We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.

Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]

Emulating the losers

For those who are inexplicably worried about Russia’s alleged ‘resurgence’ as a major world power now that it’s economy is about the size of Italy’s economy (albeit far less diversified), the following article should be unalloyed good news:

In the Russian Federation, a country where hundreds of companies are launched every year, the plans to create yet another one would not be particularly noteworthy. Except that Russian Technologies is to be very different from most of the rest. It will be no capitalist venture conceived by a profit-seeking entrepreneur, but a corporation established by a decree of the Russian Parliament. A giant conglomerate with the state apparatus behind it, its official mandate will be to ‘develop Russia’s heavy industry.’

The ‘money quote’ being “with the state apparatus behind it”…presumably because it was proven that “state apparatus” was the key to how the Soviets developed technology and business methods far superior to those in the capitalist west, became fabulously wealthy and as a result won the Cold War and… oh, hang on… In other words, the clowns who run the Kremlin are going to try an approach used in the West in the 1960s and 1970’s of creating large bureaucratic ‘national champions’. And that is because that worked soooo well for us, right?

So clearly those who feel “something must be done about resurgent Russia” can now relax and just let nature take its course. Putin and his entourage of economic ignoramuses are screwing Russia and crippling its ability to ever develop a dynamic market economy. This will weaken the nation far more effectively than anything anyone else could do to them. I just happen to think it is a pathetic waste of people’s talents and potential.

Vladimir Putin looks to secure his voters affections…

The news media are still buzzing about the resumption of Cold War era style patrols by their ancient bucket-of-bolts bombers (not that I have anything against old-but-good combat aircraft) right up to the edge of NATO airspace. But for me the most interesting news to come out of Russia these days is that far from being the Neanderthal thug he is often portrayed as being, Vlad had decided it is time to reach out to that segment of the Russian electorate he has always stayed away from…

putin_looks_for_gay_vote.jpg

“See my studdliness, Tovarich!”

… he is now actively courting the Russian Gay Vote. Bless.

Russian long range bombers back in the air

The Russian airforce has recently resumed long range patrols, approaching the airspace of Britain and Diego Garcia… and I am pleased to say the correct response has come from the US State Department:

“If Russia feels as though they want to take some of these old aircraft out of mothballs and get them flying again that’s their decision,” Sean McCormack, a State Department spokesman, said. “That is a decision for them to take – it’s interesting. We certainly are not in the kind of posture we were with what used to be the Soviet Union. It’s a different era.”

Amen. This is the comment I left on the Telegraph article:

Who cares? All this talk about the resurgence of Russian power is tosh. Just look at the numbers. Even with all their gas and oil, Russia has the same GDP as Italy (and Italy is not an economic monoculture based on what comes out of the ground). Compared to China, the EU and the USA, Russia is, strategically speaking, in the minor league. If the quasi-fascists who run Russia these days want to rattle their little sabre, strut around like Mussolini and pretend they matter, let them. The appropriate response to their antics? No response at all.

I think the murderous actions of the Russian secret service in London are far more worthy of harsh responses than the antics of their military. I suspect a reaction to these military flights consisting of broad indifference and maybe the odd embarrassed snicker is far more likely to enrage the Kremlin than shaking a sabre back at them. The Devil does not like to be mocked.

The re-KGB-isation of Russia

Putin’s Russia continues its heroic great march backwards in time. The ‘weaponization of psychiatry‘ is something that never went out of style in China, where people can be described as ‘politically deranged’. The use of psychiatric detention against political enemies has a long history in the not-so-post Communist world and so I can hardly say I am surprised to see this being done again in Russia.

Well done to UK govenment… not often I say that!

I am delighted that contrary to my early expectations they they would do nothing at all other than make an official grimace and then politely forget about the whole affair, the UK government’s action in expelling Russian diplomats is both all but openly stating the Russian government was behind the Litvinenko assassination and actually trying to impose some political cost on Putin’s regime. It is only a small step but psychologically it is a very important one.

As Blair was showing signs of going soft on this horrendous issue,this is a welcome indication that the Brown government is really not going to let Putin’s regime murder people in Britain in an ostentatiously obvious manner and let it pass with a shrug.

I was pleased that Downing Street is actively discouraging British companies from investing in Russia in the aftermath of the Shell Oil Sakhalin Island appropriations but more pressure over the Litvineko affair is now needed, if only to discourage more of the same. Of course I expect the Russian government to over-react at all but being called murderers and thereby help the process of de-normalising relations with that far from normal state. There is truly no upside to allowing Putin and his cronies to imagine they can do what they want in Britain without consequences.

Businessmen make lousy commentators

Getting on-line in Ethiopia is a nightmare and so it has taken me a while to comment on a strange article in the Financial Times that had me choking on my breakfast of injera and zil zil tibs.

Peter Hambro, executive chairman of Peter Hambro Mining, an Aim-listed company that is one of Russia’s biggest gold miners, said the claim from Tony Blair that western companies could shun Russia unless it shared democratic values “ran the risk of being damaging” for British businesses in Russia. […] Hans Jörg Rudloff, chairman of Barclays Capital, said the government was mistaken when it publicly expressed concern about the growing risks of investing in Russia, ahead of last week’s G8 talks. “Their approach looks unbalanced,” Mr Rudloff said. “Russia’s transition to a market economy has been successful and cannot be undone.”

And later in the article, readers are reminded that Royal Dutch Shell was forced last November to sell control of its $20bn Sakhalin-2 oil and gas venture to state-controlled Gazprom and BP’s flagship Russia venture TNK-BP is now being threatened with the loss of its licence to develop the east Siberian Kovykta field. So how exactly are these de facto nationalisation (in reality seizing assets for the benefit of members of Putin’s clique) a sign that “Russia’s transition to a market economy has been successful and cannot be undone”? Seems to me that Putin is doing an excellent job of undoing it.

Russia’s re-emerging nightmare

It is not often I read the Independent but even that haven of fluorescent idiocy seems to be on the right side of the need to face down Vladimir Putin’s increasingly sinister regime. There is a very interesting open letter by journalist Yelena Tregubova on the importance of not pretending that everything in Russia is just fine and dandy.

Of course over the last few days Putin has made the task of those shouting warning about the dangers posed by Russia a great deal easier, what with him threatening to target nuclear weapons at Europe again and pretty much announcing that he is about to appropriate BP’s investments in Russia.

Clearly Putin needs to be taken down a peg or two because if there are no consequences for his theft of foreign investments in Russia and the murders of opponents to his regime both at home and overseas, all we can look forward to is ever more destabilising antics coming out of the Kremlin.

More Litvinenko weirdness

Until recently, there was a shop named popXpress in Piccadilly near the Ritz hotel in London. This was a little store devoted entirely to selling Apple iPods and iPod accessories. When it was opened, people who analyse this sort of thing found it an interesting experiment, but were not terribly optimistic about its success, at least partly because it was situated only a short walk from the London flagship Apple Store in Regent Street. Higher hopes were held for the other popXpress store near Liverpool Street in the City of London, which was close to many cashed up City workers and far from an Apple Store. Thus it was not a terribly great surprise when parent company Computer Warehouse announced in March that the Piccadilly store was to close (the store in Liverpool Street remains open and quite possibly profitable). Upon learning this, most of us would have said “Oh”, and then gone back to sleep. However, the explanation, when it came, was stunning.

Next to the popXpress store in Piccadilly was and is a sushi bar, a branch of a chain named Itsu. This is what is known as a “fast casual” restaurant: a bit more expensive and with food a bit tastier than McDonald’s, but designed for people in a hurry or on their lunch breaks who want a quick meal and do not want to spend too much money. Itsu belongs to Pret a Manger, probably the king of London fast casual dining (and, incidentally, 30% owned by McDonald’s) . There are a couple of Itsu outlets near where I work in Canary Wharf, and from time to time I eat lunch in those outlets myself. The food is not bad, but it is not exactly worth writing home to Mum about either. I have never eaten at the branch in Piccadilly, and I suspect that few people who know the area do, because the (possibly Japanese government subsidised) Japan Centre at Piccadilly Circus is just down the road, and this manages to both be inexpensive and to serve some of the best Japanese food in London.

However, the Itsu restaurant in Piccadilly gained notoriety last November as the place where Alexander Litvinenko had lunch with his Italian acquaintance Mario Scaramella, where it was for a time believed he was poisoned and where traces of Polonium 210 were later discovered, leading to many radioactive sushi jokes.

As I mentioned, a couple of months after this, the popXpress store next door announced it was closing. Few would have thought there was a connection, but when asked, management explained that that had received “an offer they couldn’t refuse” from Itsu, who wanted to expand their store. Apparently, business had been absolutely booming since the Polonium 210 incident, and they wanted to expand the restaurant (no, I will not speculate as to why this offer could not be refused, and which if any isotopes were involved). Apparently Itsu also brought forward plans to open their first store in New York, as the publicity was apparently a godsend. It would seem that all publicity is good publicity, even when you are a change of restaurants and the publicity was that your food might be radioactive.

Actually, that may not be entirely true. Or at least it can be further tested. For come to think of it, another chain restaurant in London was in the news recently. At the Strand branch of pizza chain Zizzi, a man recently entered the restaurant at dinner time, obtained a knife from the kitchen, and used it to sever his own penis in front of diners.

Upon walking past that particular restaurant a couple of days later, I will confess that I was struck by a strong urge to walk in the opposite direction. Really, though, I should go in and ask management what the publicity has done for business. For I may want to take an interest in the business next door.

A strangeness of Russians

The latest weird twist in the Alexander Litvinenko assassination has been the release by prime suspect Andrei Lugovoi of his promised ‘stunning revelations’ about the case. His claim was that Litvinenko was in fact working for the British intelligence services and that MI6 had in fact attempted to recruit him as well

Now what makes this all really puzzling to me is that even if this is all true, far from taking the heat off himself and the Russian security services, he seems to in fact be providing the Russian spooks with an excellent motive for wanting to kill Litvinenko.

Am I missing something here?

Facing down the Kremlin

The latest developments in the investigation into the assassination of Russian dissident Alexander Litvinenko, who was killed last November in London, is interesting, to say the least.

To no one’s surprise (at least no one who is not a Kremlin stooge), the person the British Director of Public Prosecutions has charged with the murder is an former(?) member of the Russian security services, just as his victim was. The Crown Prosecution Service is formally demanding Andrei Lugovoi’s extradition from Russia.

What makes this really fascinating is that the CPS is well aware that the Russian state has a policy of not extraditing Russian nationals to other countries (nor are they in the habit of surrendering their assassins to foreign police no matter how politely they are asked). The fact they went ahead and made the demand for extradition anyway shows that the government is at last taking the threat Putin and his cronies pose seriously and this is an excellent way of dealing him a no-win hand politically, even though it will not result in Lugovoi being brought to justice. Although no one in an official capacity is saying the Putin regime ordered this murder on British soil, you do not have to squint very hard to see the writing between the lines.

Update: an new article in the Telegraph seems to confirm what I was suggesting about a determination to face Putin down. Good.

How post-Communist is Russia really?

There is an excellent article in the Telegraph by Boris Berezovsky, the exiled anti-Putin Russian politician and businessman, called Why modern Russia is a state of denial.

First, Yeltsin lacked the will (or, maybe, the courage) to indict the communist regime as a criminal one – no less so than the Nazi regime, with all the resulting consequences for the communists themselves, and for their vanguard, the Soviet secret police. Second, Yeltsin also failed to lead Russia to repentance, to make every Russian acknowledge his own responsibility for the crimes of the communist regime. Without repentance, however, those who were oppressed and raped by Russia, such as Estonia and the other Baltic states, will never trust it again.

Great stuff and much the same point I have been making on the issue of former communist countries. Read the whole thing.

Social attitudes matter as much as states

To have a free and prosperous country, it is important to have strong institutions underpinning things like contract and property rights. Yet all too often we forget the roll of social attitudes and world-view in creating wealth and its handmaiden, liberty.

There are two interesting articles in The Telegraph today (on the same page in the print version in fact) that shows that places like Russia and China may be vastly wealthier and freer than they were under the darkest days of Communism, but both those places have yet to develop either a culture that expects liberty, understands the implications of state money (they are hardly alone in that) or accepts the usefulness of profound outside influences.

The Chinese government is trying to lure foreign educated Chinese back to China, which suggests at least the people at the top are aware that there is value in the way the rest of the world does things..

Under the government’s new incentives, returnees will be able to work wherever they like, regardless of which city they have a residence permit for, and will be offered higher pay, while their families will receive preferential treatment.

Which is interesting as that means most people still cannot live and work where they like, requiring internal passports and state residence permits. How can a place with such restrictions on a person’s ability to sell their own labour ever hope to become affluent and truly dynamic? Can they not see the link between the ability of individuals to make fundamental choices and the effectiveness of markets?

Those graduates who return, expecting their foreign education and work experience to be a passport to a glittering future in the new China, frequently face discrimination rooted in a deep-seated distrust of those who have left the motherland for the West.

Which makes me wonder, do most Chinese people not realise how much more affluent the First World is than they are? I am guessing they do but this is trumped by the cultural imperative for Chinese-ness… the sort of mindless nationalism that is thankfully largely dead in much of the Western world. This suggests to me that regardless of how China’s leaders tinker around, if Chinese culture is that obsessed with China-is-always-best attitudes, there are serious limits to their ability to grow into a prosperous and civil society.

Also in Russia, most of the institutions associated with advanced nations (courts, property rights, contract law etc.) are not known for their robustness or independence from politics. But also I wonder how much the culture in Russia allows people to imagine things any differently?

Russia’s ageing but revered scientific geniuses are on a collision course with Vladimir Putin after the 1,200-member Academy of Sciences rejected Kremlin proposals to end its unique independence from state control […] Now, however, its autonomy is threatened by a proposed new charter which would give the government control of its management, funding and multi-billion pound property holdings. Kremlin officials claim the institution needs dragging into the modern world to harness its members’ brainpower for lucrative scientific patents and commerce. But critics fear it will fall victim to Mr Putin’s appetite for control and his distrust of free-thinking institutions.

Which is interesting. But then…

The Academy receives £870 million in federal grants, owns about 400 affiliated institutes and employs around 200,000 people across Russia. Prof Valery Kozlov, 57, its vice-president, said: “This is simply an attempt to seize control of our finances and property.”

I am sure Professor Kozlov is a very smart man, yet I wonder if it even crossed his mind that perhaps his Academy should respond to Putin’s power grab by refusing to take any more state money. If they are a centre of excellence as claimed, surely there must be companies and institutions around the world which would love to fund them and allow them to be truly independent of the state.

Yet the notion that everything must happen top-down with the blessing of the state is probably so deeply ingrained that the reality of what is involved with making yourself independent does not track at all.