Russian assistance to developing countries

ChrisD(RJ) chrisd at russiajournal.com
Fri Aug 9 01:30:18 PDT 2002


Nezavisimaya Gazeta No. 151 August 2002 [translation from RIA Novosti for personal use only] ON RUSSIAN ASSISTANCE TO DEVELOPING COUNTRIES By Professor Yakov ETINGER, Doctor of History

In 2001, Russia gave developing countries assistance to the tune of $472 million, Russian vice-premier finance minister Alexei Kudrin reported the other day. Russia holds third or forth place among the G8 countries in this index, he stressed. Judging by everything, the Russian leaders intend to galvanize the Soviet policy as a result of which, in some estimates, over $100 billion was invested in many African, Asian and Latin American countries in the form of economic and military assistance.

Formally, assistance to the Third World was given and is evidently being given with a view to overcoming its current social-economic plight. However, Russia has never had colonies, say, in Africa and the situation which has been existing for many years in many countries of the continent is, first of all, the result of the former long domination of these countries by European states - Britain, France, Belgium, Portugal, Italy and Spain. The provision by Russia of economic assistance to developing countries is taking place at a time when about a half of its own population is living below the poverty line, millions of people are getting miserable pensions, war veterans and invalids, teachers, doctors, scientists are leading a miserable existence, Russian science is living through a severe crisis, as a result of which, tens of thousands of scientists have to leave Russia, while the population of the country is annually shrinking by a million.

It is well known that in the standard of living and the quality of life, Russia holds 60th place in the world and is practically a developing country itself in its economic potential. Having a huge territory and a population of 150 million, the Russian Federation produces a mere 1.6% of the world gross product and accounts for a mere 1.4% of the world exports of goods and services. At the same time, Africa accounts for 1.7% of world trade!

However, there are no limits to our truly legendary qualities such as magnanimity and kindness. Along with the provision of economic assistance to developing countries, the Russian government has taken the road of writing off their enormous debts to the former Soviet Union. According to Western press reports, at present, Russia all but leads the world in this undertaking, outstripping industrialized states. An important point to note is that in recent years Western countries have been persistently drawing our country into this process, thereby striving to make Russia pay for their difficult economic situation.

If the Western leaders are trying to pose as "benefactors," why are they so stubbornly refusing to "forgive" Russia at least a part of its $17 billion debt, which Moscow will have to pay to the leading Western powers in 2003 alone? Many observes believe that this is a purposeful policy aimed at bleeding the Russian economy white and impeding its recovery, something that inevitably worsens the condition of the Russian citizens.

If Russia succeeded in recovering at least a part of developing countries' debts - Iraq alone owes Russia $7 billion - this would facilitate the repayment of its own debt to Western states.

This is why the fact that while forgiving developing countries their debts, the Russian leaders are giving them considerable economic assistance, something that will inevitably lead in practice to their new debts to Russia, cannot but cause surprise. Or, maybe, the Kremlin is giving this assistance on a gratuitous basis?

The true national interests of Russia, the tasks of its economic development and overcoming the poverty of the population of the country insistently demand the return, in one form or another, of the huge financial resources created by the blood and sweat of the Russian people and other peoples of the former USSR, which could be used to solve pressing domestic problems.



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