Zakaria, author and host of CNN's "Fareed Zakaria GPS," spoke to CNN this week. Here is an edited transcript:
CNN: The Obama administration has indicated they want to reset the relationship with Russia from the Cold War mindset. Do you think that is a good idea?
Fareed Zakaria: Yes. Russia is a major power, spanning three continents, with thousands of nuclear warheads. It is also a prickly nationalistic country. So dealing with it means giving it some respect. There are lots of areas where deals can be struck with them -- such as nuclear arms -- and the Obama administration is doing the right thing in tackling those. I would only caution that Russia is a weird great power, one who's basic economy is not very impressive and getting weaker not stronger over time. So, we shouldn't pin too many hopes on a U.S.-Russian partnership.
CNN: Why are there so many Russian billionaires? One just bought the New Jersey Nets and there seem to be many on the Forbes list.
Fareed Zakaria: It's a sign of the weakness of the Russian economy. Every one of them is a natural resource billionaire -- their fortunes derive from oil, natural gas, nickel, copper, aluminum. These were assets of the Soviet state that were privatized and some Russians ended up with the lion's share. There are few real entrepreneurial fortunes in Russia, despite having had many engineers. My own suspicion is that many of the scientifically trained Russians left Russia in the 1990s, most ending up in Israel -- which has had a tech boom based on the talents of its Russian immigrants. (Israel today, only excels in a few areas, including agriculture and radar systems.)
CNN: There appears to be close ties between these billionaires/oligarchs and the Russian government. Is that causing political problems in the country?
Fareed Zakaria: There are ties, but the balance of power has shifted. The oligarchs are now distinctly subordinate to the government. Putin's first great power shift was to assert the power of the Russian state -- over the oligarchs. He has continued to consolidate power and at this point, while the oligarchs are very rich, they exist at the pleasure of the state -- and they know it.
CNN: President Dimitry Medvedev has admitted to the corruption problem. Why is he not able to do anything about it?
Fareed Zakaria: Two reasons. First, the rot is deep. So many elements of the Russian government are corrupt and are implicated in this almost mafia-like system of rule that it's not easy to change. They quietly subvert any efforts at reform. They have allies throughout the government at all levels, so even if the directive comes from the top, it never actually gets implemented. Second, it remains unclear how much power Medvedev has. He seems to say all the right things, but his words are rarely followed by action. He may have some influence, but it still appears that the "deep state" that actually rules Russia is run by Vladimir Putin and his coterie of advisers.
Russia frustrated with Iran but unlikely to fully support sanctions - CNN.com
It's Manifest Destiny that you guys should surpass Russia in the next decade. But, instead of China's rapid progress being the only factor, one has to take Russia's stagnancy into account. More importantly, what will be the military fate of India if its daddy retires?
CNN: The Obama administration has indicated they want to reset the relationship with Russia from the Cold War mindset. Do you think that is a good idea?
Fareed Zakaria: Yes. Russia is a major power, spanning three continents, with thousands of nuclear warheads. It is also a prickly nationalistic country. So dealing with it means giving it some respect. There are lots of areas where deals can be struck with them -- such as nuclear arms -- and the Obama administration is doing the right thing in tackling those. I would only caution that Russia is a weird great power, one who's basic economy is not very impressive and getting weaker not stronger over time. So, we shouldn't pin too many hopes on a U.S.-Russian partnership.
CNN: Why are there so many Russian billionaires? One just bought the New Jersey Nets and there seem to be many on the Forbes list.
Fareed Zakaria: It's a sign of the weakness of the Russian economy. Every one of them is a natural resource billionaire -- their fortunes derive from oil, natural gas, nickel, copper, aluminum. These were assets of the Soviet state that were privatized and some Russians ended up with the lion's share. There are few real entrepreneurial fortunes in Russia, despite having had many engineers. My own suspicion is that many of the scientifically trained Russians left Russia in the 1990s, most ending up in Israel -- which has had a tech boom based on the talents of its Russian immigrants. (Israel today, only excels in a few areas, including agriculture and radar systems.)
CNN: There appears to be close ties between these billionaires/oligarchs and the Russian government. Is that causing political problems in the country?
Fareed Zakaria: There are ties, but the balance of power has shifted. The oligarchs are now distinctly subordinate to the government. Putin's first great power shift was to assert the power of the Russian state -- over the oligarchs. He has continued to consolidate power and at this point, while the oligarchs are very rich, they exist at the pleasure of the state -- and they know it.
CNN: President Dimitry Medvedev has admitted to the corruption problem. Why is he not able to do anything about it?
Fareed Zakaria: Two reasons. First, the rot is deep. So many elements of the Russian government are corrupt and are implicated in this almost mafia-like system of rule that it's not easy to change. They quietly subvert any efforts at reform. They have allies throughout the government at all levels, so even if the directive comes from the top, it never actually gets implemented. Second, it remains unclear how much power Medvedev has. He seems to say all the right things, but his words are rarely followed by action. He may have some influence, but it still appears that the "deep state" that actually rules Russia is run by Vladimir Putin and his coterie of advisers.
Russia frustrated with Iran but unlikely to fully support sanctions - CNN.com
It's Manifest Destiny that you guys should surpass Russia in the next decade. But, instead of China's rapid progress being the only factor, one has to take Russia's stagnancy into account. More importantly, what will be the military fate of India if its daddy retires?
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