Russia's Journey from Communism to Oligarchy


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Russia in the 90's, after the spectacular collapse of Soviet Russia that ruled for 70 years, chose a hybrid version of liberal democracy, that is neither liberal nor democratic, but classic oligarchy, wherein electoral route is adopted to establish authority.
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The following excerpt  is from '21 Lessons for the 21st Century' by Yuval Noah Harari (2018).
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"Russia does offer an alternative model to liberal democracy, but this model is not a coherent political ideology. Rather, it is a political practice in which a number of oligarchs monopolise most of a country's wealth and power, and then use their control of the media to hide their activities and cement their rule.

 Democracy is based on Abraham Lincoln's principle that 'you can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time'. If a government is corrupt and fails to improve people's lives, enough citizens will eventually realise this and replace the government. But government control of the media undermines Lincoln's logic, because it prevents citizens from realising the truth. Through its monopoly over media, the ruling oligarchy can repeatedly blame all its failures on others, and divert attention to external threats - either real or imaginary.

When you live under such an oligarchy, there is always some crisis or other that takes priority over boring stuff such as health-care and pollution. If the nation is facing external invasion or diabolical subversion, who has time to worry about overcrowded hospitals and polluted rivers? By manufacturing a never-ending stream of crises, a corrupt oligarchy can prolong its rule indefinitely.

Yet though enduring in practice, the oligarchic model appeals to no one. Unlike other ideologies that proudly expound their vision, ruling oligarchies are not proud of their practices, and they tend to use other ideologies as a smoke screen. Thus Russia pretends to be a democracy, and its leadership proclaims allegiance to the values of Russian nationalism and Orthodox Christianity rather than to oligarchy......

Russian model - a country with endemic corruption, malfunctioning services, no rule of law, and staggering inequality. According to some measures, Russia is one of the most unequal countries in the world, with 87 percent of wealth concentrated in the hands of the richest 10 percent of people."
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Comment:
Russian economy is based on 'extractive' industries, that is mining of minerals in its vast territory, that does not require any sophisticated technology. This sector is the most opaque and corrupt of all the businesses, and attracts fatal incestuous relationship between capitalism and politics (invisible mining  barons and astute politicians), across all the countries/states specially rich in mineral wealth.

There is much to learn as to how a country should not be run, ironically from a country that was for decades Ideological fountainhead of working-class communism. 

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Prout, or Progressive Utilization Theory, is a socio-economic ideology that advocates for decentralized, cooperative economies. It is fundamentally opposed to the concentration of wealth and power in the hands of a few, which is a key characteristic of oligarchy. Therefore, Prout and oligarchic systems, like the one sometimes associated with Putin's Russia, are diametrically opposed in their core principles. 
Here's a breakdown:
Prout's Core Principles:
  • Decentralization and Cooperativism:
    Prout emphasizes local autonomy and cooperative economic structures, promoting widespread ownership and participation.
  • Equitable Distribution of Resources:
    It advocates for a just distribution of wealth and resources, ensuring that everyone's basic needs are met.
  • Social Justice and Welfare:
    Prout aims to create a society with strong social safety nets and opportunities for all, regardless of background. 
Oligarchic Russia:
  • Concentration of Wealth and Power:
    In Russia, a relatively small group of individuals, often with close ties to the government, have accumulated vast wealth and political influence. 
  • Lack of Transparency and Accountability:
    The concentration of power often comes with a lack of transparency and accountability in both political and economic spheres. 
  • Suppression of Dissent:
    Oligarchic systems can be associated with the suppression of opposition and restrictions on freedom of speech and political participation. 
Contrasting the Two:
  • Prout fundamentally opposes the concentration of wealth and power in the hands of a few, which is a core feature of oligarchies.
  • Prout promotes decentralization and cooperation, while oligarchies tend towards centralized control and competition.
  • Prout prioritizes social justice and welfare, while oligarchies may prioritize the interests of the ruling elite. 
Historical Context:
  • The rise of Russian oligarchs in the 1990s, particularly during the privatization of state assets, created a system where a small number of individuals gained control of significant portions of the economy. 
  • Some argue that Putin's rise to power involved a consolidation of power, where some oligarchs were brought under control while others were replaced by those more loyal to the regime. 
  • This has led to a situation where the Russian state and a powerful group of individuals are intertwined, with some characterizing it as a form of "state capitalism" or "oligarchic capitalism". 
In conclusion, Prout's ideology stands in direct contrast to the principles and practices of oligarchic systems like the one sometimes associated with Russia. While Russia's political and economic structure has evolved over time, the concentration of wealth and power in the hands of a few, along with the suppression of dissent, remains a key characteristic that is fundamentally at odds with the ideals of Prout. 

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