Archives for January 2014

After a long break, a new contribution to the Experts Panel:

Shredding Sochi… in a Good Way

Western journalists have been in the business of dismissing Russian achievements and magnifying Russian failures ever since Putin drove them into a collective derangement syndrome – he even haunts their dreams, as recently revealed by the Guardian’s Shaun Walker – so the preemptive besmirching of the Sochi Olympics can’t have surprised anyone.

What is startling, though, is the unusually low competence of the effort, even by the standards of these people that are sarcastically referred to as “democratic journalists” in Russia.

The first and foremost attack revolved around the supposed corruption surrounding the Sochi Olympics. In 2010, the Russian magazine Esquire estimated that 48km of roads around Sochi consumed a cool $8 billion of taxpayer money, a sum that implied the asphalt might as well have been made of elite beluga caviar. Julia Ioffe cheerily transmitted these sophomoric calculations to the Anglosphere. The only problem with these actuarial wisecracks? Said road also included a railway, 50 bridges, and 27km worth of tunnels over mountainous terrain… which presumably made it something more than just a road. What was intended as a metaphor for Sochi corruption turned out to be, ironically, a metaphor for unfounded attacks against it.

There are incessant comparisons to the $8 billion spent during the 2010 Olympics in Canada. But this sidesteps the fact that Whistler was already a world-class ski resort, whereas Sochi’s infrastructure had to be built from scratch and at relatively short notice. The actual event-related costs of the Sochi Olympics are $7 billion, of which only half was directly drawn from the state budget. This is not to say that there was no stealing – of course there was, as corruption is a real problem in Russia, and is especially endemic in the construction industry. Navalny has created an entire website about it, and coordinated a campaign against Sochi with Buzzfeed and The New York Times. But what’s striking is that far from the pharaonic levels of misappropriation we might expected from the tone of the coverage, in most cases the markup was in the order of 50%-100% relative to “comparable” Western projects (and that’s after selecting the most egregious cases). This isn’t “good,” needless to say, but it’s hardly unprecedented in Western experience. In any case, a number of criminal cases have been opened up, so impunity is not guaranteed. (The most prominent “victim,” Akhmed Bilalov, has fled the country and claimed he was poisoned – all true to the form of emigre oligarch thieves from the ex-Sovie Union).

The lion’s share of the $50 billion investment in Sochi – some 80% of it or so – consists of infrastructure projects to make Sochi into a world-class ski resort that will provide employment in the restive North Caucasus, kickstart the development of a Russian snowsports culture, and draw at least some of the more patriotic elites away from Courcheval.

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