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INTRODUCTION TO RUSSIA'S ECONOMIC DEVELOPMENT - APPENDIX 2 by Dr. Pyotr Joannevich van de Waal-Palms

As we enter the 21st Century, Russia and the United States have become wiser. Both countries still have much to teach each other and much to learn from each other. Jointly they have demonstrated that it is people who support the government and not governments that supports the people. Together they have also learned from the U.S. experience that there is nothing wrong with socialism if it is accompanied by justice and fairness. From each other they have learned that private hands-on ownership produces better custodians and efficiency than communal absentee ownership. They have learned that extremes in the form of social unfairness and injustice in their societies produces chaos. The time has come to benefit from each other's experience.

If the cold war was indeed a contest between the U.S. and the U.S.S.R of competing systems with the objective of achieving well-being in a socially moral and just society, the jury is still out. While the U.S. was able to create greater material wealth, paradoxically its population is less fulfilled due to erosion of traditional moral values in the culture. It is ironic that now that it is again possible for the U.S. and Russia to share experiences, the U.S. has misplaced the one thing of most value that it once had to offer, moral, ethical and spiritual principles of conduct.

Until recently most Americans had overlooked or misunderstood cultural changes which were occurring in the U.S. Americans noticed these changes, but did not understand that far from isolated curiosities, these were harbingers of a new culture that would shortly burst upon and sweep the U.S. into a new United States that Americans would hardly be able to recognize. Americans now endure in the new culture of modern liberalism rap songs calling for the killing of policeman, sexual mutilation, high homicide figures, collapse of the criminal justice systems, high illegitimate birth rates, the growth of aids, corruption, the popularization of violence in entertainment, a disoriented an less than well-educated youth, distrust of government, and growing loss of freedom as liberals increasingly seek to legislate legislate equality of outcomes in their efforts to create an egalitarian society. With each new evidence of deterioration, Americans lament for a moment and then become accustomed to it. Many Americans now realize that ethics and moral principles and spiritual foundations are more important to a just society and well-being than material goods.

Russia, which has tried that egalitarianism could be reminding the U.S. that it doesn't work. The U.S. which has achieved economic success could be reminding Russia that economic progress without traditional moral values does not produce, a just society or human well-being.

"Culture, as used here, refers to all human behavior and institutions including popular entertainment, art, religion, education, scholarship, economic activity, science, technology, laws, and morality. Of that list, only science, technology and the economy may be said to be healthy today in the U.S. it is problematical how long that will last. It seems highly unlikely that a vigorous U.S. economy can be sustained in an enfeebled hedonistic culture particularly when personal achievement is increasingly rejected in the U.S. as the criteria for the distribution of rewards. Ironically Russia's experience with this phenomena is no longer fully accepted in the U.S.

Who has the money, is less significant than that the cultural and spiritual trajectories of both countries continues downward. This is not to deny that much in both cultures remains healthy, that many families are intact and continue to raise children with strong moral values. Both Russian and American culture is complex and resilient. But it is also not to be denied that there are aspects of almost every branch of both cultures that are worse and that the rot is spreading.

Large chunks of the moral and ethical life of the United States and Russia, major features of their culture, have disappeared altogether and more are in the process of extinction. These have been replaced by new ways of morality that are unwelcome to many. There is a limit to the amount of deviant behavior either of the two societies can afford to recognize. As behavior worsens the community adjusts its standards so that conduct once thought reprehensible is no longer deemed so. As long as modern liberalism was tempered by opposing authorities and traditions it was a splendid idea. It is the collapse of these forces that has brought the U.S. to social degradation and led it to offer Russia the advice that corruption is to be expected in creating a democracy. It is not. This it must be stressed is not a conspiracy but a syndrome.

Now, together the people of the U.S. and Russia have an opportunity to join once again, as they did in the 1940's in a war. This time it would be a war on poverty, injustice, immorality, corruption and unethical practices, which destroy democracies. A nation's moral life is of course the foundation of its culture.

The democratic principle is in rhetorical ascendancy everywhere, and yet it is worth asking whether in actuality, as a matter of practice rather then declamation, it is not in retreat. Our greatest joint hope lies in a moral and spiritual regeneration which could be produced by either a religious revival or the revival of public discourse about morality. It may yet develop that the winner in designing a system that serves the true well-being of the people will be the one that provides leadership in restoring morality, ethics, and spirituality to the economy of the human equation.

This chapter, about Russia's economic development, provides clues to the compatibility of aspirations of the population's of Russia and the U.S. which jointly share a hunger to transcend their inadequate past whether it be economic, moral or spiritual.

Dr. Pyotr Joannevich van de Waal-Palms


For discussions in Russian language in Moscow 7-095-324-6134 Факс 7-095-324-4249, Alexander Wislobokov

For discussions in Russian language in United States of America, Washington D.C., Tel: 1-703-818-0508 Fax: 1-703-818-00236 , Email: sanich@juno.com Alexander Goldenberg

For discussion in English or Dutch: 1 425 828-6774 E-mail: palms@PeterPalms.com Dr. Pyotr Joannevich van de Waal-Palms

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Office in St. Petersburg: Tate Ulsacker, Dun & Bradstreet Nord, Tel: (7-812) 278-9264, Fax (7-812) 278-9265 Secretary: Tanya, E-mail <palms@www.medport.ru. palms@m16.medport.ru

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