Economics: World economy: G8 Summit features Russian insistence on admission to World Trade Organization

.
Russia is at the top of its economic play this year as it hosts the G8 Summit, altho many ecnomists feel that the overall Russian economy just doesn't measure up for inclusion (but then. China's economy while advancing at tremendous speed still relies on slave labour and outlaws labour unions independent of state and party). Nevertheless, since Russia took over the huge oil companies built up by "robber baron" entrepreneurs, it has built pipelines and shipping lines to carry its wares to faraway markets anxious to pay Russia's price. The price is often politically filtered, of course. The Ukraine has been charged fees it couldn't pay, which helpled distablize the Orange Revolution coalition govt, so that the Russia-first party has been able to come to power very recnetly again.

One very knowledgeable reporter on the region for The Economist, but writing independently in his own blog,Edward Lucas was scathing in regard to the Putin-state in a pre-Summit piece. He blog-entried a backgrounder on Jul 10,2k6 that pulls no punches.

How Joseph Stalin and Leonid Brezhnev would have relished the irony: the leaders of the rich free world kowtowing to the authoritarian ruler of a state that is rich only in oil, gas and ruthlessness.

As Western leaders pack their bags for the first G8 summit hosted by Russia, starting in St Petersburg later this week, every one of them knows the event is a sick farce, of which President Putin's Soviet predecessors would have been proud.

G8 Summit in Russia

On the surface, the arriving Western leaders will be smiling. But they are intensely aware that there is only one agenda on Mr Putin's mind: to increase his iron grip on his country and rebuild the once-mighty Russian empire. America's vice-president Dick Cheney warned Russia in March to stop bullying and blackmailing those fledgling ex-Soviet states that were once part of its empire.

Mr Putin was utterly contemptuous in response, warning in his state of the union speech days later that Russia would build up its economic and military might, so as to make his country immune to foreign pressure.

For good measure he savagely mocked America, calling it 'Comrade Wolf'. The days are gone when such remarks could be dismissed as bombast by the leader of a ruined empire.

Christian Science Monitor also carried a preparatory article by Christopher Walker, writing from Moscow, "How the West should deal with Russia" but already three weeks ago (Jun21,2k6). He begins his analysis and recommendations with a most straitforward and relevant question:

Should the world's major democracies speak out loudly to express concern over the consolidation of autocracy in Russia?

With two major summits scheduled to be held in the next two and a half weeks, this question has come into particularly sharp relief. The European Union-United States summit, slated to take place Wednesday and Thursday in Vienna, and the G-8 summit, which Russia will host in St. Petersburg beginning July 11, are forums where the world's major democracies will have the opportunity to send a clear signal to Russia's leadership. The community of democracies should seize this chance to reiterate its expectations on Russia's democratic performance.

Complicating matters, however, is the subject of energy security, which is in the forefront of the Europeans' minds and the top agenda item at the G-8 summit. The European Union, which is increasingly reliant on Russian energy resources, is not eager to rub the Russian leadership the wrong way. At the same time, EU member states know they would be better served by a more democratically accountable Russia, which over the long term would be seen as a less capricious and more reliable partner. Although less dependent on Russian energy resources, the US, with its own addiction to oil, is likewise walking a fine line in encouraging democratic accountability in energy-rich but democracy-poor states around the world.

Russia is counted among the important states that rely on the energy sector as their principal economic engine. At the same time, it features among the world's most poorly governed, repressive, and corrupt regimes. Other such countries in the former Soviet space include Kazakhstan and Azerbaijan. Saudi Arabia and a number of other Gulf States fit this profile in the Middle East.

The West has pursued a strategy of engagement with Russia, which was formally invited in 1998 to what was then the "G-7" (Group of 7). The "G-8" was established to intensify engagement with Russia and to provide a mechanism that would encourage the country to pursue democratic and market reforms.

Russia's leadership bristles at criticism of its democratic performance and argues that it is pursuing a version of democracy appropriate for Russia. However, irrespective of the label attached to the Kremlin's political program - whether a "dictatorship of law," "managed democracy," or a variant of a Eurasian leadership model - the features of Russia's political system today are not consistent with pluralistic, transparent, and participatory politics. With virtually no exceptions, the authorities' approach has resulted in a dramatic shrinking of public space and an emasculation of any sector capable of holding the Kremlin to account.

The BBC carried a news item that added an element to drama to the confabulations prior to the Summit's official opening. Russia pushes WTO bid ahead of G8 (Jul 14,2k6).

Mr Putin and Mr Bush will have much to talk about this weekend. Diplomats have been locked in talks on Russia's bid to join the World Trade Organization (WTO), as leaders gather in St Petersburg for the G8 summit.

Top level US and Russian negotiators were expected to resume talks ahead of the summit, which Russia is hosting.

Russia is eager to join the WTO, but US officials have warned that differences still remain between the two sides.

Moscow needs Washington's backing to join the 149-member group, and hopes to reach a deal during the G8 summit.

Energy-rich Russia is currently the only major power not to be a member of the WTO, which sets and regulates global trade rules.

A deal could unlock plans for huge US investments in Russian oil and gas fields.

Foreign investors are looking for certainty that the products they produce could be freely exported; and once in the WTO, no member would be allowed to discriminate against Russian products on international markets.

As mentioned, before this year's Summit of the advanced industrialized or post-industrialized countries got started, USA Prez George W Bush and Russia Prez Vladimir Putin met to orient one another to the upcoming event and smooth the way so that no one was thrown off-guard by surprises. But the climate can change from day to day, as apparently it did between the time of filing the above story on Friday and the story of the outcome of the drama today, Saturday. A new BBC item, "Russian WTO bid falters at summit" (updates thru Jul 15,2k6) tells us both what Russia was looking for, and what apparently the West (the USA at least) were unprepared to greenlite.

Talks on Russian entry into the World Trade Organization have been making slow progress on the eve of the annual G8 summit in St Petersburg.

The issue is high on the agenda of US President George W Bush and his host, Vladimir Putin, who met on Saturday as other leaders were due to arrive.

Mr Bush said a trade deal had been "almost reached" and talks will go on.

Other key issues for the summit are energy security and the crisis in the Middle East.

Mr Bush arrived in Russia's second city on Friday - the full G8 summit will officially open on Sunday morning.

Speaking after the talks, the two leaders said they had reached agreement on global nuclear energy, and fighting nuclear and other forms of terrorism.

But not admission, with the USA's sponsorship, into the WTO--something perhaps anomalous (or evidencing a double standard on the part of America) since the USA had already made China's entry into WTO a few years back. Continuing:

The three-day summit, which officially begins on Saturday and will bring together the leaders of Britain, Canada, France, Germany, Italy, Japan, Russia and the United States, is mainly expected to focus on energy security, terrorism and the escalating situation in the Middle East.

Leaders of the world's major developing nations, including China, India and South Africa, are also expected to attend the summit.

The lack of progress on the stalled world trade talks, the so-called Doha Round, which are aimed at improving market access for poor countries, are expected to be the centrepiece of discussions with developing country leaders.

Besides another blog-entry on fruther developments in the general outcomes of this year's summit and in the outcome for Russia, refWrite hopes to carry further info on what became of last year's decisions regarding Africa's place in the world economy as globalization continues apace.

-- Spondent

Putin reacts to Western criticisms of democratic deficit in Russia
Has Putin sapped Russian democracy?
Putin the weak