Memorandum (english)

Memorandum of “Stop WTO” movement

The efforts to draw Russia into the World Trade Organization (WTO) have strengthened recently. This objective is the top government priority in our country. This is discussed both by the president and prime-minister.

Under no circumstances shall we allow accession to WTO because such accession will lead to the social and economic death of the Russian Federation.

The time has come to say “Russia is against WTO”.

We announce that disastrous effect of Russia’s accession to WTO will be similar to that of the USSR’s collapse in 1991, and most likely will exceed the negative aftermath caused by the “reforms” of 1991-1998. In a short time.

Why are we opposed to our country’s membership in WTO?

First, that does not make sense.

Over the last years the World Trade Organization has clearly proved its inability to ensure development of the non-western countries being the members of the WTO. Furthermore, the most detrimental consequences of the WTO membership are obvious for such countries with “developing markets” as Russia. Strong members of WTO always hold power often breaching the WTO’s regulations with perfect impunity.

Even notorious IMF has admitted WTO inefficiency. One of its reports acknowledges that WTO membership does not yield any economical benefits. The report also says many countries (the U.S., first of all) breach the agreements by making certain privileges and favors, thus killing the very idea of free trade. Nowadays WTO has turned into declarative organization that fails to perform its functions, and this was reported by the IMF’s experts. WTO accession does not imply free access to the trading with any WTO’s member under the terms and conditions of the organization. That is but a myth. Currently, the bilateral transactions with the traditional partners and membership in regional trade alliances are far more favorable.

WTO is the organization established to serve the interests of financial capital during the period of its globalization. The WTO’s ultimate objective is to retain the wealth and high development of those who managed to become the richest and most developed before the 1990s and who exploited disintegration of the Soviet Union. And all others, accordingly, are to remain in poverty and non-development, being outsiders of the peripheral and colonial capitalism.

Nowadays, however, this way of globalization has turned invalid: the world is on the brink of regional multi-currency segregation.

The current WTO will inevitably collapse. Why the accession?

Second, for the country to survive, the new industrialization, new settlements (an alternative to noxious and overcrowded megalopolises), re-development of agricultural areas, development/re-development of Siberia and Far East, and the strong demographic policy involving extensive support for the Russians’ birth rate are required. But neither country in the world has been successful in that by following the principles of full-scale (as defined by WTO) openness. Over the length of the world history beginning with the industrial revolution in England, all examples of successful industrialization and accelerated development have been connected with reasonable protectionism, planned economy, projectivity and backing of domestic business. Some countries accessed WTO only after reaching the certain level of strength and development. China is an example.

By drawing Russia into WTO, a handful of liberal fundamentalists condemn us to the loss of dozens of millions of jobs over the short period of time. As of 2010s, in particular, the elimination of protectionism and granting foreign companies the same conditions as for domestic companies within our country (this is a key condition of WTO membership) will lead to high unemployment and extensive bankruptcy of thousands of our enterprises. Within WTO we will not be able (without protectionism) to compete with Chinese real sector. China has brought its cost of production down to the lowest values. In order to compete with China as per WTO’s regulations, our people will have to work without salaries (literally for a piece of bread) with no pension benefits and social insurance, and afford very little.

At WTO talks we were demanded to equalize the power and other energy resources payment rates existing in our cold country with those of the world. With all other conditions equal, that means full noncompetitiveness of Russian industry. Because we will not afford to reduce the cost of labour lower than in China. Neither will we be able to shorten long distances in Russia or abolish half year long winter with its severe frosts. Also beyond our ability is to re-map 60% of Russia’s territory out of the permafrost zone. Moderately subtropical China has never had any idea of the problems of that sort.

WTO accession may lead to shocking 40% jobs cut in our country. The worst affected will be agriculture and food industry. When the member of WTO, Russia will not be able to limit the import of foreign products. The scientists of the Russian Academy of Agricultural Sciences estimated that following joining WTO the Russian Agroprom solely would lose 4 billion dollars every year. It has already become clear that fatally impacted will be our consumer goods industry that has just started to recover. If all nontariff restrictions are lifted, tireless Chinese people will easily outperform not only EU, but Russian manufacturers as well. Engineering industry will experience severe shock: the existence of machinebuilding, automotive industry and especially aircraft industry may be at stake.

Third, we believe the Russian Federation lacks for what our competitors in WTO have.

No strong national banking system that may grant large loans with low interest for a long time.

No industrial policy.

No valid national innovation system.

No struggle against destructive corruption.

No capable and efficient state.

Virtually nothing we have! No “muscles” and health that are essential for competition.

According to the Chamber of Commerce and Industry of the Russian Federation, just 10% of the Russian companies are ready to work in compliance with WTO regulations.

According to the “analytical report” of the supporters of Russia accession to WTO (Higher School of Economics and MERT), twenty regions will lose the competition with the import following Russia accession to WTO. The report lists the regions in which the penetration of the import into internal markets will affect local business in a bad way. Among such regions are Perm, Orenburg, Kemerovo, Moscow, Sverdlov, Voronezh, Kursk, Ryazan, Nizhniy Novgorod, Kirov, Tyumen and Irkutsk regions, Altayskiy, Krasnodarskiy, Krasnoyarskiy, Primorskiy, Khabarovskiy and Khanty-Mansiyskiy administrative districts, Republics of Udmurtia and Tatarstan, Moscow and Saint Petersburg.

These are mainly central part of the country. The worst affected will be the regions where the import will oppress the budget forming (base) enterprises. That includes Ivanovo, Perm, Kostroma, Kursk, Moscow, Tula, Vladimir, Volgograd and Samara regions, and Tolliatti.

Therefore, by drawing Russia in WTO our government may cause transformation of the huge and densely crowded regions into deserted and abandoned areas.

Obviously, social and economic impact following joining WTO will provoke drastic reduction of the currently low birth rate among Russians (nation forming ethnos). When one birth in Russia is accompanied with two or three deaths, that will be an end of Russian civilization, our irreversible physical degradation. Inevitable reduction of the budget revenues as a result of liquidation of the thousands of enterprises will destroy the pension system and cause cutting of expenses for science, education and culture similarly to the early 1990s.

WTO accession will allow easier export of monies to abroad and their investment in the economies of foreign (western, first of all) countries, rather than Russia’s economy.

WTO accession corresponds to the way of thinking that has entrenched in our mind since the Gorbachev’s perestroika, i.e. to become a member of the global “elite club” even at the price of our eventual destruction.

So, WTO accession not only makes no sense in terms of common sense, but is fatal for us.

That is why we have the right for nation-wide protest!

We are to unite and make statements against the national disaster.

V.A. Kucherenko  – “Neyromir – TV”
V.V. Averiyanov – Institute of Dynamic Conservatism
М.G. Delyagin – “Rodina: zdraviy smysl” party,
V.Е. Khomyakov – “Narodniy sobor” movement
V.P. Оrlov – МОО “Veche”
N.V. Starikov – writer, publicist
А.P. Parshev – writer, publicist,

and others,