I wrote: >> I'd forgotten that [Russian military exports]. Of course, it's got a 
down-side, in that such exports help destabilize the world and sap poor countries' 
civilian budgets. As my dad used to say, every silver lining has a mushroom cloud...<<

Chris D writes:>The great majority of Russian arms go to two countries, China and 
India.<

those two have been at war before. But the small recipients are probably the ones we 
have to worry about. 

>> (Ha! But the old USSR's nukes are used, in the sense that they were used as 
>> deterrent -- and also in the sense that they have physically depreciated over time. 
>> The latter was what I was thinking of.)<<

>I keep hearing different things about this... Ostensibly, the state of the stockpile 
>is deteriorating, but then they keep coming out with new stuff. For instance, the are 
>developing bunkerbusters (in response to the US) and very recently announced a new 
>ICBM that can change course in midflight, thereby circumventing ABM systems. Russia 
>takes its nuclear shield very seriously.<
 
great. The old arms rot (and become more unstable?) while the arms race goes on.
 
BTW, in a science-fiction novel I read recently (THE STONE CANAL, by McLeod), a 
country (part of the exUSSR) rents out its nuclear shield to other countries, so they 
can have a deterrent without having it based in their own territories. Interesting 
idea. Maybe Putin would like this idea?

>> It's interesting that all of these exports (plus the military ones) were based on 
>> the investment done during the Soviet period.<<

>Put yourself in the shoes of a budding post-Soviet capitalist in the mid-90s. Do you 
>build up a business from scratch, or do you try to get your hands on the huge Soviet 
>enterprises that are already there? Clearly the latter.<
 
I wasn't blaming them. I was just stating my understanding of what's going on.

>>Have the new capitalist rulers done nothing productive except political 
>>stabilization?<<

>Theoretically, political stabilization creates the ground for economic development. 
>Yeltsin would change the laws regulating business every other week, sometimes 
>retroactively. That is not conducive to capitalist development.<
 
it could also be stabilization of a stagnant comprador regime, once oil prices fall. 

>> Further, the near-total focus on natural resource exports is a sign of economic 
>> dependency. (The exception is the arms exports.)  It means that the vast majority 
>> of fixed investment goods and even consumer goods bought in Russia are imported, 
>> no?<<

>No. That was the case pre-1998, not today. Most consumer goods are Russian-made. In 
>sectors outside the natural-resource industries, software is doing well, as are 
>telecoms (BeeLine GSM and MTS being the big Moscow providers). Fast food is big (it 
>seems like Moscow has about a billion fastfood chains, e.g., Russkoye Bistro, Kroshka 
>Kartoshka, etc. Incidentally the head of McDonald's Russia is a Chechen.).<
 
finally, the Chechens have figured out how to strike back in a decisive way!
 
>Most Russians drive Russian-made cars.<
 
which doesn't involve much a domestic market for new production. Unless repairs are a 
big industry?
 
>Electrical appliances are mostly domestically produced.<
 
I remember seeing some of those in Cuba when I was there in the late 1970s. The Cubans 
thought they were shit, too.
 
> Pharmaceuticals are domestic. Clothing is domestic, or imported from China or 
> Belarus (mainly shoes, in the latter case. Belarus makes good footware.). Furniture 
> is domestic, imported from Belarus or, in Moscow, purchased from IKEA. Vodka (a big 
> seller) is domestic; so is beer--e.g. Baltika, Staryi Melnik, Klinskoye, 
> Ochakova--though there is some foreign ownership. Foodstuffs are mostly deomstic, 
> with the big exception of American meat, which is sold at very low prices and is 
> consumed by the lowest strata of the poor, because it's awful. (Produce is mostly 
> grown on collective farms that were privatized and given to their employees, 
> resulting in a huge increase in productivity.) Entertainment, except for film, is 
> mostly domestic. Of course nothing comes within spitting range of Big Oil, Gas or 
> Metals.<
 
how about investment goods? those are more crucial. 

>> There are at least two "status quos" here. One is what's left of the old 
>> bureaucratic-socialist system.<<

>The chinovniki _are_ the old bureaucratic-socialist system, or at least the part 
>before the hyphen....<
 
I don't know the terminology. What are "chinoniki"? 

>>The other is the status quo of capitalism and the current distribution of power. The 
>>KGB types, I would guess, favor the latter but not the former.<<

> I suspect they want a system in which they dominate big business is dominated, 
> rather than vice versa, as was the case under Yeltsin, when Berezovsky could 
> basically buy himself a government post.<

but don't they want to be like the US, where Bush bought himself a government post? 
It's true, though, that mostly people use government posts to buy themselves jobs in 
the "private sector" as lobbyists, etc. 

>>The fact that they live off of rents (and seek more) suggests that their statist 
>>ideology will reflect their means of support. They may aim to bump off (figuratively 
>>and maybe literally) a couple of billionaires, but that would be in order to elevate 
>>themselves to that status rather than to end the existence of billionaires as a 
>>social category.<<

>Definitely. They Kremlin has been very clear that if you are a "patriotic 
>businessman" instead of a "bandit capitalist," which means in effect doing what the 
>Kremlin says and not shipping assets abroad ...<
 
hmm. 

>> "not necessarily bad"?!? I guess maybe, in the sense that the CIA is more 
>> enlightened than the FBI is. Lesser of two evils! <<

>I meant in the sense that the KGB was the most professional and least ideological of 
>all the segments of the Soviet government. The most liberal, too, since they were the 
>only ones with full access to information. The KGB wanted to start Perestroika in the 
>early 1970s. People tend to forget that Gorbachev's mentor was Andropov, the head of 
>the KGB.<
 
I hadn't forgotten that. BTW, the CIA was traditionally the "liberal" branch of the US 
secret services, hob-nobbing with laborites and social democrats (while buying them). 
 
thanks for the interesting article & the interesting conversation.
 
Jim D.


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