Fri May 18, 2012
Fitter and friends from Russia
Unfurling the Iron Curtain
By Pierre Fitter, Siberia Russia – December 2006
Imagine living in a country where wearing foreign designer labels or owning foreign currency meant risking severe penalties. You’re mind conjures up the usual suspects – North Korea or Saudi Arabia but believe it or not, this was Russia under the Soviet Union, only 15 years ago!
Indeed life has changed dramatically since Mikhail Gorbachev’s failed attempt at modernizing Communism through Perestroika and Glasnost, in the late 80’s. Although the government ensured a secure livelihood – if you graduated from a university, you were guaranteed a job – life was undeniably tough. “[Under communism] the government would make all the decisions and we got used to living this way,” said 19-year-old Maria, a student of international law. “People worked like robots, without any individuality or personal opinion,” added Anastasia, a Journalism student from Moscow. “People lacked quality clothes and food,” said Irina, a graduate from Omsk State University. “Many would travel for days by train to Moscow, just to buy better quality things.” Julia, International Relations major from Novosibirsk State University (NSU) added, “We didn’t have much choice when we went shopping. There were no foreign brands or foreign movies. We didn’t even have chewing gum!”
In 1991 when the Soviet Union collapsed into 15 different independent states, the region was thrown into an economic crisis. “No one was prepared for this – academically or psychologically,” said Maria.
Almost 15 years later, Russia’s economy has grown at about 6.4% annually and its outlook as an emerging market is improving dramatically. Living standards have increased under President Vladimir Putin, but major problems lurk beneath the surface. Perhaps, most alarming of all, is the country’s rapidly declining population – an annual net loss of nearly 460,000 people. Vis-à-vis the economy, some estimates credit almost 30% of Russia’s economy to an out-of-control black market.
Out of 62 countries contributing to 96% of the world’s economy and 85% of its population Russia ranked 52nd, dropping eight places from 2004 (2005 A.T. Kearney/ Foreign Policy Globalization Index. Another study conducted by The Economist Intelligence Unit placed Russia at 102 out of 166 other countries on a Democracy Index of their ‘World in 2007’ report. But Anna Karpenko, a mathmatics student disagrees with the results. “I really don't think that there is any difference between lifestyles of Russians and Europeans or Americans,” she said. “Actually life is the same.”
Even as paralyzing economic sanctions against Ukraine and Georgia weigh heavily on Russia’s credibility to act within multi-lateral or international frameworks; and events such as the recent killing of journalist Anna Politkovskaya or the government’s infamous legal attack against oil giant Yukos undermine the Kremlin’s claim of upholding civil liberties, Russians remain optimistic about their future. “Today Russia makes a huge profit from oil and the government is investing this money well.” reasons Ruslan, who studies Economics at Novosibirsk State University. “We’ve started to build technology parks that will create thousands of jobs – encouraging young scientists to stay. When our oil reserves disappear, hi-tech production will become the basis of economy.” Smiling, Julia adds, “My hope is that in 15 years we will be leading country in the world!”
To realize her hope, the country must retain its highly educated workforce, root out rampant corruption and black-marketeering and formalize its membership into multi-lateral international organizations such as the WTO. All of this will require tremendous political will and massive economic and social reforms. If the Kremlin manages this, the future will be brighter for Mother Russia.
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