


In 1994 Wayne Merry was a Senior Political Officer at the US Embassy in Moscow. Those were heady days for the US and the West in general. The terrifying hydra of Soviet Communism had recently been slain. The world was open to free markets, hypercapitalism and democracy; the Good Side had won. It was the end of History-or so it seemed. Merry thought differently. In between distributing cash to starving Russians in the streets, he observed that the Russian economy was incapable of sustaining the radical reforms prescribed for it by self-confident western Experts. That the idea of Democracy was already in serious trouble, and that extremists and strongmen who could restore order to the utter chaos were already on the rise. Instead of being heeded, he was made persona non grata, his cable buried until 2024. Though we suspect it made interesting reading in Ukraine upon its final release.
Such is the tale told by Owen Jones in his Guardian article The West is in Freefall…… [1] which we heartily recommend you to read. Not because it is so utterly hard hitting and trenchant ( it is both) but because we think it has something to say about the intellectual blindness and moral complacency which allowed the triumphant position of 1991 to be transformed into the catastrophic mess of today. We don’t always agree with Owen Jones, gentle readers: but this time he is most certainly on to something. And we agree with his diagnosis: the central sins of our rulers were the ancient ones of Pride and Greed. Here are two devastating, almost killer quotes
Russia had to move towards “our way of doing things,” said Strobe Talbott, President Bill Clinton’s main Russia adviser. If that sounded like “an obnoxious confirmation of our doctrine of exceptionalism”, his answer was simple: “Well, tough. That’s us; that’s the US. We are exceptional.”
Western economies were not starved of wealth: they were increasingly organised to extract it rather than invest it. As the economist Mariana Mazzucato told me, 80% of British finance now flows back into finance, insurance and real estate. Western economies became increasingly good at rewarding ownership, but increasingly bad at building the productive foundations on which prosperity depends.
We are sure Owen’s forthcoming book will have many more examples and supporting evidence [2]
And our take? We know you like us to riff on showcased articles, independently of what their author has stated. It is this: Owen goes a long way to diagnose the root causes of our disgrace. But diagnoses are much easier than prescriptions. It has to be noted that just about every system of organising human societies eventually comes up with failures as lamentable as those of the Washington consensus and hyper financialisation. And that many of the problems we face today-climate change, re-location of industrial production , mass migrations- are as much as result of technological change as of any one political system. Which implies that the world is so small and interconnected that a single unitary world authority is now both essential and feasible. But you have read that many time s here before.
[2]Owen has a new book out on October 1st The Fall of the West: How They Really Lost It. We shall buy it. We hope you will too!
#russia #usa #hypercapitalism #free markets #democracy #social democracy #owen jones #maria Mazzucato #financialisation


























