In his book, Åslund contends that in his eighteen years in Moscow, Putin has succeeded in establishing a Russian state and economy that are “exceedingly reminiscent” of those that existed in tsarist Russia, a far cry from the democratic state and liberal market economy that global observers had anticipated would inevitably follow the collapse of the Soviet Union.
According to Åslund, Putin has accomplished this by constructing an “iron quadrangle” comprised of “four circles of power,” which are “vertical state power,” “big state enterprises,” Putin’s “cronies,” and “Anglo-American offshore havens,” respectively.
The consolidation of this iron quadrangle is the result of Putin’s years’ long effort to deinstitutionalize the Russian state, and devise a system that guarantees macroeconomic stability, but falls short of delivering economic growth. As Åslund describes, these circumstances will likely yield a Russia in regression, a nation that is increasingly patrimonial and, as a result, will accelerate the ongoing retreat of democracy. Should this continue unabated, global powers, particularly those in the West, may expect Putin to grow increasingly authoritarian, and in the tsarist tradition, grow evermore inclined to taking risks in seeking sources of legitimacy other than macroeconomic stability.
South Korean jets fired warning shots at a Russian military plane. South Korea’s defence ministry said two Russian bombers and a surveillance plane, plus two Chinese bombers, had violated its airspace (above barren islands also claimed by Japan). Reports from inside the Korean government said the Russians acknowledged the incursion and blamed it on malfunctioning equipment.
–The Economist Espresso, 24 July 2019
What is Vladimir Putin goal [sic] for Russia and the Russian people? Dima Vorobiev, Former Soviet propaganda executive Answered Jul 18
Below, a resident of St. Petersburg, hugely impressed by many successes of President Putin, uses his portrait for personal protection in his daily affairs against bad luck, evil spirits, and corrupt government servants.
Giuseppe Conte, Italy’s prime minister, does not belong to either of the parties in his populist coalition government. But today the former law professor will report to parliament on the allegedly grave misdemeanor of one. Prosecutors are investigating allegations that the hard-right Northern League negotiated with Russian intermediaries for funding worth tens of millions of euros. The League’s leader, Matteo Salvini, who was not at the meeting in Moscow and denies receiving money, at first refused to make a statement to parliament, but now says he will give his version of events. It might be thought the claims should be particularly damaging since they are backed by a purported recording of the discussions. But they seem to have done Mr. Salvini no harm. A poll at the weekend showed backing for the League had risen nearly three points, to 35.9%, since before the recording was made public. For now, Mr. Salvini seems bulletproof.
–The Economist Espresso, 24 July 2019
“I Felt Like Going Up to Him and Spitting in His Face”
Yevgeny Karasyuk Republic
July 2, 2019
Torrential rains began falling in the western part of the Irkutsk Region early last week. When they were over, there was no doubt the bad weather had caused local rivers to rise, producing a major flood involving human casualties and large-scale damage.
The flood, which affected over ninety towns and destroyed at least a thousand homes, has been declared the most powerful in the region in the one hundred some years since the weather there has been systematically observed and recorded.
The flood put a crimp in President Putin’s schedule, probably even as he was attending the G20 summit in Japan, which wrapped up on Saturday.
He visited the flooded region the same day, but he had no intention of staying there for long. He never left the airport in Bratsk, a city that had also suffered from the flood, but which had not been inundated as disastrously as other cities and towns.
Putin’s visit to Bratsk on his way home to Moscow from Osaka was a logistical opportunity he could not pass up, of course. The Russian regime’s personification has long ago reached the point the populace regards the president as morally responsible for any high-profile disaster anywhere in the country.
Going where disaster has struck is thus a matter of political instinct. The president last showed his trust in it only six months ago in Magnitogorsk. The critics can accuse Putin of arriving at the sites of tragedies after they are over and visiting fake patients with arms demonstratively in slings, but he knows what he is doing.
He still finds the strength to board a plane so that, a few hours later, he can appear, stern-faced, before the cameras and issue orders at emergency meetings of local and federal officials. This is exactly what the president did late at night in Bratsk.
The speed with which Putin arrives at the epicenter of events, like the amount of time he spends there, matches the alacrity with which Russia’s press reports the news.
“Putin instructed the head of the Emergencies Ministry to fly immediately to Kemerovo.”
“Putin was informed about the tragedy in Magnitogorsk immediately.”
“Putin demanded that immediately, as of today, compensation be paid to the victims [i.e., the residents of the affected districts in the Irkutsk Region] and that an action plan for rebuilding housing and doing it as quickly as possible be outlined without delay.”
All the fuss testifies not to the might of the so-called power vertical Putin has fashioned but, on the contrary, to its weakness. It produces nothing remotely resembling independence, flexibility, and responsibility on the part of local authorities, especially when it comes to the safety of ordinary Russians. Putin continues to run our vast country manually, but the outcome of his administration is quite deplorable, as we can see.
A satellite image, provided by Roskosmos, shows the parts of the Irkutsk Region affected by the flooding. Courtesy of Republic
It does not matter a whit where and when the president arrives, and how long he stays there because it happens after the fact. Russian authorities usually do nothing at the most crucial moments. In a country run by the security services [siloviki], a country where there are more experts in security than anywhere else, a country with a whole emergencies ministry, it can easily happen that you would not be warned of impending disaster.
According to the Emergencies Ministry, four out of ten Russians are still not covered by the early warning system. Its absence goes a long way toward explaining the disaster in Krymsk in July 2012 in which entire houses and their sleeping owners were swept away by flood waters in the middle of the night. While Moscow was fiddling around with modernization and digitalization, towns in Krasnodar Territory did not have radio transmitters at their disposal to sound warning signals and inform residents of the approaching flood.
Seven years have passed since the disaster in Krymsk, and what happened there has happened again in Eastern Siberia. Residents of the town of Tulun, in the Irkutsk Region, have claimed they were not warned about the impending flood, and so they did not have time to gather their belongings and flee their homes. Local officials, however, assured Putin everyone had been warned.
“I watched our mayor giving his report to Putin and I felt like going up to him and spitting in his face,” a local woman who could not contain her emotions told journalists.
Officials now say they knew nothing. Irkutsk Region Governor Sergei Levchenko said regional authorities were not informed of the dangerous rise in the levels of water in local rivers, while the Emergencies Ministry has claimed the opposite.
In fact, all that is required in such circumstances is that officials pretend they sympathize with the populace in its plight and are ready to help. But the authorities, disinclined by habit from bowing to public pressure, could not make such a sacrifice.
“What do you want me to say? Do you want me to complain? I can complain to you, too,” Alexander Uss, head of Krasnoyarsk Territory, retorted to local residents upset by their governor’s passivity.
Krasnoyarsk Territory was next in the flood’s path after the Irkutsk Region, but the floodwaters have begun to subside.
You can relax. Putin will not be paying you a visit.
Putinism has triumphed not because the majority of Russians have become convinced “Putinists,” whatever that would mean, or have been persuaded by the man’s notorious “power vertical” system of governance, which in reality is an inefficient, irresponsible literal disaster waiting to happen somewhere nearly every single day (witness the fires in Rostov-on-Don).
It has triumphed because people have, seemingly, lost the will to eject, by whatever means would work best under the circumstances, the entire noxious, corrupt, incredibly expensive, and utterly futureless non-system that Putin and his clique have erected over eighteen long years of conspicuous consumption in a few happy oases, mixed with criminal wars, “legal nihilism,” an incredible gap between the super wealthy and the super poor, the destruction of all the things the Soviet Union did right or, at least, not terribly badly, in terms of education, social provision, healthcare, and housing, and the most inconsistent, frighteningly hilarious “national ideology” ever devised anywhere, which pretends to be “conservative” and “authentically Russian,” but mostly looks as if it had been dreamed up one night by three or four Kremlin spin doctors on a bender, as a bad-spirited practical joke.
At worst, people either pretend, especially in the two capitals, to be incredibly busy and content with their lives. At best, they argue about the particulars—say, about the details of the trumped-up case against director Kirill Serebrennikov, arrested in Petersburg yesterday, and temporarily sentenced to house arrest pending trial on embezzlement charges today in Moscow—as if the system didn’t have the power to turn literally anyone except the members of Putin’s inner circle (and maybe even them) into a “vicious criminal” literally overnight, as if Serebrennikov has made some particular fatal mistake that nearly everyone else would never be so stupid to make. Or that they would never be so stupid to get close to so much money or power and end up in the pickle the feckless Serebrennikov got himself into.
The idea that the country could go on being itself, that is, being mostly messed up and weird and not like any other country, because you cannot be like any other country when you’re the biggest country in the world, but a billion times more productive and easier to live in simply by ditching the crappy, greedy junta that will certainly kill it off in the next few years is a thought that either literally everyone is thinking right now or everyone has forbidden themselves to think at all.
Unfortunately, I’m afraid it’s the latter.
So it doesn’t matter whether you call the reactionary regime currently in power authoritarian, post-authoritarian, fascist, post-fascist, post-truth or pre-truth because, eventually, it will go down in flames, taking with it, alas, the magnificent country that has had the misfortune to engender it. TRR
Duma to Legalize Elimination of Settlements by the Regions
Maria Makutina RBC
February 22, 2017
The Duma has tabled an amendment that would legalize converting municipal districts into urban districts. RBC’s sources have informed us the move to eliminate local government in settlements would be supported by the relevant committee. In Moscow Region, such mergers have sparked grassroots protests.
An “Elegant Way” of Eliminating Local Self-Government
Mikhail Terentiev, an United Russia MP from Moscow Region, has submitted amendments to the law on general principles of local self-government to the Duma Committee on Local Self-Government. (RBC has the document in its possession.) The MP has proposed amending the law to make it possible to merge all settlements, including rural settlements, that constitute a municipal district with an urban district. Under such a merger, the settlements and the municipal district would forfeit their status as municipal entities. Decisions about such mergers would be taken by regional authorities “with the consent” of local representative bodies.
Terentiev has also proposed changing the definition of an “urban district,” as stipulated by the law. Currently, it is defined as a urban settlement that is not part of a municipal district. The new draft law defines it as “one or more contiguous populated areas that are not municipal entities.”
Moscow Region authorities have found an “elegant and simple way” to legalize the single-tier system of local government that, in recent years has, been established in a number of Russia’s regions, including Moscow Region, Andrei Maximov, an analyst with the Committee of Civic Initiatives, explained to RBC.
In November of last year, Andrei Vorobyov, governor of Moscow Region, announced plans to convert around twenty municipal districts into urban districts in 2016–2017. According to Vorobyov, the reform would save money by reducing the number of officials.
The proposed move sparked popular protests. Moscow Region municipal district council members, unhappy with the dissolution of local executive and representative bodies, held protest rallies. Public hearings on reforming local systems devolved into clashes with the Russian National Guard.
A Local Self-Government Congress was held in Moscow in February. Local council members from Moscow Region requested that Prime Minister Dmitry Medvedev and law enforcement agencies investigate “numerous incidents in which local government bodies, including municipal districts, rural settlements, and urban settlements, have been forcibly dissolved.”
“The law does not provide for dissolving a municipal district or converting it into a urban district, so Moscow Region authorities conceived a way of getting round the law. First, they merge rural settlements with an urban settlement, and then they turn it into an urban district. But the municipal districts are left in a limbo,” said Maximov.
The Presidential Human Right Council has argued that the reforms in Moscow Region violate the public’s right to local self-government. HRC deputy chair Yevgeny Bobrov said as much to Vladimir Putin at the council’s December 8, 2016, meeting. The president promised to “work” on the issue.
Nevertheless, in 2015, the Russian Supreme Court ruled that the merger of two rural settlements and the Ozyory urban settlement into an urban district was legal.
MP Terentiev explained to RBC that his amendments were motivated by the need to optimize the budget in Moscow Region.
“The governor and I realized that money could be saved on officials,” he said.
Thanks to the reforms, “there will be an overall approach to wage policies and the opportunity to reduce administrative barriers to business,” Terentiev argued.
The current law stipulates that Russia is divided into settlements, which are organized into municipal districts, and particularly large settlements, which are organized into urban districts, Maximov explained. According to Terentiev’s draft amendments, any territorial entity in Russia can be turned into an urban district, meaning it can be moved from the two-tier system to the one-tier system.
The authorities have been attempting to confer the status of urban districts on municipal districts in order to dissolve settlements and simplify governance. Rural authorities can interfere with the plans of regional authorities to implement urban planning projects and create obstacles to resolving land use issues, which currently require the consent of the settlements affected, political scientist Alexander Kynyev explained to RBC.
The Total Deterioration of Settlements
Experience has shown that populated areas lacking elements of self-governance deteriorate and disappear, RBC’s source on the Local Self-Government Committee told us. According to the source, the draft amendments would lead to the total deterioration of the settlement-tier of governance throughout the entire country.
“It is nonsense to eliminate settlements in densely populated Moscow Region. It doesn’t fit into any paradigm. It is just the governor’s whim. It will be easier for him to manage his affairs this way, and so the law has been mangled for this sake. He has to demolish everything so it will be easier to build it up again,” RBC’s source said.
The reform has been opposed by people of different views and parties. Local self-government as such has been threatened. As the 2018 presidential election approaches, the federal authorities want to avoid such controversies, argues Kynyev.
Through the Back Gate
Terentiev tabled his draft amendments as part of the second reading of a draft law bill that would abolish direct popular votes on whether to change the status of urban and rural settlements. The government tabled the draft law back in the spring of 2015. It was passed in its first reading the same year, after which the Duma has not returned to it.
Radical change in the territorial basis of local self-government has been brought in “through the back gate,” noted our source in the Duma, although the 2014 local self-government reforms were “seriously discussed” in society, he recalled.
Alexei Didenko (LDPR), chair of the Duma’s Local Self-Government Committee, agreed the draft bill could “eliminate the machinery of popular self-government,” and ordinary people would find it harder to defend their interests. According to Didenko, the draft amendments were at odds with what the president said during his 2013 state of the nation address: “Local governance should be organized in such a way anyone can reach out and touch it.”
Didenko told RBC the decision whether to support Terentiev’s draft amendments or not would be made by his committee, most of whom are United Russia members, in March. Two sources in the Duma told RBC the committee would approve the draft amendments.
How Local Authorities Have Been Stripped of Their Powers
In his December 2013 address to the Federal Assembly, President Putin asked that the organizational principles of local self-government be clarified. According to Putin, the quantity of responsibilities and resources of municipal officials were out of balance, “hence the frequent confusion over powers.”
In May 2014, a law reforming local self-government was passed, endowing the regions with the right to assume a considerable number of the powers previously exercised by local authorities in taking economic decisions.
The original draft of the bill called for the abolition of direct elections of big-city mayors and city council members. The final draft stipulated the heads of municipal entities could be either elected directly or appointed from among council members. In the first case, the head of the municipal entity could lead the administration himself. (If the municipal entity in question is a city, he would become city manager.) In the second case, the head of the municipal entity would chair its representative body.
Regional legislative assemblies were accorded the right to divide cities and towns into intra-urban municipal entities. Two new types of municipal entities were introduced for this purpose: urban districts with intra-city divisions, and intra-urban districts.
First-tier council members (that is, council members of urban and rural settlements) are elected directly by voters. Second-tier council members (of municipal districts and urban districts with intra-city divisions) are either elected or delegated from among the heads of settlements and first-tier council members, in the case of municipal districts, or only from among first-tier council members, in the case of urban districts with intra-city divisions. The method of electing council members was also to have been defined by regional law.
In February 2015, two other methods for electing heads of municipal entities were introduced. The first method allows the head of a municipality, chosen by the municipality’s council from among its members, to lead the local administration. However, he surrenders his mandate as a council member. The second method allows a bureaucrat, chosen by council members from a slate of candidates suggested by a hiring committee, to lead the local administration. This had made it possible for city managers to become autocratic mayors.
Translated by the Russian Reader. See my December 15, 2016, post on the same topic,“In Tomilino.”
“Have you heard they want to merge the Russian National Library with the Lenin Library in Moscow?” Boris Kolonitsky, a senior researcher at the St. Petersburg Institute of History (Russian Academy of Sciences) asked passerby.
Most bystanders heard about these developments for the first time. But after a short briefing, passersby agreed it would be wrong to merge one of the country’s most important academic and cultural institutions.
“It is not so much the library, St. Isaac’s or anything else that causes people to protest, as it is the fact that no one reckons with them,” Viktor Voronkov, director of the Centre for Independent Social Reseach, explained to Novaya Gazeta. “Why is everything being centralized? To make it was easier to control. The entire country is being formed up into a [power] vertical, and it is the same way in every field.”
“It matters that people from the outside, people who don’t work at the library but understand its value, speak out,” said journalist Daniil Kotsiubinsky, who organized the rally.
“The people who came here today are not random, but one of a kind. Petersburgers should listen to them.”
As the rally was drawing to a close, the overall enthusiasm was disturbed by a police officer.
“We’ve got a solo picket here,” the guardian of order reported on his cell phone, asking the picketers to show him their papers.
“It’s an A4-sized placard,” the policeman reported. “What does it say? ‘A great city deserves a great library.'”
Petersburg Municipal Hospital and Clinic Construction Program on the Skids
Svetlana Zobova Delovoi Peterburg
February 3, 2017
Petersburg Governor Georgy Poltavchenko has botched ex-Governor Valentina Matviyenko’s ambitious program of building 32 healthcare facilities at a cost of upwards of 30 billion rubles. The city lacks a force that could consolidate physicians and builders to campaign against construction delays.
DP has audited all the municipal healthcare facilities that have been built, are under currently construction or are in the planning stages. The circumstances surrounding them are far from ideal. In each specific case, we can speak of certain objective causes as to why a particular clinic has not been completed or is not yet treating patients. But if we look at the issue as a whole, it becomes clear our city has no system for overseeing and managing the sector. Accountability is split between two committees whose specialists, to put it mildly, are not very happy with each other.
Both doctors and builders tell obscene jokes about each other behind each other’s backs and complain of their opponents’ extreme incompetence and their unwillingness to compromise. They cannot work together to finish nearly any of the projects. But no one is ready for a showdown that could reverse the situation and establish new, functioning rules of the game.
The few examples when new hospitals and clinics have been successfully opened either conceal sad stories of protracted construction delays or were overseen by federal officials, and the degree of oversight and accountability were thus on a completely different level. Aside from federal facilities, this study did not take into account facilities that merely underwent renovations, only those that were slated for complete makeovers or new facilities.
DP received quite detailed replies from the city’s Construction Committee and Healthcare Committee about the causes of the delays at dozens of facilities and the complications with bringing operating facilities online. However, there was no answer as to why these processes have been implemented so poorly, with so much anguish and pain.
To equip the city with the three dozen modern medical facilities it so badly needed, the Matviyenko administration allocated around 30 billion rubles. However, under the current administration, construction companies have been paid less than 10 billion rubles from the budget, completing only a few facilities in fits and starts. Our sources in the Health Committee say the sector’s underfunding has been due to delays in construction.
In some cases, the quality of their work has caught the eye of the prosecutor’s office, while in other cases, expensive medical equipment has been ruined due to mistakes and miscalculations. Deadline overruns have been ubiquitous. It would be wrong to say that the only cause has been poor work on the part of builders and designers. The city authorities have kept on awarding new contracts even to those contractors who have attempted to turn over blatantly shoddy facilities to doctors and brazenly lied.
DP discussed the problem with a dozen head physicians and their deputies, as well as well as contractors and city officials. We got the impression Petersburg has not become Russia’s northern healthcare capital less because of the economic crisis and a lack of financing, and more because of bureaucracy and the complete absence of a genuinely efficient system for managing municipal construction projects. In several instances, it is obvious that if city officials had done nothing at all, it would have been much better, as was the case, for example, with the closure of the maternity hospital on Vavilovykh Street.
When she departed from Petersburg, Valentina Matviyenko left a legacy of numerous ambitious construction projects, including healthcare facilities. She had planned for the construction or reconstruction of 32 medical facilities by 2016, including new hospital wings, outpatient clinics for children and adults, dentistry clinics, ambulance stations, and specialized early treatment and prevention centers (as per Petersburg Government Decree No. 149, dated 10 February 2011).
As of late 2016, city authorities had built and opened only six facilities on the list. Another four facilities have been built, but their directors, the Construction Committee, and contractors have been bogged down in fierce arguments as to the quality of the construction. The other projected facilities have either been frozen or not assigned a contractor, and their designs are now outdated.
Initially, Governor Poltavchenko seemed inclined to keep improving healthcare in Petersburg. In 2012, he added several dozen future facilities to Matviyenko’s list. Design and construction work on the facilities was to have been completed in 2013–2014.
For example, the new governor promised to rebuild the morgue at the Bureau of Forensic Medicine, design a hospice, build several antenatal clinics, design new wings for the Kashchenko Mental Hospital, and build a TB prevention and treatment clinic in Kolpino.
A little later, Matviyenko and Poltavchenko’s plans were drafted as a program for the healthcare sector. The document originally promised that city officials would arrange for the construction or reconstruction of 29 ambulance stations and medical facilities capable of taking in 36,000 patients a day by 2015.
In reality, the healthcare facilities construction program has been the most disastrous line item in the city’s targeted investment program for several years running. In 2016, none of the medical facilities under construction used 100% of the funds allocated to them in the budget. Certain facilities did not touch literally any of the funds allocated to them.
The prosecutor’s office and the Audit Chamber have highlighted construction delays. The city’s vice-governors for construction policy and Construction Committee chairs have come and gone, but federal officials are still asking the same questions.
At our request, the Construction Committee listed all the medical facilities that have been either built or constructed in the last ten years. According to the officials there, from 2009 to 2011, the three years before Poltavchenko took office, eleven major facilities were brought online. After he arrived in the governor’s office, from 2012 to 2016, another eleven facilities were completed, according to officials, although two are still closed, and the others opened considerably later than they were completed.
The city’s Health Committee provided us with different information. Officials there calculated that 28 facilities had been completed between 2006 and 2016, although Poltavchenko’s program had stipulated either renovating or building 63 facilities from scratch. The difference in figures is due to the fact that officials from the two committees used different timespans. In reality, both lists show outright that the city has got worse at building medical facilities since Poltavchenko’s team came on board.
As health professionals who were well versed in the issues told us, city officials would always ask contractors the same questions during regular on-site debriefings. Why is the facility not under construction? You’ve been working here for five years, but you’re still at stage one. How much of your advance have you gone through? Who produced such a bad design?
Subordinates would be reprimanded, and contractors would be fined and have their contracts torn up, but nothing would change. Construction completion dates would be postponed, and cost estimates would be increased.
By 2016, the list of construction projects had been greatly reduced. Currently, the target invested program lists 14 medical facilities, almost all of them projects from the Matviyenko period that have been subjected to protracted delays.
The construction sector professionals we surveyed estimated that, on average, one and half years are needed to design a large medical facility, while it would take another three years to build the facility. A small ambulance station could be built in a year. In Petersburg, however, actual times to completion are many times longer. It takes five to 15 years to build many facilities.
The Causes Are Plain to See
The Smolny believes that the virtual breakdown of its grand social policy plans has been due to insufficient funding. Thus, in 2017, Petersburg’s most renowned delay-plagued construction project, the Zenit Arena, gobbled up nearly a billion rubles. But this is fibbing, for, in reality, line items for financing the building of facilities that have obviously been abandoned were simply stricken from the budget, because no one was spending any money on them.
In addition, according to the city hall officials we talked to, careless contractors are to blame for construction delays and poorly designed projects, and for not calculating their risks. As you might guess, in this way of seeing the world, officials bear no blame for the fact they are surrounded by bunglers and swindlers.
But there is a more complex view of the issue. A source at one of the city’s largest hospitals told us that the ceremonial communiques and press releases issued by city officials belie the serious friction between the Construction Committee and the Healthcare Committee, as well as between the relevant vice-governors. For while hospitals and clinics are still under construction, the Construction Committee’s budget is replenished. They even purchase medical equipment. But when hospitals start treating patients, the money for that is allocated via the Healthcare Committee. This does not mean, of course, that the Construction Committee deliberately delays building projects. Of course, they want to get delay-plagued facilities off their hands as quickly as possible. But Construction Committee staffers bear no personal accountability for missed deadlines and the poor quality of construction.
A senior official, who has worked in the Healthcare Committee since the Matviyenko administration, says during the past four or five years he and Vice-Governor Olga Kazanskaya have had to wage a “quite serious fight” with the construction bloc in the Smolny. Describing the state of affairs in the Construction Committee, the official spoke of confusion and complained about the frequent change of leadership.
A telling example occurred when we asked Igor Albin, vice-governor for construction, to explain why the Botkin Infectious Diseases Hospital, whichas far back as 2015 he had publicly promised would soon reopen, was still not treating patients. However, he gave us no explanation, shifting the blame for the situation on Healthcare Committee staffers. In turn, they said it was the Construction Committee who was responsible for construction at the Botkin. Off the record [sic], they told us about a long list of defects and unfinished work to which contractors wanted doctors to turn a blind eye, making them sign off on the facility even though it was unfinished. Of course, a dispute like this could go on indefinitely until someone takes responsibility for the entire project.
Our source in the medical community, who spoke out about the construction community in a somewhat biased way, argued that no one except medical professionals had any interest in bringing facilities online. As a consequence, officials failed to make purchase requests for equipment, did not calculate the costs of logistics, and fined the medical facilities.
“There is way too much politicking and money at each stage. Everything is bureaucratized and corrupt in the extreme. What matters is that everything looks right on paper,” said our source.
He was surprised that, under Poltavchenko, the Construction Committee did not “tremble” for failing to execute the annual budget. Under Matviyenko, he claimed, failing to spend funds allocated under the yearly budget was considered an extremely grave offense for officials to commit.
Another senior medical administrator sees the root of the trouble not in corruption per se, but, rather, in the overall “muddle” and the fact that “the system doesn’t function.”
“Every staffer needs to know his function and the consequences that await him in case of failure. Step left, step right, and you can step on a land mine and blow up. Now, though, there is basically no accountability for mistakes, and no one feels personally to blame.”
The Construction Committee has no specific department or expert responsible for medical facilities. A personal curator is usually appointed to oversee each of them. A considerable part of the work is overseen by the Fund for Capital Construction and Reconstruction, which is controlled by the committee. Its longtime head was Andrei Molotkov. It was Molotkov who was criticized by Igor Albin for the numerous missed deadlines and unscrupulous contractors. Ultimately, in April 2016, Molotkov resigned his post, a job that is still vacant.
The Healthcare Committee employs one senior professional builder, Igor Gonchar, head of the Office for Medical Facilities Development. However, he deals with repairing and rebuilding the facilities his committee oversees. Since 2014, the Healthcare Committee has also been tasked with designing healthcare facilities. It was a seemingly reasonable step, meant to reduce the risk of drafting projects that were not suitable for physicians and had to be redone on the fly. In the last three years, however, the Healthcare Committee has not spent nearly 40% of the money allocated to it for design, i.e., 158 million of the 250 million rubles allocated in its budget for survey and design work.
Gonchar gave detailed answers to our questions, explaining that, out of eight planned facilities, the design work had been completed for six of them. Problems had arisen around a large project, estimated to cost 100 million rubles: new wings for Children’s Hospital No. 1. Due to the fact that, last year, changes were made to the law on historic preservation, the specs for facilities adjacent to historic Pozhelayev Park had to be redrafted. Similar difficulties have arisen with another problematic facility, the Dunes Children’s Rehabilitation Center. However, the difficulties having to do with historic preservation were in that case aggravated by the bankruptcy of the design subcontractor, Oboronmedstroy.
One of the most unpleasant consequences of delaying when medical facilities are brought on line is the premature purchase of expensive medical equipment. For when a senior official says a hospital or clinic is about to open, his underlings will willy-nilly have to purchase CT scanners and MRI machines. But then no one is responsible for the fact they have to spend several years in a warehouse, where they are not only of no use to patients but also run through their warranties and sometimes even are damaged due to improper storage conditions.
According to medical professionals, premature equipment purchases are also part of a cynical calculation by officials. They can report the city has already purchased everything a hospital in the midst of construction needs and demand its administrators move into a poorly constructed building.
“In my opinion, the people running the city are not very interested in healthcare, because it involves more political questions,” says Lev Averbakh, executive director of CORIS Assistance LLC (Saint Petersburg) [a private ambulance company]. “I think there no political will for it. No one says, ‘Let’s finish them!’ as with the stadium, for example. Besides, they have begun reducing the number of hospital beds available while changing the regulations. Under the new rules, not as many beds are needed in Petersburg as were required under the old rules.”
Another professional from the field of private medicine argues that Olga Kazanskaya, now the ex-vice-governor for social policy, and Healthcare Committee Chair Valery Kolabutin lack medical training.
Sergei Furmanchuk, co-founder of Hosser [a Petersburg-based company specializing in the design and construction of medical facilities], argues that problems arise when design work is done by people who have never done design work, and they do the construction work as well. He believes that each case has to be examined individually. However, it has to be acknowledged that having a lot of experience and even medical training, unfortunately, is no guarantee of impeccable work, as, for example, in the case of Rosstroyinvest and the Botkin Hospital, Petrokom or Oboronmedstroy, which is currently undergoing bankruptcy proceedings, abandoning several large healthcare facilities unfinished.
Translated by the Russian Reader
P.S. This article, its author, and Delovoy Peterburg obviously have a heavy axe to grind more against one faction of Petersburg city hall (still referred to as “the Smolny,” the headquarters of the Bolsheviks during the 1917 October Revolution). Normally, I would not translate and post this kind of potential journalistic hit job, although it does describe an urgent problem—the collapse of Russia’s post-socialist free healthcare system—more or less objectively, a problem I have touched on elsewhere in my translations of less dodgy printed matter.
But the author does signally fail to point out the role of Putin’s infamous “power vertical” in encouraging the lack of accountability among local officials, whether in Petersburg or Vladivostok.
Petersburg’s current governor, Georgy Poltavchenko, was first appointed outright by President Putin after the latter “upmoted” the city’s previous governor, Valentina Matviyenko, to the Federation Council, which she now chairs, after she had become deeply unpopular for, among other things, trying to ram Gazprom’s infamous Okhta Center skyscraper down the throat of Petersburgers, and flagrantly failing to clean snow from streets and rooftops during one particularly snowy winter, leading to massive residential property damage and a cityscape described by many locals as resembling what the city looked like during the 900-day WWII Nazi Siege.
Poltavchenko was later “freely” “re-elected” to the governorship in an election marked, as usual, by irregularities, running against a field of sock puppets that had been preemptively purged of any real competition.
From the get-go he has seemed more concerned with the matters spiritual and ecclesiastical than really running the city, which has looked especially dingy this winter, when it has become apparent that the previous street maintenance and cleaning system has collapsed altogether, possibly for a lack of poorly paid Central Asian migrant workers to keep it “affordable.”
Is is fair, though, to blame all local failings on the almighty power vertical? Probably not, and that is why I devote so much of this blog to Russians doing it for themselves at the grassroots, often against daunting odds and in the face of outright police repression. But their efforts won’t make a dent in all the issues they are tackling until the country becomes a real federation and power is devolved maximally to the regions, cities, towns, and neighorhoods.
In this light, it amounts to cynical mockery to repeatedly refer to President Putin as a “strong leader,” as the new Fascist Pig in the Poke did during his campaign and now after he has occupied the White Pride House in Washington, DC. Putin is not a strong leader in any sense, but his weakness has been especially apparent in the myriad ways his regime has disempowered Russians at all levels, making it increasingly difficult for them not only to solve but also even discuss the problems that concern them most.
Finally, I should point out that the original article in Russian features a map of the city marked with all the hospitals and other medical facilities built, currently under construction or abandoned under the municipal program described, above, as well as a table with more detailed information about each of these real, abandoned or planned facilities. I was not able to include the map or table in this translation. TRR
The Vicious Circle of Bad Governance
Vladimir Gel’man Vedomosti
May 17, 2016
Why is the quality of governance in Russia and some other post-Soviet countries much worse than we would expect based on their level of socio-economic development? According to numerous international assessments of governance, they are sometimes on a par with the poor and underdeveloped countries of the Third World, lagging behind similar countries in Eastern Europe. They are typified by bad governance, whose symptoms are perversion of the rule of law (the unrule of law), endemic corruption, the low quality of government regulation, and ineffective government policies.
Post-Soviet bad governance appears not as a grab bag of discrete, particular defects but as a consequence of the prevailing political and economic order in these countries. Its most vital feature is the fact that rent extraction is the principal purpose and main content of governance at all levels. So the mechanisms of power and governance tend towards a hierarchy (the “power vertical”) with a single decision-making center that seeks a monopoly position, while the autonomy of economic and political actors within the country vis-à-vis the center is relative and can be arbitrarily altered and/or restricted. In turn, formal institutions (constitutions, laws, etc.) are a byproduct of the allocation of resources within the power vertical. They are meaningful as rules only to the extent they contribute to rent extraction. As part of the power vertical, the government administration is divided into organizations competing for access to rent and informal cliques.
Bad governance is the most important means of maintaining this political and economic order. Since the state is governed merely in order to extract rent, corruption in its various shapes and manifestations is an essential device for achieving these goals, while the poor quality of regulation and perversion of the rule of law contribute to the stability of the power vertical. Bad governance acts as a stable but ineffective balance, which is restored even in instances of deep external shocks such as regime change (e.g., Ukraine and Kyrgyzstan), while the state apparatus proves less and less capable of implementing structural reforms for improving government efficiency.
What are the causes of this state of affairs? What the post-Soviet countries have in common has been a coup d’état from within on the part of rent seekers in the administrative apparatus and influential members of the business world personally associated with them. In an effort to privatize benefits and socialize costs in the process of governing, these players have deliberately and purposefully established and maintained inefficient rules of the game. But since their planning horizons are short-term due to the risks of the regime’s being overthrown and the questionable prospects of a smooth succession, they have behaved, in Mancur Olson’s terms, like “roving” and not “stationary” bandits. They plunder the resources of states at all levels of governance, and the term kleptocracy, previously used to describe African countries, comes across not only as an op-ed writer’s gimmick but also as a fair description of the rule of a number of post-Soviet leaders. (In particular, Karen Dawisha analyzes the Russian regime in these terms.) The end result is a vicious circle. The machinery of bad governance has been reproduced under different rulers, and attempts to overcome it (if such attempts are made) have run into strong resistance and with a few exceptions (such as Georgia during the presidency of Mikheil Saakashvili) have produced modest outcomes in terms of the quality of public administration.
In the work of researchers and the jargon of experts and consultants, bad governance (not only in the post-Soviet countries) has usually been associated with the “poor quality of institutions” and an “unfavorable institutional climate.” Although the poor quality of institutions is an attribute of bad governance, it is merely a consequence of the poor quality of regulation and the absence of the rule of law, and not the cause of the phenomenon. Institutions themselves are the outcome of the balance of forces and the interests of key players. Substituting the diagnosis of a disease with a description of one of its symptoms leads to incorrect courses of treatment. The desire to change only formal institutions by borrowing advanced foreign know-how or cultivating the best specimens on domestic soil without fundamentally rethinking the political and economic order as a whole either produces no improvements or even changes the situation from bad to worse.
The emergence and establishment of authoritarian regimes in the post-Soviet countries has generated an environment that promotes bad governance. The rare examples of high-quality public administration in autocracies may be briefly summarized by Dani Rodrick’s statement that for every Lee Kuan Yew in Singapore there are lots of Mobutus in the Congo. But electoral authoritarian regimes (such as Russia) are the worst option in terms of bad governance. They are typified by the politicization of public administration and economic management, which ranges from mobilizing voters at their workplaces to turning the state apparatus into a political machine for ensuring that voters vote for the ruling groups. As a consequence, a country is unable to develop decent incentives for improving the quality of public administration, in particular, regularly rotating senior personnel and making the upward career mobility of officials depend on achieved outcomes. On the contrary, the power vertical encourages officials to demonstrate political loyalty to the detriment of effective administration.
The paradox of post-Soviet countries is that even political regime change per se does not lead to a rejection of bad governance. On the contrary, it might even exacerbate the disease. Thus, although the fall of the Yanukovych regime in Ukraine in 2014 was followed by the emergence of a competitive democracy, the quality of public administration has not significantly improved since the days of Yanukovych. Often accompanied by a popular mobilization, the conflict among elites preserves the predatory nature of governance, involving rent extraction, even if it does lead to a change of ruling groups. The politicization of government and the economy and the incentivizing of loyalty at the cost of efficiency are inherent to post-Soviet competitive democracies almost to the same extent as electoral authoritarian regimes. However, given a favorable combination of other political conditions, democratization can open up a window of opportunity for the fundamental renewal not only of ruling groups but also the the entire state apparatus by breaking up previous hierarchies and effecting a series of structural transformations that can significantly reduce the detrimental effects of bad governance, if not vanquish it. Only in such cases does regime change not turn into a bad infinity that merely maintains the status quo in government. On the contrary, the entrenchment of ruling groups, limitation of vertical mobility, and restriction of channels for recruiting elites are means of maintaining bad governance: incentives for efficient management of the state and the economy are seriously undermined for the long term.
Although it is unrealistic to expect a rapid rejection of bad governance, numerous experts (e.g., Daniel Treisman) have suggested that as a result of long-term, stable economic growth and a generational change of leaders, the demand for rule of law and increase government efficiency would grow, thereby encouraging a clampdown on bad governance in the course of democratization, within a couple of decades. But how justified are these expectations when it comes to post-Soviet countries? There are no grounds for ruling out a different sequence of events. Governments can continue as before to handle the most serious challenges, avoiding disastrous failures, while maintaining the principles of bad governance unchanged. The emergence of a quasi-hereditary kleptocracy and a succession of corrupt and inefficient governments, focused on the extraction of rent, can put an end to any attempt to limit bad governance. Continuing the medical metaphor, it is worth noting that if a patient burdened by a serious illness not only ignores the advice of his doctors but also leads an unhealthy lifestyle, thus exacerbating his health problems, death is probably inevitable. Unlike individuals, however, states and societies do not die and disappear from the map of the world, however badly they are governed. Dominated by bad governance, they continue their existence, an existence that is often senseless, useless, and hopeless, complicating and worsening the lives of their citizens and increasing the risks for other states and societies.
When Process Is More Vital than Outcome
December 29, 2014 Zhukovskie Vesti
At six o’clock in the morning on 28 December 2014, Alexei Gaskarov, a defendant in the Bolotnaya Square Case, was transferred out of Butyrka remand prison in Moscow. Gaskarov will ring in the New Year while in transit to a medium security prison where he will serve his three-and-half-year sentence. In August, Zamoskvoretsky District Court in Moscow sentenced four defendants in the Bolotnaya Square Case—Gaskarov, Alexander Margolin, Ilya Gushchin, and Elena Kohtareva—finding them guilty of involvement in rioting and using violence against authorities. The recent decision of the appellate court was adamant: it upheld the lower court’s verdict. On the eve of the New Year’s holiday, Gaskarov summed up this difficult year, spent away from loved ones, and speculated on what is happening in the country.
Here is Gaskarov’s letter to the readers of Zhukovskie Vesti, written a few days before his transfer:
In December, the Laboratory of Public Sociology (a project based at the Centre for Independent Social Research in Petersburg) published the results of its study of civic movements in the wake of the 2011–2012 protests. The main conclusion was that the critical attitude to the regime had not faded, but had been forced to transform into different local initiatives and “small deeds.” The mass mobilization for fair elections and the experience of joint action had made public politics an integral part of life and an essential element of self-realization on a par with caring for loved ones and professional success.
Perhaps one of the key case studies in the research project was the evolution of civic initiatives in our own city, with the caveat that, by Russian standards, we have always had an active civil society and, as far as I know, Zhukovsky has to some extent been an example to all other Russian cities. The internal logic of the observed transformation is quite obvious and is reflected in the well-known dissident argument that those who give up freedom for sausage (stability) ultimately lose everything. The more strongly public space is constricted, the more noticeable are the crises in all other areas of public life, and not giving into pressure is a very rational choice in terms of the common good, even if one has to retreat at some points.
With its demands for democratic reform, the tentative Bolotnaya Square movement cannot lose separately from the rest of society, even if for the majority it remains a case of protest for its own sake. For the right question to ask in the current crisis is not why oil prices have fallen, but why nothing has been done over the past fifteen years to overcome our country’s economic dependence on the vagaries of foreign markets.
We cannot know the reasons for certain decisions, and I am far from saying that all those in power are “crooks and thieves,” but there is no doubt a society that has chosen an authoritarian model of governance is incapable of building an effective economy. Consequently, the harder the screws are tightened, the closer the denouement.
The lack of political competition leads only to an increase of incompetence in decision-making. For the sake of mythical manageability, the system is deprived of a complex but effective system of checks and balances, turning into a primitive vertical, which functions in an improvisatory mode.
A simple example from recent days is the Central Bank’s independence. The president’s friend needed 625 billion rubles,* and they up and printed them no questions asked, instantly causing the currency market to collapse and transferring all the costs to the entire population. On television, of course, they explained that “the West” and a “fifth column” were to blame for everything. This would not be possible in any democratic country. In Russia, however, absolute power goes on corrupting absolutely.
Despite the fact that there was more talk of dignity, freedom, and intolerance of hypocrisy and lies at the opposition rallies on Bolotnaya Square and Sakharov Avenue in 2011–2012, the regime faced a fairly simple choice: either dialogue and reforms, or crisis and stagnation, which still means change, ultimately, but at a completely different price. It is almost an axiom, so people should not get upset if they were unsuccessful, for example, in defending a forest, challenging vote rigging in court or changing urban planning policies. The experience of collective action, rather than short-term outcomes, is vital in its own right.
In Argentina in 2001, the economic crisis produced such contradictions between society and authorities that the people’s only demand was Que se vayan todos! (“Out with them all!”). And the world witnessed one of the largest societal reconstruction projects based on self-organization and local government, something that had seemed unreal, as it does now in Russia. Who could have predicted the shameful flight of the once-strong Yanukovych in 2013? It is possible that if there is no liberalization and political thaw, at some point those who now appear important and confident will just disappear, and no one except we ourselves will be able to make decisions for us. And it will be right at such a moment that we will need the know-how of collective action and a vision for the future of both our city and the country as a whole.
* In the original, Gaskarov writes that “the president’s friend”—an obvious reference to Rosneft chairman and Putin insider Igor Sechin—needed “25 billion rubles.” I have corrected this to the figure of 625 billion rubles cited in the press as the amount of Rosneft’s recent bond issue, especially because before his arrest, Gaskarov worked as an economist and would not otherwise be prone to such mistakes. The figure of 25 billion rubles is thus either a typo or reflects his restricted access to information.
Editor’s Note. This translation was previously published, with an introduction and afterword by Gabriel Levy, on People and Nature. Translated by the Russian Reader. Image courtesy of personalsuccesstoday.com