The Politics of Russian Business

One thing you have to understand is that Russia is a politi­cal country. You can’t do things alone.  Never mind about the Kremlin. That is another ocean you probably won’t have to challenge. But, even at the daily business level, it can be like crossing a big pond in a small boat. Or, as in the famous Repin painting above, like pulling the boat upstream. It is better to know you may need help on the oars and to prepare by choosing your crew yourself. In Russia they call it a “roof” which means political relationships that hopefully will be there to help when you need it. Also you hope they will leave you alone to manage your business and not interfere. In my company, we were fortunate to have trustworty and friendly connections which did just that. Some roofs leak in a storm; others are overwhelming and starve you of sun to grow in. Choose carefully.

It’s like getting married. Be careful to pick the right one as you may be with them a long time. So often I found Americans who had made some initial contacts, came to Moscow for a week and went home thinking they had made a deal. It doesn’t happen that way. Again, here is where patience pays. Patience is strength.

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Three steps forward and two backward!

  “Nothing is impossible in Russia but reform.” Oscar Wilde

I think Oscar Wilde was wrong—but it will take time to know. The efforts to transform Russia into a viable and democratic economy, one that fits comfortably with the rest of the free world, will at best jerk forward over the coming years. But it is happening. Three steps forward and two backward. Still, one residual step in the right direction is something to be grateful for in a land of such immense potential. That is an improvement over Lenin’s assessment of Russian progress, “One step forward and one back.”

History has not been kind to the Russians. Seventy years of cruel rigidity under Communism within the context of a thousand years of autocratic rule has fostered a blind dependence on central authority, as de Tocqueville says “of servitude,” a resulting lack of personal responsibility and self confidence, and a fatalistic distrust of the future.

 Historically, and largely because of their geography, Russians missed out entirely on the pivotal events of Western development. A thread running through their complex political history is the fear of and acceptance of an all-powerful and sometimes arbitrary central authority, the influence of constricting medieval orthodoxy, and the mystical unifying force called the “Russian soul.”

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