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WELCOME TO THE NEW RUSSIA A young Canadian journalist exposes the corruption and the compromises by Pamela Murray


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PHOTO: KEITH PENNER


Q. What were your expectations when you started your job in Moscow?
A.
There was a combination of excitement but also fear of Russia — a great but dangerous giant. My other expectation was that it was going to be about a titanic struggle between the "forces of darkness": the supporters of Soviet-style communism and the "forces of light": the democrats. When I got there it was just the end of that era that maybe started in





1986 with Gorbachev through to the collapse of the Soviet Union and what many Russians see as the early romantic years of Yeltsin: 1991, '92, even '93. But as it turned out that period was really coming to an end by the time I got there.

Q. So after these so-called "romantic years," what would you call the next chapter?
A.
The chapter that I lived through was the sad, sober realizations of middle age. And it was that kind of a period the whole country, particularly the government went through. There was a realization that you couldn't always be clean and pure, and in some cases compromise was necessary. Cases of corruption began to creep in: both materially and in terms of losing a vision and just governing for the sake of being in power.

Q. What shocked you most in your time there?
A.
The biggest thing that shocked me was the loans- for-shares privatization. I still have trouble believing it happened. And when I go back over my notes I see that no one took it seriously. Economists, serious Russia analysts said, "It's incredibly stupid, but don't worry, because they'll never do it, it's too bizarre." And it really was a sin of commission. So many things in Russia are sins of omission, or terrible birthmarks of the Soviet or the tsarist period. But this was something that they actually did. The second thing that I find shocking still is the war in Chechnya. You could argue that, given the amount of bloodshed that could have attended the collapse of the Soviet Union, it hasn't been that bad — and that's probably true. It's not like the former Yugoslavia, and it could have been. Still, there's the sheer brutality that we've seen the Russian army exhibiting in Chechnya and even more shocking is the popular support that it has.

Q. What did you learn on your last trip to Moscow earlier this year?
A.
A lot of people felt the crash of 1998 was going to be a real watershed in Russia, that it was going to wipe out lot of the old players, and that [the powerful businessmen known as] the oligarchs would be destroyed because their empires would be. That the politicians would be destroyed because they had brought this terrible ruin on the country. And what actually seems to have happened is that most of the old players and the old structures are still there. The oligarchs were still around, and richer than they ever have been, because all of them are natural resource barons and they make their money from oil or nickel, so they're doing really well. And all the evidence is that their connections to the government are still there. I think there is a hope that there can be a quick fix in Russia, and a lot of people are hoping that Putin will be the man to implement it. There is a slight sense that he will be a combination iron reformer, tsar-liberator figure, and that's a very seductive fantasy, if not a realistic one. What one official at a Western financial institution told me was Putin had said to them, "Don't worry, I'm going to move against the vested interests, but I'm going to have to do it one by one, because I can't tackle them all at once." Which sounds fine and reasonable, but in reality, if he starts to do that, I think rather than it being the moment he creates democracy, it will be the moment when he gets rid of one set of cronies and replaces them with another. I think when you try to implement a reform in an arbitrary fashion, very often the system you create is arbitrary.


Interview reprinted with permission. Copyright Random House Canada.

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