Streetwise Professor

In its oh-so-British, understated way, the FT echoes a theme expressed somewhat more intemperately in SWP-land:

An increase in the state’s economic power is necessary and inevitable, as it is the west. But unless Mr Putin and the president, Dmitry Medvedev, take care, Russia’s intervention will be riddled with turf wars and corruption. Oligarchs and bureaucrats could be divided, even more deeply than today, into hostile factions, riding roughshod over the interests of ordinary citizens. The market’s fragile grip on the economy could be undermined.

Russia’s leaders must guard against these dangers by ensuring that the funds are distributed fairly under the eyes of independent supervisors. The aim should be to safeguard the banking sector to ensure that the financial crisis does not turn into an economic depression. The personal ambitions of businessmen and bureaucrats must be subordinated to the interests of the country as a whole. Otherwise, even with all of its oil, gas and metals reserves, Russia will face a difficult economic future.

Good luck with “ensuring funds are distributed under the eyes of independent supervisors” and subordinating the interests of businessmen and bureaucrats “to the interests of the country as a whole.” (There’s always a first time, no?) “Turf wars and corruption” and “hostile factions” are inevitable. The only question is whether “war” is merely metaphor, or factual description.

In other words, the FT’s piece, though valuable to the extent that it acknowledges an important Russian reality, is akin to a prim, indirect Victorian discussion of a vulgar topic. Goo-goo* recommendations of this sort are usually risible even in more mannered political cultures. When applied to Russia, they are hilarious.

On this subject, Michel’s comment on the post just preceding this one provides details on the new Russian Gold Rush, where every industry is clamoring to get its hands on state funds. Check it out.

* “Goo-goo” was legendary Boston Mayor James Curley’s cutting epithet for various well-meaning municipal reformers, such as those from the Boston Good Government Association.