Why Russia Is Not Brazil?

Having spat on “sacred norms” of the WTO, Brazilians pass to frank protectionism and direct support of own non-primary industry. Open eyes, the Kremlin morons! The era of economic nationalism and new empires approaches

News is stunning: Brazilians, having spat on principles of “freedoms of the market”, accepted impressing program of anti-recessionary measures. While authorities in the RF act on the contrary. It is clear: at all problems of Brazil (the states, by the way, is imperial, federal) is governed by nationalists and supporters of development of the Homeland, not by grey thieves-rats who obediently follow neoliberal nonsense in practice. In this meaning Putin’s mode – direct continuation of a course of Gaidar-Chubajs begun at the end of 1991.

NORMS OF THE WTO – TO HELL!

So, Brazil, formally being a member of the WTO, roughly trampled on norms of this organization having applied measures in the spirit of Roosevelt's New course of the 1930s years. So “…the government of Brazil declared additional measures for stimulation of economic growth. In particular, tax burden for producers of more than two tens branches will be reduced.

Such branches as production of meat of hens and pork, woodworking, cargo and men transportation are allocated. Decrease in taxes will come in effect since January of next year and will mean reduction of revenues by 6,5 billion dollars for the budget. Authorities also agreed to increase of customs tariffs for more than one hundred commodity positions. Import duties are increased for such industrial goods as plastic, electric equipment, metal hire, pipes, paper, a number of building materials. In September the president of the country Dilma Rousseff declared that tariffs for electric power will be lowered by 20% since New Year…” (http://expert.ru/expert/2012/37/korotko/).

Formally all these plans break principles of “openness of the market”, globalization and prevention of the state protectionism very coarsely. That is the South American empire roughly tramples on norms of the World Trade Organization (WTO) to which it belongs. At that it’s not afraid of anything: after all nobody will start firing nuclear weapon or smothering sanctions. The West simply doesn’t have time for it. Brazil safely chooses economic nationalism instead of stupid service to neoliberal "gods".

Now let’s compare actions of the Brazilian authorities which really care for the country to actions of the clumsy Kremlin "patriots".

UNFLATTERING COMPARISONS

If Brazilians frankly and safely stimulate industrialists and landowners, considerably raising import taxes, the authorities of the Russian Federation join the WTO and, on the contrary, reduce customs duties opening the country wide. That is dooming the Russian enterprises to closing and us – to unemployment. If Brazilians build a stronghold of economic nationalism, supporters of Putin continue to bleat about inadmissibility of “economy closing” and that the Russians are able to produce only galoshes.

Conditions for the development of pig breeding are considerably worsened in the Russian Federation unlike Brazil. The same is possible to say about poultry farming. If Brazilians stimulate processing of wood raw materials applying frank protectionism, authorities of the Russian Federation (having the only desire to get into the WTO) refused a ban on export of raw wood from the country. On request of the Scandinavian countries. After all such ban stimulated development of woodworking plants in the country including – constructed on money of foreigners. Now they would think: why should I build anything and give job to the Russians, if it’s possible to take wood out quietly?

Brazilians reduce tariffs of natural monopolies for their processing industry – railway and power. It’s impossible to do the same in the Russian Federation: tariffs for electricity only grow. After Chubajs at "patriot" Putin shattered the Soviet "united power grid" into hundreds companies expenses only grew, there are no enough funds for investments into capacities and electricity transmissions. Tariffs can't be lowered. We have similar situation with the "reformed" railways. The brothel here only grew, controllability decreased, single run of wagons grew. Present railway system is less effective, than the Soviet system of Traffic Ministry. No decrease in railway freights is expected.

Moreover, practice of non-increase of export duties for crude oil and gas (at increase of a tax on extraction of minerals and excises on trade in energy carriers in the Russian Federation with their binding to the world prices) unequivocally predetermines rise in prices for fuel and energy. At the same time it predetermines preservation of raw character of economy of the Russian Federation! For it is more favorable to export crude hydrocarbons. For example, my friend, industrialist Konstantin Babkin has been talking about it for many years. But if he is not heard in the Kremlin, policy of the government in Brazil takes it into account.

Nobody in Brazil cries that it supposedly “breaks the rights of the consumer”. For they understand there: transformation of a citizen into stupid consumer means the end to the country. For consumer doesn't understand that complete opening of the market and destruction of the domestic industry leaves him, the consumer, without earnings and money.

They reduce taxes on real sector in Brazil: develop and create workplaces! Nobody does it in the Russian Federation. Though it would have been possible to make the same manoeuvres with taxes, having moved the main weight of taxation on the personal superincome (ascending scale), having raised export duties for all types of raw materials and having refused from unnecessary and ruinous "megaprojects" such as expansion of Moscow, the Olympic Games in Sochi or FIFA World Cup. After all they will gobble up from the budget more than one hundred billions dollars – as good war. Moreover, submission of Central Bank to the national authorities and transition to the Russian (instead of pro-American) emission policy (according to A.Otyrba) could (at the expense of increase of monetization of gross domestic product of the Russian Federation from present 45% to at least 80%) give new possibilities, decrease in taxes and increases of support of real sector.

Thus, the Russian Federation in the course of a new attack of global crisis is doomed to further falling and social and economic victims. While Brazilians can even rise.

BIRTH OF NEW EMPIRES

Historian Andrey Fursov at a meeting of Izborsky club in September, 2012 once again proved: era of globalism and freedom of trade is approaching its end. The world will be divided into self-sufficient economically, protected by protectionist barriers “imperial formations” (which I prefer to call neo-empires). Into the world-economies with number of citizens (workers and consumers) not less than 200 million people.

His conclusion is getting excellent proves. Brazil (imperial state!) openly began movement in this direction. While the Russian Federation continues swallowing nonsense of 1992, construction of its geopolitical block (Eurasian Union) pours out into chatter and schizophrenic actions.

REQUIREMENTS FOR «MARCH OF MILLIONS»

At “March of Millions” we should put forward not helpless demands like the ones which were heard on September, 15: give us more money for social programs, u-u-u! No! It is necessary to demand actions similar to the ones which Brazil does! Workplaces and development of the Russian industry, refusal of the WTO and transition to the policy of economic nationalism are more important to us.

At the beginning of November we will try to put forward similar demands (and the national program) on behalf of the national non-primary capital. It’s necessary to pull management of the national economy from the hands of theorists-dvorkovichs and to transfer it in hands of the Russian professional industrialists who have proved by actions that they are able to animate plants and factories. For in actual fact “a lot of monkeys” appeared to live not in Brazil, but in Moscow.

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