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Source of book image: online version of the NYT review quoted and cited below.

(p. E1) Yeltsin's grievance against the Communists began before he was born, in an all-too-common history of family heartbreak that Mr. Colton pieces together with a good deal of original reporting. The Yeltsins were dispossessed for the bourgeois crime of having built a farm, mill and blacksmithing business. Yeltsin's grandfather died a broken man. His father was charged with the catch-all crime of "anti-Soviet agitation and propaganda" for grousing at his job on a construction site, and sent to a forced-labor camp for three years.

When Yeltsin joined the Communist Party, it was not out of devotion to the professed ideals but because a party card was a requirement for promotion to chief engineer in the construction industry. And when he moved into the hierarchy, he was already a man who chafed at party orthodoxy. No radical, he "nibbled at the edges of what was admissible," Mr. Colton writes, pushing for market prices in the local farm bazaars, encouraging entrepreneurial initiative in the workplace, complaining that the top-down system smothered self-reliance.

For the full review, see:

BILL KELLER. "Books of The Times; The Making of Yeltsin, His Boldness and Flaws." The New York Times (Weds., May 7, 2008): E1.

(p. 222) For Yeltsin's contemporaries, deliverance from Marxist scripture and Soviet srtuctures took many forms. For him, it was an ease with the market and recoil against the overbearing state. Mikhail Fridman, who became one of Russia's first billionaires as a banker and oilman, makes the point well:

Yeltsin as an individual who had inner freedom . . . instinctively moved toward the market as the end. That is because . . . as my namesake Milton Friedman says, "Capitalism is freedom." . . . [Yeltsin thought] it was necessary to give people freedom and they would make out well. How exactly to do that he did not know. [But he did know] that it was necessary to free people from control: We were squeezing them dry. He thought that if we let them go they could move heaven and earth. . . . This is the level on which he thought about it. . . . He took a dim view of all these [Soviet] controls. [He felt that] the controllers had long since believed in nothing.

. . .

(p. 525) Stewart, working as a photojournalist, taped Yeltsin's remarks on August 24, 1990, in Dolinsk. She calls them "laissez-faire populism."

Source:

Colton, Timothy J. Yeltsin: A Life. New York: Basic Books, 2008.

(Note: ellipses and bracked words in Fridman (sic) quote were made by Colton; other ellipses were added by me.)

(Note: the quote from p. 525 is from endnote number 38.)

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From McCraw's summary of an article entitled "The Function of Entrepreneurs and the Interest of the Worker" that Schumpeter published in 1927 in a labor magazine :

(p. 384) By the end of the war, every nation in Eastern Europe and most in Central Europe had fallen under the control of the Soviets. They stripped industrial machinery, works of art, gold, and other movable assets from many of those countries and shipped them all to Russia. The total amount stolen equaled in value the aid to Western Europe under the American-sponsored Marshall Plan, the largest foreign aid program in history.

Source:

McCraw, Thomas K. Prophet of Innovation: Joseph Schumpeter and Creative Destruction. Cambridge, Mass.: Belknap Press, 2007.

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I heard last night that Aleksander Solzhenitsyn had died late that on that day, August 3, 2008.

Like all of us, he had his flaws. But he had strong moral courage in standing up against the enslavement of the masses by the communist tyranny of the USSR. For that he paid a huge price, partly in the form of the years of forced labor in the prison camps that he carefully documented in his massive The Gulag Archipelago. (I must admit that I never read The Gulag, although I believe my father, to his credit, read every page.)

I remember my mentor Ben Rogge reading The First Circle and highly recommending it to us. The book's title is based on Dante's Inferno which describes the nine circles of hell, where each successive circle assigns increasingly horrendous eternal punishments, for those guilty of increasingly terrible sins. In the first circle, good people born before Jesus, are allowed to pursue their interests much as they had on earth. Socrates, Plato and Aristotle, for instance, engage in eternal dialogue.

In Solzhenitsyn's version, Stalin allows a group of scientists to have better living conditions, and somewhat more freedom than ordinary Soviet citizens, so long as the scientists make progress on projects that enable Stalin to extend his power.

One of the revelations in the book is that those who imposed the tyranny, had motives that were not always evil. One bureaucratic candidate for villainy, for instance, did bad things, in order to protect his family. At the top there is Stalin, but he is portrayed as insane.

The point is one that Rogge often made---people are pretty much the same everywhere. What mainly explains the differences in different societies are different institutions that provide differing incentives and constraints.

It is a fitting tribute to Solzhenitsyn that the first unabridged English translation of The First Circle will soon be published.

I salute Solzhenitsyn for his insights, and even more, for his courage at standing up against an evil system.

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   "EMBRACE AND EXILE; Stalin with a girl who later in life was sent to the gulag."  Source of caption and photo:  online version of the NYT article quoted and cited below.

(p. 5)  STALIN has undergone a number of transformations of his historical image in Russia, interpretations that say as much about the country’s current leaders as about the dictator himself.

In the West, Stalin is remembered for the numbers of his victims, about 20 million, largely his own citizens, executed or allowed to die in famines or the gulag. They included a generation of peasant farmers in Ukraine, former Bolsheviks and other political figures who were purged in the show trials of the 1930s, Polish officers executed at Katyn Forest, and Russians who died in the slave labor economy. Stalin’s crimes have been tied to his personality, cruelty and paranoia as well as to the circumstances of Russian and Soviet history.

While not denying that Stalin committed the crimes, a new study guide in Russia for high school teachers views his cruelty through a particular, if familiar, lens. It portrays Stalin not as an extraordinary monster who came to power because of the unique evil of Communism, but as a strong ruler in a long line of autocrats going back to the czars. Russian history, in this view, at times demands tyranny to build a great nation.

The text reinforces this idea by comparing Stalin to Bismarck, who united Germany, and comparing Russia in the 1930s under the threat of Nazism to the United States after 9/11 in attitudes toward liberties.

The history guide — titled “A Modern History of Russia: 1945-2006” — was presented at a conference for high school teachers where President Vladimir V. Putin spoke; the author, Aleksandr Filippov, is a deputy director of a Kremlin-connected think tank.

For the full commentary, see:

ANDREW E. KRAMER.  "WORD FOR WORD | NEW RUSSIAN HISTORY; Yes, a Lot of People Died, but ..."  The New York Times , Week in Review section  (Sun., August 12, 2007):  5.

(Note:  ellipsis in title in original.)

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     Vladimir Stratyev in front of a lake containing nickel dust from the nickel factory in the background.  Source of photo:  online version of the NYT article quoted and cited below. 

(p. A4)  NORILSK, Russia — A former Siberian gulag with a population of about 210,000, this decrepit city has some of the worst air quality in the world. It is surrounded by dead trees, as far as the eye can see, poisoned by acid rain.

But to Vladimir M. Stratyev, the eye-stinging haze is an unalloyed blessing, for Mr. Stratyev is, in effect, a miner of air pollution. For him the smog of Norilsk is a mother lode.

The smelters here produce one-fifth of all the world’s nickel, a key alloy of stainless steel, while emitting 1.9 million tons of sulfur dioxide a year, more than the entire country of France. They also spew out 10,800 tons of heavy metal particulates.

. . .

Spotting a business opportunity, factory officials have brought in a contractor, Poligon, to extract the metals from one of these deposits, known euphemistically as “technogenic sources of ore.”

Mr. Stratyev, the supervisor of a mining crew, uses a dredge and bulldozer to scoop up the black sludge, rich in nickel that once fell from the sky. He gathers it in mighty piles from a large pond that lies directly downwind from the smelters and returns it to the factory from which it came.

“They should put a monument up to us,” Mr. Stratyev said, standing in front of the dredge he just used to mine air pollution from the bottom of a pond. “We’re solving an ecological problem.”

. . .

The pollution mining began five years ago, according to Aleksandr I. Korolev, a deputy chief engineer at the factory. “It’s a year-round operation,” Mr. Korolev said of the work, which has accelerated recently because of high metals prices. “The pond does not freeze,” he said, because of the chemicals and the inflow of warm effluent from the factory.

For the full story, see: 

ANDREW E. KRAMER.  "NORILSK JOURNAL; For One Business, Polluted Clouds Have Silvery Linings."  The New York Times   (Thurs., July 12, 2007):  A4.

   Source of map:  online version of the NYT article cited above. 

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   Source of table:  "World Publics Welcome Global Trade -- But Not Immigration." Pew Global Attitudes Project, a project of the PewResearchCenter. Released: 10.04.07 dowloaded from: http://pewglobal.org/reports/display.php?ReportID=258

WASHINGTON, Oct. 4 — Buoyed and battered by globalization, people around the world strongly view international trade as a good thing but harbor growing concerns about its side effects: threats to their cultures, damage to the environment and the challenges posed by immigration, a new survey indicates.

In the Pew Global Attitudes Project survey of people in 46 countries and the Palestinian territories, large majorities everywhere said that trade was a good thing. In countries like Argentina, which recently experienced trade-based growth, the attitude toward trade has become more positive.

But support for trade has decreased in recent years in advanced Western countries, including Germany, Britain, France and Italy — and most sharply in the United States. The number of Americans saying trade is good for the country has dropped by 19 percentage points since 2002, to 59 percent.

“G.D.P. growth hasn’t been as dramatic in these places as in Latin America or Eastern Europe,” said Andrew Kohut, president of the Pew Research Center, referring to gross domestic product, the total value of the goods and services produced in a country. “But worldwide, even though some people are rich and some are poor, support for the basic tenet of capitalism is pretty strong.”

For the full story, see: 

BRIAN KNOWLTON. "Globalization, According to the World, Is a Good Thing. Sort Of."  The New York Times   (Fri., October 5, 2007):  A10. 

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   Source for the image of the Moment issue cover, on left: http://www.momentmag.com/issue/index.html   Source for the image of the first page of the article, on right:  online version of the Moment article cited below.

Sergey, who turned six that summer, remembers what followed as simply “unsettling”—literally so. “We were in different places from day to day,” he says. The journey was a blur. First Vienna, where the family was met by representatives of HIAS, the Hebrew Immigrant Aid Society, which helped thousands of Eastern European Jews establish new lives in the free world. Then, on to the suburbs of Paris, where Michael’s “unofficial” Jewish Ph.D. advisor, Anatole Katok, had arranged a temporary research position for him at the Institut des Hautes Etudes Scientifiques. Katok, who had emigrated the year before with his family, looked after the Brins and paved the way for Michael to teach at Maryland.

When the family finally landed in America on October 25, they were met at New York’s Kennedy Airport by friends from Moscow. Sergey’s first memory of the United States was of sitting in the backseat of the car, amazed at all the giant automobiles on the highway as their hosts drove them home to Long Island.

The Brins found a house to rent in Maryland—a simple, cinder-block structure in a lower-middle-class neighborhood not far from the university campus. With a $2,000 loan from the Jewish community, they bought a 1973 Ford Maverick. And, at Katok’s suggestion, they enrolled Sergey in Paint Branch Montessori School in Adelphi, Maryland.

He struggled to adjust. Bright-eyed and bashful, with only a rudimentary knowledge of English, Sergey spoke with a heavy accent when he started school. “It was a difficult year for him, the first year,” recalls Genia. “We were constantly discussing the fact we had been told that children are like sponges, that they immediately grasp the language and have no problem, and that wasn’t the case.”

Patty Barshay, the school’s director, became a friend and mentor to Sergey and his parents. She invited them to a party at her house that first December (“a bunch of Jewish people with nothing to do on Christmas Day”) and wound up teaching Genia how to drive. Everywhere they turned, there was so much to take in. “I remember them inviting me over for dinner one day,” Barshay says, “and I asked Genia, ‘What kind of meat is this?’ She had no idea. They had never seen so much meat” as American supermarkets offer.

When I ask about her former pupil, Barshay lights up, obviously proud of Sergey’s achievements. “Sergey wasn’t a particularly outgoing child,” she says, “but he always had the self-confidence to pursue what he had his mind set on.”

He gravitated toward puzzles, maps and math games that taught multiplication. “I really enjoyed the Montessori method,” he tells me. “I could grow at my own pace.” He adds that the Montessori environment—which gives students the freedom to choose activities that suit their interests—helped foster his creativity.

“He was interested in everything,” Barshay says, but adds, “I never thought he was any brighter than anyone else.”

For the full story, see:

Mark Malseed.  "The Story of Sergey Brin; How the Moscow-born entrepreneur cofounded and changed the way the world searches."  Moment Magazine  (February 2007).

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   "Sergei and Pyotr Leontiev are reunited on the Russian TV show, 'Zhdi Menya.'"  Source of the caption and photo:  online version of the WSJ article cited below.

(p. A1)  MOSCOW -- In a television studio here, two old brothers hug and weep -- reunited on prime time 60 years after Stalin's terror tore them apart.

They are stars on "Zhdi Menya," or "Wait for Me," one of the most popular TV shows in Russia. With its mission to reunite loved ones, the program probes Russia's 20th-century history and the scars it left on the lives of ordinary people. It has become a must-watch for Russians still trying to make sense of their tortured past.

The brothers in this episode, Sergei and Pyotr Leontiev, were separated in 1941 when their mother was sent to a prison camp 1,800 miles east of Moscow. She took with her Sergei, then 2 months old, but left behind seven other children whom she never saw again. Meanwhile, Pyotr and his sisters left home, taking jobs at factories in nearby towns.

Since its launch in 1998, "Zhdi Menya" has brought together 30,000 people sundered by Stalin's purges, war and the collapse of the Soviet Union. That's earned it a unique, and cherished, place in popular culture.

"We reconstruct the real history of this country," says Igor Kvasha, the program's host. "Not the garbled version in the text books."

Yet the program is ostensibly unpolitical. A tear-jerking cross between Jerry Springer and the History Channel, it recounts the crimes of communism without apportioning blame. That makes it palatable to Russia's leaders, for whom Soviet-era might is still a political touchstone.

. . .

(p. A12)   This focus on the victims of the communist regime contrasts with most mainstream media, which these days tend to humanize Soviet-era leaders and gloss over their crimes. A TV drama, "Stalin.Live," has been panned by critics for portraying Stalin as a sympathetic old man.

"There's a lot of pseudo-historical stuff on TV these days," says Irina Petrovskaya, a television critic. "'Zhdi Menya' is different because it's totally authentic. That's why it's so popular."

Pyotr Leontiev wrote to the program in 2001 in search of his brother. He had spent years trying to trace him through official channels, but was rebuffed at every turn.

The Leontiev family had been devastated by war and terror. Their father, drafted in 1941, was declared missing in action in 1943. Their mother was arrested on charges of "speculation" -- neighbors informed on her for selling a few pounds of tobacco and she was packed off to the Gulag with Sergei, her youngest son, still a babe in arms. His siblings had only his cradle to remember him by.

Researchers at "Zhdi Menya" contacted police in Karaganda, Kazakhstan -- the site of the mother's prison camp -- and after trawling archives they found a Sergei Leontiev whose records matched Pyotr's description. Within weeks they had tracked down Sergei, a retired carpenter. After a childhood in orphanages in Karaganda, he'd spent most of his life, impoverished, in workers' barracks.

In the studio, Pyotr told his story: "The tragedy that befell our family wasn't unique." He described how his mother was wrenched from her children, how their last sight of her and baby Sergei was on a prison train bound for the steppes. "We never heard from them again." The children, raised by a 19-year-old sister, were lucky: Children of "enemies of the people" were often separated, their names changed, and sent to orphanages thousands of miles apart.

To the strains of Mozart's Requiem, Mr. Kvasha spoke to the audience: "It's hard to imagine how many stories there are like this. They didn't just take away people's husbands, wives and parents. They deliberately destroyed archives, concealed people's names. They took away their memory."

In a heart-rending moment, he led Pyotr Leontiev to his brother, who was sitting weeping in the audience. The two embraced.

Pyotr had mixed feelings about the encounter. The joy of seeing Sergei was clouded by the revelation that his mother had been worked to death in 1943. "It was very hard, a very sad day," says Pyotr.

The two men broke down and looked deeply into each other's eyes. "We survived," Pyotr said to his brother. "We survived."

For the full story, see: 

GUY CHAZAN  "Family Viewing: TV Show Reunites Russian Siblings; Sundered by Stalin, Long-Lost Brothers Embrace on Prime Time."  The Wall Street Journal  (By  March 9, 2007):  A1 & A12.

    The actor who hosts "Zhdi Menya" ("Wait for Me").  Source of image:  online version of the WSJ article cited above.

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  Moscow's St. Basil's Cathedral.  Source of the photo:  online version of the WSJ article cited below.

Two old and exotic churches, St. Basil's in Moscow and Kizhi in the Russian north, survived the Soviet era and are invariably depicted in brochures and books to suggest the distinctiveness of Russian culture.  Both feature the tent roofs and onion domes that dominated the skyline of medieval Russia.  But each bears mute witness to a very different tradition:  one, imperial centralism; the other, entrepreneurial regionalism.  Both are embedded in Russia's history; the conflict between them may well determine Russia's destiny.

St. Basil's, looming over Red Square, is an enduring symbol of theatrical autocracy; the Kizhi church, of frontier inventiveness.  Authoritarian centralism has been growing recently under President Putin.  But he also is fond of Kizhi and brought its new priest with him on his last trip to New York.

. . .

Tolerance was implicit in the northern tradition of dvoeveria:  the simultaneous belief in both the old pagan spirits and the new Christian God.  Medieval petroglyphs of the Kizhi region freely intermixed symbols of both.  Peasants in the region were not enserfed.  The northern region lost much of its independent power when Moscow sacked and subdued Novgorod.

. . .

Many more people have seen St. Basil's on Red Square than Kizhi on an island in Lake Onega -- and most see Russian history in terms of autocratic power in Moscow rather than creativity amid adversity in the regions.  Kizhi is the supreme monument to this forgotten tradition that continued to unfold as the vast Russian domain spread north to the Arctic Ocean and across the Pacific to Alaska in the 17th and 18th centuries.

No one knows who was the architect of either monument.  But Russian popular folklore suggests that the creator of St. Basil's was forcefully either blinded or drowned to assure that it could never be duplicated.  In contrast, the creator of Kizhi is said to have simply thrown his ax into the lake and lived on peacefully as a holy man in the northern forests.

During that time, Moscow autocrats looked out from the closed front porch of St. Basil's to see the enemies of central power drawn and quartered publicly in Red Square.  By contrast, the Kizhi church was wider and open to the sky -- and where local people gathered to solve practical problems, facing a vista of lakes and forests.

Much of the renewed vitality in Russia today is coming from young people in the regions.  Their hopes for a more participatory and accountable political and economic future depend on the kind of open community that created Kizhi -- not the closed circles that cling to St. Basil's.

For the full commentary, see: 

JAMES H. BILLINGTON.  "MASTERPIECE; Two Churches, Two Russias; One born of authoritarian centralism, the other of entrepreneurial regionalism."  Wall Street Journal   (Sat., September 16, 2006):  P18.

   Kizhi Island's Church of the Transfiguration.  Source of the photo:  online version of the WSJ article cited above.

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Mike Matthews holding one of the vacuum tubes produced in the Russian factory he owns.  Source of photo:  online version of the NYT article cited below.

(p. C1)  SARATOV, Russia — Mike Matthews, a sound-effects designer and one-time promoter of Jimi Hendrix, bought an unusual Russian factory making vacuum tubes for guitar amplifiers.  Now he has encountered a problem increasingly common here: someone is trying to steal his company.

Sharp-elbowed personalities in Russia's business world are threatening this factory in a case that features accusations of bribery and dark hints of involvement by the agency that used to be the K.G.B.

Though similar to hundreds of such disputes across Russia, this one is resonating around the world, particularly in circles of musicians and fans of high-end audio equipment.

Russia is one of only three countries still making vacuum tubes for use in reproducing music, an aging technology that nonetheless "warms up" the sound of electronic music in audio equipment.

"It's rock 'n' roll versus the mob," Mr. Matthews, 64, said in a telephone interview from New York, where he manages his business distributing the Russian vacuum tubes.  "I will not give in to racketeers."

Yet the hostile takeover under way here is not strictly mob-related.  It is a dispute peculiar to a country where property rights — whether for large oil companies, car dealerships or this midsize factory — seem always open to renegotiation.  It provides a view of the wobbly understanding of ownership that still prevails.

. . .

(p. C4)  If the tube factory dies, so will the future of a rock 'n' roll sound dating back half a century, the rich grumble of a guitar tube amplifier — think of Jimi Hendrix's version of "The Star-Spangled Banner" — that musicians say cannot be replicated with modern technology.

"It's nice and sweet and just pleasing sounding," Peter Stroud, the guitarist for Sheryl Crow, said in a telephone interview from Atlanta.  "It's a smooth, crunchy distortion that just sounds good.  It just feels good to play on a tube amp."

He added:  "It would be a catastrophe for the music industry if something happened to that plant."

For the full story, see: 

ANDREW E. KRAMER.  "From Russia, With Dread; American Faces a Truly Hostile Takeover Attempt at His Factory."  The New York Times   (Tuesday, May 16, 2006):  C1 & C4.

The transistor disrupted the vacuum tube, a case that would usually be described as an episode of creative destruction.  One secondary lesson from the story above is that there may be a previously unremarked symmetry to the process of disruption.  A disruptive technology typically appeals only to a niche in the market, while the incumbent technology dominates the mainstream.  But after the disruptive technology improves sufficiently to capture much of the mainstream market, maybe there often will remain a niche market that still prefers the older disruptive technology?

To use Danny DeVito's example in "Other People's Money," the car may have disrupted horse-and-buggies.  But for some nostalgic "jobs" the horse-and-buggy may still be the better product, so there will likely remain some demand for buggy whips.

To the extent that this phenomenon is significant, it might serve to ease the labor market transition when one technology leapfrogs another.

 A vacuum tube used in guitar amplifiers, that was produced in the factory that Mike Matthews owned.  Source of photo:  online version of the NYT article cited above.

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  Source of graphic:  online version of the WSJ article cited below.

(p. A1)  The so-called Doha round of talks, which began in 2001, were designed to boost developing nations; among other things, they want lower barriers to their agricultural exports.  France has vowed to veto any deal that doesn't protect its farmers.  A pivotal missed deadline April 30 has led to predictions the talks could die by summer if countries including France don't change their stance.

The standoff shows how cultural and emotional factors can combine with politics to stifle free-trade goals that most economists believe would provide a net benefit to the world.  The tariff cuts envisioned by Doha would not only help developing countries sell their minerals and food products, but would also lower barriers to the industrialized world's exports of goods and services.  The World Bank calculates that Doha would boost the global economy by around $100 billion.

Overall, France itself likely would be a major economic gainer from a global (p. A10) deal.  Though it's the world's second-largest agriculture exporter after the U.S., farming accounts for just 2.5% of the French economy.  World-class manufacturing and service companies, such as car maker Renault SA and insurer AXA SA, are larger engines of the French economy.  France could gain more income than it would lose in opening its agricultural markets to budding farm superpowers like Brazil.

Even in agriculture, France can be a formidable competitor, notably in products such as wine and cheese.  Its brand is well-known the world over.  And its farms are increasingly home to capital-intensive agribusiness companies, not just small family producers.  Most of the $11.5 billion in European Union subsidies that France receives each year goes to the largest, most commercially viable farms.

WTO chief Pascal Lamy, a Frenchman, says he doesn't understand France's position.  "As an efficient farm producer, the strategy should be to reduce subsidies and prices, because others won't be able to compete with you," he said in a recent interview.

. . .

The French rural tradition, however, is changing.  Between 1993 and 2004, the number of arable farms fell by nearly a third.  Wide swaths of neglected land are now home to unsightly scrub, and the farms people see as they drive down France's immaculate highways are often parts of major business enterprises.  Oxfam says as much as 60% of subsidies went to the richest 15% of French farmers in 2004, the latest figures available.

Oxfam believes the EU's tariffs and farm subsidies, which total over €40 billion annually, are harmful to the world's poorest countries.  High customs duties keep products from poor nations out of the wealthy EU market.  At the same time, EU farmers overproduction is dumped cheaply abroad, driving down global prices and harming farmers in the developing world.

For the full story, see:

SCOTT MILLER.  "Food Fight; French Resistance To Trade Accord Has Cultural Roots; WTO Talks Promise Benefits But Farmers Retain Hold On the Nation's Stomach; 'Politicians Are Frightened'."  The Wall Street Journal  (Tues., May 16, 2006):  A1 & A10.

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    Source of book image:   Amazon.com.

I remember Ben Rogge recommending The First Circle, decades ago when it first appeared in English. It is a powerful, courageous, wise work, bearing many lessons. As you read the book, you keep hoping you can find someone to blame for the evil that is happening. But as Solzhenitsyn works his way up the bureaucracy, each bureaucrat has a plausible motive for his part in evil; one motive, for example, is the protection of the bureaucrat's family. Only when you reach Stalin, do you find someone who you can really despise. But he seems borderline crazy, so even he is not a totally satisfying villian.

The book can be seen as illustrating a point that Rogge often made: socialism is not bad because it is run by bad people; it is bad because it provides ordinary people incentives to do bad things. (These are not his words, but I believe they capture his point.)

Alexandr Solzhenitsyn. Source of image: online version of the NYT article quoted and cited below.

(p. A1) MOSCOW, Feb. 8 -- A grandfatherly figure, his bearded face wrinkled into a smile, peers down from billboards around town.

It is surprise enough that the man is Aleksandr I. Solzhenitsyn, the once-exiled writer, Nobel Prize winner and, of late, octogenarian scold. It is even more so that the billboards advertise his adaptation -- broadcast on state television, no less -- of one of his fiercely anti-Soviet novels, "The First Circle."

Solzhenitsyn has been called the conscience of the nation, but his reputation has risen and fallen as tumultuously as Russia itself since the collapse of the Soviet Union. "First Circle" has once again placed him on the national stage, reaching an audience that would have been inconceivable to him four decades ago, when he smuggled the book out of the Soviet Union.

For the full article, see:

STEVEN LEE MYERS "Toast of the TV in Russian Eyes: It's Solzhenitsyn." The New York Times (Thurs., February 9, 2006): A1 & A3.

A scene from the Russian mini-series version of The First Circle. Source of image: online version of the NYT article quoted and cited above.

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Image source: WSJ article quoted and cited below.

Since the following interesting article, Andrei Illarionov has resigned. That's probably a bad sign for Russia, unless you argue that Illarionov can be more effective outside the government than inside it.

The article begins by quoting Al Breach, who is chief strategist at Brunswick UBS:

(p. A13) It's a one-party state, and if you're out, you're out," Mr. Breach says. "If he can help stop some of the bad things, it's worthwhile sticking around."

This year, however, things haven't gone his way, with state-owned oil and gas companies swallowing up independent oil producers, vastly expanding the state's presence in the economy. The result, says Mr. Illarionov, has been a fall in private investment in the oil industry and slowing oil-production growth--at a time when world crude prices are soaring. Meanwhile, state outfits have also bought stakes in private engineering companies and taken over the management of Russia's biggest car maker, AvtoVAZ.

It is all anathema to Mr. Illarionov, a St. Petersberg-trained economist and longtime admirer of Ayn Rand, the American writer who lauded unfettered capitalism. In the early 1990s he was an adviser to Yegor Gaidar, then- prime minister and architect of Russia's early market reforms. But he quit in 1994, criticizing the government for failing to curb inflation and for putting the brakes on overhaul (sic). He then became one of Russia's most respected independent analysts: He was the only prominent economist to call for a sharp devaluation of the ruble before the currency crashed in August 1998.

Mr. Putin hired him as an adviser in 2000, and he was a top (sic) force in drafting the liberal, modernizing agenda that the president pushed through in his first term. His ideology -- trimming state spending, slashing taxes, cutting red tape and deregulating Russia's gas, electricity and railway monopolies -- became official policy.

Mr. Illarionov was seen as one of the key drivers of crucial overhaul initiatives: a flat income-tax rate of 13%, a rainy-day Stabilization Fund for Russia's oil windfall, and the decision to dip into the fund to make early repayments on Russia's foreign debt.

But his reputation suffered in later years from a long, bruising fight over how to restructure the electricity industry, and a quixotic campaign against the Kyoto Protocol, both of which he largely lost. Russia ended up ratifying the climate-change pact last year.

For the full article, see:

GUY CHAZAN. "Putin Insider's Outsider Game; Adviser Illarionov Preaches Capitalism, but Who Is Listening?" THE WALL STREET JOURNAL (Fri., December 23, 2005): A13.

(Note: There are several differences (e.g., in the title, and in the reference to Ayn Rand) between the online version of this article, and the print version of this article.)

Posted by Art Diamond at 11:42 PM | Permalink | Comments (0)

The source of the above image is:  http://www.edwardtufte.com/tufte/posters

Edward Tufte says that the graph/map above is the best graphic ever drawn.   His criterion is how much information is communicated per unit of ink.  (Sort of a signal to noise ratio?)

The tan line that starts thick on the left, and gets thinner toward the right, represents Napoleon's army as it enters and crosses Russia.  The width of the line is scaled to the remaining size of the army.   On the right hand side, the tan line ends in Moscow, where the army disasterously wintered.   The black line moving left shows the diminishing size of the army as Napoleon retreated.

When I was a student at Wabash College, I was a determined and vocal advocate of Ayn Rand's Atlas Shrugged.   My economics professor Ben Rogge, was not so enthused.  He thought there were better Russian novels to read, and on several occasions, suggested:  'Diamond, you should read War and Peace.'

I often did not take Rogge's advice quickly, but usually I took it eventually.  After leaving Wabash, I read War and Peace.   Parts of it, I found too much like a soap opera for my taste.  But I did find a part that resonated.

Part of Tolstoy's story is about the Russian general facing Napoleon, who would not fight, but who continued to retreat into the heart of Russia.  He was widely castigated as a do-nothing leader.   But as a result of the Russian general doing nothing, Napoleon ordered his army further and further into Russia.

It is very hard for leaders in government to do nothing.  They will be castigated.  But sometimes nothing is exactly the right thing for them to do.

Edward Tufte's wonderful book is:

Tufte, Edward R.   The Visual Display of Quantitative Information. 2nd ed.   Cheshire, CT:   Graphics Press, 2001.

Posted by Art Diamond at 8:14 AM | Permalink | Comments (0)