..............................................................

>From the New Paradigms Project [Not Necessarily Endorsed]:

From: "Samuel Konkin" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Subject: [LeftLibertarian] New Russian Power Elite
Date: Saturday, August 05, 2000 12:22 AM

Can you imagine a similar job being done on the U.S.'s Power
Élite? Let's see, "David Rockefeller, Bill Gates and Rupert Murdoch
sat down with 17 other American 'oligarchs' and incoming President
Gush Bore to set the record straight on how the U.S. will be run for
their benefit
.
. ." Maybe in the Moscow Times? (Or _New Libertarian_ . . .)

>From Wednesday's Slate:

Putin's Power Grab

By Anne Applebaum


Just for the record, here are a few quotes, taken from a range of
Western and Russian newspapers, describing what happened at the
meeting late last week between Russian President Vladimir Putin and
20 Russian "oligarchs," the hyperwealthy Russian businessmen who
control vast swathes of the country's natural and financial
resources, much of which they obtained through illegal or highly
suspect means.

The Kremlin's press service claimed the discussions had established
that "the authorities would not review the outcome of
privatisations." This, for the uninitiated, is code for: "The
authorities will not prosecute that very large number of
hyperwealthy Russian businessmen who obtained their hyperwealth
through illegal or highly suspect means."

Boris Nemstov, the liberal politician who organized the meeting,
said that this news was met with approbation and relief: The
oligarchs are now "sick of being oligarchs. ... [T]hey want to be
law-abiding taxpayers."

Oleg Kiselyov, the head of Impexbank, said, "Before us sat a most
reasonable and capable man, a man able to understand the
situation."

Izvestia newspaper (yes, it still exists; one of the oligarchs owns
it) heralded the new era of "pragmatism," in which businessmen
would no longer "stupidly" involve themselves in politics.

Everyone, reported the Moscow Times, emerged from the meeting
smiling and joking and looking generally relieved. The Washington
Post even opened its article on the meeting with the sentence,
"President Vladimir Putin reassured edgy business tycoons today ...
," and several went on television over the weekend to demonstrate,
enthusiastically, how reassured they felt.  All of which heralds a
new era in Russia: Government and business will now stay at a
proper distance from one another. Rule of law has been
re-established. No one will be unfairly arrested. No one will
receive unfair favors. The oligarchs want to pay taxes just like
everybody else. Right?

Er ... not so sure about that. For the record, I would like to note
the following discrepancies which I observed while in Moscow, in
the days following the meeting.

One of the businessmen at the meeting had been due to attend a
conference on the day following the meeting, a conference at which
he would certainly have been asked to tell a group of Russian
politicians and Western experts what had actually happened.
Pleading illness, he failed to show up.

Another businessman, a junior partner of one who was at the
meeting, told me that the president had been late. In the half-hour
that they spent waiting for him, according to his boss, the 20
oligarchs, most of whom are individually worth the GDP of a small
African country, were so nervous that they were unable to sustain a
conversation: "These were frightened men, let me tell you."

A third businessman, one who has been heavily involved in helping
President Putin to write his economic program, simply laughed when
I showed him the Moscow Times report, noting its generally cheerful
spin. "If you believe that, you'll believe anything."

More to the point, there were a few absent faces at the meeting.
Missing, for example, was Vladimir Gusinsky, until recently a
paid-up member of the oligarch club, now residing in Spain.
Gusinsky was, unexpectedly, recently arrested, accused of
possessing an illegal fortune, slapped in prison for three
days--and then, equally unexpectedly, released. The TV news channel
which he owns (the only one, until now, to broadcast criticism of
Putin) hasn't enlightened us as to what happened to him, perhaps
because, as the rumor mill claims, it has already been sold to
someone else, perhaps in exchange for Gusinsky's freedom.

Also absent from the meeting were Boris Berezovsky and Roman
Abramovich, two of Russia's wealthiest men, both of whom have been
thought to be rather closer to the Kremlin than some of the others.
Why weren't they there? No explanation.

Here is what I suspect has really happened: Perhaps openly, perhaps
more subtly, the hyperrich have now been given the distinct
impression that those who agree to abide by the Kremlin's will--to
contribute money to the right slush funds, to keep their TV
stations safely in line with government policy--will prosper and
will not be prosecuted for past offenses. Those who don't--Gusinsky
didn't--will be subject to prosecution, loss of business, even
worse. As Berezovsky himself has famously noted, "Every major
businessman has had to break the law at some point to stay in
business," which means all of them are potentially arrestable, and
therefore blackmailable, if one can put it that way. Don't be
surprised to see all of them dutifully lining up to support the
president in the months to come.

Is this, then, the return of the rule of law? No. Will it be
greeted as the return of the rule of law in the West? Yes. Will
anyone object in Russia? Not much. Nearly 75 percent of  Russians,
in one recent poll, advocated the renationalization of private
property on the grounds that most private companies were
effectively stolen. Nobody will object if a few rich businessmen
get slapped around, however arbitrary the slapping-around process
might be. Thus has Putin eliminated one of the pillars of nascent
democracy in Russia: an independent business community. He hasn't
had to prosecute all of them, just one or two--and that was enough
to scare the rest. Pretty good for a mere four months in office.
(In the next couple of days, I'll be writing about Putin's attacks
on another pillar of Russian democracy: independent political
parties.)

[end article]

Freely as ever, SEK3




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