In Russia, Putin is king. Paul Roderick Gregory writes that Putin’s Reaction To Sanctions Is Destroying The Economy And China Won’t Help
Things are not going well for Vladimir Putin. The price of oil and the ruble continue to fall. Top Russian officials admit that the economy is in big trouble, despite Putin’s denials. Likely presidential candidate, Hillary Clinton, has declared that Putin must be contained. Putin’s counter sanctions are making things worse. The most ominous sign, however, is that Putin is weakening the foundations on which his power is based. He is cutting off foreign investment by bailing out his friends, and he is breaking the social compact on which his KGB-Mafia state is founded.
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Putin’s kleptocracy is based on the following principles of (mis)governance: 1) The state determines what is legal and what is not; there is no rule of law. 2) The state serves the interests of Putin and his inner circle, not of the people. 3) Putin’s kleptocracy uses its media monopoly to brainwash the people with Goebbels-like big lies. 4) Putin determines property rights – who owns what. 5) Disloyalty will be punished by confiscation of property, banishment, prison, or worse. Loyalists can rest easy, however. Their property is safe, or at least says their friend, Vladimir Putin.
Leon Krauze sees Russia as a cautionary tale for Mexico, and asks that Mexico’s President Must Not Ignore This Mass Grave of College Kids—or the Corruption It Represents. The mass grave refers to the 43 students missing since September 26
And then you have Guerrero, current epicenter of Mexico’s nightmare. For a while now, rival gangs have been fighting for control of the state. The result has been the usual parade of horrors: cities besieged (including Acapulco), governments infiltrated, journalists threatened, police corrupted. And death. And vengeance. The latest rearing of the beast’s head produced an atrocity: 43 college students were abducted by local policemen, reportedly under the order of both the police chief and the mayor of Iguala, a man allegedly in cahoots with organized crime (both are on the run). The whereabouts of the kidnapped students remain unknown, but authorities recently found a crude open grave filled with 28 severely burnt bodies. Some showed signs of torture. Forensics are still trying to figure out if the bodies are those of the kidnapped students. Relatives fear the worst.
Krauze points out,
Instead of trying to will reality into submission, the government should tackle Mexico’s biggest problem: corruption. Despite Peña Nieto’s penchant for structural change, his administration has failed to put in place even the most modest reform to fight the country’s deep-rooted corruption.
Updating the story yesterday, Mexico’s attorney general said that none of the 28 bodies found in a mass grave in Iguala belongs to the 43 missing students. I don’t know what’s worse: the fact that nine mass graves exist in Iguala, or that none of the students’ remains have been found.
Iguala’s mayor Jose Luis Abarca (now missing, along with his wife and the town police chief), had numerous and serious complaints of corruption filed against him, which federal authorities ignored.
The thing is, Peña Nieto’s party, the PRI (Institutional Revolutionary Party) was based, and ruled Mexico for over 70 years with impunity, on a culture built on widespread tolerance of corruption, which Krauze calls a “gigantic structure of perverse political convenience.” About the only thing preventing Mexico from a Putin-type of president was that the PRI insisted on changing presidents every six years.
When Krauze asked Peña Nieto (emphasis added)
how Peña Nieto planned to prevent Mexico from turning into Russia, especially now that billions of dollars will be in play due to the recent opening of the country’s energy sector to private investors. Peña Nieto shrugged off my concern. Corruption in Mexico “is a cultural matter,” he said, not realizing the implications of the sentence.
Until and unless Mexico tackles corruption, the country is not going to flourish, no matter what other changes the president du jour may attempt.
[Post edited for clarity]