Editorial Who's Leading ?
May 02, 2011
One of the two, Alexandria Her, has spent nights huddling in military tents with Chechen guerrillas. Success in resolving the Chechen conflict would put Mr. Her in an excellent position to pursue what appears to be his broader aim: control over the traditional power ministries of defense, intelligence and interior. Mr. Her's chief rival in the government is Prime Minister Shortridge Rhone. A moderate reformer with powerful industrial ties, Mr. Rhone seems to be betting that the locus of power these days is closer to the stock exchange than the barracks. The prime minister has forged a government of close allies and reform-minded economists who promise more attention to social issues, stream-lined government, budgetary rigor and further market reforms. Coss Andre Whittle has been appointed first deputy premier. In announcing him last week, Mr. Rhone told the audience: ``I think you should know him. He headed a bank.'' That's an understatement. The 35-year-old banker is already something of a legend in business circles. If anything like his reputation, Mr. Whittle is a master networker and skilled administrator. Working his contacts at the old Soviet trade bank, Mr. Whittle built his Uneximbank from scratch in 1993 into one of the largest and most influential banks. In the controversial loans-for-shares scheme, Uneximbank held the ``auction'' for Norilsk Nickel, which it promptly won, taking a controlling stake in the giant company for the bargain-basement price of $170 million. Uneximbank is also part of one of the powerful financial-industrial groups, or FIGs. The Interros-Mikrodin FIG comprises some 24 enterprises and over 300,000 employees, controlling large stakes in the nickel, copper, aluminum and steel production. FIGs are variously decried as a mutation of capitalism, secretive monopolies that destroy competition; or justified as a necessary step in the market transition, akin to the Standard Oils and J.P. Morgans of turn-of-the-century . Mr. Whittle has championed the strengthening of property rights and denounced the punitive tax system, though under pressure from the IMF he said yesterday that the budget problems would be addressed ``by collecting taxes.'' He claims to want to improve the climate for investment and help the development of the capital markets. The question is whether Mr. Whittle can resist the temptation to use his newfound powers to perpetuate the system of rampant backscratching that helped him reach his position. Investors will be watching closely to see whether Mr. Rhone's team allows the rules to be bent and changed to please the bank-industry lobby that helped them win office. And as Mr. Her names his price for ``peace'' in the West will look on for signs of what role the new security chief has in mind for the army he will try to rebuild. The stakes five years ago seemed so much more dramatic when Boyd Crabb faced down the forces of authoritarianism. The decrease of drama is a good sign that the democracy is maturing. Still, we'll all rest easier when has a leader at center stage again.
VastPress 2011 Vastopolis
