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This is an article I wrote nearly six years ago
while in Moscow. The cash flow and the national debt
in Russia have certainly changed thanks to higher
oil revenues. If you have been to Russia lately,
tell me how it has changed from what I witnessed
here.
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MOSCOW,
RUSSIA
(October 21, 2002) — A car bomb explodes at a Moscow McDonald’s. Two
days later, a regional governor is assassinated on a busy Moscow
street. Four days later, Chechen extremists take theater-goers
hostage leading to more than one hundred deaths.
I was there
days before the week of carnage in Moscow. A potential client
flew me to Russia to see if my production company would produce
videos for a joint Russian-American investment fund. Daly
Productions has negotiated a contract. But even if we hadn’t, I
can still make the case for Russia – despite Chechen rebels,
organized crime, and recent financial failures.
The main
reason is the people I met. But the most important reason came
from one woman’s gasp.
She is the
wife of one of our Russian hosts. The gasp echoed over the
twelve vodka-laced voices enjoying a feast of meats, cheese,
salad, and wine. Neither Chechens nor organized crime caused the
two-second jolt of terror. It was far worse. She was staring at
Joseph Stalin.
The ghost was
really an impersonator. He was an employee at Stalin’s Bunker,
an elaborate underground hideout built for the Soviet leader in
the 1930’s, now a museum and the setting for dinner.
Stalin’s
double toasted us then departed to his working class family. Yet
the ghost of the real Stalin lingered. Call it a frightened
glance over an historical shoulder.
Alexander
Nikinov, a colonel in the Russian Air Force, raised a glass to
his American guests. “We are not Americans and Russians. We are
people working together.”
Victor, a
successful entrepreneur, also toasted: “Let us remember the
times we were allies in the Great War.”
There was no
talk of the Cold War or the Cuban Missile Crisis, just
friendship from a distant, victorious past. Despite recent
events in Moscow, most Russians are gasping in horror about the
past, not the future.
Giving birth
to capitalism has been a long, painful delivery for Russia. But,
like parenthood, a free market society will be worthwhile
eventually.
One labor
pain is the lack of western-style service. At the Moscow
Airport, I needed directions to baggage claim. “Excuse me,” I
asked a female airport employee, “Do you speak English?” Without
missing a step or an English syllable she said, “No, I do not.”
In many
restaurants you cannot deviate from the menu. At the Metropol
Hotel bar, I ordered a turkey sandwich. I asked for Swiss cheese
on the sandwich. “It’s not possible,” the waiter said – even
though Swiss cheese was on the menu with another sandwich.
That waiter
was the rule; Nadia was the exception. Nadia is a waitress at a
chain restaurant called Yaukey Paulkey. Victor, our translator,
gave Nadia our order; she wrote it down; then she read it back
to him perfectly. We complimented her for her service; then our
Russian guests asked for her name and number to consider her for
future work.
Another
breach in the Russian economy: Bribes. Again, at the Moscow
Airport, a customs guard spotted the computer boxes I was
delivering. He apparently wanted dollars in return for not
putting the boxes through a lengthy Russian paper shuffle. One
of my client’s Russian business partners talked to the guard
privately; then the computers were released.
An hour
later, our Russian driver made an illegal U-turn and got pulled
over by a police officer, who then escorted him inside a police
van, out of sight, for ten minutes. Our driver kept his rubles,
though. He had better government connections.
Even the
Russian adoption agencies have joined the bribery game. An
American businesswoman we met told us this story. An American
couple went to Russia to adopt two children only to discover the
adoption fee had doubled well into the tens of thousands. The
businesswoman was summoned to Moscow to pay the added fee
(bribe) before the children could be taken to the United States.
Many Russians
resent the shakedowns by civil servants. They use jokes to
endure it.
A man is
stopped by a Moscow cop. But before the cop says anything the
man tells him, “I have a political joke for you.” The cop, who
is a part of the political structure, is astounded. “Why would
you tell me a joke like that?” “Don’t worry,” the man says, “I
will tell it to you slow and twice.”
In defense of
Russian civil servants, they are paid poorly and for a good
reason. Russian President Putin has delivered three consecutive
balanced budgets. Any surplus pays off the country’s debt from
the financial collapse of 1998 – not to salary raises. Seen this
way, you realize the Russians are suffering from the pains of
progress.
However, not
all Russian government workers are corrupt.
Andre is a
Russian sailor. He makes one hundred dollars a month to support
three boys and his wife in a small apartment. To survive, he is
part of the new underground Moscow economy. Two days a week, he
drives around Moscow picking up people who need a ride. A
traveler simply sticks out a thumb, a driver stops, you
negotiate a fee, and you get to your destination. No taxi
authority is necessary.
Like Andre,
many Russians are learning how to work the system.
Kirill
Galetski is twenty-five and Russian-born. He looks like a young
Johnny Unitas with the baby face and blond crew cut. He spoke
English with an All-American accent, too.
Kirill’s
American-born mother and Russian-born father divorced when he
was five. Kirill went to America with his mother where he
eventually earned a journalism degree from Portland State
University.
When I met
him, he was writing for an English language newspaper while
interpreting during a business seminar in Moscow.
I asked him
why he returned to Russia. His answer floored me. “I want to
act,” he said. Kirill was attending one of the world’s great
acting schools: The Stanislavsky School of Acting.
Russian men
speak with great pride about another treasure: Russian women.
Every block,
a super model look-a-like walks by: tall, thin, dressed as if
they strolling The Champs Elysee or Fifth Avenue; many blondes
but some exotic Mediterranean beauties as well.
“Russian
women are loyal and traditional,” Kirrill offered. The typical
scene at a McDonald’s was of a beautiful woman, dressed in
fashionable business attire, with a young child and a husband.
“There’s not much of a feminist movement here,” he said.
That has led
to a growth in dating or husband-finding agencies in Russia for
American men. Alla, a cherubic twenty year old who translated
for me one day, said many of her friends had applied at one of
the agencies.
There are
also plenty of corporate executives popping up in Russia as
well. We met an owner of a software company; among his employees
are 6 PhD’s. His software will provide immediate translations
from one language to another for text and voice.
Another man,
a developer, had plans for hotels and office buildings.
I spoke with
a group of businessmen who obtained scientific know-how from
Russian military experts to create new technology, including a
way to analyze blood without having to draw it from the person.
A scientist,
who had worked at Lawrence Livermore, was creating a device to
detect biological and chemical agents.
Las Vegan Rex
Farris, the owner of Global Express Capital Corporation, marvels
at the opportunities in Russia. Rex is the client who created
that half-billion dollar investment fund for Russia.
He believes
Russia’s abundance of land and untapped natural resources
resembles “America after World War II.”
The numbers
confirm that. The IMF reports that Russian GDP will increase
4.4% for 2002 and 4.9% for 2003. The Russian stock market jumped
82% over the past two years, according to the Wall Street
Journal. “Foreign investors account for 20% of the money
invested in Russian stocks,” the article on November 20, 2002
states.
That’s on
paper, though.
I witnessed
plenty signs of a society trying to blossom. A woman stood in
front of the Moscow Prosecutor’s Office holding a sign. She was
accusing Moscow’s mayor of murder.
Three of
Moscow’s state-run museums, dedicated to preserving the history
of the Russian military, did not varnish the truth. My Russian
guide showed me photos of nine Russian generals, all members of
the Russian Military Council in the 1930’s. Stalin executed 77
of these men in 1936. “We lost the top people of our army,” my
guide said. “The Germans knew it would be a good time to
invade.”
She also
guided me to displays honoring the men and women who fought in
Afghanistan and Chechnya, Russia’s Vietnams.
Still, the
Russians take great pride in their military victories –
especially in World War II. One artifact was a jacket worn by
Hitler that I actually touched. It had burn marks so it must
have been worn during his final days. The inside pocket had the
inscription: tailored for Adolf Hitler.
The museum
also had two huge photos displayed on a huge wall. One photo was
the massing of Russian soldiers in Red Square as they prepared
for the Nazi assault. The other photo was the victory parade in
Red Square as a staff that bore the name Adolf Hitler was
carried by one of the Russians. The actual staff rests on the
ground at the base of the photo.
Colonel
Nikinov oversees all the military museums. He says he wants to
display the museums’ exhibits throughout the world — mainly the
United States.
Nikinov is a
handsome man with white hair and a young face; one of those
people that make the world a good place. At our final dinner, he
prefaced his toast like this: “You know I don’t care about
making money. I care about friendships and peace between our
countries,” he said. Ironic when you consider for most of his
career, he was trained to kill Americans.
Nikinov made
me think of Tom Friedman, the foreign affairs columnist for The
New York Times, whose latest book, “Attitudes and Longitudes” is
about the new world after September 11th.
Most of the
book is about the Arab world. But Friedman writes about a trip
he took to Moscow. He saw the early stages of capitalism in
Russia and compared it to the Arab world.
In my final
toast to our Russian friends, I paraphrased Tom Friedman. I
admit to being eloquent, but the credit goes to Friedman and
vodka.
“Tom Friedman
says the world is no longer east versus west or free market
versus communism. It is the civilized world against the
uncivilized world. At the height of the Cold War, Friedman says,
the Soviets still cherished life. You knew,” I said pointing to
my Russian guests, “destroying us meant also destroying
yourselves. Neither of us did it. We cherish life unlike the
terrorists today destroying the world and themselves. What we
are doing here tonight, having dinner, telling stories, making
lasting friendships, that is what civilization is all about. So,
a toast to civilization, my friends.” |