Category Archives: energy

by | 31 December 2015 · 3:48 pm

South Caucasus Just Waiting for Europe?

From Caucasus: An Introduction, by Thomas de Waal (Oxford U. Press, 2010), Kindle Loc. 4017-4050:

It seems an almost inbuilt problem of the South Caucasus that a positive development in one place causes alarm in another. Armenian-Turkish rapprochement angers Azerbaijan, which turns to Moscow. The “reset” American-Russian relationship is seen to damage Georgia. As soon as there was talk of the Armenian-Turkish border reopening, some Georgians were heard to worry aloud that the rerouting of trade would be bad for Georgia. Zero-sum thinking prevails.

The region suffers from a lack of inclusive thinking. Most of the big ideas and regional initiatives that have emerged in the last decade and a half have excluded either one of the South Caucasus countries themselves or a key outside power. Both Iran and Turkey have proposed “security pacts” for the Caucasus that have left out the United States and the European Union. The Commonwealth of Independent States is now without Georgia. GUAM excluded Armenia. For awhile, Moscow unsuccessfully promoted the idea of a “Caucasus Four” that included it and the three South Caucasus countries. Concentrating on a “Black Sea region” is to the detriment of Azerbaijan. Focusing on the Caspian leaves out Armenia. The metaphor of a “Silk Road,” pretty though it is, implies a return to a premodern world in which Russia did not exist. The idea of a “Great Game” unhelpfully casts Russia in a reprised role of a hostile nineteen-century power.

…

History has meant that there have never been any successful voluntary integration projects here. The plan for an independent Transcaucasian Federation in April 1918 collapsed after only a month. The only other unions have been colonial ones imposed from above, by the Persian, Ottoman, and Russian empires and by the Soviet Union. The Soviet project is hard to defend, but it did have the effect of bringing people together in a cohesive economic structure that many people still miss. In retrospect, the South Caucasian nationalists of the late 1980s lurched from one extreme to another when they took a bulldozer to the complex Soviet system. They exchanged suffocating integration for extreme disintegration, and you could say that they threw out the Caucasian baby with the Communist bathwater. Many of the economic and cultural links from those times are still there under the surface waiting to be reexploited.

The one neighbor that could be a facilitator for voluntary integration in the South Caucasus is the region that has itself accomplished such an integration, the EU. So far, unfortunately, the EU has been very slow to act in the region. One Georgian scholar says it is “too lazy and too late.” Most of its regional projects have been very modest. Transport Corridor Europe Caucasus Asia, a European program started in 1993 for the eight countries of Central Asia and the South Caucasus, has spent less than 200 million euros since then—far less than BP, Gazprom, or USAID has spent in the region, to name three other foreign actors. The Eastern Partnership project is another laudable idea but is hampered by several constraints; the six countries involved have no membership perspective for the EU, which does not provide a strong incentive for reform. Promises of trade privileges and visa facilitation are more promising but have been watered down by European governments.

There is a widespread perception in the South Caucasus that it is “waiting for Europe” to notice its problems and pay attention to them. In the EU itself, there is caution. Partly, the EU has enough other problems to solve without having to deal with the headaches of the Caucasus. Partly, there is a perception that the governments of Armenia, Azerbaijan, and Georgia need to show a stronger commitment to democracy and reform to deserve that stronger interest. So the current period may be one of less engagement and greater realism. If that is the case, it may not be all bad news. History has been unkind to the South Caucasus, but there is no shortage of experience or talent there. If the outsider powers step a bit further away, local people may remember that they also have the skills, fashioned by the centuries, to solve their own problems.

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by | 25 December 2015 · 8:37 pm

Rise and Fall of Baku as Oil Capital

From Caucasus: An Introduction, by Thomas de Waal (Oxford U. Press, 2010), Kindle Loc. 2945-2989:

Oil was first exploited commercially in the mid-nineteenth century. The industry took off in 1871 when the Russian government allowed in private enterprise and the first wells were drilled. Two of the Swedish Nobel brothers, Robert and Ludwig, invested in the new industry and by the end of the decade had the biggest refinery in Baku and were shipping barrels of oil across the Caspian Sea to the Russian port of Astrakhan in the world’s first oil tanker, the Zoroaster. By the 1880s, oil fields such as Balakhany had sprouted hundreds of brick wells extracting the oil from the ground, and Baku’s new northern industrial suburb was nicknamed the Black Town because of the clouds of dark oil smoke hanging over it from two hundred refineries. In one generation, Baku turned from a forgotten desert citadel into a modern metropolis. The population skyrocketed from 14,000 in 1863 to 206,000 forty years later. “Baku is greater than any other oil city in the world. If oil is king, Baku is its throne,” wrote the British author J. D. Henry in 1905. You could become a millionaire literally overnight if an “oil gusher” appeared on your land. One man who got lucky was Haji Zeynalabdin Tagiev, the illiterate son of a shoemaker, who turned into one of Baku’s most famous businessmen and benefactors after a gusher appeared on his land. Tagiev was unusual in being a native Azeri. Most of the businessmen were European, Russian, or Armenian. Tensions between Armenian bourgeoisie and Azeri workers were an underlying cause of the brutal “Tatar-Armenian” war in Baku in 1905 in which hundreds were killed and thousands of oil wells destroyed.

Henry asked rhetorically, “Why is Baku rich? The answer is simple—because it produces a commodity which has a market wider than the civilised world, for it is carried on camels into the innermost parts of the Asian Continent, and on yaks into the wild regions of the Himalayas.” But camels and yaks were insufficient to export a major new world community to the wider world. Baku faced the same problem as it would a century later—how to export the oil from the land-locked Caspian basin to consumers. In the 1870s, the geography of the Caucasus was such a barrier that Tiflis imported more American kerosene by ship than it did Baku oil. The Caspian Sea was stormy and dangerous for several months of the year, limiting how much could be sent to Russia. So in 1883 the new oilmen, with financing from the Rothschild family, built the first cross-Caucasian railway from Baku to Batum on the Black Sea. In 1906, Baku oil made another leap forward when the world’s longest “kerosene pipeline” was completed, running for 519 miles along the same route to Batum.

In the years 1914–21, oil wealth was a major factor in the international scramble for the Caucasus. In 1918, German commander Erich von Ludendorff saw Azerbaijani oil and its route via Georgia as a key reason to move into the South Caucasus. In the end, the British took control of Baku, and in 1919 British foreign secretary Arthur Balfour identified its oil as Britain’s major priority in the region. He said, “I should say we are not going to spend all our money and men in civilizing a few people who do not want to be civilized. We will protect Batum, Baku, the railway between them and the pipe-line.” When the British had gone, the oil-starved Bolsheviks made Baku their first target in the Transcaucasus. Having captured the city in April 1920, Trotsky declared that the new oil resources would win the Reds the Civil War and would be “our hope for restoring the economy, for ensuring that old men and women and children do not die of cold in Moscow.”

Only in the late 1920s did Baku oil production climb back to its prewar levels, but in 1941 Baku was vital to Stalin’s war effort against Germany and produced around three-quarters of the Soviet Union’s oil. When Hitler’s Germany invaded the Soviet Union, the Germans again identified Baku oil as a vital asset. In August 1942, the Germans occupied the western side of the North Caucasus and planned a push south to Azerbaijan. Saying “Unless we get the Baku oil, the war is lost,” Hitler diverted divisions away from the battle for Stalingrad toward the Caucasus. That summer, Hitler’s staff famously had a cake made for him that had the shape of the Caspian Sea in the middle. Film footage shows a delighted Hitler taking a slice of the cake, which had the letters B-A-K-U written on it in white icing and chocolate made to look like oil spooned over it.

The debacle at Stalingrad in the winter of 1942–43 meant that Germany never invaded the South Caucasus, but even the threat of attack was a death-sentence for the Baku oil industry. Stalin, who knew the Baku oil fields from his revolutionary days of 1905, had the oil wells shut down so they would not fall into German hands. Almost the entire Azerbaijani oil industry and its experts were transferred to the oil wells of the Volga and the Urals. After the war, Russia’s oil fields received the major investment, and Azerbaijan suffered. The on-land fields had dried up, and in order to reach the trickier offshore fields, a small town named Oily Rocks was built thirty miles out in the sea—reached across a causeway built on sunken ships. Cramped and polluted, Oily Rocks eked out what could still be drilled of Azerbaijan’s oil within the capacity of Soviet technology. But increasingly, the existing expertise was not up to the challenge. By the time the Soviet Union ended, Azerbaijan was producing only 3 percent of the Soviet oil output.

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by | 2 December 2015 · 9:12 am

Origins of Georgia in Russia

From Caucasus: An Introduction, by Thomas de Waal (Oxford U. Press, 2010), Kindle Loc. 638-643, 826-852:

The different parts of Georgia only came together in the nineteenth century with Russian rule, the coming of the railways, and a generation of patriotic intellectuals keen to foster a new national consciousness. The churches of the Golden Age, the rediscovery of ancient manuscripts, and the poetry of Shota Rustaveli were important cultural treasures in this process of national reinvention and discovery. The dilemma has been that anyone seeking to forge, or reforge, a “Georgian national identity” does so at the risk of suppressing the country’s great natural diversity. President Mikheil Saakashvili has faced this challenge as he has sought to build a modern Georgian state out of the country weakened by centrifugal tendencies he inherited in 2004.

…

Tiflis (officially called by its Georgian name Tbilisi only in the twentieth century) had long been the largest city in the region. When King David IV reconquered the town from the Arabs in 1122, he invited Armenian traders and artisans to settle there, and they became its largest community. For centuries the Armenians ran the city, as Georgians tended to be either rural nobility or peasantry. After the Russian takeover in 1801, Tiflis became the seat of imperial rule. In the 1840s, Prince Vorontsov finally cleared away the last ruins of the 1795 Iranian assault and transformed the main part of the city into a European-style capital. He laid out a new central boulevard that became the main artery of the city.

The first theatre and public library were built; newspapers were opened. The viceroy invited an Italian opera company to come and perform Rossini, Bellini, and Donizetti and was pleased to hear them instead of the “semi-barbarous sounds of Persian music” that had filled the town a few years earlier.

In 1899, Tiflis had 172,000 inhabitants. Armenians were just over a third of the population; Georgians and Russians each formed a quarter. The remainder included Ossetians, Azerbaijani “Tatars,” Persians, Greeks, Poles, Germans, and Jews. Caucasian towns were not melting pots, and each community had separate places of worship, different holidays, and special trades. The Armenians dominated business, trade, and municipal government, running the hotels, restaurants, cafes and taverns, wineshops and caravanserais. Wardrop said the Armenians were called “Shylocks” and like the Jews were disliked by other ethnic groups for their alleged sharp practices: “A local proverb says ‘A Greek will cheat three Jews, but an Armenian will cheat three Greeks.’” This kind of racial stereotyping caused tensions between Armenians and Georgians but generally did not spill over into street violence.

The same was not true in the other major city of the Caucasus, Baku. Here, social and political tensions eventually caused mass bloodshed. Situated on a peninsular overlooking the Caspian Sea, Baku was a small ancient desert fortress, home to a powerful dynasty, the Shirvanshahs, in the Middle Ages. The commercial exploitation of its oil wells in the 1870s changed it virtually overnight into the world’s foremost oil city. In 1883, the British writer Charles Marvin noted, “what was ten years ago a sleepy Persian town is to-day a thriving city. There is more building activity visible at Baku than in any other place in the Russian Empire.” Old houses were being pulled down while the “wretched booths of the Persians were being replaced by spacious Russian shops.” As in Tiflis, Armenians had a leading role in both business and municipal government, while tens of thousands of Muslim peasants, many from Iran, immigrated to earn a wage in the oil fields.

The third main urban center of the region, the Black Sea city of Batum (called by its Georgian name Batumi after 1936), became the Caucasus’s window on the world after the Russian takeover in 1878. Within a generation, it had a string of foreign consulates and a British yacht club and cricket pitch. Again, this all depended on Baku oil, sent to Batum first by railway and then through the world’s first oil pipeline. It was refined in a factory built by the Rothschilds—to which the young Stalin set fire in 1903. Like Baku, although smaller (its population in 1897 was twenty-eight thousand), it was a place of commerce and intrigue.

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by | 1 September 2015 · 4:34 pm

D-Day Surprise: No Horses!

From D DAY Through German Eyes – Wehrmacht Soldier Accounts of June 6th 1944, by Holger Eckhertz (DTZ History, 2015), Kindle Loc. 1399-1420:

In the afternoon, the English, I recall, insisted for some reason on sending a German-speaking English army priest in among us [German prisoners] to listen to any spiritual concerns we had; this was met with derision. I still recall the face of the army priest, who was very angry at his reception. We heard explosions and detonations from inland and from the beach throughout the day, and naval bombardments from offshore, the shells of which travelled over us with a sound like an express train going past, and always the sound of engines: planes, tanks and trucks, never stopping for a moment.

In the evening, we were taken out of the square and led to the beach. The guards made no attempt to blindfold us or to prevent us seeing the situation. The scale of the operation then became clear to us all, and most of us fell completely silent at what we witnessed.

The sea wall area was being worked on with armoured bulldozers, creating a huge ramp for vehicles to drive up. There were many destroyed vehicles and tanks, some still burning. I saw my bunker, which was collapsed in the frontal part, over the 88mm embrasures; there was smoke drifting from the rubble.

The beach was completely full of transports, including many vehicles we had not seen and we did not even know how to describe: amphibious trucks, tanks with flotation screens, enormous landing craft that were unloading whole columns of jeeps and tanks, directly onto the sand. The English had already cleared a wide lane through the beach obstacles – how they did that so quickly, I have never understood, perhaps with linked explosive charges – and this lane was an absolute highway on the wet sand and out into the sea itself. There were still many bodies, which were lined in large groups on the sand and partly covered with tarpaulins; despite our lack of religion, many of our men crossed themselves as we passed these.

One thing in particular struck many of us as amazing: all along the beach, there were no horses!

This was a surprise for you?

Yes, we found it astonishing. This huge army had brought with it not one single horse or pack-mule! All their transport was mechanised. It may sound bizarre today, but this impressed us greatly, showing that the Allies had no need of horses anymore, as they had such huge oil resources and production capacity. Because, of course, the German armies used horses for transport on quite a large scale right up until the end of the war, due to limited fuel and constraints on mechanised vehicle production. Every German unit had its stables and veterinarian officer, and here were these English without that need at all. For us, this symbolised the Allied capabilities.

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by | 14 February 2015 · 10:55 am

Nationalist, not Moralist, Conflict in Asia

From Asia’s Cauldron: The South China Sea and the End of a Stable Pacific, by Robert D. Kaplan (Random House, 2014), Kindle Loc. 322-333, 585-592:

There is nothing romantic about this new front line. Whereas World War II was a moral struggle against fascism, the Cold War a moral struggle against communism, the post-Cold War a moral struggle against genocide in the Balkans, Africa, and the Levant, as well as a moral struggle against terrorism and in support of democracy, the South China Sea shows us a twenty-first-century world void of moral struggles, with all of their attendant fascination for humanists and intellectuals. Beyond the communist tyranny of North Korea, a Cold War relic, the whole of East Asia simply offers little for humanists. For there is no philosophical enemy to confront. The fact is that East Asia is all about trade and business. Even China, its suffering dissidents notwithstanding, simply does not measure up as an object of moral fury.

The Chinese regime demonstrates a low-calorie version of authoritarianism, with a capitalist economy and little governing ideology to speak of. Moreover, China is likely to become more open rather than closed as a society in future years. China’s leaders are competent engineers and regional governors, dedicated to an improving and balanced economy, who abide by mandatory retirement ages. These are not the decadent, calcified leaders of the Arab world who have been overthrown. Rather than fascism or militarism, China, along with every state in East Asia, is increasingly defined by the persistence, the rise even, of old-fashioned nationalism: an idea, no doubt, but not one that since the mid-nineteenth century has been attractive to liberal humanists.

…

Truly, in international affairs, behind all questions of morality lie questions of power. Humanitarian intervention in the Balkans in the 1990s was possible only because the Serbian regime was not a great power armed with nuclear weapons, unlike the Russian regime, which at the same time was committing atrocities of a similar scale in Chechnya where the West did nothing; nor did the West do much against the ethnic cleansing in the Caucasus because there, too, was a Russian sphere of influence. In the Western Pacific in the coming decades, morality may mean giving up some of our most cherished ideals for the sake of stability. How else are we to make at least some room for a quasi-authoritarian China as its military expands? (And barring a social-economic collapse internally, China’s military will keep on expanding.) For it is the balance of power itself, even more than the democratic values of the West, that is often the best preserver of freedom. That also will be a lesson of the South China Sea in the twenty-first century—one more that humanists do not want to hear.

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by | 14 February 2015 · 10:52 am

Geostrategic South China Sea

From Asia’s Cauldron: The South China Sea and the End of a Stable Pacific, by Robert D. Kaplan (Random House, 2014), Kindle Loc. 222-253:

The South China Sea functions as the throat of the Western Pacific and Indian oceans—the mass of connective economic tissue where global sea routes coalesce. Here is the heart of Eurasia’s navigable rimland, punctuated by the Malacca, Sunda, Lombok, and Makassar straits. More than half of the world’s annual merchant fleet tonnage passes through these choke points, and a third of all maritime traffic worldwide. The oil transported through the Malacca Strait from the Indian Ocean, en route to East Asia through the South China Sea, is triple the amount that passes through the Suez Canal and fifteen times the amount that transits the Panama Canal. Roughly two thirds of South Korea’s energy supplies, nearly 60 percent of Japan’s and Taiwan’s energy supplies, and 80 percent of China’s crude oil imports come through the South China Sea. Whereas in the Persian Gulf only energy is transported, in the South China Sea you have energy, finished goods, and unfinished goods.

In addition to centrality of location, the South China Sea has proven oil reserves of seven billion barrels, and an estimated 900 trillion cubic feet of natural gas. If Chinese calculations are correct that the South China Sea will ultimately yield 130 billion barrels of oil (and there is some serious doubt about these estimates), then the South China Sea contains more oil than any area of the globe except Saudi Arabia. Some Chinese observers have called the South China Sea “the second Persian Gulf.” If there really is so much oil in the South China Sea, then China will have partially alleviated its “Malacca dilemma”—its reliance on the narrow and vulnerable Strait of Malacca for so much of its energy needs coming from the Middle East. And the China National Offshore Oil Corporation has invested $20 billion in the belief that such amounts of oil really do exist in the South China Sea. China is desperate for new energy. Chinese oil reserves account for only 1.1 percent of the world total, while it consumes over 10 percent of world oil production and over 20 percent of all the energy consumed on the planet.

It is not only location and energy reserves that promise to give the South China Sea critical geostrategic importance, it is the territorial disputes surrounding these waters, home to more than two hundred small islands, rocks, and coral reefs, only about three dozen of which are permanently above water. Yet these specks of land, buffeted by typhoons, are valuable mainly because of the oil and natural gas that might lie nearby in the intricate, folded layers of rock beneath the sea. Brunei claims a southern reef of the Spratly Islands. Malaysia claims three islands in the Spratlys. The Philippines claims eight islands in the Spratlys and significant portions of the South China Sea. Vietnam, Taiwan, and China each claims much of the South China Sea, as well as all of the Spratly and Paracel island groups. In the middle of 2010 there was quite a stir when China was said to have called the South China Sea a “core interest.” It turns out that Chinese officials never quite said that: no matter. Chinese maps have been consistent. Beijing claims to own what it calls its “historic line”: that is, the heart of the entire South China Sea in a grand loop—the “cow’s tongue” as the loop is called—surrounding these island groups from China’s Hainan Island south 1,200 miles to near Singapore and Malaysia. The result is that all of these littoral states are more or less arrayed against China, and dependent upon the United States for diplomatic and military backing. For example, Vietnam and Malaysia are seeking to divide all of the seabed and subsoil resources of the southern part of the South China Sea between mainland Southeast Asia and the Malaysian part of the island of Borneo: this has elicited a furious diplomatic response from China. These conflicting claims are likely to become more acute as energy consumption in developing Asian countries is expected to double by 2030, with China accounting for half of that growth.

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by | 28 November 2014 · 4:34 am

North Korea’s Economic Collapse

From Nothing to Envy: Ordinary Lives in North Korea, by Barbara Demick (Spiegel & Grau, 2009), Kindle Loc. 1810-1832:

KIM IL-SUNG’S DEATH had, in fact, not changed much in the country. Kim Jong-il had gradually been assuming power over the decade preceding his father’s death. The economy’s inevitable collapse had been set in motion years before under the weight of its own inefficiencies. But North Korea’s Great Leader picked a convenient time to die, one that would prevent his legacy from being tarnished by the catastrophic events of the coming years. Had he lived a moment longer, North Koreans today would not be able to look back with nostalgia at the relative plenty they had enjoyed during his lifetime. His passing coincided with the last gasps of his Communist dream.

By 1995, North Korea’s economy was as stone-cold dead as the Great Leader’s body. Per capita income was plummeting, from $2,460 in 1991 to $719 in 1995. North Korea’s merchandise exports dropped from $2 billion to about $800 million. The collapse of the economy had an organic quality to it, as though a living being were slowly shutting down and dying.

In Chongjin, the hulking factories along the waterfront looked like a wall of rust, their smokestacks lined up like the bars of a prison. The smokestacks were the most reliable indicators. On most days, only a few spat out smoke from their furnaces. You could count the distinct puffs of smoke—one, two, at most three—and see that the heartbeat of the city was fading. The main gates of the factories were now coiled shut with chains and padlocks—that is, if the locks hadn’t been spirited away by the thieves who had already dismantled and removed the machinery.

Just north of the industrial district the waves lapped quietly against the empty piers of the port. The Japanese and Soviet freighters that used to make regular calls to pick up steel plates from the mills were gone. Now there was only North Korea’s fleet of rusting fishing vessels. Perched on a cliff above the port, giant letters proclaimed KIM JONG-IL, SUN OF THE 21ST CENTURY, but even they appeared to be crumbling into the landscape. The red lettering on the propaganda signs along the road hadn’t been repainted for years and had faded to a dull pink.

One of the most polluted cities in North Korea, Chongjin now took on a new beauty, stark and quiet. In autumn and winter, the dry seasons in northeast Asia, the sky was crisp and blue. The sharp odor of sulfur from the steelworks had lifted, allowing people once more to smell the sea. In summer, hollyhocks crept up the sides of concrete walls. Even the garbage was gone. Not that North Korea ever had much litter—there was never enough of anything to go to waste—but with economic life at a standstill, the detritus of civilization was disappearing. There were no plastic bags or candy wrappers wafting in the breeze, no soda cans floating in the harbor. If somebody stamped out a cigarette on the pavement, somebody else would pick it up to extract a few flecks of tobacco to roll again with newspaper.

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by | 12 July 2014 · 6:30 am

High Oil Prices and the Brezhnev Era

From Revolutionary Russia, 1891-1991: A History, by Orlando Figes (Metropolitan, 2014), Kindle Loc. 4290-4335:

By the end of the 1970s, these small garden plots, which took up 4 per cent of the country’s agricultural land, were producing 40 per cent of its pork and poultry, 42 per cent of its fruit and over half its potatoes.

Brezhnev responded to the agricultural crisis by allowing larger garden plots to stimulate production. He might have improved the Soviet system’s chances of survival by doing what the Chinese were doing at this time: de-collectivizing agriculture and returning to an NEP-like system of cooperatives and household farms on contracts, with the state allowing them to sell what they produced beyond their quotas on the free market. Soviet reformers were not unsympathetic to these policy ideas, even if they stopped short of recommending them. Gorbachev, who at this time was in the Agricultural Department of the Secretariat, proposed giving more autonomy to enterprises and associations in deciding various production and financial questions in a memorandum to the Central Committee in May 1978 (an idea repeated by Andropov on becoming General Secretary in 1982). But the Brezhnev leadership would not accept these proposals—even as trial policies. The old guard was too committed to the Stalinist collective farm system which they had implemented as young men. The Party’s power was heavily invested in the direct management of the collective farms by thousands of officials in the localities. Perhaps, in any case, fifty years of collectivization (twice as long as in China) had destroyed any hope of bringing the Soviet peasantry back to life.

Relying on their tiny garden plots to feed themselves, the kolkhoz workers lived in squalid poverty. Many inhabited houses without running water or electricity. The ablest and most enterprising, mostly men of conscript age, ran away from the countryside, which became a ghetto of the old, the infirm and the alcoholic, who worked badly. Entire villages were abandoned or left to rot with only a few elderly inhabitants where once perhaps a hundred families had lived.

Alcohol consumption more than doubled in the Brezhnev years. People drank out of despair. By the early 1980s, the average kolkhoz family was spending one third of its household income on vodka—an official figure which does not include the moonshine made by kolkhoz workers in their homes (for every bottle bought from shops, they drank a bucket of moonshine). Alcoholism was the national disease. It had a major impact on crime rates (around 10 million people every year were detained by the police for drunkenness) and a bad effect on male life expectancy, which declined from 66 in 1964 to just 62 in 1980. The regime was unconcerned by the problem. It increased its vodka sales to extract money from the population which had little else to buy. Better to have people drunk than protesting against shortages.

Oil revenues rescued the regime from probable food riots and possible collapse. They gave a lease on life to the Soviet economy, which would have been in severe trouble without a five-fold increase in crude oil prices as a result of the 1973 crisis. The Soviet Union doubled oil production in the 1970s, mainly by developing new fields in Siberia. With its dollar earnings from the sale of oil and gas, the government was able to buy consumer goods and foodstuffs from the West. Before the revolution, Russia had been a major agricultural exporter. But within sixty years it had turned into the biggest food importer in the world. One third of all baked goods in the country were made from foreign cereals. Cattle production was totally dependent on imported grain.

High oil prices also allowed the Soviet Union to be more assertive in its foreign policy. They financed an eight-fold increase in military spending under Brezhnev’s rule. By 1982, the military budget consumed approximately 15 per cent of the country’s GNP. The rise showed the growing power of hardliners in the Brezhnev government, particularly in the KGB, the armed forces, and the defence and foreign ministries, who were committed at all costs to maintaining military superiority over NATO as the foundation of Soviet security.

Their confidence was boosted by the failure of NATO to respond to the Soviet invasion of Czechoslovakia to crush the reformist government of Alexander Dubcek in August 1968—an invasion that the Soviet Defence Minister, Andrei Grechko, had pledged to carry out ‘even if it leads to a third world war’. The Kremlin emerged from the crisis with renewed boldness. ‘The new correlation of forces is such that [the West] no longer dares to move against us,’ claimed Andrei Gromyko, the Foreign Minister.

Moscow justified its invasion and reinforced its grip on Eastern Europe by issuing the Brezhnev Doctrine, outlined in a speech by the Soviet leader to the Polish Communists in November 1968. When ‘forces hostile to socialism try to turn the development of a socialist country towards capitalism,’ Brezhnev warned the Poles, ‘it becomes not only a problem of the country concerned, but a common problem and concern of all socialist countries.’ In practice what this meant was that the Soviet Union reserved for itself the right to intervene in the internal affairs of any Warsaw Pact country if it deemed it necessary for its own security.

Revolutionary ambitions also fuelled the Kremlin’s military spending. While Brezhnev talked détente with the Americans, the hardliners in his government were increasingly directing Soviet arms in support of Third World socialist revolutions and anti-colonial movements. The Americans approached détente in the belief that the Soviet leadership was becoming more pragmatic and less ideological or revolutionary in its foreign policy—a rational approach allowing them to ‘manage’ and contain it through deterrents and rewards. A CIA report of 1969 maintained that the ‘USSR tends to behave more as a world power than as the center of the world revolution’. But this assumption soon proved wrong.

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by | 14 January 2014 · 8:25 am

Early Oil Rush Days, 1913

From Lawrence in Arabia: War, Deceit, Imperial Folly and the Making of the Modern Middle East, by Scott Anderson (Doubleday, 2013), Kindle Loc. 950-966:

In 1913, Socony was primarily an exporter of petroleum products, and China was by far its largest market. In comparison, the company’s exports to the Ottoman Empire, primarily kerosene to fuel its embryonic industrial facilities, were minuscule. To put into perspective how minuscule, while Standard’s kerosene represented the second biggest American export to the Ottoman Empire, the largest was Singer sewing machines.

But as the Standard vice president, William Bemis, had explained to the three men brought to his office that morning, they weren’t being sent to the Near East to rustle up new purchasing clients, but rather to find and develop new sources of oil.

It was simple economics. By the end of 1913, the exponentially growing demand for oil and petroleum products around the globe meant that demand would soon outstrip supply. In the United States alone, the number of combustion-engine vehicles on the road had increased twentyfold in less than a decade, from some seventy-five thousand in 1905 to well over 1.5 million in 1913—and already a number of the oldest American oilfields were starting to run dry.

Oil was rapidly becoming a crucial military asset as well. In 1912, just a year before [William] Yale’s summoning to New York, the first lord of the admiralty of Great Britain, Winston Churchill, had made international headlines with his plan to convert the entire Royal Navy from coal to oil. As might be expected, this proposed modernization of the world’s most powerful fleet was already causing the navies of other nations, including Germany, to scramble to follow suit.

As a consequence, both American and European oil companies were now rushing to find and exploit new fields wherever they might exist. One especially promising region was the Near East. In the 1870s, huge oil and gas deposits had been discovered around Baku on the Caspian Sea, and this had been followed by another large strike in the Persian Gulf in 1908. Those fields were quickly dominated by European consortiums, and the race was on to tap and lay claim to the next big find.

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by | 13 March 2011 · 9:38 am

Two Kinds of ‘Missing’ Stats in Japanese News Reports

When natural disasters hit in Japan, it is customary to report the number of people killed, injured, and/or missing. For smaller-scale disasters, the word for ‘missing’ is usually 行方不明 yukue fumei ‘whereabouts unknown’ (lit. ‘movement-direction not-clear’). This term for ‘missing’ seems to imply that rescuers have searched the site of the disaster but failed to find any trace of some of the people they hoped to find there.

But in the widespread aftermath of the Great Tohoku Earthquake and tsunami, the word for ‘missing’ that now appears in Japanese news broadcasts is 安否不明 anpi fumei ‘safety unknown’ (lit. ‘safe-or-no not-clear’). This term for ‘missing’ suggests that rescuers have in most cases not yet arrived on the scene or not yet completed their investigations to determine the condition and whereabouts of all the people they hope to find there.

This distinction between a sort of preliminary (‘unaccounted for’) and postmortem determination of who might be ‘missing’ has not always made it into the English-language headlines about the multiple disasters affecting so many people in Japan right now.

Speaking of which, the term 原発 genpatsu ‘nuclear reactor’ was also new to me, despite having lived in Hiroshima, where I early on learned the term 原爆 genbaku ‘nuclear explosion’, short for 原子爆発 lit. ‘primitive-child (= atom) burst-discharge’.

The character 原 is read hara when it occurs in so many native Japanese proper names, where it means ‘field, plain, prairie, tundra, moor, wilderness’. The ‘wilderness’ sense seems primary in the Sino-Japanese usage of 原 gen to mean ‘original, primitive, fundamental, raw’, as in 原因 gen’in ‘root cause’, 原色 genshoku ‘primary color’, 原油 gen’yu ‘crude oil’, and 原発 genpatsu ‘nuclear reactor’ (or ‘atomic discharge’).

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