Category Archives: Strategic Deterrence

Russia 2030

Global Trends 2030:  Alternative Worlds

Global Trends 2030: Alternative Worlds

The NIC has released its latest Global Trends publication.  Hat tip to Newsru.com and Igor Korotchenko for taking note of it.  As usual, and rightly, the document focuses more on “megatrends,” and less on individual countries.  Nevertheless, here are excepts of its forecast for Russia.

Under the “Changing Calculations of Key Players,” the NIC says:

Russia’s strategic calculations will depend to a great extent on whether Russian leaders decide to increase Russia’s integration into the international system and mitigate the threat of future armed conflict or whether they choose to continue Russia’s relative isolation and mistrust of others, exacerbating interstate tensions. Russia has serious concerns regarding the threat posed by a rapidly expanding China, particularly Beijing’s growing appetite for natural resources which could eventually encroach upon the Russian Far East and Siberia. Russian leaders believe that they need to be wary of the potential for the US and NATO to intervene in a conflict involving Russia and one of the former Soviet republics.”

The section on military trends has the following:

Nuclear Disfavor vs. Nuclear Renaissance. Nuclear ambitions in the US and Russia over the last 20 years have evolved in opposite directions. Reducing the role of nuclear weapons in US security strategy is a US objective, while Russia is pursuing new concepts and capabilities for expanding the role of nuclear weapons in its security strategy.”

The following appears in a textbox entitled “Russia:  Potential Global Futures.”

“Russia’s role in the world during the next two decades will be shaped by the rising challenges it faces at home as well as in the global environment. Russia’s economy is its Achilles’ heel. Its budget is heavily dependent on energy revenue; efforts to modernize the economy have made little progress; and its aging of the workforce will be a drag on economic growth.”

“Russia’s population is projected to decline from almost 143 million in 2010 to about 130 million in 2030. Although Russia’s fertility rate is similar to that of many European countries and aging populations are also a drag of European economies, life expectancy is about 15 years lower for Russians than for Europeans: since 2007 the size of the Russian workforce has been declining and it will continue to do so for the next two decades.”

“However, Russia’s greatest demographic challenge could well be integrating its rapidly growing ethnic Muslim population in the face of a shrinking ethnic Russian population. There are now about 20 million Muslims in Russia, comprising about 14 percent of the population. By 2030, that share is projected to grow to about 19 percent. Russia’s changing ethnic mix already appears to be a source of growing social tensions.”

“To enhance its economic outlook, Russia will need to improve the environment for foreign investment and create opportunities for Russian exports of manufactured goods. Russia’s entry into World Trade Organization (WTO ) should provide a boost to these efforts and help Moscow to diversify the economy: by one estimate Russia’s membership in the WTO could provide a substantial boost to the economy, adding 3 percent to GDP in the short term and 11 percent over the longer term.”

“Russia’s relations with the West and China are also likely to be a critical factor in determining whether Russia moves toward becoming a more stable, constructive global player during the next two decades. We see three possibilities:”

1. Russia could become more of a partner with others, most probably, in a marriage of convenience, not of values. Russia’s centuries-long ambivalence about its relationship with the West and outside is still at the heart of the struggle over Russia’s strategic direction.”

2. Russia might continue in a more or less ambivalent relationship with the other powers, but over the next 20 years this path would likely be a more troublesome one for international cooperation if Russia rebuilds its military strength and must contend with an increasingly powerful China.”

3. Russia could become a very troublesome country, trying to use its military advantage over its neighbors to intimidate and dominate. This outcome would be most likely if a Russian leader were facing rising public discontent over sagging living standards and darkening economic prospects and is looking to rally nationalist sentiments by becoming much more assertive in the Near Abroad.”

There’s not a lot new here.  But it can’t go without comment.

Are the Russians really not integrated into the “international system?”  Or do they obstruct because they don’t like the outcomes of the “system’s” operation?  Moscow will probably never (at least not for a long, long time) agree with Western views on mitigating a future armed conflict, especially in a former Soviet republic.  Russia always evinces more worry about the U.S. and NATO despite the claim of its “serious concerns” about a threat from China.

One can’t be sure what’s meant by “pursuing new concepts and capabilities” for nuclear warfighting.  The Russians are active developing their strategic nuclear forces for two reasons.  First, conventional force problems.  Second, U.S. ballistic missile defense.  Both require ensuring their deterrent is viable, now and somewhat down the road.

Yes, it’s the economy stupid (and demographics too).  It’s hard for anyone to say what will happen with Russia’s economy, but the latter’s pretty much destiny at this point.  Russia will need more than a better foreign investment climate and WTO to improve its long-term economic prospects.  If years of windfall hydrocarbon revenues don’t do it, perhaps open politics, impartial rule-of-law, and serious anti-corruption efforts might be the path to a modernized, diversified, and stronger economy.

Are Russia’s external relations with the West and China critical in its  behavior as a “global player?”  Or does that behavior stem more from the country’s internal evolution or lack thereof?

The three possibilities look pretty familiar — pretty good Russia, not as good Russia, and bad Russia.  We’ve had the first and second mostly, and a taste of the third occasionally, over the last 20 years.  And elements of one and two, or two and three, can occur at the same time.

Overall, the Russian discussion in Global Trends 2030 is disappointing.

Putin on Nuclear Forces and Aerospace Defense

Today’s meeting on implementing GPV-2020 (the third thus far) was devoted to nuclear forces and aerospace defense.  However, President Vladimir Putin had little specific to say, at least in his published remarks.

He obligatorily noted how VVKO and especially SYaS bear “special responsibility” for Russia’s security, territorial integrity, and global and regional parity and stability.

VKO, the president said, must not only be in permanent combat readiness to defend military and state command and control facilities against a potential enemy’s attack, but also “provide clear and effective coordination with other services and troop branches.”

In other words, lots of air and aerospace defense assets don’t belong to VVKO, and their job is to integrate them into a network.

On the nuclear side, Putin said Russia isn’t looking for an arms race but rather to ensure “the reliability and effectiveness of our nuclear potential.”

To reequip SYaS and VKO, the Supreme Glavk indicated Russia intends to allocate a “significant part” of the total resources for GPV-2020, but, again, nothing more specific.  By 2020, SYaS is supposed to have 75-80 percent modern weapons systems, and VVKO not less than 70 percent.

And that’s all we learn about the meeting.  Or almost all.

Kremlin.ru provided a participant list that’s a bit interesting.  Many officials and industry leaders you’d expect attended.  But some were noticeably absent — missile designers from MIT, missile builders from Votkinsk, and the RVSN Commander.  Surprisingly, the general director of the Makeyev design bureau was present.

Not Enough Resources

Konstantin Makiyenko (photo: Radio Mayak / Kirill Kurganov)

Still parsing reaction to Prime Minister Putin’s manifesto on the army . . . there are lots of positive reviews and recapitulations.  But commentators who don’t exactly agree with Putin are far more interesting and illuminating.

One particularly fitting this description is Konstantin Makiyenko, who makes succinct, obvious, and bravely ventured points.

Makiyenko, Deputy Director of CAST, is by no means anti-regime.  He is, however, honest.  His observations appeared in Interfaks-AVN, and you can read them courtesy of VPK.name.

He concludes simply that Russia may not have the resources for the plan of major army and defense industry modernization Putin laid out in his campaign article:

“The Russian economic system, which, with oil prices at 100 dollars a barrel, provides only four percent GDP growth, isn’t capable of being the base for realizing the plans outlined.”

AVN says Makiyenko doesn’t exclude that, owing to insufficient budgetary resources, the Finance Ministry will have to work out plans for future cuts in spending on national defense.  But, at the same time, he apparently said Putin’s manifesto on the army wasn’t populist, and he has “no objection” to majority of the Premier’s proposals.

But Makiyenko lays down a sharp, if understated, critique of Putin’s stewardship of Russia’s defenses since 1999.  Agreeing that nuclear deterrence has been the only guarantee of Russia’s security, Makiyenko continues:

“In this relation, the current situation is in no way different from the state of affairs in the 1990s, when, as it’s justly noted in [Putin’s] article, ‘other weighty material arguments didn’t exist.'”

“. . . adequately evaluating the situation now, one has to admit that even today other ‘material arguments’ haven’t appeared for Russia during the last 12 years.”

“In this connection, the thought about how one should particularly attentively follow the appearance of new technical means, for example MD systems and long-range, precision non-nuclear means, capable of devaluing Russia’s nuclear deterrence potential, are very important.”

So, conventional weakness drives Russian objections to MD, one supposes.

AVN also indicated Makiyenko is skeptical of Putin’s call for public-private partnerships and more private capital investment in the OPK given that the once-and-future Supreme CINC nationalized first-class companies like Irkut and Saturn.

SSBN Patrols

A Delta IV SSBN (photo: ITAR-TASS)

Not all interesting commentary on the Navy’s future came from Deputy Prime Minister and OPK steward Dmitriy Rogozin last week.  

Media outlets quoted Rogozin saying Russia would soon be able to build an aircraft carrier and six submarines a year.  Subsequently, he claimed he was misquoted, and actually said Russia would be finishing renovations on the Admiral Gorshkov for India and building/repairing six submarines this year.

Navy CINC Admiral Vladimir Vysotskiy also had curious comments of his own.

According to ITAR-TASS, on Friday, Admiral Vysotskiy told an audience that, by June or a little later, Russia will resume continuous SSBN combat patrols.  Then he added, “We’ve waited 26 years for this event.”

That would be, or will be, quite a news story.  To see where the Russians have been on SSBN patrols, consult Hans Kristensen.  He reported Russia conducted ten SSBN patrols in 2008, and might have reached, or be headed back toward, a continuous SSBN combat patrol posture.  But there is, apparently, no patrol data for 2009, 2010, and 2011.

A continuous SSBN patrol would be in line with more strategic bomber patrols and mobile ICBM deployments.  It would make sense for a Kremlin worried about U.S. insistence on fielding missile defenses.

But the difficulty comes with doing it.  Russian SSBNs are down to ten aging boats — six Delta IVs (possibly only three active due to overhauls and repairs) and four Delta IIIs.  The newest Delta IV is 22 years old, and the newest Delta III is 30.  Constant patrols could stress this force to the limit. 

Pinning a return to constant SSBN patrols to the year 1986 [26 years ago] is interesting too.  Did General Secretary Gorbachev order the Navy to reduce patrols?  Did the Yankee I SSBN (K-219) sinking near Bermuda have anything to do with it?

Vysotskiy said there’s noticeable momentum in the fleet, and the state’s leadership sees its development as a priority comparable to VKO.  He continued:

“Yesterday I together with directors of ministries and departments ranking as ministries and deputy ministers conducted a very serious event in Severodvinsk where the shipbuilding program to 2035 was roughly reviewed.  Our Duma, Federation Council have long awaited it, in order to review it.  Proposals were prepared, I won’t say what kind, in my view faithful to taking fleet construction to the state level, lifting it somewhat from a ministerial ‘slot.'”

Vysotskiy sees putting the Navy’s development before the national leadership as a panacea for its ills.  He’s probably long felt the Navy doesn’t get a fair shake from the Defense Ministry.  But it’s likely even Putin 2.0 won’t be able to give the Navy the kind of attention and resources its CINC wants.

The Russian Threat

DNI James Clapper

Ahhh, the annual testimony . . . and a story based mainly on English sources for a change.  Thanks to VPK.name for picking up the Vzglyad piece which printed a few lines on what Director of National Intelligence James Clapper’s unclassified Worldwide Threat Assessment testimony to the SSCI had to say about the state of the Russian military.  Otherwise, this would have been overlooked.

A few preliminaries . . . Clapper is a tall septuagenarian reared professionally in the Cold War who manages to keep on climbing the career ladder.  His bulbous dome once prompted underlings to dub him “the Martian” (although it’s known he’s actually from Remulak).  But analysts liked him (at least long ago) because he really seemed to listen to them.

Now on to his testimony, or statement for the record.  Clapper didn’t write it, nor did his staff.  It’s carefully crafted compromise language melding the views of CIA analysts mostly, and DIA analysts and others a little.  One guesses the text hasn’t changed too much from previous years.  A comparison of changes (especially adverbs) from year to year might be more revealing than what the document says.

Thanks to the Washington Post for printing the DNI’s sanitized testimony.  Unlike the impression you’d get from the Russian media, Clapper’s statement isn’t all about the Russian threat.  It definitely isn’t 25 years ago when the USSR was front and center throughout.  Russia appears first on page 7 as a state-based cyber threat and page 8 as an economic espionage threat.  Then it retires to page 20 where a mainline discussion of the country finally begins.

Domestic politics gets one-third of a page; foreign policy (you can read it yourself) gets two-thirds.  The document boldly predicts “more continuity than change” under once-and-future president Vladimir Putin “at least during the next year.” 

But that’s just the problem, isn’t it?  Putin can’t change his fragile system of rule without toppling the entire shaky edifice.

The reader’s also told (shockingly) that Putin’s unlikely to be an “agent of liberalization,” will continue protecting his wealthy cronies, and will try to placate the masses (though Russia’s moderate economic growth rates won’t support this). 

This straightline type of assessment is easy and safe to stick with, especially for one year.  Continuity is always the baseline scenario with a sufficiently short timeframe.  

Good thing the document didn’t have to judge whether Putin will complete his third term in office, the conditions under which he could be forced out, or who might take his place. 

One might have even settled for the simple conclusion (that many Russians are making):  Putin’s regime has exhausted its potential after 12+ years.  It’s unlikely to last another six, let alone another 12, even if it’s impossible to foresee exactly what Putin’s undoing will be.

Maybe the real answers are in the classified testimony.  No, not likely.

The next page has 3 paragraphs, two-thirds of the page, at last, on the Russian military.  The first is lost to a largely factual effort to explain the military’s reforms since late 2008.  The second sensibly concludes that:

“. . . funding, bureaucratic, and cultural hurdles—coupled with the challenge of reinvigorating a military industrial base that deteriorated for more than a decade after the Soviet collapse—will complicate Russian [rearmament and force modernization] efforts.”

One could say deteriorated for nearly two decades, and there are many Russian observers who believe it can’t be revived.  Surprising nothing’s said about buying weapons and arms technologies abroad.  Again, perhaps in the secret version. 

But at least this testimony doesn’t assume the military and OPK will automatically and absolutely get every ruble and every system talked about in the context of GPV 2011-2020.

The third paragraph tries to say what all this means.  Russia will have the military might to dominate the post-Soviet space (already largely true for the past 20 years) but not to threaten NATO collectively. 

Which raises an interesting point.  Is this document insinuating  Moscow might try to threaten one NATO member individually to test the alliance’s reaction and cohesion?

But, in the end, the text says until improvements in conventional capabilities really reach Russian troops, the Kremlin will continue looking to its nuclear forces to offset its weaknesses vis-a-vis potential opponents with stronger militaries.

You can read on yourself for more on Central Asia, the Caucasus, Ukraine, and Belarus.

Who Will Own VKO (Part I)

Retired General-Major Aleksandr Tazekhulakhov — Deputy Chief of Troop Air Defense in 2005-2009 — has written on military reform (and on VKO) before, but his piece in Friday’s Nezavisimoye voyennoye obozreniye caught one’s attention.

Let’s get to the main points of his very long, but interesting, article.

Essentially, Tazekhulakhov asks whether trying to decide which service or branch will own VKO isn’t the most expensive and useless project.

The former air defender suggests that, if the character of future wars, dangers, and threats are considered:

“. . . it is essential to give priority to the development and improvement not of separate services and troop branches of the Armed Forces, but of strategic and operational-strategic reconnaissance-combat (offensive and defensive) systems, which are being established on the basis of troop (force) groupings on strategic axes with concrete combat missions.”

Tazekhulakhov says President Medvedev is looking for a unified VKO system, while Defense Minister Serdyukov is planning to deliver VKO Troops [войска ВКО].  The former one-star says:

“Considering that the creation of a system of aerospace defense (VKO), or of VKO Troops could turn out to be the most visible, expensive and at the same time most senseless and useless project, it’s essential to review once more the existential problems and variants for solving this complex mission.”

He stresses that the national missions of VKO can only be resolved according to a common concept and plan, under united command and control.  And he argues against near- or medium-term thoughts of providing equal defense for all Russian territory and borders.  He cautions against thinking the combat potential of VKO systems might someday compare with that of strategic nuclear forces:

“No country in the world today has or can foresee in the medium-term future a missile defense [ПРО] system which would be capable of repulsing a mass (counterforce) missile-nuclear strike, or even a strike consisting of several ICBMs.  Therefore it’s expedient to limit the scale of employing VKO systems to the following framework:  repulsing strikes employing single or small groups (3-5) of ICBMs, IRBMs, operational-tactical missiles, tactical missiles, single, group, or mass strikes by other means of air attack, destruction (suppression) of satellites and other space objects.  Limiting the scale of VKO system employment will allow for reducing expenditures on its maintenance, for making combat missions specific, and for concentrating efforts on developing the most important system components.”

Establishing the VKO system, according to Tazekhulakhov, is a two-fold task. 

Firstly, PVO, PRO, PRN, and KKP [air defense, missile defense, missile attack early warning, and space monitoring] systems have to come under unitary command and control.  This, he says, is an administrative and organizational task that can and should be done in the timeframe indicated by Medvedev.

Secondly, and more troublesome, is the process of uniting the various supporting elements of VKO — what Tazekhulakhov calls the “hidden part of the iceberg” or the “horizontal system components.”  They include reconnaissance and warning, fire and functional defeat (suppression), command and control, and material support.

He claims, however, that, for 30 years, state leaders, military leaders, military scientists, and industry representatives have tried without success to resolve this problem.  It has administrative, functional, technical, algorithmic, and programming aspects requiring resolution on a state level rather than a departmental [Defense Ministry] one.

Thus, Tazekhulakhov limits his discussion to the possibilities for solving the first (“tip of iceberg” or “vertical system components”) problem.

To be continued.

Dollar’s Inevitable Collapse Threatens Russia

Segodnia.ru recently publicized a report entitled Armed Forces:  Year 2010, prepared by the Center for Strategic Assessments and Forecasts (TsSOiP or ЦСОиП).  It interviewed one of the report’s authors – retired Colonel and Doctor of Technical Sciences, Aleksandr Fomin – about the state of Russia’s military and threats to Russia.

How does one characterize Colonel Fomin?  In this interview, his thoughts range from a little far right to far left / neo-Marxist.  Yet he sounds like President Medvedev in 2009 calling for a new world financial order to break the dollar’s hold on the international economy.  But that resemblance disappears once he starts excoriating Russia’s elite — co-conspirator in U.S. domination of Russia.

He generally argues the dollar’s inevitable collapse will lead to conflict or war, for which Russia is poorly prepared.  His arguments will appeal to some, but they represent a somewhat simplistic view of international economics and finance.  The rest is a short geopolitical treatise we’ve heard many times about how Russia arrived in its current condition.

Take heart, however, the analytical report is more interesting and original, but it’s 40-odd pages, so some patience on your part will be required.

By way of foretaste, on with Fomin’s interview . . .

Asked simply what’s going on in the Russian Army, Fomin answers:

“There’s a myth that the incredible militarization of the country and rebirth of its military might almost to the level of the Soviet Union has happened in recent years.  This doesn’t correspond to reality – in reality, as the analysis shows, the Russian Armed Forces have degraded.”  

“If we look at the trend of general financing of the Armed Forces for the last 10 years , adjusted for inflation, then we get as a true expression of the financing volume are 4% increases per annum on average.  At such a growth rate, it’s possible only to offset depreciation, but not guarantee the development of the armaments system.  Now recall corruption, and you find that in reality the Armed Forces didn’t develop, but degraded.”

“Today, in the spirit of political correctness, it’s believed that Russia’s main military enemy is international terrorism. They’re ashamed to identify the U.S., NATO, and China as the real potential enemies.  But if we call things by their names, then today Russia is inferior to these probable enemies in the size of its Armed Forces by 20 times in the West and 35 times in the East.”

We’ll have to read his full report to figure out how he came up with these numbers. 

Fomin goes on to say that Russia’s nuclear weapons won’t save it either, since Moscow’s elite keep its money, and educates its children, in the West.  He concludes flatly:

“It is very probable that Russian nuclear weapons will never be employed.”

Next Fomin constructs his scenarios for future wars and threats to Russia:

“In the coming decades, and possibly, years the U.S. and EU’s problems with China will inevitably sharpen, the cause of them is the struggle for energy resources.  Iran, Pakistan and . . . Russia will be drawn into this confrontation.  They will start to use our country as a buffer in the military resolution of the China problem.”

The interviewer asks Fomin what threatens Russia externally, what geopolitical positions has it lost, which ones does it still hold?

“The main threat not just to Russia, but also the world as a whole comes from the virtual world financial system, based on the American dollar, which for a long time already hasn’t been supported by real assets and is held up only by U.S. military might, the potential of which allows them to oppose everyone else in the world.  But sooner or later this system will collapse, for internal reasons.  But however the collapse occurs, its agony (possibly the current financial crisis is the beginning of this agony) could plunge the world into the Third World War.”

“As already said above, today Russia is practically undefended.  Its political leadership, like the appanage princes of Rus in the 12th -13th centuries, are trying to hold off threats  by means of multibillion tribute payments allegedly into international reserves.  However, in Russia the easily accessible oil, could soon be gone:  according to expert evaluations, 30% of wells are already unprofitable.  Then Russia will simply be of no interest to the rest of the world . . . .”

“If we talk about Russia’s lost geopolitical positions, then of course – this is NATO’s expansion to the East, the reinforced U.S. role to Russia’s south (Afghanistan, Iran, Pakistan, Georgia).  It’s possible to add the real threat of losing the Far East and Siberia to this.  They [NATO and U.S.] managed to spoil [Russia’s] relations with Ukraine, Belorussia, and Iran.”

Asked about the threat that Russia is becoming ensnared in U.S. “anti-Iran” policy, Fomin responds:

“. . . the U.S., economy of which is based on proliferating the dollar throughout the world and managing oil prices, has a very painful relationship to [Iran’s] nuclear energy development – to oil’s energy competitiveness.  Especially in the Near East.  In its relationship with Iran, Russia turns out to be hostage to its own financial system:  if the country holds its reserves in other countries’ hard currency, then it can’t oppose them on their main positions in the military-political sphere.  Some disagreements are possible, but there can’t be a lengthy tendency toward the complication of relations – in the case of a sharp worsening it would be easy to block hard currency accounts.”

“And, Russia for 20 years already has been unable to conduct an independent foreign policy, since it is tightly integrated into the world economic system dominated by the U.S.”

“Russia risks losing the remains of its authority among Muslim countries, after abrogating its earlier agreed supply of defensive weapons (in the first place, S-300 surface-to-air missile systems) to Iran.” 

Asked again about threats, Fomin says:

“External threats have been discussed above.  To this it’s possible to add that, as a result of the actions of the financial authorities of the G20 countries, the fundamental bases of the current crisis haven’t been eliminated.  Because of the fact that some paper (toxic assets) has been traded for others (newly printed dollars, euros, and pounds), the situation hasn’t changed principally.  The disease has been driven inside and its symptoms are still appearing to a lesser degree.  But it definitely will crawl outside again.  Therefore, the financial-economic crises will continue further.  Sooner or later the American dollar unsupported by real assets, as a world currency, must collapse.  Several types of dollar exist already now — for internal and external demand.  The Americans are trying to do everything possible meanwhile to ‘save face.’  Provoking situations to create the objective appearance of a reason for the collapse of the dollar are possible:  a terrorist attack on the U.S., war in the Near East, aggravation of the situation in the Far East.  A new world war which will be catastrophic for Russia as an extreme case.”

“Now about internal threats.  For clarity, in every case, we are distinguishing two understandings:  country and state.  It’s possible to love your country while being critical toward the state, which imagines itself as society’s management apparatus.”

“If we talk about the country as a whole, then the main internal threats are well-known:  complex demographic situation, a lopsided well-developed raw materials economy, low labor productivity, conditioned by the low wage level of labor, proliferation of narcotics, brain drain abroad, degradation of science, culture, education, health care, pensions, national defense, law and order, agricultural economy, neglected transportation and ecological problems, corruption.  In the coming decade, the aggravation of energy problems, connected with the exhaustion of easily accessible supplies of Russian oil.”

“But there is still one more serious problem which is the source of all the rest.  This is the multibillion outflow of capital from Russia, including into so-called international reserves (it’s simpler to say into the financial systems of Western countries).  It bleeds the entire economy, and doesn’t allow for moving off a dead stop in solving the majority of urgent problems.  If there were no capital outflow, many internal Russian threats would be eliminated in some time.”

Fomin goes on to argue that current capital outflow (legal and otherwise) is more burdensome and damaging to Russia’s economy than tribute paid to the Mongols centuries ago.  He says international reserves accumulated in 2010 could have plugged the gap in Russia’s pension fund.

Fomin now turns to internal threats to the state.  Number one is the populace’s increased protest activity.  He says the average Russian understands clearly that the state exists not to improve his welfare, but only the quality of life of 1 percent of Russians, without, of course, provoking large-scale protests from the other 99 percent. 

Among other threats, he cites hypertrophic centralization and underdeveloped local government, inflation caused by capital outflow, low wages, and unemployment all leading back to protest activity.

Fomin notes that Russia dropped to 154th (from 146th) on TI’s international corruption index this year.

He observes that the Russian government failed the test of August’s forest fires, causing a mortality spike equal to the number of men lost by the USSR in Afghanistan.  He calls Prime Minister Putin’s web cameras for monitoring the rebuilding of housing a symptom of the level of Russia’s corruption and ungovernability.

Fomin goes on to label major internal problems — education, health care, agriculture, housing, national defense, culture, science, ecology — the first four he notes are ‘national projects.’  Agriculture he puts on the level of military security in importance.  But rather than develop it, the country’s elite chooses to buy food abroad with oil and gas profits.  Agricultural imports support the livelihood of many middlemen in the process.

Fomin has one last assessment of Russia’s current elite class:

“At present, Russian state authorities and the so-called ‘elite’ view the country as a private firm working solely to get profits and the sooner, the better.  Profit is the main goal of the private firm.  It’s not for the realization of long-term goals.  Its main mission:  collect capital, send money abroad, make itself comfortable, and invest the money in a profitable business.”