From: kreisel@spark.pfc.mit.edu (Felix)
Newsgroups: talk.politics.soviet
Subject: Re: Capitalist restoration in the USSR
Keywords: marxism
Date: 7 Apr 92 16:24:59 GMT
Reply-To: kreisel@spark.pfc.mit.edu (Felix)
Organization: Digital Equipment Corporation

"Argumenty i Fakty" is a very popular news weekly tabloid in the ex-USSR with a
total circulation of 26,453,780 copies.  In its issue #11 for March 1992, it
published the following short article on page 1:

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                    Will there be a "fall" of the ruble?

It has already been reported that about the middle of April the Russian 
Federation will let "loose" the prices for fuel.  One of the many 
consequences of this action may be a new sharp fall in the value of the 
ruble in relationship to the American dollar and a jump in prices for 
imported goods.  We should remind you that this ratio already tends to 
fall, having "fallen" at the last valuta auction by 16%.

According to our sources in order to avoid the "oil avalanche" of the ruble, 
the Russian leadership is planning some emergency measures.  The most 
important of these -- a stimulation during the course of the next few weeks 
of the process of privatization of the small and medium enterprises, the 
permission by the congress of Russian deputies to "buy-sell" the
land.  This measure should enhance the value of the ruble as a payment 
medium.

A second no less important measure--the encouragement of foreign 
businessmen to invest their capital into the Russian economy.  What is 
planned for that is an introduction of a special investment tax on profits, 
guarantees in law on the right to export the profits.

For those who are still afraid that they are beginning a "sell-off of Russia",
we should remind them that the automobile giants "GAZ" and "Avto VAZ" were 
built on foreign money, similarly to hundreds of other large and small 
enterprises and trusts.  And such well known firms like Panasonic (Japan), 
whose TV and radio factories are spread throughout the world, considers it 
a duty to invest a part of its profits into the cultural programs of the 
region where its enterprise is located.

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Readers of this bboard are invited to contrast this optimistic view of the
approaching economic catastrophe with the sober assessment by Western
analysts. 
The April 6th issue of the London-based "Financial Times", in discussing
the
prospects for eastern Europe and the CIS noted in a page 2 article
entitled "A
new economic order eludes eastern Europe":

"The ECE (United Nations Economic Commission for Europe) estimates that
domestic output fell by some 14% in eastern Europe last year, bringing the
aggregate drop in output since 1988 to nearly 25%."
...
"In the former Soviet Union/Commonwealth of Independent States (CIS), net
material product (output excluding services) fell by 15% and GNP by 17%, after
falls of 2 and 4% respectively in 1990.  Another large fall in CIS output seems
probable in 1992, the survey says."
...
"In 1990 and 1991 there was a net outflow of financial resources from eastern
Europe and the former Soviet Union.  Of the $9.7bn of gross financial flows in
1990, only $1.7bn (less than a fifth) was official aid.  Gross flows last year
were around $19.8bn and could total $14.5bn this year, the ECE estimates. 
Officials said last week that little of the recently-announced $18bn in
financial assistance for Russia by the Group of seven industrial countries
appeared to be new money beyond that already pledged."
----------

The "New York Times" is not normally noted for presenting the unvarnished truth
about capitalism.  It is all the more noteworthy that in announcing the
decision by the IMF to admit Russia, it noted on the front page of its April 1,
1992 issue:
"I.M.F. officials say Russia could begin receiving loans from the fund as 
early as May, a move that will place the Russian economy to some extent under 
the stewardship of the I.M.F.  It will still require Moscow to meet certain
conditions to qualify for the aid, including stringent targets to control the
inflation rate and the budget deficit."

Then the NYT reporter elaborated on both the limitations of the financial
assistance and on the stringency of conditions.  It is quite instructive to
study this article and examine the consequences of this I.M.F. imposed
discipline on the economic, social, cultural, political life of these peoples.
------------

As I stated before, the ex-Stalinists and the middle class intellectuals
running the states of eastern Europe and the CIS are prostrating themselves
before western capitalism.  They are enacting programs guaranteed to wipe out
the industrial economies of this gigantic region and to throw hundreds of
millions of people into a state of degradation, worse than the conditions 
under a Hitler or a Stalin.  

It is also quite interesting to examine the tenor of pro-capitalist
propaganda that
is expressed in the ex-Soviet mass circulation press.  These people
actually tell their
audience that despite lower taxes on multinationals, these global
companies will 
charitably support public health and education out of their their "sense
of duty".
Please contrast this attitude of the Russian petty-bourgeois with the
"Buy American"
war cry of the American bourgeoisie.

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This article expresses my views, not my employer's.