Business Watch
Patrick Armstrong's Russia SitRep (55)
by Patrick Armstrong
Change. More change working away. Last Sitrep I reported about a quarter of Russians had travelled outside the former USSR. Now we find that about 90% have cell phones and about 40% of adults use the Internet daily. ROMIR tells us that 70% of Russians have savings, the overwhelming majority in Rubles, many in banks. And a per-capita GDP is getting on for half that of Japan. I believe that easy communication, travel, access to the New Media and savings accounts are the outward signs of internal change: “middle class” things. I think it’s fair to say that Russia has never been a “middle class country” before: it’s not there yet but getting there.
by Patrick Armstrong
ELECTION. The last polls are published and it’s clear Putin will win on the first round. VTsIOM. FOM and Levada all agree and their numbers average out at: Putin 60-61%; Zyuganov 15%; Zhirinovskiy 8-9%; Prokhorov 7-8% and Mironov 6%. As always, any significant variation from these numbers will be cause for suspicion. I reiterate that when the final results – as the Duma ones did – correspond to long series of opinions polls from different sources then the burden of proof is on those that say the results were cooked. Really robust evidence is needed to counter the appearance of the expected. This fact ought to be apparent to the meanest intellect but for some reason is no t. I expect the customary incompetent and biased reporting from the Western media. Once again, the runners-up will not be the “liberals” so lionised by Western observers but the Communist and Zhirinovskiy nominees. The rest – however many there may be – compete for 10% to 15%. But that truth – an immutable law of Russian elections since 1991 – seems to be unable to be grasped by so many outside observers who really think that the inclusion of, say, Yavlinskiy would make some difference. Not to Putin’s vote, not to Zyuganov’s vote and not to Zhirinovskiy’s vote.
by Patrick Armstrong
Candidates. The rules say that nominees of parties in the Duma are easily registered. So Putin (United Russia), Mironov (Just Russia), Zhirinovsky (LDPR) and Zyuganov (KPRF) were all registered early. Independents must produce two million signatures (a process that requires money and organisation). Mikhail Prokhorov (independent), who has lots of the first, passed and was officially registered The CEC rejected Yavlinskiy (Yabloko) saying that a second check of 400,000 signatures turned up 23% invalid. Yavlinskiy says he will appeal. This would mean that Yabloko members could not be elections observers but Putin and Prokhorov have said they will give them mandates to do so. The signature collection process is rife with fraud and easily-discovered technicalities.
by Patrick Armstrong
Medvedev speech. He gave his annual speech to parliament last week. As is customary he started with achievements. Quite a list in fact: improvements in the economy overall, in the demographic situation, poverty reduction, military improvement. All true enough, albeit presented as positively as possible. But, in the present situation, his proposals for political reform are the most interesting. And, given the continuing existence of The Team, we may assume that these have Putin’s approval and will become law. The principal ones – and, he said, more will be coming – are the return to direct election of regional heads, the creation of a proportional voting system for districts (sounds like a return to the previous system of half individual representative and half party vote) and the reduction of the numbers of signatures required to register a party or presidential candidate.Instructions were given to the government and a bill on the last was sent to the Duma.
Demonstrations. On Sunday there was a small (~500) nationalist demo, Monday saw 5-6K turn out for the authoritiesbut the big one was Saturday’s. I am going with Alexandre Latsa’s estimates – he was there, took pictures and made a methodical estimate. He tells me he estimates about 25-30K at the maximum with many coming and going for a total over the day of maybe 50K. There were demonstrations around the country, so about 75K would be a decent estimate across Russia. Who were they?
by Patrick Armstrong
Election results. The almost final results give a Duma with 238 seats for United Russia (down 77); 92 Communists (up 35); 64 Just Russia (up 26) and 56 Zhirinovskiy’s party (up 16). (Interactive map by regions). United Russia will dominate, but no longer be able to bully. Which is a step in the right direction.
Duma Election. There have been innumerable reports that Russians are sick and tired of political realities; we hear this every time an election comes up (after all, a prevailing meme is that Putin & Co only hold onto power by cheating and manipulation) and it’s forgotten until the next time. However, there does seem to be some genuine evidence that people are getting tired of United Russia. This is The Team’s dilemma: while it has successfully constructed a “pedestal party”, something that eluded Yeltsin, United Russia is still little more than a grouping of those in power and those who want to be. Many of its apparatchiks are not very popular in local areas.
by Patrick Armstrong
The Program, Medvedev. On Saturday Medvedev laid out some of his program in an interview. He began by declaring that he and Putin were a team “That is especially true since we have very close political approaches, we are allies and in everyday life we are close friends”. His prevailing theme is: “our country really needs modern development and gradual but steady reforms.” Once again we see the caution that predominates in their attitude; understandably I believe. He is currently pushing the idea of what he calls “extended government”. I’m not quite sure what he means by that but make a guess from things he said. He referred several times to an incident one of his questioners brought up – the improvement of local tram service that had come about only after his direct intervention – and emphasised that that was a serious defect in the way government worked in Russia: “Everything gets done this way here, it seems.
