesign of the American Byzantine tax system, by the very thieves who used it to bankroll their thefts, loses and swindles of hundreds of billions of dollars. These make our Russian oligarchs look little more then ordinary street thugs, in comparison. Yes, the Americans have beat our own thieves in the shear volumes. Should we congratulate them? </p>

<p>These men, of course, are not an elected panel but made up of appointees picked from the very financial oligarchs and their henchmen who are now gorging themselves on trillions of American dollars, in one bailout after another. They are also usurping the rights, duties and powers of the American Congress (parliament). Again, Congress has put up little more then a whimper to their masters. </p>

<p>Then came Barack Obama's command that GM's (General Motor) president step down from leadership of his company. That is correct, dear reader, in the land of "pure" free markets, the American president now has the power, the self given power, to fire CEOs and we can assume other employees of private companies, at will. Come hither, go dither, the centurion commands his minions. </p>

<p>So it should be no surprise, that the American president has followed this up with a "bold" move of declaring that he and another group of unelected, chosen stooges will now redesign the entire automotive industry and will even be the guarantee of automobile policies. I am sure that if given the chance, they would happily try and redesign it for the whole of the world, too. Prime Minister Putin, less then two months ago, warned Obama and UK's Blair, not to follow the path to Marxism, it only leads to disaster. Apparently, even though we suffered 70 years of this Western sponsored horror show, we know nothing, as foolish, drunken Russians, so let our "wise" Anglo-Saxon fools find out the folly of their own pride. </p>

<p><i><a href="http://english.pravda.ru/opinion/columnists/107459-0/" target="blank">Click here</a> to read the rest of the article at Pravda.ru.</i></p>]]></content>
<category term="/news" scheme="http://www.russiablog.org/" label="News" />
<id>http://www.russiablog.org/2009/06/cantor_compares_obama_to_putin.php</id>
<link rel="alternate" href="http://www.russiablog.org/2009/06/cantor_compares_obama_to_putin.php" type="application/xhtml+xml" hreflang="en" />
<published>2009-06-13T08:00:01Z</published>
<updated>2009-06-27T15:45:24Z</updated>
</entry>

</feed>