Externe

The World Bank is atwitter with worry that collapsing oil prices are putting Russia's economy under "crippling pressure."

"The pressure on the current account and public finances in Russia would quickly rise to a point where the financing constraint would become so sharp that it's possible to envisage Russia's return from a creditor to international organizations to (that of) a borrower," laments World Bank chief economist Zeljko Bogetic. He goes on to say that if oil stays under $50 a barrel for a prolonged period of time, Russia's economy could suffer a "total meltdown."

And we're supposed to care -- why?

Ever since Russia became awash in oil, it's been nothing but a big pain in the backside to the West, especially the United States. Prime Minister Vladimir Putin and his presidential puppet, Dmitry Medvedev, have been acting just like the old communist commissars. In fact, they seem bent on restoring the glory -- as they see it -- of the old Soviet empire.

The brutal invasion of the neighboring state of Georgia sent a chilling message to all of Russia's other neighbors, including Eastern Europian nations such as Poland and the Czech Republic.

Russia seems to be reverting to the old communist axiom that "What's ours is ours and what's yours is ours too."

This aggressive posture would not be possible without Russia's oil wealth. Nor would the Putin team likely be thumbing its nose at the West at every opportunity, always siding with enemies of the West, including thwarting efforts to prevent Iran from becoming a nuclear power and protecting North Korea, Sudan and other rogue nations from well-deserved United Nations sanctions.

More recently Russia has been making nice with Marxist dictator Hugo Chavez of Venezuela, another oil rich country that's rapidly going bust. In a show of military bravado, Medvedev even sent a contingent of Russian warships there,

Without oil riches, such Russian arrogance wouldn't be possible. When Russia was poor, Putin was much more friendly and cooperative with the democratic industrialized nations because he needed their help to keep his economy afloat.

So we don't share the World Bank's worries that plummeting oil prices will cause a meltdown of Russia's economy. Indeed, we say bring it on.

And if the World Bank tries to bail Russia out, then we should bail out of the World Bank.

From the Monday, December 22, 2008 edition of the Augusta Chronicle
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