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26/10/2012 | Russia's president: ''I am doing fine''

The Economist Staff

VLADIMIR PUTIN seemed a fit, relaxed and happy 60-year-old as he addressed this year's meeting of the Valdai club of mostly foreign economic experts over dinner at the Novo-Ogaryovo presidential villa outside Moscow on October 25th. He had the air of a man with few worries either about his own position as president of Russia or about his country's future.

 

His most dramatic comments came in response to questions about the Pussy Riot verdicts handing down jail terms to two young women who allegedly desecrated an Orthodox church altar in the spring. He was unapologetic. In his typical earthy language he denounced the women for practising group sex, public sex with a woman who was nine months pregnant and for undermining morality. He also drew an analogy with the Californian maker of an anti-Muslim film who is in jail.

In this Mr Putin was reflecting broader views of Russian officials who spoke at this year's Valdai conference in St Petersburg and Moscow. Most dismissed both the Pussy Rioters and the Moscow opposition street protesters as elitist, unrepresentative and easily dispersed. Mr Putin echoed officials who argued that Russia was merely applying its own laws, and who even claimed that the police were softer than those who had been dealing with protesters in the streets of Athens or Madrid.

The continuing euro crisis offered Mr Putin yet another reason for complacency. He was careful not to blame anybody and also to insist that Russia wanted Europe to resolve its problems. But with half an eye to his own country's Eurasian union with Belarus and Kazakhstan, he deplored the folly of moving to monetary union too fast and with too many members that were not ready.

As for Russia itself, the overwhelming message from this year's Valdai was that things were OK. At one point Mr Putin even said that "I am doing fine." His response to most of the group's suggestions that Russia needed big reforms was strikingly complacent. Changes to courts, the judicial system and the bureaucracy were on the way, he said. He hailed a recent Russian advance in the World Bank's "Doing Business" rankings from 120th to 112th. And he insisted that lots more was being done to attract foreign investors in such areas as the high-tech and pharma.

Yet this is to ignore deep-seated worries about the Russian economy. As oil and gas revenues start to fall away in importance, the economy needs rebalancing towards new firms, small enterprises, services and small-scale manufacturing. But the dead weight of corruption, ill-protected property rights, taxation and regulation make these all but impossible to develop. Those like Mr Putin who insist that all is well are ignoring the risk that investors might well move to places with more hospitable business climates.

And that includes Russians as well as foreigners. The figures show clearly a continuing pattern of capital flight and emigration of skilled youths. Taxed on this issue, Mr Putin insisted that other countries were similarly affected and that this was just another by-product of globalisation. Yet just as Russia seems unwilling to embrace the greater domestic competition implicit in its recent accession to the World Trade Organisation, so it seems unprepared to accept the lack of confidence implied by the scale of capital flight and emigration.

Mr Putin yet again talked up Russia's improving demography, with higher birth rates and lower death rates. But one poll before the Valdai club showed that 68% of Russians on above-average incomes want their children to study abroad and 37% want their children to leave Russia for good. These numbers are a devastating comment by Russia's middle classes on their country's future.

Mr Putin and his cronies seem to believe that stability is everything, not recognising that it can all too easily turn into a stagnation that enervates all entrepreneurial spirit. Indeed, they do not seem to value entrepreneurship much or at all. All too often, small companies in Russia find their profits disappearing in taxes and corrupt payments. No wonder so few people are willing to invest.

The Putin regime has a similarly grumpy view of Syria and the Arab spring, both of which in Russian eyes pose a risk of chaos against the previous stability. They even blame the West for fomenting the chaos in the first place.  Their approach to the West in general and the United States in particular is relentlessly negative and zero-sum. There was, however, one thing they all agreed on: that relations would be even worse under a President Mitt Romney.

The Economist (Reino Unido)

 


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30/09/2009|
30/09/2009|
27/09/2009|
27/09/2009|
27/09/2009|
22/09/2009|
20/09/2009|
18/09/2009|
18/09/2009|
18/09/2009|
16/09/2009|
16/09/2009|
16/09/2009|
08/09/2009|
07/09/2009|
06/09/2009|
06/09/2009|
05/09/2009|
05/09/2009|
26/08/2009|
21/08/2009|
19/08/2009|
19/08/2009|
15/08/2009|
15/08/2009|
15/08/2009|
11/08/2009|
11/08/2009|
11/08/2009|
11/08/2009|
19/07/2009|
19/07/2009|
18/07/2009|
18/07/2009|
27/03/2009|
22/03/2009|
22/03/2009|
27/01/2009|
27/01/2009|
27/01/2009|
17/01/2009|
17/01/2009|
17/01/2009|
17/01/2009|
17/01/2009|
17/01/2009|
11/01/2009|
06/12/2008|
06/12/2008|
06/12/2008|
06/12/2008|
23/11/2008|
23/11/2008|
16/11/2008|
16/11/2008|
04/11/2008|
04/11/2008|
03/11/2008|
03/11/2008|
24/10/2008|
24/10/2008|
24/10/2008|
24/10/2008|
15/09/2008|
15/09/2008|
15/09/2008|
15/09/2008|
15/09/2008|
15/09/2008|
06/09/2008|
06/09/2008|
05/09/2008|
05/09/2008|
05/09/2008|
05/09/2008|
01/09/2008|
01/09/2008|
01/09/2008|
01/09/2008|
22/08/2008|
22/08/2008|
17/08/2008|
17/08/2008|
16/08/2008|
16/08/2008|
28/07/2008|
28/07/2008|
28/07/2008|
28/07/2008|
28/07/2008|
28/07/2008|
19/07/2008|
19/07/2008|
24/05/2008|
24/05/2008|
03/05/2008|
03/05/2008|
29/04/2008|
11/02/2008|
05/01/2008|
09/12/2007|
18/11/2007|
10/11/2007|
10/11/2007|
06/11/2007|
06/11/2007|
06/09/2007|
26/08/2007|
25/08/2007|
11/07/2007|
16/06/2007|
16/06/2007|
10/06/2007|
10/06/2007|
19/05/2007|
19/05/2007|
19/05/2007|
19/05/2007|
24/04/2007|
24/04/2007|
14/04/2007|
14/04/2007|
05/04/2007|
05/04/2007|
05/04/2007|
28/02/2007|
28/02/2007|
05/02/2007|
05/02/2007|
04/02/2007|
04/02/2007|
04/02/2007|
04/02/2007|
04/02/2007|
04/02/2007|
29/01/2007|
29/01/2007|
29/01/2007|
29/01/2007|
11/01/2007|
11/01/2007|
11/01/2007|
11/01/2007|
27/12/2006|
27/12/2006|
27/12/2006|
27/12/2006|
27/12/2006|
27/12/2006|
20/12/2006|
20/12/2006|
17/11/2006|
30/09/2006|
28/07/2006|
12/04/2006|
12/04/2006|
12/04/2006|
06/03/2006|
21/02/2006|
17/02/2006|
31/01/2006|
10/01/2006|
28/12/2005|
31/10/2005|
26/09/2005|
29/08/2005|
11/08/2005|
08/08/2005|
24/06/2005|
24/06/2005|
24/06/2005|
03/04/2005|
03/04/2005|
03/04/2005|
03/04/2005|

ver + notas
 
Center for the Study of the Presidency
Freedom House