A pro-European protester swings a metal chain during riots in KievBy Peter Galuszka

The news from Ukraine is frightening and familiar.

At least 100 people have been killed in rioting in Kiev. Some were shot by Interior Ministry snipers after demanding that President Viktor Yanukovych allow new elections. The latest is that he may do just that.

Like all former Soviet republics, Ukraine has been caught in the usual post-collapse of the U.S.S.R. Liberal Democrats can’t amass enough power to overturn leftovers from the Communist system who have prisons and police at their disposal.

The economy has not recovered from the shock of the Soviet split up. It happened too fast. You can’t go from a seriously ossified command structure that provided cradle-to-grave services, crash it and then pretend the “magic of the market” will work overnight, or even in 25 years.

These failures have set up the tragedy in Kiev that if not controlled soon, could get truly scary. All Europe needs right now is a civil war on its edge. So far, the Ukrainian military is not involved and luckily for the world, Ukraine apparently got rid of its 5,000 nuclear weapons after the Soviet Union broke apart in 1991.

For me personally, the Kiev drama is reminiscent on several levels. I used to go to Kiev and Ukraine fairly often. Downtown Kiev is lovely. The main drag where the violence is taking place is on Khristyatyk Street, an impressive boulevard of monuments and buildings. I used to stay at a hotel around the corner near a leafy park on a bluff overlooking the Dnieper River.

Ukrainians are pleasant and friendly – somewhat like U.S. Midwesterners or Southerners. Ukraine used to be a farming dynamo until Stalin got involved. It also has some impressive industries, including advanced metallurgy and an aircraft plant that makes gigantic Antonov cargo planes. Tragically, it was also the scene of Chernobyl.

There’s been an underlying tension between western Ukrainians who felt much more in common with Western Europe and the east where Russians and their language prevailed. The friction, however, never got as intense as between Russians and, say, the Chechens or Central Asians. Ukrainians are very close in religion, language and color. There were rivalries and insults, such as Russians who dubbed Ukrainians “Hok-lee” which is a putdown of the Ukrainian language which is very close to Russian but has different inflections. Some Ukrainians hate being called “the” Ukraine because it means “on the edge” of Russia.

Vladimir Putin is a major player in today’s problems. Just as Ukraine was getting closer to the European Union in aid, trade and funding, Putin swept in with a $15 billion aid package. Putin is part of the old “Sil” or “forces” such as the KGB who have re-emerged in a new form, sort of like the robo-cop in the Terminator II movie.

The scenes from Kiev are also extremely reminiscent of what happened in Russia in 1991 and 1991. In the former, the “sil” came after Mikhail Gorbachev. In 1993, Boris Yeltsin disbanded the old-style Communist era Parliament, resulting in open warfare involving machine guns, T-80 tanks and armored personnel carriers. Personal note: I edited coverage in New York in 1991 and in 1993, I was on the streets of Moscow and don’t remember ever being so scared for my safety.

In both countries, you have highly-capable elites of intellectuals but there is no strong and developed middle class to support them. That allows thugs to fill the power void, making the nation vulnerable to Putin who obviously doesn’t want liberalization that can become a yardstick for Russia’s lack of similar progress.

Personally, I blame some Western meddlers for a lot of the problems. When the Soviet empire fell apart at warp speed in the 1990s, economists from Harvard and the International Monetary Fund swept in with “shock” therapy ideas for the economy. It was pretty much the standard fare that you hear today from the tight money people regarding the American recession. Instead of feeding the patient, you starve him. Cut government spending and let market forces prevail.

Well that didn’t happen. The system involved having state-owned factories and farms provide everything from nurseries to schools to vacation dachas to funeral parlors. For example, when I lived in Moscow and my older daughter was ready for kindergarten, we put her in one that had been set up by a factory that had made pencils.

In theory, classic capitalism should have saved the day. But the crash privatization and loans for shares programs failed miserably. Grandmothers suddenly found themselves getting stock certificates for enterprises. They had no idea what to do with them, allowing a savvy and greedy group of oligarchs to swoop in and pick them up. A far-sighted plan for a very gradual transition from socialism to capitalism or some form of mixed economy was what as needed, not crash theories.

At the time, I kept wondering why the power forces didn’t take over. Where were they? Well, they did, about 15 years ago. What’s going on in downtown Kiev, coupled with the failure of sensible economic policies, is the result.


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16 responses to “The Tragic Lessons of Kiev”

  1. DJRippert Avatar

    Peter’s thesis is contradicted by the facts. While there was an economic downturn in Ukraine after the fall of the Soviet Union the Ukranian economy was on a roll from 2000 to 2007. After a considerable pull back from 2008 – 2010 the economy has bounced back and is now operating near its all time high. You can see the chart here – http://www.tradingeconomics.com/ukraine/gdp

    I had dinner on Wednesday night with an Austrian man who has spent considerable time in the Soviet Union and in the countries which appeared out of the Soviet Union after the fall. He chalks the problem up to three things:

    1. The division in Ukraine between eastern Ukranians who identify with Russia and western Ukranians who identify with western Europe.

    2. The meddling of Putin who clearly wants to rebuilt some form of the old Soviet Empire through intrigue and foreign aid bribery rather than military invasion.

    3. The apparent abdication of the United States from any form of effective foreign policy anywhere in the world.

    Putin is trying to buy Ukraine back into the Russian orbit. Some Ukranians are supporting, more are opposed. So, they are fighting.

    As an aside, Ukraine was splintered in the 13th century. Over the next 700 years the country would be united for only 200 under a Cossack Republic and then fragmented again. It would be reunited by the Soviet Union.

    The vestiges of a splintered Ukraine remain to this day. It is a difference in allegiance between Ukranians who see themselves more aligned with countries like Lithuania and Poland vs Ukranians who see themselves aligned with Russia.

    The “failure of free enterprise” meme is an interesting progressive talking point (pretty much about everything) but bears little applicability in the case of recent events in Ukraine.

    1. we have had sanctions on Cuba, North Korea and Iran and truth be known – it drives them into the arms of China and Russia … and makes it near impossible to improve relations to ever even TRY to improve relations.

      that’s not leadership – it’s a high maintenance hate strategy with no defined end goal.

  2. Peter Galuszka Avatar
    Peter Galuszka

    DJR,
    From what base to what base regarding economic growth? You don’t mention that from 1991 to 1999, Ukraine lost 60 percent of its GDP. So,you can attribute some of the good growth rates of a decade ago to making up for lost ground. They’ve had a huge inflation problem off and on. So, I don’t think my points are all that discounted. If you see Ukraine as having made a basic structural turn, please let me know. I haven’t been there in years. Have you?
    Regarding dinner with your friend. He sounds right but I make the same points in my blog.

    1. DJRippert Avatar

      The link I provided allows you to go back to 1987. The period from 1987 to 2000 was pretty much economic shambles in Ukraine.

      This seems an awful lot like other European meltdowns. A country composed of two very different factions that maybe should have been two countries.

      When Hitler invaded Czechoslovakia he was quite correct that the people one region – the Sudetenland – were ethnic Germans who wanted to be part of Germany. The rest of Czechoslovakia was a very different matter.

      Yugoslavia was another European-inspired fiasco which lasted only as long as a brutal dictator held the disparate people together. After that, genocide.

      The Basques want out of Spain. The Catalonians might want out too. Italy was a contrivance of different people unified in the middle of the 19th century. There are continued rumblings about Northern Italy separating from Southern Italy. Scotland appears to be poised for a peaceful effective independence from Great Britain.

  3. re: ” 3. The apparent abdication of the United States from any form of effective foreign policy anywhere in the world.”

    we seem to veer from the Cowboy “diplomacy” of George Bush to the perceived limp-wrist apporoach of Obama.

    All I know is that Bush’s approach not only did not work out – it costs us a hell of a lot of money and turned our young into cannon fodder.

    The NeoCon approach is a big fat FAIL!

    1. billsblots Avatar

      the Bush approach, you mean the policy overwhelmingly approved by virtually all Democrats and Republicans in Congress?

  4. Peter Galuszka Avatar
    Peter Galuszka

    Come to think of it, I have to agree with Larry. I can’t see how Obama was weak on Russia. He’s been a lot tougher than George W. Look at Michael McFaul who is leaving his post as U.S. Ambassador appointed bv Obama. Not only is he a true Russian expert, he angered Putin by meeting with dissidents and refusing to cow-tow.

    So, DJR, maybe you could spell out what tough and effective diplomacy would look like. I agree with Larryg that people make these statements and let it drop with no explanation. I know another blogger who does that all the time — makes a sweeping, accusatory statement as if it were the Gospel truth that we all know and agree with.

    1. IF Bush and his NeoCon buddies were still in office – we’d be in Iraq, Afghanistan, Iran, Libya, Syria and hen the Ukraine!

      and… we’d being blaming entitlements for the deficit and debt!

      NeoCon “diplomacy” = the Numskull school of foreign policy.

    2. DJRippert Avatar

      1. Keep the sanctions fully on Iran rather than impersonate Neville Chamberlain and allow that twisted, totalitarian regime to build nukes.
      2. Stop directly and indirectly antagonizing our only real ally in the Middle East – Israel.
      3. Face down Russia and Iran in Syria by backing the UN in bringing humanitarian aid to the millions of displaced Syrians. Use military force, if necessary. 130,000 Syrians are dead thanks to Obama’s incompetent willingness to give Assad a pass as long as he uses something other than chemical weapons to kill his own citizens. Wasn’t it two years ago that Obama’s state department called the Assad regime a “dead man walking”. So much for informed foreign policy.
      4. Tell John Kerry to stop hallucinating about global warming being the biggest foreign affairs issue while Ukraine, Venezuela, Syria, Libya, Somalia, the Congo and numerous other countries are burning.
      5. Stop letting Putin aggrandize power by making hollow statements with no follow through such as the infamous “red line” position in Syria.
      6. Hem in the Chinese economically by pushing the Trade Promotion Authority and Trans Pacific Partnership.
      7. Give up on the Russian “reset” strategy that is failing in every possible way.

      Why is Obama silent on Venezuela? Does our empty suit president feel badly when socialists implode? Obama’s philosophical brother Madero is imprisoning and killing dissenters and our inept president can’t even summon the minimal courage to take to the airwaves and verbally condemn what’s happening.

      You two guys deifying Obama are too much. The only thing good about his appalling foreign policy is that it occasionally makes his heinous economic policy seem to suck less.

      Even the Washington Post is forced to dust off one of its token conservatives to excoriate Obama for his grossly incompetent approach to Syria recently – http://wapo.st/1bunV3r

      “Washington’s dawdling has become the hallmark of Obama’s foreign policy. He can make all the speeches he wants, but his confusion and indecision is what other leaders notice and what history will remember. Now, so very late, he has asked for options. Here’s one: Do something!”

      Well said, Mr. Cohen, well said.

  5. Peter Galuszka Avatar
    Peter Galuszka

    Ripper
    points taken on syria. On rest not so sure.

    1. It’s grade A BS… anyone hear of places like Darfur and Bosnia and North Korea?

      playing the diplomacy game with your trump card as threatening boots on the ground is dumb especially when you end up doing it and looking like a dumbass in the process.

      we have sectarian civil wars going on… not one or two – but a half dozen and we proved conclusively in Iraq and Afghanistan that we are incompetent at telling them how to govern themselves when we can’t even keep our government funded.

      Lets see the GOP threaten to “de-fund” the DOD Nation Building because we are broke and 17 trillion in debt.

  6. One thing for sure, Obama has learned that the world is a very messy place. Not every problem the U.S. encounters in the world today is the result of George W.’s “cowboy” diplomacy. Some countries and regimes have aims that conflict with ours that no amount of talking can paper over.

    Once upon a time, the critics of W. lamented the U.S.’s loss of popularity in the world. You don’t hear those people talking about popularity anymore. Said the BBC in June 2013: “Since assuming the presidency, President Obama has made improving the United State’s image abroad a high priority for his administration. But the nation’s popularity worldwide is now as low as when President Bush left office in 2009. In fact, negative views towards the U.S. are so pervasive that the country presently ranks second most unpopular in the world – just ahead of Iran – and less popular than rivals Russia and China.”

    1. hard to believe after Abu Ghraib, renditions and kidnapping, torture that our standing now is no better…

      I guess folks are frustrated with the US not going into other countries and kicking butt, eh?

      but these polls are all over the map anyhow…

      http://www.pewglobal.org/database/indicator/1/survey/all/

  7. Peter Galuszka Avatar
    Peter Galuszka

    “One thing for sure, Obama has learned that the world is a very messy place.”

    Stunning insight.

    1. yes, I’m totally blown away!

      but let me share something that I think -demonstrates that the world is becoming an increasingly messier place – more chaotic and unpredictable and folks will find out post-Obama – not so easy for the US to direct other nations:

      The Next Revolutions: Drones Vs. Phones

      http://techcrunch.com/2014/02/22/the-next-revolutions-drones-vs-phones/

      and finally a bonus question:

      Germany tops the poll in the respected nation category. Now tell me what kind of diplomacy it practices with these troublesome nations like Iran, Libya, Syria and now Ukraine?

      how come the most respected nations that top the US are not “world policeman” types like the critics of Obama want the US to be?

      why is that?

  8. billsblots Avatar

    One thing is for certain, Putin does not fear any reaction from a United States that has sported foreign policy by apology for six years.

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