God Father Of The Kremlin

God Father Of The Kremlin
by Paul Klebnikov

This is a very intriguing book about the Gangster style economy that emerged in Russia, beginning with the Gorbechov government. Yet the roots of this style go back to czarist ministers of early 1900's Witte and Stlypin. The style is consistent with old Russian mentality to say one thing and do another. Over time, Russia became not a nation of citizens but of a mass of fractured families and isolated individuals. Russians were subjects not citizens.

Immediately after Gorbechov the new leaders of the Yeltson government Gadier, Chubbios and Aven, dismantled the key element to Communist government’s capital growth machine. To explain, Communist growth essentially comprised of a flow of money from the products produced by their people, was exported at a low fixed price and then sold a 3X on the international market by the Capitalist robbers of the Russian 1990’s. The profit was held in non-Russian banks and only returned to buy more low-cost products. The results were a process in tact but now in control of gangsters such as Boris Boresovsky.


One learns as the book progresses that the facts are presented as a carefully fitted collection of journalistic essays describing Berezovsky as the best of many "crony capitalist" in a poor re re- inactment of our 19th century American "robber barons", Rockefeller, Morgan, and Carnegie. However the good that our heroes brought to civilization is amiss in Russia today. While Boresovsky is the prime suspect in this ring of corruption, the list of bad guys is extensive. The book includes whose's who list for those interested in a get rich scheme. Be careful though because contracts are enforced with Kalishnekovs not magistrates.

The book is really much more than a story of Boris Beresovsky as it details the mistakes made by the new Russian financial ministry whereby they removed controls on trading. Yet they left the controls on all of Russia's natural resources and key industry like the auto manufacturing business, oil, and aluminum, in place. This resulted in the abduction of Russia's capital by a very few men known ass "young democrats" and their gangster friends.

The situation described leaves one in a quandary on economic left -v- right philosophy. To regulate, control, and tax... or not. Author Paul Klebnikov who holds a Ph.D. in Russian history draws the following conclusion. In summary: Private property or free markets alone do not guarantee a high level of civilization. To reach this goal a healthy state and healthy society are two essential preconditions. A healthy state is un-corrupted by wealthy individuals, and powerful businessmen. A healthy state is an honest broker for all conflicting interest of society.

My conclusion:
As an American, one would have to read this book to fully appreciate the American business law that we take for granted. Imagine all the companies in the USA conducting business like Enron (Just one with a few more to be exposed, we are shaken investors) and the resulting 300% inflation. Imagine there being no law on the books to reign these people in. How does a Russian individual hold out hope? The Clinton administration turned a blind eye to the crony regime of Yeltson. Clinton endorsed Yeltson in the 1996 election and endorsed the IMF loan to Russia of which disappeared in a matter of months. With Reich in the middle of the Russian capital robbers, one can wonder how much silver now lines our ex-president's pocket. The key is balance. In absolutely no way does Klebnikov advocate excessive government involvement with conflicting regulation. It is in the best interest of our global economy for our current leadership team, the Bush administration, to get behind the Russian people. There is a marketplace there that awaits many opportunities. Yet we must wait for the new Russian leadership to restore business law and order. If Chile can turn around, so can Russia. Not withstanding the absolute defiance to reason if Islamic Fundamentalist, a fair global economy is a secure economy.