© all rights reserved 2011
1991 - Present
(1991-Present) (*KEY*) The 90’s saw no considerable long-
term Russian/western investment in plant and equipment, etc., so
most of what short term funds went in came back out again soon
after, with Russians investing in western real estate and capital
markets. This made the devaluation of the ruble more acute and
ensured that the ruble, like all of its historic predecessors, would
remain a domestic currency of convenience only, only this time
weakened like never before. The western-inspired voucher
system, in which all state employees received ownership shares in
their work enterprises, was a disaster; former Soviet Party
members (mostly) used western capital to buy (at low cost) and
consolidate ownership in various previously state assets, leaving
the masses poorer than before because of the devalued currency.
Senior citizens as a group were wiped out financially except for
those few who converted rubles to dollars prior to devaluation.
Members of the formerly Soviet bureaucracy became the basis for
a new emerging middle class, along with those few, like highly-
skilled doctors, with a valuable marketable skill. Otherwise, the
90’s meant a microscopic number of newly-defined rich getting
richer and the already poor masses getting poorer. The last
decade has seen a transition from an evolving-out-of-Soviet
government to Soviet-with-a-mask-on government but (*KEY*)
after 20 years there is still no inertia and no momentum. By
comparison, it took 11 years (1918-1929) for momentum to be
established by Stalin. The brief flirtation with western socio-
political-economic influences is over. Russians didn’t like being
dictated to by the constraints of long or short-term debt. Higher oil
prices short term meant that the IMF and Paris Accord obligations
could be met in full, especially because no significant money was
spent domestically. Russia has, as well, closed its doors on the
western world’s accounting standards. One event internationally
of note was the recent 2008 Georgian province skirmish. Georgia
term Russian/western investment in plant and equipment, etc., so
most of what short term funds went in came back out again soon
after, with Russians investing in western real estate and capital
markets. This made the devaluation of the ruble more acute and
ensured that the ruble, like all of its historic predecessors, would
remain a domestic currency of convenience only, only this time
weakened like never before. The western-inspired voucher
system, in which all state employees received ownership shares in
their work enterprises, was a disaster; former Soviet Party
members (mostly) used western capital to buy (at low cost) and
consolidate ownership in various previously state assets, leaving
the masses poorer than before because of the devalued currency.
Senior citizens as a group were wiped out financially except for
those few who converted rubles to dollars prior to devaluation.
Members of the formerly Soviet bureaucracy became the basis for
a new emerging middle class, along with those few, like highly-
skilled doctors, with a valuable marketable skill. Otherwise, the
90’s meant a microscopic number of newly-defined rich getting
richer and the already poor masses getting poorer. The last
decade has seen a transition from an evolving-out-of-Soviet
government to Soviet-with-a-mask-on government but (*KEY*)
after 20 years there is still no inertia and no momentum. By
comparison, it took 11 years (1918-1929) for momentum to be
established by Stalin. The brief flirtation with western socio-
political-economic influences is over. Russians didn’t like being
dictated to by the constraints of long or short-term debt. Higher oil
prices short term meant that the IMF and Paris Accord obligations
could be met in full, especially because no significant money was
spent domestically. Russia has, as well, closed its doors on the
western world’s accounting standards. One event internationally
of note was the recent 2008 Georgian province skirmish. Georgia
is a country much older than Russia, with a rich Christian history and very
historically well-defined boundaries. During Soviet times, there were plenty
of Russians living in Georgia but, as happened with many of the former
autonomous republics after secession, most of the Russians left. This was
not so in the northern Georgian provinces of Ossetia and Abkhazia---these
two border the Russian Federation (Chechnya) on the southern base of the
Caucasus mountain range and thus are very important strategically/morally
to The Russian Federation. Most of the Russians leaving southern-central
Georgia around 1991 moved into Abkhazia and Ossetia, as they would
obviously prefer the weather, living conditions, etc., as well as Russian
protection. This meant, to Russia, that the Georgians living in Abkhazia and
Ossetia had to be driven out under some
pretext to make room for the new Russian
arrivals. These Georgians living in Abkhazia
and Ossetia had been there for many
hundreds of years, and of course they had no
desire to leave. Also, all of the raw materials
needed for cement to build the nearby 2014
Sochi Olympic facilities are in Abkhazia. So a
little military skirmish promoting a Russian
socially-engineered vision of independence for
Ossetians and Abkhazis happened between
mighty fortress Russia and Georgia, which of
course Georgia lost, at least for now. A spat
between a wolf and an ant-sized opponent
caused Russia to be isolated in the
international community issue-wise. Finally,
happily, Russia won the rights to host Winter
Olympic Games and The World Cup of Soccer.
Unfortunately, mega-billions will be spent on
these one-time events with very little long-term benefit for the great majority
of its people.
historically well-defined boundaries. During Soviet times, there were plenty
of Russians living in Georgia but, as happened with many of the former
autonomous republics after secession, most of the Russians left. This was
not so in the northern Georgian provinces of Ossetia and Abkhazia---these
two border the Russian Federation (Chechnya) on the southern base of the
Caucasus mountain range and thus are very important strategically/morally
to The Russian Federation. Most of the Russians leaving southern-central
Georgia around 1991 moved into Abkhazia and Ossetia, as they would
obviously prefer the weather, living conditions, etc., as well as Russian
protection. This meant, to Russia, that the Georgians living in Abkhazia and
Ossetia had to be driven out under some
pretext to make room for the new Russian
arrivals. These Georgians living in Abkhazia
and Ossetia had been there for many
hundreds of years, and of course they had no
desire to leave. Also, all of the raw materials
needed for cement to build the nearby 2014
Sochi Olympic facilities are in Abkhazia. So a
little military skirmish promoting a Russian
socially-engineered vision of independence for
Ossetians and Abkhazis happened between
mighty fortress Russia and Georgia, which of
course Georgia lost, at least for now. A spat
between a wolf and an ant-sized opponent
caused Russia to be isolated in the
international community issue-wise. Finally,
happily, Russia won the rights to host Winter
Olympic Games and The World Cup of Soccer.
Unfortunately, mega-billions will be spent on
these one-time events with very little long-term benefit for the great majority
of its people.
