What buttons does Putin push?

The national psyche of any country may be made up by a complex web of associations in memory and myth running through history, culture and literature. It would be very easy to put down all of Russia's problems to its long history of authoritarian rule and chauvinism. However, we must remain aware that this is itself a construction of how the West would like to see itself - as standing out against the wretched backwardness of the East. This is a projection and we shouldn't fall into the convenience of old ideas in new conflicts. In fact, that's sort of the problem the Russians are having in the recrudescence of nationalism. I've covered this:

One of the first decisions undertaken by Putin after the 2000 election was to restore the Soviet National Anthem by Alexander Alexandrov. It was a symbolic break with the Yeltsin era. The anthem replaced the Patriotic Song of Mikhail Glinka that the Russian Federation had adopted in the wake of the dissolution of the USSR. Many in the West perceived this as an ominous sign of things to come. As the 1996 election was deemed to be the last hope for Russia’s Communists, the alternative to Yeltsin had always been framed as a throwback to the days of Stalin. 

The return of Alexandrov’s anthem seemed to confirm Putin was looking to recreate the old Soviet Union. This perception was widely shared, particularly by free market advocates, fearful that their revolution was coming to and end. Leading liberal Grigory Yavlinsky said, “We see this as a signal of where our society is heading, of what awaits us in the near future”. Yavlinsky was a proponent of the 500 Day Programme, first articulated in the late 1980s. It called for the mass-privatisation of state assets combined, with market reforms and the stripping away of regulations. All in 500 days. The programme was eventually implemented, in diluted form, under Yeltsin. 

What was lost on market liberals like Yavlinsky was that it wasn’t just about economics. The Soviet anthem has an equally significant nationalist side to it. After all it comes from Stalin’s Great Patriotic War, and supplanted the traditional socialist anthem the Internationale with its revolutionary patriotism. It was this side of the Russian campaign that Putin was tapping into, not a retreat back to the state capitalism of the Communist era.

The Russian nationalist narrative has a lot of sway and popular appeal because it holds factual ground. That isn't to say it is accurate of the full story. Pavel Stroilov recently produced an article exploring the popular claim in Russia that the West - principally, manifested in its expansion of NATO eastwards - reneged on its promises at the end of the Cold War. Stroilov put his own right-wing perspective on it and appears to be woefully uncritical of NATO and Western foreign policy. Even still, it is worth a read. You can read the rest of my article on Russian nationalism at Souciant.

In memory of Charles Keating.

I actually missed the news that Charles Keating had given up the ghost. The old man will be remembered as the brain behind the savings and loans crisis. Let alone his attempt to have bank regulator Bill Black murdered. Above I have embedded the video of Black's having his say about this man and his dealings and his personal crusade against his adversary. What will be forgotten by many is that Keating was a good swimmer and as a right-wing Catholic he actively campaigned against pornography (among lots of other things). He saw smut everywhere and wanted it all censored. So when Gore Vidal came to write Myron (1974) he decided to be sensitive to such concerns and used 'Keating' as a euphemism for shit.

Getting Russia Dead Right.

Western journalists claim Putin wants to ‘rebuild the Soviet Union’.

What’s wrong with this picture?

If we want to understand Putin’s Russia we have to look at the way the Russian Federation emerged from the tumultuous collapse of the USSR. Not simply a mindless KGB thug Putin was a supporter of Gorbachev and opposed the Communist attempt to overthrow Mikhail Sergeyevich and turn back the tide in 1991. The possibility of a new order was realistic in those days. Gorbachev had initiated a modicum of reform. The bloody war in Afghanistan was over. It looked as if the US might actually want a settlement on missiles. Bush had promised Gorbachev that he wouldn’t expand NATO any further eastwards. No wonder then that the majority of Russians, along with Putin, were on the side of glasnost and perestroika.

The Russian President Boris Yeltsin used this to his advantage. He was the right man for the time and the wrong man for Russia. Around this time the Bush administration was busy backing nationalists in Yugoslavia and had adjusted its aid policy to back secession to break up Tito’s dream of a state for all Southern Slavs. In the same way George HW Bush took the side of Russian nationalism to break up the Soviet Union. The great reformer Gorbachev had become a hindrance to be thrown on the wayside. The US sought to align itself with Boris Yeltsin. The Russian people flocked to Yeltsin after he became a political centre of gravity for democrats in the midst of the botched coup. It wouldn’t last. The real agenda had nothing to do with ideals of democracy.

The preference was for a selection of tiny fractured states which could easily be picked off one by one and subjected to economic underdevelopment. This matched Yeltsin’s personal aims for power and grandeur. In a series of manoeuvres Yeltsin cut deals with the leaders of Soviet republics, including Leonid Kuchma of Ukraine, and saw the Soviet Union dissolved. This is one of the ironies of the present crisis in Ukraine. The coalition of neoliberals and ultra-nationalists who seized power form Yanukovich have done so to pull Ukraine out of Russia’s orbit and closer to the EU and NATO powers. Yet it was nationalism followed by neoliberal prescriptions which have led to this conjunction of rebellion and incursion. It’s very likely that the people of Ukraine will not be served by these events as we can see from recent Russian history.

Within a week of Gorbachev’s resignation the new path was embarked upon. The Russian Parliament gave the President free reign to implement an economic programme of deregulation and privatisation. Yeltsin had the advice of the economist Jeffrey Sachs and such creatures of the market as Larry Summers. The plan was to establish the conditions for a market society as fast as possible. First the price controls were eliminated. The resulting hyperinflation quickly ate through the savings of most Russians. This was soon followed with a rapid privatisation of over 200,000 state-run companies. The Russian people suffered for this and the devaluation of the rouble, millions fell into unemployment and even those working were not guaranteed a wage. Every Russian was given vouchers to buy shares in the newly private companies. Desperate for cash most people sold their vouchers cheaply to ruthless businessmen. But it was just the beginning.

After a year of ruling by decree Yeltsin faced the first signs of opposition from the Parliament. With the approval of Washington the Russian President dissolved Parliament and suspended the Constitution. When the parliamentarians occupied the building in protest Washington backed his decision to besiege the building with tanks and shell them into submission. The economic reforms were taken further. Even more controls on prices were removed (going as far as to remove controls on basic food goods like bread), state expenditure on social services was slashed to the bone, and the pace of privatisation was raised. Yeltsin found his real constituents in the emergent bourgeoisie – later to be dubbed ‘the oligarchs’ – who, with his help, were stripping $2 billion out of the country every month. He undersold enormous industrial assets and resources to these people at sometimes less than 2% of their real value.

What was the end result of all this? By the end of the decade 74 million people were plunged into poverty, with 37 million living in poverty ranked as ‘desperate’. Meanwhile Moscow became the home city to the most billionaires of any other city in the world. In 1999 Boris Yeltsin was a barely functioning figurehead with a coterie of close advisors and cronies around him known to the press as ‘the family’. It included oligarchs like Roman Abramovich and Boris Berezovsky. It would be this same coterie which selected Putin to succeed Yeltsin. It was appealing as the Kremlin was wracked with corruption scandals and Putin was the head of the FSB, the successor to the KGB. The oligarchs thought they could control him and use him as a battering-ram against their enemies who were looking to crack down on corruption. Putin was soon made Prime Minister. Terror attacks in Russia gave Putin the opportunity to wage war on Chechnya and boost his popularity.

The oligarchs expected Putin to be compliant and follow the Yeltsin plan of handing over Russia’s vast wealth of resources to them and their friends. Putin became President in 2000 after Yeltsin’s resignation was secured by the oligarchs. Putin had been underestimated by his allies. He soon consolidated his position and turned on them. Boris Berezovsky fled to London to escape arrest. He was soon joined by other oligarchs. Putin smashed his old allies and set out to strengthen his position as a Hobbesian force of order and stability after the disarray of the 1990s. He has aligned himself to oligarchs running the energy industry. The role of the state would now be reasserted and buttressed with tough populist appeals to chauvinism. Putin stands as the man who can flush out all the “problems” facing Russian society, whether it’s Chechen terrorists, corrupt oligarchs, or more recently homosexuals. He’ll even keep the factories running on schedule.

Now with Putin in the Kremlin the West is much more nostalgic for the days when Boris Yeltsin ran a money laundering operation out of that very building. There was never much scorn in Western governments for Russia for its savagery towards the Chechens and their bid for independence. Instead the Russian state is to be demonised for its incursions into Georgia in 2008 and, of course, Ukraine in 2014. Yet the killing of tens of thousands of people in Chechnya, since 1994, on and off, hardly gets substantive coverage in the Western media. The real problem Putin’s Russia poses for the EU and NATO is that Moscow is much less willing to accept the expansion of NATO outposts to border-states. The Russian Federation has a brutal government, but it is not feared or loathed because for its brutality, it is despised because it stands as an abandonment of Yeltsin’s market reforms and an opponent to US influence in its old backyard.

This was written and published for the Third Estate.

Permanent Austerity.

Bound in white tie, but not gagged, merely primed for performance as always, the Prime Minister finally admitted what some of us had suspected from before the beginning. In his speech David Cameron came out with the rhetoric of small government, that we have to do more with less and shrink the state to a more effective role. So the point of the austerity measures is not to reduce the deficit necessarily, it is to slim down the size of the state. Of course, it is worth saying that the ideological mission of a shrunken state is one and the same with the claims to 'necessity'. It is no coincidence that the claim that the spending cuts are 'necessary' comes with added promises of greater 'productivity', 'innovation' and 'efficiency'. In fact, a government euphemism for cuts is 'efficiency savings'. This is the lexicon of neoliberal managerialism.

If we are to take David Cameron on his word then we might say that the austerity is meant to be perpetual and never ending. The key part being when he said "We are sticking to the task. But that doesn't just mean making difficult decisions on public spending. It also means something more profound, it means building a leaner, more efficient state.  We need to do more with less. Not just now, but permanently." The sight of the Prime Minister in his white little frock at the throne dripping gold and these words coming out of his mouth was something to be seen. Unfortunately the irony of the Head of Her Majesty's Government proselytising on the virtues of 'small government' is lost on conservative opinion. Meanwhile the handful of liberal and leftish rags immediately seized on the words of the Prime Minister. But no one should be so surprised really.
 

Just observe the fact that the original proposals by George Osborne were meant to reduce the deficit to naught by 2015 and now the plans to wipe the deficit have been extended to 2020. To this picture we may add the claims that the NHS is facing a shortfall of £10 billion, that was back in 2010, it was Andrew Lansley, who used the figure to justify the cuts he was making at the time. Now there is talk of a coming shortfall by the end of the decade of £30 billion. One wonders if Cameron's lot will ever feel they have lowered the rate of spending far enough. Every problem of the public services and welfare state are seized on by these vultures as proof of the need for deep cuts. The various scandals to be endured by the NHS of late fit the example perfectly. Hunt will make a statement on the problem at hand (which is no doubt real) to buttress his position as a competent Health Secretary coming up with the prescription for a better health service. Cuts and more cuts.

The examples the Prime Minister reaches for are quite interesting for this reason. He singled out for praise the accomplishments of Michael Gove, the 40% cuts to administrative staff at the Education Department to be specific. Then there are the 3,000 'free schools' and academies set up under the watch of Gove. He lumps in the shrinkage of the department with the use of public assets and money to ensure education for the children of sharp-elbowed middle-class parents. 'Free schools' are established at the expense of the tax-payer and even at a cost to comprehensive and other state schools in terms of resources. This is the same ministry to rearrange the pensions system for teachers with the hopes of devaluing their retirement funds by 15% and raising their payments by 50%. Over the same timeline you'll find tuition fees introduced and raised almost at every university to £9,000, apparently to reduce the deficit when HE funding accounts for 0.7% of GDP.


This is the manifest reality of what Cameron means when he speaks of a "leaner, more efficient state". The idealised slim-line state of libertarian imaginations is not to be taken seriously as a realistic prospect. Really we're looking at the possibility of living in a society where the social safety-nets is non-existent while the state intervenes to create markets, boost supply and ensure vast profits. There will be plenty of bailouts to come. In some respects the neoliberal period seems much more like a state of flux than a rigidly set social order. It is partly identifiable by its oscillations, the sudden shift in gears from taking a chainsaw to financial regulations to diving into the public purse to save the lemmings before they go over the cliff. Though it is a very narrow and restricted spectrum with serious limitations. There is only so many regulations to burn and so far the taxes can be cut.

Jumping each hurdle might become much more difficult as we go long. Crises will offer opportunities to reconstitute the economic formations as they were prior to them. Schumpeter called it 'creative destruction': the field of competitors is wiped clear for old forces to go from strength to strength. A better diagnosis from Naomi Klein would be economic 'shock therapy' whereby the crisis provides a cover for a series of assaults to be launched on the living standards of working-class people. It's worth bearing in mind that the current order took shape in the way that the Thatcherites circumvented the crisis of social democracy: 1) cutting public expenditure, 2) privatising state industries, 3) smashing the unions and 4) deregulation of finance. Incidentally the average rate of growth in the 70s was 2.5% and it remained the same in the Thatcher decade. So those who think the austerity is about high rates of growth are sadly mistaken, at best.

Not surprisingly then 0.8% of growth is enough for George Osborne to declare a great victory, a strange position given that there has been no opposition in Parliament to his agenda. Only a brat as expensively educated as the Chancellor could perceive competition in a game rigged in his favour. The Cameron lot want to patch up this sorry set-up, not to fundamentally alter its trajectory. The failures of the past are accentuated, and framed in a certain way, by the abstract principles of today. A high-rate of public expenditure is measured by a criterion not of the social democratic era. The 1970s was a terrible time in British history not because it necessarily was so awful, but because the conditions differ so greatly to today. To be specific, the scope of the state - particularly in the ways that helped poor people - in those days is what outrages conservative-minded people.

The standard of a high level of government debt was changed by the Thatcher-Major era. Suddenly it was set at a benchmark of 40% when this country has seen rates as high as 250% in the wake of World War Two. And that was a well managed economic situation. The Labour government of 1945 established a social democracy complete with the trimmings of a welfare state and universal health-care. The story of how the social democratic post-war consensus developed systemic problems and crises is a long one and a subject for a different article. What may be said is that the failures of that epoch have been accentuated in the years since. The abstract principles of today are applied to those yesteryears with the self-serving results one would expect. The rightward trend of discourse leaves the state-led settlement of the 50s and 60s looking almost Soviet to too many people today. This is the death of social democracy.