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Freedom is taking root in Russia

THE CHANGES in Russia during the past 15 years have been brought about by the desire of the Russian people to have a better life. Although laced with imperfection, democratic changes have taken root in Russia, and we now have an elected parliament and a popularly elected president.We also have a multi-party system and claim to be tolerant of a pluralism of views and attitudes.

The economy is based on market values and private ownership. Russia voluntarily withdrew its troops from Eastern and Central Europe, and our nuclear weapons are no longer aimed at theWest.We have been assisting the United States in the war on terrorism, and few can downplay the significance of Russian-American cooperation in Afghanistan.

Domestically, Russia will soon undergo rapid economic growth. After the 1998 default the economy is growing at a steady rate. In 2003, economic growth was more than 7 percent of the GDP. The first quarter results of 2004 support these positive trends: GDP grew by 8 percent, and investment grew by 13 percent, while inflation was the lowest ever at 3.5 percent. Real income grew by 13.9 percent while net capital outflow was as low as $200 million.

It would be a mistake to try to attribute this growth only to higher prices on oil and other natural resources in the international markets. Yet to accelerate this growth we have to solve many problems. Most important is that we clear a path to development of private entrepreneurship. If we succeed in this, Russia will have a real chance to complete the historic economic reforms of the 1990s.

Then there is political stability. During Boris Yeltsin’s presidency, the executive branch often could not enforce needed but highly unpopular reforms. The Russian population had a low level of trust for leaders, and this mistrust was inflamed by the privileges accorded to the so-called oligarchs.Now, however, Russian business owners no longer feel financially uncertain with each and every political intrigue or stock market crisis.

You hear a lot of talk in theWest about media manipulation and ballot box conspiracies in recent Russian elections. But Putin’s reelection campaign should be regarded as a reverse paradigm of Ronald Reagan’s campaign question in 1980: Are you better off now than you were four years ago? Since the answer in Russia was an overwhelming ‘‘yes,’ voters did not see any real alternative to Putin. Even by some modest estimates, the gross annual income of an average person increased by almost 10 percent in Putin’s first term. In 2003 it grew by 17 percent. So, yes, Russians do have a substantive reason to support their president.

The big issue is whether the spirit of freedom will prevail in my country. I believe that it will, and that the defeat of the liberal parties in Russia during the parliamentary elections in 2003 does not mean that liberal values disappeared. These values will eventually prevail, but most likely it will require the emergence of new leaders who will have to be more focused on the daily political grind at the grassroots level and much less preoccupied with their own public image and personal well-being.

The ‘‘Yukos’’ issue has become an inevitable part of discussions about Putin’s Russia. I do not believe that every current attempt to apply Russian law should be seen as a sign that the country is rolling back toward authoritarianism. Our country experienced true lawlessness for over 70 years under communist rule; since 1991 it has slowly been building indispensable government institutions. These new government institutions are not perfect, but at least they are in place. This gives me reason to believe that Mikhail Khodorkovsky -- the indicted chief of the oil company giant Yukos -- will be given a chance to defend himself in an open and a fair trial.

Large corporations in Russia have not yet fulfilled the promises that they made in the initial stages of privatization. If wealthy Russian oligarchs do not live up to their responsibility to give something back to society, they will continue to be resented and there will be a clamor to undo the rigged sales of state assets upon which their fortunes are founded.

Businesses must pay taxes on a regular basis, support charities and social causes, and try to avoid influencing the government and legislative processes through corrupt methods. When that happens, we will attain a prosperity that may be the prelude to a popular acceptance of liberal values.

Aleksander Lebedev is a member of the Russian Duma and co-chairman of the National Investment Council. 

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