With the price of oil stuck in the mid-$40’s, the Russian stock market in the tank, and the value of the Ruble plummeting the vertical consolidation of power that occurred under the watch of President Putin is now being called into question. While economic times were swell and oil and $100+ per barrel the population of Russia welcomed the order of a vertical political power and were thankful after years of government mis-management under President Yeltsin. The petrodollars flooding the country were hiding a dirty little non-secret – endemic corruption (price of oil v. TI score). It is difficult to think of an adjective strong enough to describe the level of corruption in Russia – estimated by one source at 50% of GDP!
Calls for the decentralization of the power structure have already begun to ring from many academic circles in Moscow. A simple first step toward making government officials accountable for their actions would be to re-institute gubernatorial elections. The Kremlin took away direct elections over five years ago. Currently the president picks governors who are voted on by regional assemblies. In a recent Moscow Times article by Konstantin Sonin of the New Economic School suggests:
Political scientists and economists have shown that when there are highly competitive elections and informed voters, there is less corruption…In Russia, there is a commonly held misconception that democracy is a luxury that only economically developed and prosperous countries can afford. This belief is particularly popular during economic booms. When times are tough, however, we must pull our heads out of the clouds and plant our feet firmly on the ground. The best place to start is by return direct elections to Russia.
Last summer the presidents of the Russian republics of Tatarstan and Bashkir openly stated that a return to the direct election of governors was preferable. And in November Moscow’s mayor Yuri Luzhkov declared that open elections would increase accountability in government. Now the decision is up to the Kremlin and so far they are saying a big Nyet to any changes in elections.
Published Date: February 02, 2009