No real debate.Russia has been emasculated and should stay that way.

 

Bruce

 

 

 

STRATFOR'S GEOPOLITICAL INTELLIGENCE REPORT

Debating Russia's Fate
May 09, 2005 23 13  GMT


It has been 60 years since the defeat of Nazi Germany. The leaders of 
the nations that participated in that victory, along with those that 
didn't,  have gathered in Moscow to commemorate the anniversary. The
gathering 
has a meaning that transcends the historical.

The question on the table is the future of Russia's relationship with 
the West. The issue is simple: From Moscow's point of view, it is whether 
the Russians squandered, over the past 15 years, the victory that was won 
at the cost of more than 20 million killed. From its erstwhile allies' point

of view, it is whether to take Russia seriously, not only as a global 
power, but even as a regional power. How these questions are answered will 
determine the shape of Eurasia for a generation.

>From the Soviet point of view, World War II was simultaneously a 
catastrophe and a triumph. The catastrophe consisted of Josef Stalin's
massive 
diplomatic and military miscalculations, which led to the occupation of 
vast parts of the Soviet Union by the Germans. The triumph was the fact that

the Soviet Union not only won the war (along with its allies), it also 
emerged from the war as the dominant Eurasian power -- its borders
effectively 
pushing into central Germany -- as well as a global power. It became 
the only challenger to the other great victor in World War II, the United 
States. Now the fruits of the victories of 1945 are gone.

Moscow's sphere of influence no longer extends to central Germany. In 
fact, it doesn't extend even through the former Soviet Union. The Baltics, 
Ukraine, the Caucasus and Central Asia are all slipping from its hands. 
It is not even certain that the Kremlin can hold all of the Russian 
Federation. From Moscow's point of view, the current generation has
squandered the 
victory and betrayed the sacrifices of its greatest generation.

The leadership of the Soviet and Russian recessional did not undertake 
this  course out of indifference or confusion. Mikhail Gorbachev, Boris 
Yeltsin and Russian President Vladimir Putin all pursued a calculated
policy, 
dictated in their minds by irresistible reality. Following the analysis 
of Yuri Andropov, the head of the KGB in the 1960s and 1970s, they 
recognized that the Soviet Union was -- imperceptibly to many in the West --

slipping into economic and social catastrophe, caused by two things. First,
the 
Soviet economy was inherently inefficient; geography and ideology 
combined to create a fundamentally flawed system. Second, the decision by
the 
United States in the 1980s to directly attack this weakness by accelerating 
the arms race created a crisis of unsustainable proportions.

The Soviet Union was poor, but geopolitically and strategically 
powerful. In order to retain that strategic power, it had to devote an
enormous 
amount of economic energy to sustaining its military forces and the economic

sectors that underpinned them. The cost of strategic parity with the United 
States rose and threatened the rest of the economy with collapse. Very 
quickly, the Soviet Union would be both poorer and weaker.

Moscow made a fundamental strategic decision to preserve the Soviet 
Union by rebalancing the relationship between geopolitics and economics. 
Gorbachev attempted to implement this policy by effectively ending the Cold
War 
in return for technology transfers and investments from the West. He lost 
control of the situation for two reasons. First, regardless of the 
level of Western investment and aid, the economic sclerosis of the Soviet
Union 
was so extensive that Moscow could not effectively utilize the Western 
funds in any politically meaningful timeframe. Second, the United States was
not 
going to allow the Soviets to recover from their weakness.

Washington pressed home its advantage. First, it made alliances, covert 
and overt, in Eastern Europe that essentially pried the region out of the 
weakening Soviet grip. Second, the loss of its Eastern European empire 
created a dynamic that led to Gorbachev's fall and the rise of Yeltsin 
--  and the collapse of the Soviet Union itself. Retreat fed on itself, 
until Moscow lost not only what it won in World War II, but also much more.

Yeltsin essentially extended Gorbachev's policies and deepened them. He 
assumed that the economic benefits that Andropov had been searching for 
would materialize more quickly if Russia were not also responsible for 
economic conditions in Soviet republics that lagged generations behind 
Russia itself. In effect, Yeltsin continued to trade geopolitics for 
economic relations with the West -- having abandoned the drag imposed 
by, for example, Central Asia.

Russians hoped for a massive improvement in their lives. While there 
was substantial economic activity, wealth was not dispersed. The lives of 
Russians outside of Moscow and St. Petersburg, as well as the elderly 
and others who were not among the Westernized elites, went from difficult 
to extraordinarily harsh. The reasons are complex, but they boil down to 
this: Capitalism is extremely rewarding, but it demands huge social 
sacrifices up front -- and Russia, having already paid the price of
communism, had 
nothing more to offer. By this, we don't simply mean money; we mean the
social 
dynamism that capitalism requires. Russia was exhausted by communism. 
Its social, political and legal structure could not change to accommodate 
the requirements of capitalism. Theft replaced production as a means of 
becoming wealthy.

Yeltsin could not have done anything about this had he wanted to. It 
was hardwired into the system. As a result, there was no economic payoff in 
return for Russia's geopolitical decline. Before the collapse of 
communism, Russia had been poor but enormously powerful. Afterward, Russia
was 
even poorer and pathetically weak. Moscow had to struggle to hold on to 
Russia itself.

Geopolitics is not a sentimental game, and the United States is not a 
sentimental country. It did precisely what the Russians had done in the 
past and would have done had the situation been reversed: It pressed its 
advantage. Using a variety of mechanisms, such as NATO expansion, the 
United States first spread its influence into Eastern Europe, then into the 
former Soviet Union itself, in the Baltics. Washington has increased its 
influence in the Caucasus via its relationship with Georgia and others.The 
Americans moved into Central Asia -- first, through the development of
energy 
resources there; then, as a side effect of Sept. 11, through the 
deployment of U.S. troops and intelligence services throughout the region.

Russian weakness had created a vacuum. The United States inexorably 
moved into it. Putin came to power in the wake of the Kosovo conflict, in 
which the United States had treated Russian interests with indifference and 
even contempt. He did not wish to reverse the Andropov doctrine, but 
intended only to refine it. He expected there never to be a repeat of
Kosovo, in 
which the United States attacked Serbia -- a nation regarded by the 
Russians as friendly -- without ever taking Russian interests into account. 
Putin also intended to reverse the consequences of the economic chaos of the

1990s. But he did not intend to create any fundamental change.

In other words, Putin wanted to have his cake and eat it too. He did 
not want to change the foundation of U.S.-Russian relations; he simply 
wanted to rebalance it. The two goals contradicted each other. The
relationship 
could not be rebalanced: It was built around the reality that Russian
leaders 
had been dealing with for a generation with declining success. Russia 
didn't have the weight to rebalance the relationship. Economically, it 
remained crippled. Militarily, it was impotent. The geopolitical consequence
--  
decline -- could not be stopped. For the past six years, Putin has been 
searching for the Holy Grail: a no-cost, no-risk solution to Russia's 
problems.

The United States has followed a consistent policy from Ronald Reagan, 
through the administrations of George H. W. Bush, Bill Clinton and now 
George W. Bush as well. It has sought to prevent, under any 
circumstances, the re-emergence of Russia as a regional hegemon and
potential global 
challenger. This has been a truly bipartisan policy. Clinton and George 
W. Bush have sought to systematically increase American influence in what 
the Russians call their "near abroad" while at the same time allowing the 
natural process of economic dysfunction to continue. More precisely, 
they have allowed Russia's weaknesses to create vacuums into which American 
power could move.

The breakpoint came in Ukraine. Washington took advantage of 
pro-Western forces there to create a situation in which it, rather than
Moscow, was 
the most influential foreign force in Kiev -- including raising pointed 
discussions about whether to include Ukraine in NATO. Ukraine lies on 
Russia's southern frontier; if it becomes a NATO country, Russia becomes 
indefensible. This, coupled with growing U.S. power in Central Asia, 
threatens Russia's position in the Caucasus. The situation quickly 
becomes hopeless for Moscow.

This explains why Putin recently referred to the collapse of the Soviet 
Union as the greatest geopolitical catastrophe in the 21st century. 
Western leaders expressed shock at the statement, but Putin was simply 
expressing the obvious. President Bush's travel itinerary surrounding
Russia's V-E 
Day celebrations -- making his first stop in the Baltics and leaving by way 
of Georgia -- is intended to drive the point home. Discussion of internal 
Russian affairs -- the status of democracy there -- similarly drives 
home the inequality of the relationship. So, too, does the attempt to equate

the Soviet occupation of the Baltics with the Nazi occupation, with Bush 
administration leaders saying that the fall of Adolf Hitler did not end 
oppression. All of this is designed rhetorically to put Russia on the 
defensive, just as it has been put on the defensive geopolitically.

The Russian decline and the U.S. exploitation of the situation have 
taken us to the breakpoint. If Ukraine is lost to Moscow, if Georgia becomes
the 
dominant power in the Caucasus, if events in Kyrgyzstan are extended to 
the rest of Central Asia -- all of which are very easy to imagine -- it 
will be difficult to imagine the survival of the Russian Federation. We will

see a second devolution in which parts of the Federation peel off. Russia,
as 
we know it today, will be finished.

It is not clear that the Russians have the will to recover. Putin seems 
to be struggling with internal and external demons, and his heir is not 
apparent. However, if Russia is going to make an attempt to recover, 
now is the time when it will have to happen. Another year and there might
not 
be any chance. It might already be too late, but the Russians have little 
to lose. It is really a case of now or never.

Russia will never have a vibrant economy. In the long run, centralized 
command economies don't work. But neither does capitalism in Russia. A 
centralized economy can do remarkable things in the short run, however. 
Russia is particularly noted for short-term, unbalanced spurts -- 
sometimes with the government using terror as a tool, sometimes not.

It must always be remembered how quickly military power can be 
recovered. Germany went from a collapsed military in 1932 to Great Power
status in 
five or six years. Economic authoritarianism, coupled with a pre-existing 
skilled officer class, transformed Germany's strategic position. It is not 
wise, therefore, to assume that Russia cannot recover significant military 
force if it has the will to do so. It might not become a superpower, but 
Great Power status -- even with an impoverished population -- is not beyond 
its capabilities. We have seen Russia achieve this in the past.

It therefore makes sense that the United States has been consolidating 
and extending its position in the former Soviet Union during the past few 
months. Russia can recover, but only if given time. The United States, 
having no desire to see Russia recover, doesn't intend to give it time. 
Washington intends to present Moscow with a reality that is so 
unfavorable that it cannot be reversed. Russia is close to that situation
right 
now, but in our opinion, not yet there. A window is open that will close 
shortly.

The question is simple: Will the Russians grab what might be a last 
chance, or are they just too tired to care?

(c) 2005 Strategic Forecasting, Inc. All rights reserved.

 <http://www.stratfor.com/> http://www.stratfor.com



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