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RUSSIA vs. GLOBALIZATION - Part 2

Author and correspondence:
AVEL V. KASYANOV,
Doctor of Science in Economics,
Deputy Chairman of the Centre for Change in the Third Millennium
Moscow, Russian Federation,
Tel: 8-916-112-0598, Email: p.kasyanov@frecom.ru


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Russian civilization, without any doubt, is characterized by a number of distinguishing attributes (that have been only briefly outlined in the previous paragraphs):

  • World outlook and world perception essentially different from those of the "West", greater spirituality, heartiness ("Innerlichkeit"), long-sufferance and forbearance, lesser concentration on or preoccupation with the material, on "benefit" because of different content of the spiritual sphere (not entirely rejected and forgotten "pre-Christian" world perception, rooted, evidently in Vedic religion or Vedism; Christian Orthodoxy, which had absorbed important attributes of the Vedic Orthodoxy; co-existence of a number of native religions; communist ideology with its orientation towards creation/ construction of equitable society), general cultural background, level of education and erudition, thirst for knowledge and creativity;
  • Geographical background and challenging natural-climatic and spatial conditions (prohibitive for the west-driven globalization process) on the one hand, and abundance in natural resources on the other (these are the hard and ineradicable factors, which will prevent incorporation of the people of Russia into OC family, although the territory of Russia, if duly (i.e. in due time) freed from the population, may well pretend for being incorporated into OC);
  • The history of land exploration dominated by the struggle with adverse natural conditions in contrast to Europe, where of yore people had been competing with each other for possession of fertile and plentiful but spatially limited lands;
  • Language: the role of the Russian language in formation and life of the Russian civilization is far by far more significant than that of the English language with regard to OC.

The past 20 years have been characterized by active and continuous inculcation of the idea that the "soviet period" of Russian history was a "national disgrace and humiliation", a terrible error, and hence it is our task and objective to learn from the forward "West" and exert every effort in order to catch up with it (this time with regard to liberalism, "democracy" and "freedoms"). It is remarkable that both our liberals and "democrats" on the one part and ultra-patriots or "jingoists" on the other part have been unanimous in the open criticism of the USSR trying to outdo each other in ostentatious demonstration of their hatred of the soviet regime. Apart from being absolutely groundless from the economic viewpoint, such treatment of historical events suffers from complete lack of dialectal approach and crippling spiritual primitivism. Groaning and lamentation about best sons and daughters of Russia having been exiled from their motherland (represented chiefly by aristocracy and bourgeoisie who left Russia immediately or shortly after 1917) would be not so loud, if there existed understanding of the obvious fact, that the so-called Russian elite, though varying greatly in its qualitative composition at different time phases (and evidently having ultimately degraded by the turn of the 21st century), has been always characterized by one common and most essential property, i.e. dissociation from the Russian civilization and voluntary joining/ affiliation with OC while physically remaining in Russia and, owing to its VIP-status and corresponding authority, significantly influencing (and determining) socio-economic conditions in Russia. Thus, physical transference of this elite beyond the Russian borders denotes nothing but logical finale of the long-lasting (for centuries) process of break-up with the Russian civilization.

The Russian civilization under USSR proceeded laboriously along its own challenging and unique road of progress and, despite heavy odds regarding economic resources and conditions, imperfection and flaws of the leaders and rank and file builders of this civilization, it managed not only to survive but was actively and successfully developing for a considerable period of time. Preservation and development of Russian civilization in the 20th century was made possible exclusively through its revolutionary and further evolutionary transformation. There was no other alternative ofor survival in the 20th century. The matter is that at the turn of the 20th century the West was actively conducting an economic expansion in Russia, which can be compared, though with certain reservations, with indiscriminate buying-up of industries and other assets in the former socialist countries in Eastern Europe. But even if Russian assets had not been bought by foreign men of property, the capitalist road would have led Russia to diffusion in OC without the slightest hint or chance of playing the leading role there. Apropos: the term "transition period" that came in use during the last two decades (e.g. "countries/economy in transition") when applied to Russia manifests extinction of RC and transition of Russia to the status of a backward and dying-out periphery of OC.

I believe in eventual acceptance of the view on the Soviet epoch[9] as a heroic exploit of the Russian peoples to defend the Russian Civilization against another attack and onslaught on the part of the West, i.e. OC. Although at the cost of immense losses and sacrifice, Russian civilization was saved. It was saved not only for its own good; the salvation enables Russia to take an active part in prevention of a global catastrophe.



FOOTNOTE
9. It primarily applies to global and historical aspects of the role played by the USSR in the RC history.


One cannot leave aside or otherwise ignore such a serious point as accusation of "communism" and "the soviet regime" of mass repressions that swept Russia reaching the peak in the '30s of the last century. It has never occurred to anybody (at least I, personally, have never read or heard of it) that all the atrocities of the Civil War and repressions were committed by the people who had been brought up and who had matured in the depths of an absolutely different state with a quite different institutional structure and ideology, one where religion and the church had not only never been oppressed but had played a very important role. Is it not the atmosphere of that society with its religious institutes (primarily the Russian Orthodox Church and the Judaic institutions) that should be made responsible for the appalling deficit of the people (then and now) who, with great reserve or at a stretch, could be referred to as Christians or true believers in God? Nevertheless, as already mentioned in the foreword, one cannot blame exclusively "external causes" for any mishap that might occur but, on the contrary, the decisive factor consists in the combination of internal properties and causes that create for a person (country) particular external situations and circumstances wherein he (it) becomes a subject to repressions…
The soviet epoch[10] provides an invaluable, though thoughtlessly rejected experience of universal importance, which demonstrated to the world the following:

  • It is theoretically and practically possible to successfully control and manage a large and complex socio-economic system;
  • Economy and other spheres of social life may develop and progress in a purposeful manner (in spite of counteraction, resistance and opposition, to the extent of military aggressions, "cold wars" and "arms races");
  • One can achieve great success in a short period of time and on a carefully scheduled date (timed exactly to the needed moment) owing to "directional vector" of development, when all energy and resources are entirely focused on achieving clearly formulated objectives and goals (this, incidentally, is extremely important in the face of the looming global catastrophe);
  • Creative work unconstrained by acquisitiveness (e.g. of producers) allows genuinely talented artists to create truly spiritual works (for example, feature films, cartoons, theatrical performances, scientific research projects, etc.), which bore a mark of the Divine allowing/ offering wide opportunities of self-development, improvement and self-perfection both for the author and the "target audience" ("the consumer");

It was shown that there exists possibility of purposeful creation of conditions for the qualitative growth of education standards, professional and social self-actualization of citizens, for intellectual and spiritual development, conflict-free co-existence and cooperation of people representing different national, cultural and religious communities sharing the same territory and living and working in the same collectives (this also may serve as a model for the future integration of peoples to be based on the principles that are fundamentally different from exploitation, total lies and aggression proposed to peoples of the world by OC that is primarily represented by the United States and Great Britain).

The main "minus" (deficiency) of the soviet period, in my opinion, is its performance in the last 25 years preceding perestroika, when there were created preconditions and the basis for successful introduction of the values of consumerism and of the "consumption society":

  • Old religious values had long been basically forgotten and gotten rid of;
  • New communist spiritual values had become devalued (however, they were initially based on vulgar materialism, though it was claimed that they had nothing to do with it; therefore in absence of a new scientific paradigm the communist ideology was built on by then outdated theoretical, philosophical and world-outlook knowledge stock).

All the above resulted in a "spiritual vacuum" or spiritual disorientation, which was aggravated by serious problems in satisfying daily wants and elementary material needs of people, whom it became possible to turn towards "western values".



FOOTNOTE
10. I can foresee and thereby unconditionally reject any accusations of seemingly attempted restoration of the socialist system, as I am trying to promote an essentially different ideological foundation or, in other words, National Idea
11. We are not talking about substantial side or content of this development, since, at the time, there were no conditions whatsoever for building a world outlook that would be based on an essentially new paradigm



On the other hand, such a situation may offer quite favorable conditions for the acceptance and adoption by the society of the New scientific and civilization paradigm, since there obviously exists an urgent need in food for reflection, food for thought, spiritual repast and spiritual development and self-perfection, while people show no signs of strengthening religious fanaticism, which could be an option under the circumstances.

Why did the USSR cease to exist? Russia lost the battle with the USA and their associates represented by an alliance of the economically developed western countries. In this connection I would like to draw the reader's attention to a number of "myths", which, when used individually or, even more so, when applied as a whole, distort the understanding and interpretation of the situation by many critics and observers (including ordinary people). "Russia lost because the socialist economy is less efficient in comparison with the capitalist economy". This statement alone contains a whole number of erroneous assumptions, and each of them, when analyzed individually, will undermine the truth and correctness of the above quoted statement.

In the first place, the economic structure of the former USSR can be defined, as/to a first approximation, as state capitalism, some elements of state feudalism and state slave-owning system. It means that there are no grounds for comparison of "capitalism" with "socialism", the more so with "communism" as it is commonly termed in the West whenever they discuss anything related to the soviet period. My second argument is even more serious, or rather fundamental. It is a well-known fact that the starting conditions for this competition of the two different economic systems were far from being equal, or, plainly speaking the West initially had a tremendous handicap. There exists, however, still another, no less important and also well known factor. To maintain parity of weapons between the USSR and the Western Block the USSR had to build a much more militarized economy, which, apart from production of weapons proper, actually meant that the economy was characterized by a much greater share of various heavy industry sectors: iron and steel production, machine building, production of mineral/ natural resources and raw materials, power generation. However, all in all it added to a huge share of withdrawn or "dead" resources and goods/ commodities, i.e. resources and goods that were not consumed either by people (articles of consumption) or by production (investment goods, means of production); their cost was not added or transferred to any other goods, they just kept falling out of the circulation or, in fact, were not included in the reproduction cycle. A higher share of deadened resources is naturally disrupting and undermining potential possibilities of economic development. It is very likely that the USA military-industrial establishment had been working towards achieving a double objective: to build up American military power and ensure military superiority as such, and, at the same time, to contribute to inevitable strain and potential collapse of the global competitor and political opponent.

Another important, if not the most critical, though more-often-than-not ignored factor, consists in fundamentally and essentially different style of relations with allies among the third world or developing countries. While the former USSR always provided assistance to those countries and spent considerable material and monetary resources, the USA always robbed their vassals. And these are positions of principle of the two "Empires of Evil". Needless to say, the US methods are as simple as everything that is based on the vice: the United States brings to power chosen people who are ready to sacrifice their country by putting it at the mercy of TNC to be ransacked and plundered in order to take part in this process and get a handsome share of the loot for themselves. When activated the mechanism further works by itself: there appears a totally corrupted state system of administration and authority characterized by greed, treachery, deceit and other as "commendable' attributes and properties. If the people for some reason express dissatisfaction and organize themselves in a kind of active opposition, then the rulers and their masters have a choice of options: well-structured and tested PR-campaign, bribery and corruption of the opposition leaders, or last but not least (and even a more effective instrument) deliberate formation of artificial opposition ("pocket" and fictitious oppositionists). In the past 20 years of the USSR existence the latter had spent about 80 billion US dollars on assistance to developing countries, while the USA had pumped out 800 billion US dollars from the Latin America alone.

Finally, we come down to the most significant and important consideration (factor). The western type of economy had no chance of successful development in Russia even in the 20th century, leave alone the 21st century, when capitals have a freedom of worldwide movement. The western model could have possibly worked on the territory of Kaliningrad, Greater Rostov, Krasnodar and Stavropol regions (the exact borders of the area are subject to calculation). The economy of other regions (it means the rest of the Russian territory) could have existed exclusively in the form of development of fields/deposits of crude hydrocarbons, certain metals, precious stones, while at the outskirts it would have been confined to wood harvesting and fisheries in the surrounding seas. Comparison of the Russian climate with other northern countries, particularly European, based on the latitude similarity is absolutely incorrect. One can choose Canada as analogue for such comparison although with great reserves (considerable reserves and allowances are necessary because North America is much smaller compared to Eurasia and are characterized by a much lesser climatic continentality, i.e. severity and aridity). The populated areas are situated along the US border, and even then not continuously but with gaps, practically never extending beyond 51st degree NL in the central and western regions and 46th degree in the east. Exception is Edmonton that has "climbed up" to 53.3o NL. However this "anomaly" can be easily explained by the "hydrocarbon" orientation/ specialization of the economy in the Province of Alberta. The very presence of such "demarcation line of settlement" proves the obvious, though stubbornly disputed and rejected by certain economists, fact, which consists in (i) indisputable impact of climate on the effectiveness and efficiency of production, and (ii) existence of maximum permissible levels of climatic severity for the development of certain sectors of the economy.

And here comes the very last observation regarding competition of the economies and nations. Even assuming that the capitalist system is more efficient and effective, there still remains a critical and worrying question: What is an ultimate objective of the competing economies? Is it just a kind of race where only speed of development and GDP multiplication matter? With the present character of development this would mean the speed of approaching the end, acceleration towards disaster. Even the imperfect economic system of the former USSR under unfavorable climatic conditions was quite capable of satisfying natural needs of the people, the more so in absence of the necessity to arm (i.e. taking part in the arms race). Is this not a sound argument for transfer to the economy that would be managed and driven by reason, with a clear vision of strategic objectives?

Development prospects of the Russian Civilization
The Russian Civilization has two basic options of future development.
Preservation or destruction, which, in its turn, can be accomplished either gradually, by peaceful means (development and completion of the "reforms" of the nineties), or through a military intervention ("blitzkrieg") at a convenient moment. The latter will be done under a false pretext in order to make it seem "legitimate" ("violation of democracy" or "human rights").

On the one hand, availability of hydrocarbons and other natural resources capable of producing considerable or just decent rental incomes is definitely a potential "plus" for Russia. On the other hand, however, severe global competition for one's "place in the sun", superior forces of the enemy (competitors), existing political and economic subordination and dependence on the key players of OC, inflicted delusion about the binding necessity of openness, of total liberalization of the economy, and "vacuuming" (see the next paragraph) exchange rate - all that makes natural resources both the ultimate objective and the means of enslaving Russia and other third-world countries.

Both natural capital (resources) and human resources of Russia become subjects of exploitation, or rather expropriation by certain OC forces and domestic champions of globalization in the form that is destructive for Russia. They are not only pumping out resources along with the natural resource rent but erect "intensifiers" in the form of the exchange rate several times higher than the parity value/rate (based on purchasing power) in order to improve effectiveness of the process. As a result the natural resource rent is supplemented with the "currency" or exchange rate, which sometimes is in place despite the absence or even negative value of the natural resource rent proper. In this case undermining of the natural resource potential is accompanied by intensive exploitation of the human resource and labor potential, as the latter is priced several times (on the average, not less than three times) lower than exported products that overwhelmingly consist of various raw materials. The exporters not only enjoy unfair receipts and profits several times higher than the normal earnings should be, not only are they exporting the lion's share of the profits abroad, but they dictate domestic prices (in rubles devalued three-times) on the basis of the world prices in hard currency, i.e. overcharge Russian consumers by three times against the real market value. Needless to say all products not intended for export, e.g. labor, foodstuffs, machines or airplanes, turn out to be practically non-remunerative and unprofitable because of inevitable use of hydrocarbons sold at the world or higher prices. This mechanism has been tested and perfected in the third world countries. The currency (exchange) rent is far less affected by price fluctuations than the natural resource rent proper. The natural resource and currency rents add to from 50 to 90 billion dollars per year. Fluctuations are caused by the world market prices of oil and other material resources.

Even if the issue of natural resource and currency rent distribution is resolved in a reasonable and fair manner, there will remain a negative natural-climatic rent that would primarily consist of the following:

  • Negative ground rent found in the agricultural sector (except the greater part of the lands in the Chernozems Zone, Kransnodarskiy Krai, and a handful of other regions)
  • Negative temperature-climatic rent (found in practically every sector of the economy and in every region of the country)
  • Negative distance-transport rent (generally reciprocally proportional to the density of population and industries).
    In other words, there exist such prohibitive climatic conditions, which, in economic terms, determine maximum acceptable (and, accordingly, excessive/unacceptable) production costs other things being equal. There is a striking difference in the limits of this range for the economy of the former USSR and the economy of modern Russia that is open for the world market. (This is primarily due to the fact that the USSR used huge positive rent derived from oil and other natural resources to compensate the negative (in terms of the world market) climatic and distance-transport rent).

THE SO-CALLED REFORMS RESULTED IN THE SEPARATION OF THE STREAMS OF POSITIVE AND NEGATIVE RENTS: POSITIVE RENT IS DIVIDED BETWEEN THE FEW INDIVIDUALS AND LARGELY EXPORTED OUT OF THE COUNTRY WHEREAS THE NEGATIVE RENT IS LEFT FOR RUSSIA AND ITS PEOPLE. Other actively promoted reforms of the Russian Energy Systems (RAO EES) and of the housing and utility services, WTO membership serve the same objectives as well. It would seem only natural for the adherent of liberalization to support nationalization of resource producing industries: otherwise competition is substituted for capture and redistribution of resource-bearing assets instead of improvement of effectiveness and efficiency of production and management.

Preservation and development of RC can be provided through two modes of behavior: simple survival in the course of a considerably long period (a decade), and winning the leading positions in perspective. Simple survival and creation of prerequisites for future development require that certain practical steps and actions in various directions be made and taken, based on profound comparative analysis of historical, natural/environmental, economic, political and other essential aspects of the Western and Russian as well as other civilizations. These steps include the following:

  • Exclusion of private appropriation of the rental income from production of oil, gas and use of other resources[12] ; minimization of destructive currency rent (generated through the difference between the exchange rate and the parity rate based on purchasing power), concentration of the rental revenues from natural resource and currency rents in the hands of the state (as a matter of urgency) to be used for strategic purposes and in the interests of the people; termination of the economic reforms of the '90s (in particular, termination of subsidizing natural resource exporters through maintaining at least triple difference between the established exchange rate and the parity rate based on the purchasing power), suspension and ultimate termination of the reforms of RAO EES and of the housing and utility services, procedures aimed at the WTO membership;
  • Detailed assessment of the rental factors (both positive, i.e. produced by natural resources, and negative, i.e. climatic and transport-distance components) in order to understand in what regions, and what production, is economically acceptable and to ensure availability, if necessary, of clearly and soundly substantiated instruments for improving efficiency of particular types of economic activity (by way of redistribution of the rental revenues).
  • Fundamental and radical revision of the taxation system, abolition of destructive taxes.
  • Radical revision of the views (both at the level of government and the critical mass of the citizens) on causes of the global threat, prospects of the development of mankind, history, state/conditions and the role of Russian and other civilizations.
  • Elaboration of a strategy of development for Russia (home and foreign policy, socio-economic development, science, culture, education, mass media, defense, etc.).
  • Overcoming an inferiority complex in relations with the West.

Priorities in the spiritual and informational sphere are as follows[13]:

  • ESCAPE FROM THE IDEOLOGICAL CAPTIVITY OF DESTRUCTIVE SPIRITUAL VALUES OF THE SO-CALLED "CIVILIZED WORLD", FROM THE MYTHS ("ON WESTERN DEMOCRACY", "ON FREEDOM"[14] , "ON EMPIRE OF EVIL", "ON HUMAN RIGHTS"[15] , "ON CIVILIZED WORLD", ETC)
  • REBUILDING OF SCIENCE ON THE BASIS OF THE NEW SCIENTIFIC PARADIGM (THAT HAS COME TO REPLACE THE HITHERTO DOMINANT NEWTONIAN-CARTESIAN PARADIGM[16] ), TRANSITION TO INTEGRAL, CONSISTENT COGNITION AND KNOWLEDGE, MERGING OF SCIENCE AND SPIRITUALITY
  • RECOVERY BY SCIENCE OF THE KEY POSITIONS AND FURTHER STRENGTHENING THEREOF TOWARDS TRANSITION TO THE "RULE OF REASON"/; NOOSPHERIC (ANTHROPOSPHERIC) SOCIETY
  • DEVELOPMENT OF NATIONAL INFORMATIONAL AND EDUCATIONAL STRATEGIES. REFORM OF EDUCATION PRIMARILY AND ABOVE ALL AIMED AT FORMATION OF HARMONIOUS PERSONALITY, REALIZING ITS DIVINE CREATIVE MAKING AND MANIFESTATION OF DIVINE LOVE, AWARE OF ITS HIGHEST RESPONSIBILITY FOR THOUGHTS, FEELINGS AND DEEDS.



FOOTNOTE
12. If it is not done then competition and enterprise will be primarily aimed at gaining access to natural resource rent, i.e. competition will be shifted beyond the sphere of economy as such. Private access to particularly large sources of natural resource rent will produce oligarchs who will be buying public authorities of all branches and at every level as required. The corrupt vertex of the pyramid of authority will inevitably (and not through malicious intent at all) and automatically build as corrupt body and base of the pyramid. The privately appropriated rental income will be inevitably exported out of the country. (Those whose greed is not appeased will indulge in borrowing and embezzling of loans and will thus contribute to further enslavement of the country). All the above is but a perfect mechanism of self-destruction of the country, a mechanism that was elaborated at the time of Yeltsin presidency.
13. That is of a higher priority in itself in comparison to the economic sphere.
14. For example, about "freedom of speech: in the western system where "everything is allowed" an "the progress" is, to considerable extent, built on cultivation of the vice, while the information required by "the system" easily "muffles" any alternative voices, "the freedom of speech" has never been a threat to the system, whereas in the USSR, where all forces were aimed at spiritual growth and elimination/ uprooting of the vice, the freedom of speech in the western interpretation was but an "unaffordable luxury"; however this fact cannot justify many a folly or idiocies that were committed in relation to this.
15. My rights are above all violated by unrestricted advertising that takes away the precious moments of life daily. They suffer even more from total hypocrisy, falsity and vulgarity of mass media, violence on the screen and seamy side movies, sensationalism.
16. It does not seem possible to describe the new scientific paradigm within the framework of this article. However, in the first approximation one can get an idea of this paradigm ex adverso (ex contrario), i.e. through contraposition of its basics to the following basics statements of the Newtonian-Cartesian paradigm: 1) The Universe is one (all that exists), its objects are discrete and consist of solid material particles, passive and with constant gravity and shape; 2) space is linear, three-dimensional, homogeneous and rests in quiescence; it is not affected by or does depend on the bodies moving in therein as it serves as a framework for them all; 3) the time is absolute, autonomous and independent from the material world, flowing in homogeneous eternal stream in one direction from the Past to the Future; 4) the object of observation (investigation) does not depend on the state of the subject (observer)… (quoted from "Introduction in the Uniform Theory of the World", A.F. Bugaev, Moscow 1998, pp. 28-29)



Spiritual and informational sphere takes precedence over all other aspects with the following priorities: priority of spirituality in education, science, mass media, government, with a new scientific paradigm serving as a conceptual basis for the development of spirituality, humanism or, in plain words, of kindness and love of fellow-men as taught by Jesus Christ and other Gurus of mankind.

The priority of the spiritual and informational components in prevention of the global catastrophe is illustrated in the indicative block chart of development and solution of the global environmental problem (see Figure 1 below). (The diagram is rather simplified, e.g. it does not indicate feedback relations between manufacturers of commodities and services and consumers, or in other words - undisguised influence of producers on consumers to create required needs and demand for their goods and services; besides it should be noted that the author interprets and applies the term "market" in a broader sense that includes in the given case the budgetary sphere as well, e.g. satisfaction of the needs of the military-industrial complex through growing demand for its products by the government, when weapons are purchased at the expense of the budget).

If the "National Idea" for Russia is formulated as "transition to the new level of the civilization development", then it may eventually be used as the core element and the meaning of the "Planetary Idea" as well. The strategy of its implementation may be developed on the basis of or in line with, the ten priorities (theses) outlined above. I don't see any other option that would allow Russia not just a chance of physical survival in the process of globalization, but also an opportunity to change the very nature of this process from destructive to harmonious.


 
 


 

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