This book was recommended by my brother Dan and it took me awhile to get to reading it. But once I started, it was a very fun, intriguing true story.
The author Bill Browder – in time – did indeed seem to have become the number one enemy of Putin. Maybe that is a stretch, but Putin surely did come to know him.
The book starts in November 2005 when, on a routine flight into Moscow, Browder was stopped, held overnight, and then deported back to London, where he was living at the time with his wife. All this is told in the present tense.
Then he switches into the past tense to describe the events that led up to the actual writing of the book in 2014.
Those events are described from his perspective and do provide the author’s education, his fascination with the post-Communist world in Eastern Europe, his subsequent disillusionment, and ultimately a lobbyist for travel and foreign asset restrictions on Russian officials involved in human rights abuses.
He is the grandson of Earl Browder (1891-1973), the Secretary General of the Communist Party of the United States.
He rejected his family’s socialism, and determined early on to become a capitalist. Yes, a rebel. However, he had no money so it had to start in another way.
The next best thing he could do was find a way to attending a high profile business school and make one’s way up the ranks that manage big business and big finance.
The fall of Communism opened up what seemed to be huge new possibilities for capitalism in Eastern Europe. Browder recalls his excitement at these new possibilities. Alas, he ended up in Sanok in an isolated part of South-Eastern Poland, in October 1990, advising on the rescue of the Autosan bus plant. Production had stopped there, when the Polish Finance Minister, Leszek Balcerowicz, a fiscally austere man. Another word is CHEAP. The IMF cancelled a large contract for this firm to build busses. They really had one choice, fire everyone and close up. Browder moves on from there.
There are large differences with the way in which financial business is conducted in the United States vs Russia. In the US, finance buys government, and corporations settle their differences in the law courts. In Russia (as indeed in most countries?) governments buy finance, and corporations settle their differences using more traditional, political, even police instruments.
The climax of the book is an account of the murder of Magnitsky, Browder’s attorney, in police custody in Moscow, in 2009. This shocked Browder into a determination to secure justice for Magnitsky. Browder’s hard fought efforts in D.C. resulted in the 2012 passing by the US Congress of the ‘Sergei Magnitsky Rule of Law Accountability Act’, banning the granting of US visas and freezing the US assets of the officials involved in the death of Magnitsky. This was a huge win for Browder.
Recently he explained to a class of graduates at Stanford Business School the horrors of doing business in strange and exotic parts of the world where business disputes are settled using gangsters rather than law courts. It is this that leads him to his conclusion that the Russian state under Vladimir Putin is essentially a kleptocracy.
The initial part of this book reflects that it is necessary to understand Russian history, geography, and society. The initial part of the book does a good job of providing a background of its history. As well as how it continues to emerge in the world today.
This book does engage with American economic development and its peculiarities such as the presence of slavery and the availability of ‘free’ land for settlement. It is this kind of broad understanding of Russian social, political and economic development that is necessary to understand the Russian state as it is today. The book provides some of a glimpse of Russian history and how it has “weathered” all the internal political turmoil and how the leadership views the world on the “outside”.