Speaking of Capitalism...

Russia recently declared that China represents the ultimate model of government. When I read about President Medvedev's call for economic reform, I couldn't help but marvel at the hat he is tipping to capitalism. China's state controlled businesses drive a very lean and efficient capitalist model because the state does not have to wade through the levels of bureaucracy that exist within a democracy. But, China certainly does not strive to serve the good of the people in the way that Communism might romanticize. The result is much like a caste system in which the privileged are those who ultimately serve very near to the state while others suffer heavily from neglect and fall prey to the burgeoning networks of organized crime including such horrors as human trafficking and sex slavery.

Neglect is the key correlation between big government and the propagation of organized crime. Russia, China, and increasingly the U.S. all suffer from both internal corruption and large organized crime operations whose agendas begin to coalesce within the state structure. Propaganda: the guise of authority, control and progress is projected through the statement of good intentions for the sake of public support and control, while actual activity is off the radar. By the time damage is exposed, the bandits are away, leaving only a few artifacts, scapegoats and casualties scattered in the wake of the exit. Tax dollars are no longer serving 'the common good' but rather are funding unseen agendas and ultimately weakening the state itself for short term gains, leaving it vulnerable to collapse and domination by more powerful entities.

The counter to Chinese-style state-run capitalism would be big businesses running the state or 'economic fascism'. Fascism...communism...either way, they are two extremes which equate to totalitarian regimes, and the U.S. seems to teeter and flirt between these two extremes in it's eight-year bipolar pendulum swing. Perhaps a strong independent would lend balance to quell the contest, and recent polls indicate that voters are more open to an independent now than ever before: 40% conservative, 40% independent, and 20% liberal.

Otherwise, China will continue to lunge forward in economic power through gentrification, gobbling up the pits of vulnerability in Africa, South America, and now in the collapsing economy of the United States. Russia will perhaps follow suit, increasing her ties with Venezuela and other states of South America. And the U.S. will continue to spin it's facade, spinning in circles, chasing its tail ineffectually to win the war of 'Tastes Great' vs. 'Less Filling' partisanship. After all, a spinning circle makes for a better target.


http://news.bbc.co.uk/2/hi/europe/8356122.stm

Russian President Dmitry Medvedev sets out economic reform

Russian President Dmitry Medvedev has called for profound reform of the economy in his annual state of the nation address.

The Soviet model no longer worked, he said, and Russia's survival depended on rapid modernisation based on democratic institutions.

An oil and gas-based economy had to be reworked with hi-tech investments.

Inefficient state giants should be overhauled and issues of accountability and transparency addressed, he said.

"Instead of a primitive economy based on raw materials, we shall create a smart economy, producing unique knowledge, new goods and technologies, goods and technologies useful for people," Mr Medvedev said.

"Instead of an archaic society, in which leaders think and decide for everybody, we shall become a society of intelligent, free and responsible people."

Corruption

A year ago, in his first such address, Mr Medvedev made a surprise announcement about deploying missiles close to Poland.

This time the focus was on transforming Russia into a more modern and open country, by introducing sweeping reforms.

We need to launch modernisation of the entire industrial base
Dmitry Medvedev

More than one million Russians were at risk of losing their jobs, he said, and pressing social issues needed to be addressed.

"We can't wait any longer. We need to launch modernisation of the entire industrial base. Our nation's survival in the modern world will depend on that," Mr Medvedev said.

Government had to become more transparent, he said, and corruption should be punished. The giant state companies created by his predecessor, Vladimir Putin, had "no future", he said.

"Inefficient enterprises must go through bankruptcy proceedings or leave the market," he said. "We won't be protecting them forever."

Mr Medvedev promised to strengthen democratic institutions but warned that any attempts to disrupt national stability with "democratic slogans" would be stopped.

"Freedom means responsibility and I hope everyone understands that," he said.

And he promised a pragmatic foreign policy that would focus on improving Russians' living standards.

In other comments, Mr Medvedev

• Called for a "joint reliable platform" to strengthen Europe's security, saying such a body would have prevented the war with Georgia

• Described the situation in the North Caucasus as Russia's most serious internal problem and pledged to fight "terrorist crimes" there

• Suggested that the number of time zones in Russia - currently 11 - should be reduced


Putin's shadow

The Russian president gave a bleak assessment of the current situation and issued a clarion call for change, reports the BBC's Richard Galpin in Moscow.

There was much in the speech that implied deep criticism of Mr Putin, who is now prime minister.

The president is keen to prove he is his own man and has his own identity as a political leader, rather than remaining under Mr Putin's shadow.

But the question is whether the president can deliver on his pledges and bring about real significant political and economic reform, our correspondent adds.