What
Is the Best Way to Tackle Putin?
BY
JAMES NIXEY
23
December, 2014
You
wouldn't know it to judge from Vladimir Putin's professional,
experienced three-hour session with journalists December 18, but it
has been a disastrous week for the president, for his small but
influential elite coterie and for the 144 million Russians beyond the
Kremlin walls.
Most
Russians have found that their savings and their disposable cash are
worth significantly less than they were at the beginning of 2014.
Considering that 15 percent of Russians live below the poverty line,
that its middle class takes up another 20 percent and that the vast
majority of the rest of the population falls somewhere in between the
two, this week has reawakened memories of the economic instability
and widespread impoverishment in the 1990s.
Emergency
measures appear to have halted the free fall, but the situation is
still perilous because the underlying economic problems remain, in
particular the overdependence on the price of oil (Putin's one-note
self-criticism at his press conference, when he broke from blaming
the West), the lack of investment and the absence of any credible
strategy for addressing them.
Too
many rubles spent on defense
The
solution is a difficult one for the current leadership. Meaningful
economic reforms would initially bring about even harsher living
conditions for several years ahead. But they would also require
political reforms that would ultimately undermine the Kremlin's model
of statist power. An about-face on Ukraine would halt the sanctions,
but it wouldn't come to grips with the problem and it will not happen
anyway.
One
option often mooted is to bring back Alexei Kudrin, the
Western-friendly former finance minister, into the government. But
Kudrin resigned precisely because he believed that the Kremlin was
shoveling too much money into defense and not enough into pensions.
Either Kudrin or Putin would have to compromise for this to work.
The
Kremlin's solutions still appear to be technical adjustments rather
than fundamental reform. As a result, the benefits will be limited
and almost certainly inadequate to the challenge.
Targeting
Russian elite is popular among Russians
In
the West, Russia's most recent economic catastrophe is terrifying to
many and met with satisfaction by others: just deserts for
dismembering Ukraine and its indirect culpability in the downing of
Malaysia Airlines Flight MH17. That is perhaps understandable yet
unworthy, because it affects those who were not responsible in far
greater numbers than it affects those who were.
Western
sanctions have not targeted Russia's elite nearly well enough; there,
they would have a more punitive effect on decision makers but less
punitive effect on most Russian citizens (yes, even if 85 percent of
them support Putin's policies).
Indeed,
while Russia's leader remains remarkably in vogue, his surrounding
elite and the oligarchs have never been much liked. Targeting them
would be a popular move with the Russian population at large, but
targeting the wider economy may backfire.
Better-directed
sanctions may—just may—have more effect, as they could also
increase pressure on Putin, not so much to reverse course, which, as
previously stated, seems improbable, but to make his position more
uncomfortable and further limit his maneuvering freedom.
What
if Putin were to be ousted?
The
question then arises as to whether increasing pressure on Putin is
even desirable. It's a fair question, as are the following ones: What
if his position became untenable and he was forced out of office?
Could there not be worse around the corner?
The
answers are, of course, unknowable. There are four basic
permutations: a better-behaved Putin, a worse Putin, a better-behaved
replacement or a more frightening replacement. Nobody knows, but
governments' inclinations are largely "better the devil you
know."
There
is no intellectual rationale for this, and Western inaction has
consequences just as much as Western action (or sanctions) does. You
can never prove an alternative history. Sanctioning Russia may prove
disastrous. Or it could be a turning point for a better relationship.
Putin's involuntary departure could herald worse—or it could be a
new dawn.
In
the absence of clear evidence, the logical approach is to abandon
policies that have not worked over a period of time. What has
definitely failed is the 20-year policy of drawing Russia into the
wider international community without penalty if it contravenes the
standards required of membership.
There
are no certainties, but some clear messages would surely help: If you
break club rules, there will be consequences; as long as you remain
in Ukraine, sanctions will stay in force; and manifest lies about
Western plots against Russia will be shown to be false. And finally,
if you do decide to restart the long trek back to the (imperfect)
West, we'll be your friend and help.
James
Nixey is head of the Russia and Eurasia Programme at London's Chatham
House, the Royal Institute of International Affairs.
CNN
reaches an all-time low.
That
day when CNN dissed the Russian government for working through the
holidays...in the midst of an economic and geopolitical crisis
No doubt the author will be pleased to learn that the ruble has recovered its position since this article was written.
From Russia with no love:
Party-pooping Putin
cancels holiday vacation
CNN,
26 December,
2014
Vladimir Putin
delivered a lump of coal in the Kremlin's stocking this year when he
announced Thursday that he has canceled holiday vacations for members
of the government.
Russia's
President delivered the bad news at a December 25 meeting he convened
of his government, but for those thinking that his timing was merely
the diabolical twist of a maniacal scrooge, Christmas is celebrated
in Russia on January 7, the traditional date in the Eastern Orthodox
Church.
"The
Government and its various structures cannot afford such extensive
holidays, at least not this year," Putin told government
ministers in a speech broadcast on state television. "You know
what I am talking about."
He was talking
about Russia's battered economy.
"We have
been making efforts to change the structure of our economy, to refine
it and make it more innovative ... quite a lot has been done in this
direction," he said. "However, recent events show that this
is not enough."
It was a change
in tone from just a week ago, when Putin largely blamed the West for
Russia's woes, even suggesting a U.S.-Saudi conspiracy theory to
bring down oil prices at his annual press conference.
At Thursday's
meeting, however, the President admitted at least some fault
"The
difficulties we have come across are not only of an external type.
They are not only due to some sanctions or limitations caused by the
global market situation -- they are also the result of our own
shortcomings that have piled up over the years."
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