It is said that the only thing that people learn from history is that people learn nothing from history. Looking at how the world is handling the current economic crisis, this aphorism appears sadly true.
World leaders have forgotten how the collapse of Wall Street in 1929 developed into a world-wide depression. It happened not thanks to market failures but as a result of mistakes made by governments which tried to protect their national economies and markets. The market was not allowed to make its corrections. Government interventions only prolonged the crisis.
We may hope that, even as we see several bad signs of neo-interventionist attitude, all the mistakes of the 1930s will not be repeated. But it is clear that the tide has turned again. Capitalism has been declared dead, Marx is honored, and the invisible hand of the market is blamed for all failures.
This is not fair. Actually it is not markets that have failed but governments, which did not fulfill their role of the “visible hand” — creating and guaranteeing market rules. Weak regulation of the banking sector and extensive lending, encouraged by governments, are examples of this failure.
At the same time, it is clear that the invisible hand still points the way out of crises. It is easy to see when we look at how the postcommunist transition countries are tackling the economic crisis. After the collapse of communism, Central and Eastern Europe and the Baltic countries launched several radical reforms and achieved remarkable economic growth. Some of these countries have trusted the invisible hand more, others less. As a result, not only have the results of reforms been different, but the impact of economic crises as well.
During the 1990s, the most radical and successful reforms came from the three Baltic States: Estonia, Latvia and Lithuania. Open markets, economic liberalization, fast privatization, stable currencies, flat tax rates — all of these became the trademark of the “Baltic Tigers.” Early in the new millennium, the Baltic countries started to enjoy the fruits of their reforms. Economic growth reached 11% to 12% per year. Living standards rose to 60% to 70% of the European average from 15% to 20% in 1992.
Yet times of rapid growth are unfortunately not always times of good decisions. Governments thought they could afford a Western-style welfare state because the economy was doing so well. Conservative financial policy was weakened, lending was encouraged, chances to join the euro zone were missed, and social expenditures rose beyond the economy’s ability to bear them.
Combine these mistakes with corruption, weak government and loose control of the banking sector, and the results can be very difficult — as in Latvia, which had to take out a loan from the IMF. Countries with a more effective visible hand, such as Lithuania and Estonia, are doing much better. Estonia is cutting nearly 10% of its government budget, relying more on the market than on state intervention, and hoping to keep its finances under control so that it can join the euro zone by 2011.
The situation is even better in some parts of Central and Eastern Europe. While the European Commission last month projected the euro-zone economy to contract by 1.9% this year, most new member states’ economies are forecast to grow. The most positive developments are in countries that have learned from the Baltic experience and introduced radical economic reforms. They have even learned from the mistakes of the Baltic States — and not tried to become too rich too fast. The “best” reformer in Central and Eastern Europe, Slovakia, introduced a flat 19% universal tax rate and launched other reforms, allowing Slovakia to join the euro zone last month. The Commission predicts that Slovakia will have the highest economic growth rate in Europe this year, at 2.7%. At the same time Hungary, which has been very cautious on reforms, has been hit harder by the crisis than the more radical reformers, and like Latvia is now dependent on the IMF.
The same experience is seen in former Soviet republics. Russia has been slow in its economic reforms and built up an authoritarian state; it was hit especially badly by the economic crisis. Russia’s aggression against Georgia last August and its gas war with Ukraine this January have made the crisis only worse for the Russian people. The trust of foreign investors is gone, and capital is quickly escaping Russia.
Georgia, on the other hand, has followed a very different policy. It has fought against corruption, is building up stronger democratic institutions, and has supported a good business climate, which the World Bank ranks 18th in the world. Making the visible hand more effective has allowed Georgia to trust the invisible hand of the market. This in turn has helped Georgia — against all odds — overcome the results of Russian aggression with surprising ease so far. Like the rest of the world, Georgia was hit by the recession. But the response of its government was not to increase taxes, but to cut them and continue with reforms. Georgia’s response to the crisis has, according to the IMF’s latest report, been more successful than anybody hoped.
So as we see, freedom still works. Moving the world away from free choice and restoring the power of Big Brother is not the right answer to our current problems.

Europe is really having very short memory. After the Russian aggression against Georgia on 8.august 2008 European leaders stand up and promised to make to Russia absolutely clear, that such of behavior could not be tolerated in Europe. To demonstrate that they are serious with this message, Europe decided to cancel – or postpone as it was officially said – the negotiations with Moscow on a new “Partnership and Cooperation Agreement”. Europe insisted that Russia must obey a six-point ceasefire deal, which ended the Georgia war on Aug 12, before any talks on the partnership agreement can start again. The restart of negotiations depended on Russian compliance with those commitments that it made in August.
 

Unfortunately the Russia has not done this. It has actually broken most of points of the ceasefire deal by failing by example to withdraw its forces to their pre-war positions. Russian troops have left most of the so called buffer-zone, but is still occupying parts of territories controlled by Georgia till the start of the military conflict. European observers are not having access to the territories of South-Ossetia and Abkhazia, as a result of this the provocations, bombings and conflicts are continuing in the border area. Russia is having significantly more troops on the territory as before the conflict.
 

Some European leaders have nevertheless decided to close their eyes to all this. They say that Russia is doing everything it´s supposed to do, so it is time to restart the negotiations.  This would amount to a return to “business as usual” and sends a signal that Russia had escaped any lasting diplomatic penalty for invading Georgia. Such of decision would show Russia that aggression pays off, that Europe is incapable of holding a firm line against aggression and that Russia’s neighbors cannot rely on the EU to protect them from Russian bullying. Even as Moscow has declared that it is actually “not so interested” on these negotiations, the restart of the talks would be an important symbol.  Russia would claim a victory if they started, getting signal: “We did it!”
 

This is very bad message not only for Europe but for Russia itself. The war with Georgia has been for Russia both geopolitically and economically very costly. Economist Andrey Illarionov, a former adviser to Vladimir Putin and now an outspoken critic of the Russian authorities, has described the conflict with Georgia as a “geopolitical catastrophe for Russia” since it destroyed the delicate geopolitical balance that Russia established in the South Caucasus over two centuries in alliance with Georgia. It turned Russia also to the conflict with CIS members and Asian countries. Collapse of the Russian stocks after the invasion was dramatic, helping Russia to become “worst performer” during world-wide economic crises. “Victory” over small Georgia has helped Putin to bolster support to its totalitarian policies inside of Russia. When West now accepts such behavior and returns to “business as usual” the democratic forces, protesting against the invasion, would get another hit. These are reasons why Poland, Baltic and most of Nordic countries with Great Britain have opposed the proposal to restart negotiations with Russia. How long they can resist the pressure of “old Europe” will be seen. In this moment it is nevertheless necessary to look back to the history, which teach us that appeasement of aggressor never pays off.   

This what is happening now in Georgia is not anymore military conflikt between Georgian armed forces and separatists, supported by Russia – this is full-scale Russian agression against Georgia. Russia’s 58 Army has invaded Georgia with tanks, heavy artillery and with planes. Not only Georgian units in conflict zone are bombed, but Russian aircrafts are bombing targets around Georgia. Just now I was called from Georgia, that Russian planes have bombed Poti harbour and Kodori valley, which means that Russia tries to widen conflict to Abhkazia. And all this is happening during the “Olympic peace”. And the world is silent… .  

One of the most important novelists in Russia in XX century Alexander Solzhenitsyn, is dead. Through his own and other victims accounts of the communist terror  Solzhenitsyn’s novels and nonfiction works exposed the secret history of the communist system that enslaved millions. Beginning with the 1962 short novel “One Day in the Life of Ivan Denisovich,” Solzhenitsyn devoted himself to describing the evils of communism. His “Gulag Archipelago” trilogy of the 1970s shocked Western readers by describing the savagery of the Soviet system, helping to erase sympathy for the Soviet Union among many leftist intellectuals. He did not compromise, he told the truth and expected other to do the same. For this and for his “ethical force” Solzhenitsy was awarded the Nobel Prize for Literature. In 1974 he was arrested on a treason charge and expelled to West in handcuffs. Living in America Solzhenitsyn tried to encourage West to fight the evil system of communism, but became more and more disappointed by Western moral relatevism. His criticizm Western culture for what he considered its weakness and decadence did not win him friends here either.  

After a triumphant return from exile in 1994 after collapse of communism Solzhenitsyn expressed annoyance and disappointment that most Russians hadn’t read his books. He was right: when Russians have done it, they have really condemned communism and build probably better Russia. Solzhenitsyn was ofcourse man with contradictions. As another famous Russian novelist Dostojevsky he was firm Russian nationalist and devoted Orthodox, condemning in harsh words by example independence of Ukraine. His role in fall of communism, his courage and moral stand make nevertheless from him one of the greatest Russians in history. 

Russian Ministry of Foreign Affairs attacked furiously President George Bush, who in his proclamation on Captive Nations Week said  that “In the 20th century, the evils of Soviet communism and Nazi fascism were defeated and freedom spread around the world as new democracies emerged”. Russia said that had insulted veterans of World War Two by equating the evils of Soviet communism with Nazi fascism. Ministry was specially angry that by their statement Bush had coupled Nazi fascism and Soviet communism as “a single evil” and thus “hurt the hearts” of World War Two veterans in Russia and allied countries, including the United States. “While condemning the abuse of power and unjustified severity of the Soviet regime’s internal policies, we nevertheless can neither treat indifferently attempts to equate Communism and Nazism nor agree that they were inspired by the same ideas and aims,” the ministry said in a statement. 

Actually the Bush statement is correct – there is really no big difference between Hitler Germany and Stalin Russia. Russian Ministry of Foreign Affairs does not want to rememeber, that Hitler did not launch II World War alone, but in close cooperation with Stalin via Molotov-Ribbentrop pact. The first free major campaigns of the war were Hitler’s attack against Poland 01.09.1939, Stalin’s attack against Poland 17.09.1939 and Stalins agression against Finland on the same year. One third of the all War – 1939-1941 – Stalin was most devoted supporter of Hitler – without Stalin’s help there has been no chance for Hitler to conquer most of Europe. Talking on the really large sacrificies of Russian people afterwards to fight down their former ally, the way how communist and nazis started this terrible war must be also remembered.

Last week European Union decided to lift sanctions against Cuban communistic regime, hoping probably so to encourage communist leaders to introduce democratic reforms. Such tactics has never worked with communists. They understand such gestures only as a signal, that they can do whatever they like. They demonstrated this faster as anybody expected. On the morning of Friday, June 20, former political prisoner and opposition leader Jorge Luis García Pérez “Antúnez,” his wife, human rights activist Iris Pérez Aguilera, and other opposition activists from various regions of Cuba were violently arrested by political police forces in the Versailles neighborhood in the city of Matanzas. The Cuban Democratic Directorate calls on international public opinion, especially on the European Union’s member states who eliminated diplomatic sanctions against the Raúl Castro regime, to condemn this human rights violation committed against Cuban citizens peacefully demanding respect for their rights. More information on situation in Cuba on www.communistcrimes.org

I am happy to announce, that the new web-page for investigation of communist crimes has been opened www.communistcrimes.org. The Foundation for the Investigation of Communist Crimes (FICC) was established on April 2008. The main priority of the Foundation is to inform the general public of the crimes committed by Communist/Socialist regimes in the name of Communist utopia. The Foundation’s webpage serves as a multilevel database and interactive portal providing easier access to various subjects related to Communist regimes, Communist ideology and post-Communist studies.

Besides dissemination and international research activities, the FICC promotes social, educational, advisory programs and specific projects developed with the support of institutional and private-sector partners around the world. The Foundation takes measures to publicize and memorialize the crimes of former and contemporary Communist regimes. With a series of programs and projects, the Foundation seeks to raise awareness of Communist crimes and support the democratic opposition of the last remaining Communist regimes, transitional societies and post-Communist states.

Over the last 15 years, many former Communist and Socialist states have debated their Communist past and established parliamentary and academic committees or commissions, research institutes or independent groups to investigate the crimes of the past, without an immediate purpose of organizing trials, but to establish and acknowledge facts about their past. Such truth commissions have assessed evidence and put together authoritative accounts of the Communist past.

Knowledge about the events of history and the recent pammediate purpose of organizing trials, but to establish and acknowledge facts about their past. Such truth commissions have assessed evidence and put together authoritative accounts of the Communist past.st is vital, as it constitutes a factual basis for open debate on the protection of natural liberties and the responsibilities of the political community. Common acknowledgement of historical facts has been and shall be a precondition for liberty. These facts, however, cannot be established without an open discussion on past events and injustices.

Post-Communist states willing to deal with political responsibility for past abuses must also decide on lustration, rehabilitation, compensation and the reassessment of history. But reconciliation with the past is not only a matter for state institutions, legislation, courts or truth commissions. The large amount of existing Communist crimes research must be brought to light and the public message conveyed more clearly. State-funded institutes, committees and commissions are conducting inquiries, exhaustive studies and archive research, but are often unfit to disseminate their conclusions. In this view, the FICC’s mission is to spread existing knowledge and make a difference in global awareness and understanding of Communism.