Dangerous moves: Is Russia selling off the commons, the public’s assets?

“Privatization can increase the efficiency of business,  restructure the branches of the economy, replenish the budget revenues.” Alexei Kudrun

This is Western hogwash. The reality is far different and very well known to citizens of Western nations or those who countries are resource-stripped by Western powers and their patron companies.

Privatization leads to new powerful oligarchs who finance candidates (or color revolutions) and change companies into unsafe, low-paying businesses. Vital maintenance and oversight are neglected to keep profits high. Employees get lower and lower wages and benefits, and are “downsized” (fired) when it suits the company. Impacts to public health from business operations are ignored. When candidates can be bought, their pick of judges can be bought, and the selection of regulatory agency directors can be bought. Privatization leaves the public with little recourse even in a court of law.

Businesses are not efficient except in the extraction of wealth for the top executives, managers, and investors.

When the debacle of privatization, asset stripping, and “democracy” occurred in the 1990s, people suffered greatly in Russia. Let Russia chart a new way and demonstrate  a healthy system for the world to emulate.

Back to the 1990s? Kudrin proposes country-wide privatization

February 6 , 2018 – FRN –
KtovKurse – translated by Inessa Sinchougova
Center for Strategic Research, Alexei Kudrin and analysts of the Russian Academy of Science and Technology proposed an alternative to raising taxes – large-scale privatization of enterprises.
The economy of Russia is returning to a cyclical growth, but without structural reforms it will be low – about 1.5-2% per year, according to the economic monitoring of the Russian Academy of Science.
Russia needs to infuse about 2.3% of GDP into human capital and infrastructure, and the authorities are looking for money. One solution could be an increase in personal income tax from the current flat 13%.
According to the calculations of the CSR, the share of the public sector in Russia’s GDP increased from 39.6% to 46%, in the ten years to 2015 – the value of state companies is now $ 175 billion.
Among the OECD countries, this indicator is greater only in India, South Korea and Italy. According to experts of the CSR, Russia faces a strategic dilemma: to continue to develop state capitalism or to privatise.
In 2019-2020, privatization could provide up to 0.5% toward the GDP, said the CSR and former liberal Finance Minister Alexei Kudrin.
“Privatization can increase the efficiency of business,  restructure the branches of the economy, replenish the budget revenues.
Today, incomes from privatization are set at just over 36.5 billion rubles. It is necessary to privatize about 80 of the remaining largest companies.”
The CSR proposes to completely keep the state’s shares in only 50-100 strategic companies, and conduct at least four large privatization transactions per year, two of which should involve foreign investors.
Proceeds from the sale of assets reached the level planned Ministry of Finance level only in 2016 due to the privatization of Bashneft. In 2010-2015, plans for privatization were not met by even 20%.
Advertisements

Poroshenko surrenders Ukraine to the IMF

Posted on Fort Russ

[Original headline at source: “Poroshenko acquires a big loan for Ukraine from IMF, conditioned on consigning lands, resources and procurements of public services to US mega-corporations”]

Ukraine, Lagarde (IMF) announce: Loans to 40 billion euro in exchange for reforms (on the Greek model)
Published February 12, 2015 in ControInformazione.info
February 12, 2015
Translated from Italian by Tom Winter
If you are a puppet of the US empire and you consign your sovereignty to Washington, you get an abundance of money, financing, arms, and multinational corporations looking for business and ready to plunder the resources of your country. If instead you put yourself on a collision course with these powers, as in the case of Greece, your financial faucets get shut off, and you risk default.
This is the lesson from two parallel vignettes, that of Ukraine on one side, where a U.S. puppet government took office, via coup d’etat, and on the other, that of Greece, where, thanks to free elections, a popular government took office hostile to big banks and the EU.
In the first case, also thanks to ministers in the government with U.S. passports (See “Ukraine launches a government with foreign ministers”), and to the total subordination of the state to directives from Washington, in opposing Russia, everything gets allowed, to save the country from the economic collapse that a clique of pro-America oligarchs have brought it to.
For Ukraine, aside from the other big loans at the disposition of the IMF, there will be other financing, “multi-lateral and bi-lateral” loans for the country in the USA-EU orbit, a country whose economy will enjoy, all told, a sustaining loan of 40 billion dollars over four years. Christine Lagarde, administrator of the IMF, announced it with pride, revealing the terms of an “agreement in principle” with Kiev for a package of 17.5 billion dollars from the IMF, without guarantee, but committing the government in Kiev to “ambitious” economic reforms. (“Ambitious reforms” already actuated in other countries: cuts to health care, worker layoffs, reduced pension payouts, reduced funding for education, destruction of welfare, and the like — As in Greece.
Other financial institutions will join with the IMF, such as the Bank for Reconstruction and Development, as well as the European Central Bank itself (the one that denied any help to Greece), Lagarde reported. Bottom line is a “finance package” of 40 billion over the course of four years.
In this plan the Ukrainian government will conduct negotiations will various lenders, putting all the potential resources of the country on the table: the vast farmlands, mining, petroleum prospecting concessions to American multinationals, public services to contract, public health and hospitals to privatize, and labor reforms (of the type “Jobs Act”) to harrow the country, and so on and on.
In keeping with this plan, Hunter Biden, youngest son of Joe Biden, vice-president of the United States of America, has been put on the board of directors of Ukraine’s most important gas company, Burisma Holdings. (See Biden’s son enters the country’s main gas company)
US President Obama, vice-president Biden, 
with Hunter Biden, new board member of Burisma Holdings.
This is the price paid by a country that has consigned itself “voluntarily” to the protection of the USA, subverting the preceding accords with Russia and other Eurasian counties.
This story can easily show how intimately connected political scenarios are with the financial levers that are available to the dominant powers that set the rules in this world.
Should anyone disingenuously suppose that finance and international politics are two different arenas, today you totally have to change your mind.
Original: