Showing posts with label corruption. Show all posts
Showing posts with label corruption. Show all posts

Wednesday, October 04, 2006

Kazakh Crimes or Borat's Chimes?

As Kazakhstan's president Nursultan Nazarbayev visited Washington last week, his meetings with top US officials - including president Bush - was overshadowed by the launch of British comedian Sacha Baron Cohen's upcoming movie: "Borat: Cultural Learnings of America for Make Benefit Glorious Nation of Kazakhstan."

The British comedian - depicting the fictional Kazakh journalist Borat - has long been a nail in the eye for Kazakhstan's efforts to create a positive international image for the country. Cohen's character instead produces an image of a backward country on the verge of civilisation run by a comic dictator. Over the past years, Kazakh authorities have gone to great lengths to counter the "Borat image" of the country, and its foreign minister has even threatened to sue Cohen in Britain for smearing Kazakhstan. Also, Borat's official website in Kazakhstan has been closed down by authorities, provoking widespread protests internationally, from among others Reporters Without Borders. The issue has grown to such proportions that Kazakhstan chose to publish a four page ad in both The New York Times and Washington Post for Nazarbayev's visit in the US. The only problem was that the ads only served to emphasise the comic image of Kazakhstan by attributing the country's successes to Nazarbayev himself.

Still, the question is if Borat's image of Kazakhstan is the one that an initiated Western audience would like to get across to the general public. It would seem that greater issues are at stake such as human rights and democracy. Several critical voices were raised before Nazarbayev's visit to the US, but they were later largely overshadowed by on the one hand the message the Bush administration wanted to send and on the other by Sascha "Borat" Cohen's media coup. Critical issues were thus largely left out.

One leading analyst, S. Frederick Starr of Johns Hopkins, though succeded in getting access to the media by a column in the Washington Post. The only problem was that Starr joined the crowd of those paying tribute to Kazakhstan's progress in recent years, thus furhter defusing a potentially embarassing situation for the White House wanting to avoid questions on the human rights and democracy situation. It is true that Starr was right in pointing to improvements on many levels, in contrast to a generally dark depiction in the West of post-soviet republics. However, this does not warrant leaving the difficult issues out. Also, Starr's article in the post stands in contrast to the negative story the Post published but little over a month ago.

Kazakhstan is, essentially, a country run as a corrupt company by one family, namely that of president Nazarbayev himself. In June, Nazarbayev's son-in-law became chief of the country's gas and oil company, whereas the presidential daughter is a key stake-holder in one of Kazakstan's largest banks. Another daughter is party leader and MP, with a husband serving as deputy foreign minister. It is in this autocratic climate that little room is left for democracy and human rights, and magnanimous ideas - such as turning the flow of Siberian rivers - are increasingly coming into vogue. This is perhaps no wonder as Nursultan Nazarbayev received 91% of votes in the rigged December 2005 presidential elections.

Human Rights Watch has repeatedly criticised Kazakhstan for severe human rights violations, lack of democracy and persecution of political opposition groups and independent media. Furthermore, authorities keep a close check on all NGOs and registration is mandatory. The freedom of organisation is thus legally circumscribed. Moreover, Kazakshtan was rated one of the most corrupt countries in the world by Transparency International in its 2004 report. It is with such a country that the US has so cordial relations.

Then, what is the White House position on these issues? Meeting Nazarbayev last Friday, president Bush praised Kazakhstan for its "commitment to institutions that will enable liberty to flourish." Also, during his visit to Astana in May, vice-president Dick Cheney declared the country a "key strategic partner of the United States” in its war on terror. Besides the war on terror, oil is the main reason for the Bush administration's cordial relations with Kazakhstan. The Baku-Tbilisi-Ceyhan pipeline (BTC) is a key strategic asset for the West in the future access to oil from Central Asia and the Caucasus, and the BTC is dependent on the inflow of Kazakh oil for long-term profitability.

Therefore, a new Great Game between Russia and the West over the energy resources of Central Asia is played by mighty international commercial interests, in which US companies have a high stake. Earlier this year, Russia won a small victory in this new Great Game over Central Asian resources by being promised increased oil exports by Nazarbayev. This poses a threat to the BTC pipeline, as the very same oil that was intended to flow westwards now instead may go to Russia. With increasingly scarce international oil reserves in the future, now is the time of determination of who will control what resources are left. Here, Kazakhstan plays a key role in Central Asia in view of political stability combined with relative accessability to resources. Consequently, it is very important for the Bush administration to get relations between the US and Kazakhstan back on track.

Then, does Kazakhstan matter? Is it not yet another far away country of which we know nothing? For now, the paradox remains that Kazakhstan matters greatly to the US provided that it stays such a far away country, which the US public cares little about in terms of the basic values forming the basis of American society. In the long run though, the question is if it is in the best interest of the US to end up on the side of the rats of international politics in contrast to supporting the people in its strive for democracy and human rights? As the story goes, "Qui vivra verra" - Who lives shall see. In the meantime, the comedian Sascha "Borat" Cohen may paradoxically be doing Nazarbayev a favour by distracting the American public from the real issues at stake. Following Borat's chimes hides Kazakh crimes.

Saturday, August 26, 2006

Ukraine: Lazarenko Gets 9 Years Jail

Former Ukrainian Prime Minister Pavel Lazarenko was sentenced to nine years' imprisonment by a Federal Court in San Fransisco on Friday, Washington Post reports. Lazarenko was found guilty of corruption, money laundering, fraud and extortion, and also received a $10 million fine in addition to the jail sentence.

Pavel Lazarenko was Prime Minister of Ukraine from 1996 to 1997 and became infamous for using his office to serve his own economic interests. The bulk of his multimillion corruption proceeds ended up in Swiss, US and offshore bank accounts. The victim of Lazarenko's crimes was the Ukrainian people, who at the time struggled for daily survival after the post-soviet economic collapse.

Lazarenko was appointed Prime Minister of Ukraine in May 1996, although his appointment was never considered by the Ukrainian parliament - the Verkhovna Rada. Controlling decisions on many lucrative business projects, Lazarenko is said to have demanded 50% of profits from businesses favoured by him. Lazarenko at the time had close political and economic ties with current Ukrainian politicians of prominence such as Yulia Timoshenko and Socialist leader Oleksandr Moroz.

In 1999, Lazarenko fled the Ukraine, awaiting a parliamentary decision to waive his parliamentary immunity. Within days of his escape, he was arrested in the United States and spent four years in custody pending trial, until his release on a $68 million bail in 2003. A year later he was found guilty on 29 out of 53 charges concerning money laundering, fraud and extortion, but the judge eventually dropped a majority of them, reducing the list to 14 offences. Despite being released on bail, Lazarenko was subject to house arrest until his final verdict on Friday. The former Ukrainian PM has already declared that he intends to appeal the verdict.

Throughout the trial, Lazarenko's defence has maintained his innocence and challenged US legal authority to alleged crimes not committed in the United States. Lazarenko has argued that his business transactions were normal to the prevailing conditions in the Ukraine in the 1990s. He thus claims that it was generally accepted for a Ukrainian politician to earn millions on the side in these years, and that such business formed a natural part of the transformation from soviet command economy to a liberal market economy.

In 2000, Ukraine sought Lazarenko's extradition. The charges brought against him by the Ukrainain Prosecutor General included, beside economic crimes, the instigation of two murders and several assassination attempts on high-ranking officials. The US, however, denied extradition on the grounds that Lazarenko was tried for crimes in the United States.

US federal prosecutors are far from satisfied with Friday's verdict. They had initially sought an 18 year prison term and confiscation of and fines to a total of $66 million. US authorities have claimed that Lazarenko transferred $118 million to US banks alone. Still, the sentence constitutes a milestone in the US battle against international crime. Lazarenko becomes the first former state leader to receive a US prison sentence after Manuel Noriega of Panama. Also, the Ukrainian people may give up a sigh of relief that at least one of their corrupt leaders now is punished for his crimes although by the United States and not by Ukraine itself.