Install

Get the latest updates as we post them — right on your browser

Today's paper. Last Updated: 05/28/2012

Look East

Over the past 18 months, Russia’s relations with Asia have begun to improve. Both President Dmitry Medvedev and Prime Minister Vladimir Putin have repeatedly pointed to the need for an economic turn to Asia. Dozens of protocols and agreements on new projects have been signed with China. Some are already up and running.

Nevertheless, Russia has yet to devise a long-term and comprehensive Asian strategy. The main force holding Russia back is, to put it bluntly, ignorance. Indeed, for some Russians, any economic movement toward Asia is tantamount to a departure from a European path of development.

There is, of course, no Asian alternative to Russia’s cultural and political orientation toward Europe. But a partial economic reorientation toward Asia does not pose any real risk of disengagement from Europe. On the contrary, over the past two years, Russia has officially made a decisive turn in favor of closer integration with the European Union.

Europe currently accounts for more than 50 percent of Russia’s trade turnover. But the European market will not grow to any significant extent for the foreseeable future. Europe’s retained wealth and accrued cultural resources will allow the old continent to live in relative comfort in the decades ahead, even if it gradually cedes its position in the production of goods and services. Indeed, Europe is likely to become a tourist and leisure destination for hardworking Asians.

While Russia needs to integrate itself with Europe’s remaining islands of innovation — Germany, above all — it is the growth potential of the Asia-Pacific region that will determine the country’s future. Here, the main partner is China, which Russia now supplies with fertilizers, seafood, timber, nonferrous metals and increasing volumes of crude oil. Unlike the West, Russia imports from China not so much consumer goods as engineering products. In most industries, head-to-head competition with Asia would be senseless, given Russia’s higher labor costs.

But if current trends persist, Russia east of the Urals — and later the entire country — will become an appendage of China. Russia could become a warehouse of resources and then an economic and political vassal. No “aggressive” or unfriendly effort by China will be needed; Russia will be subdued by default.

There is no immediate geopolitical threat in this situation. Territorial expansion is not a Chinese historical trait, and the two countries have excellent political relations.

But the Chinese are already offering Russia projects that are similar to those that they promote in African states: the development of resources with Chinese money and Chinese labor. Russia must act now to secure a more dignified and beneficial place in a future world order.

That goal requires that Russia rely on its real competitive advantages. Consider basic foodstuffs. Rising food prices plague most of Asia, while Russia’s potential for expanding grain output is enormous. According to some estimates, the country could increase its arable area by 10 million hectares and its crop yields by 250 percent, thereby boosting grain exports dramatically.

But an even larger vision is needed. A modern Asian strategy for Russia — call it “Project Siberia” — should combine Russian political sovereignty with foreign capital and technologies. Investment should come not only from China, but also from the United States, Japan, South Korea, the ASEAN countries and the EU, all of which are keen to prevent China’s exclusive dominance east of the Urals.

The work force can be found to undertake the development projects in Russia’s east, including clusters of high-yielding agricultural production for grain, fodder, meat, poultry, pork and possibly beer. There are still a few million surplus workers in Central Asia. Seasonal workers can be brought in from India and Bangladesh. And, yes, some will have to be brought in from China.

Of course, such a strategy will require highways, bridges, railways and seaports. (There are practically no grain-export terminals in Russia’s eastern regions, for example.) Some Russians fear that if China is allowed to build these projects, crowds of Chinese will flock into the country. My answer is this: If we stay where we are, like the proverbial dog in the manger, the hay — Russia’s economy — will rot.

The strategy should be to transform Russia’s eastern regions into one of rising Asia’s resource and food bases. The east should become a provider of relatively high value-added goods, rather than just an exporter of timber, oil, ore and seafood, as is the case now. Such a scenario would reverse the gloomy demographic and economic trends in the country’s eastern territories and would strengthen Russia’s geopolitical position in the process.

What makes Project Siberia so efficient is that it benefits everyone. Russia would maintain effective sovereignty over its eastern territories while creating a new platform for development. China, Asia and the world would get a new resource and food-supply base, easing emerging shortages. And, last but not least, the vision of peaceful global integration would receive a powerful boost.

Sergei Karaganov is dean of the School of World Economics and International Affairs at National Research University Higher School of Economics in Moscow. © Project Syndicate





This article has no comments.

Be the first to leave a comment


Discussion
The Moscow Times welcomes your comments and invites you to discuss topics with other readers. Your comment will be posted automatically to enable a live discussion. If you aren't familiar with our comments policy, you can read it here.

If you're a registered user, you can start typing your comment below. If not, take a moment to sign up. and then return to the article.

If your comment doesn't appear, contact us by using our web form.

Comments

Comments via Facebook



Also in Opinion

There's Just One Nationality — Mathematician

Nationalism is an infantile disease. It is the measles of mankind."

Russia's New Propaganda Minister

After Monday's announcement that historian Vladimir Medinsky was appointed the culture minister, critics quickly labeled him the new propaganda minister. Medinsky's academic ethics and historical distortions may raise serious questions, but for the Kremlin, he has three important attributes that are much more important: He is a model United Russia leader, a firm Putin loyalist and a skilled sophist.

Spinning Medvedev's Government

Were this 2008 and not 2012 — and had Dmitry Medvedev been named prime minister without having first served a full term as president — then the composition of his new government might have created a generally positive impression.

New Government Faces Old Problems

A longstanding platitude shared by both the Kremlin as well as domestic and foreign analysts is the need for Russia to diversify its economy away from energy dependence and reduce its non-oil budget deficit.

Putin's Postman Delivers Nothing at the G8

In the mid-1990s, former President Boris Yeltsin fought hard for the right to sit as equal at the same table with the leaders of the world's seven leading democracies. Using a lot of political wrangling, Moscow finally secured permanent membership in this elite club where the real heavyweights are supposed to solve the world's most pressing problems.

Russia Stays Home

Just three days before his return to the Kremlin as president, Vladimir Putin met behind closed doors at his residence in Novo-Ogaryovo, outside Moscow, with U.S. National Security Adviser Tom Donilon, who was there to transmit President Barack Obama's renewed determination to strengthen cooperation with Russia.



print


Comments

This article has no comments.

Be the first to leave a comment



Tags
Asia
To Our Readers

The Moscow Times welcomes letters to the editor. Letters for publication should be signed and bear the signatory's address and telephone number.

Letters to the editor should be sent by fax to (7-495) 232-6529, by e-mail to oped@imedia.ru, or by post. The Moscow Times reserves the right to edit letters.



Most Read
MarketGid