Hugh introduced Rob Hurst to set the scene for our speaker Lou. Rob spoke to the club about his experiences in China a few weeks back and todays focus is on Russia. As we know Rob is a globe trotting journalist who was the head of CTV News for many years.
Rob gave us some background on Russia and some of the steps it has taken over the past 40 years. He reviewed the leaders he has been involved with starting in 1983 with Mikhail Gorbachev. Gorbachev was a lover of western culture and introduced Perestroika, the reform of the Communist Party in the mid 80's, focusing on Glasnost - Openess. One of the key happenings was the fall of the Berlin Wall in 1989. Gorbachev's rule ended with the dissolution of the USSR into Russia and many independent republics in 1991 with the installation of Boris Yeltsin.
Yeltsin supported capitalism and free markets and Russia was effectively ruled by mafia and the oligarchs. In 1999 Yeltsin resigned and V Putin came on the stage, a position he seems to have no interest in leaving.
Rob gave us some insights into a number of comparable measurements;
Lou then came on and shared some of his experiences his many years as a diplomat and a businessman in Russia. He has had numerous Foreign Service appointments and in later years represented both Visa and Kinross Gold in doing business there.
He described the 'average' Russian as pessimistic but loyal. Very hard workers, if motivated and challenged. They also play hard
They have a population of 145MM and a growing middle class. However their countries infrastructure is crumbling - schools, welfare system, healthcare
Pensions average $216 CDN /mth; Unemployment may be $130CDN/mth. Families often live in multigenerational settings allowing for lower living costs
Teachers may earn $15-20K/mth and there is a large number of private, but not necessarily good, school. Lou did mention that they have a thriving IT system with highly trained people (unfortunately used to hack). They also have strength in nuclear and cyber weapons.
Putin came in and strengthened the authoritarianism in the country. Lou described him as extremely intelligent, but with a thin skin and a chip on his shoulder about wanting Russia to be regarded with respect. Lou believes the only way to work with Putin is through engagement and discussion -harsh rhetoric will not work. The example of Ukraine and Latvia was brought up. The West is looking to impose solutions in this area and Russia will not tolerate incursions from surrounding countries. Given the former USSR there are many Russian speaking loyalists in these countries, that support Putin.
In his business life he learned that starting up is very tough. There may be bribes but, like in other developed countries there is a growing gap between rich and poor. The largest investor in Russia is the USA, but often done through 'shell companies' to disguise that fact. Lou enjoyed his business dealings in Russia and said the courts work when related to business issues but not necessarily when dealing with cultural issues.
During questions George raised an interesting point on how much the Canada/Soviet hockey series in 1972 changed the way both countries look at each other and the world.
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