Saving Russia: A modest proposal
• Sell the nukes to the U.S. Let's face it, the only reason Russia continues to get the media attention it does is that, despite its anemic economy, it retains the power to obliterate the world. To combat this, the U.S. should buy Russia's nuclear warheads for, let's say, $10 million each. Russia gets needed cash; the world becomes safer.
• Make Steve Forbes chief of the IMF delegation to Russia. While the IMF prescribes its voodoo "collection" of taxes, the Russian economy sinks further. Appoint Steve Forbes, with his mantra of an incredibly simplified and low flat tax, as IMF chief for the Russian delegation. Forbes' magic potion may be the only one that will work in today's Russia. (Only 10% of Russia's population submitted tax returns for the last year - less paid.)
• Send the Duma on a world tour. Let's send every member of the Duma on a boondoggle, all expenses paid by the IMF, fact-finding mission around the world. I will boldly assume that a majority of these idiots have seen very little of the world outside Russia, and a little "best practices" might be inspirational. First stop, Ireland. Between copious shots of Jamison whiskies, they'll be tutored in Ireland's success story. The country has transformed from a unemployment-wracked welfare state into a high-tech, fast-growing economy. Next stop, Silicon Valley. The Russians may draw parallels between their technical expertise and Silicon Valley tech heads, but any similarities end there. The combination of cheap computing power, private and competitive telecoms, reasonable tax rates and loads of capital to fund good ideas has driven the success of Silicon Valley. Making our way around the globe, we'll swing through Indonesia to soak up its government's potion of hubris, selfishness and lack of transparency. Then on to Congo.
• Privatize all the telecoms in Russia before Dec. 31, 1998. Just sell them for any price, or give them away, with the only condition being that the buyer must be an existing telecoms operator and commit to investing billions of dollars in development.
• Give them proper incentives. Give every legislator a multimillion-dollar incentive to privatize, lower tax rates and grow the economy. A cool $1 million for each member of the Duma who votes in favor of privatizing telecoms by the end of the year. Another million for every one percentage point lowering of personal and corporate income tax rates. A "pay-off" you say? Yes, immediate, open, and simple - and extremely cheap in the grand scheme.
Now all we have to do is sit back and watch. Russia's nuclear arsenal has been reduced significantly in exchange for hordes of cash, its tax system is incredibly simple and attractive (tax rates around 15-20% should do the trick) and the rulers have become a bit enlightened.
• Make Steve Forbes chief of the IMF delegation to Russia. While the IMF prescribes its voodoo "collection" of taxes, the Russian economy sinks further. Appoint Steve Forbes, with his mantra of an incredibly simplified and low flat tax, as IMF chief for the Russian delegation. Forbes' magic potion may be the only one that will work in today's Russia. (Only 10% of Russia's population submitted tax returns for the last year - less paid.)
• Send the Duma on a world tour. Let's send every member of the Duma on a boondoggle, all expenses paid by the IMF, fact-finding mission around the world. I will boldly assume that a majority of these idiots have seen very little of the world outside Russia, and a little "best practices" might be inspirational. First stop, Ireland. Between copious shots of Jamison whiskies, they'll be tutored in Ireland's success story. The country has transformed from a unemployment-wracked welfare state into a high-tech, fast-growing economy. Next stop, Silicon Valley. The Russians may draw parallels between their technical expertise and Silicon Valley tech heads, but any similarities end there. The combination of cheap computing power, private and competitive telecoms, reasonable tax rates and loads of capital to fund good ideas has driven the success of Silicon Valley. Making our way around the globe, we'll swing through Indonesia to soak up its government's potion of hubris, selfishness and lack of transparency. Then on to Congo.
• Privatize all the telecoms in Russia before Dec. 31, 1998. Just sell them for any price, or give them away, with the only condition being that the buyer must be an existing telecoms operator and commit to investing billions of dollars in development.
• Give them proper incentives. Give every legislator a multimillion-dollar incentive to privatize, lower tax rates and grow the economy. A cool $1 million for each member of the Duma who votes in favor of privatizing telecoms by the end of the year. Another million for every one percentage point lowering of personal and corporate income tax rates. A "pay-off" you say? Yes, immediate, open, and simple - and extremely cheap in the grand scheme.
Now all we have to do is sit back and watch. Russia's nuclear arsenal has been reduced significantly in exchange for hordes of cash, its tax system is incredibly simple and attractive (tax rates around 15-20% should do the trick) and the rulers have become a bit enlightened.
