As next year will mark the 65th anniversary of Victory Day, I am reminded of what brought President Bush and more than 50 other world leaders to Moscow on 60th anniversary of Victory Day. That day, they came to honor the true source of Russia's strength: the will of its people.
It was only natural for them to pay their respects to the Red Army veterans for their indispensable role in saving Western Europe from Nazi Tyranny and ending the Holocaust. Then President George W. Bush said, “It is a moment where the world will recognize the great bravery and sacrifice the Russian people made in the defeat of Nazism. The people of Russia suffered incredible hardship, and yet the Russian spirit never died out.”
After the ceremonies, then President Putin led those same world leaders toward the Tomb of the Unknown Soldier. As they walked closer to the Eternal Flame of Glory, the words on the tombstone captured their purpose for making the long trip: “Your name is unknown, your deed is immortal.”
Those soldiers are what should serve as the pride of the past. Their heroism should be able to inspire all that anything is possible, including equal protection under the law and prosperity that is not dependent on the price of oil. World leaders certainly did not come to see the Mausoleum
The removal of Lenin’s Tomb could provide investors a sense that Russia is trying to break with its communist past. This is bound to attract media attention. Since September of 2008, the main story in the West is how the financial meltdown has led to the abandonment for some long held free market principles in the West.
Whether it is the bail out of Wall Street and the auto companies as well as the stimulus package and the potential government takeover of the health care industry, US Treasury Secretary Timothy Geithner effectively summarized the current state of affairs when he said, "Capitalism will be different.”
While such a symbolic gesture of removing Lenin's Tomb would create headlines, this is obviously only meant to show people that reforms are clearly under way. This act will show investors that the Kremlin has acknowledged that only markets generate wealth while bureaucracy does not.
Once the Mausoleum is closed, Russia can re-brand itself to be more competitive in attracting capital from abroad. The current recession is proof that Russia is too dependent on oil prices for its prosperity.
Although real GDP grew at annual rate of 6.9 percent from 1999 to 2008, oil, natural gas, and other fuels were 64.8 percent of all exports in 2008. If you combine oil exports with metals and other natural resources, that adds up to 78.7 percent of all exports in 2008.
It goes without saying that real change will be difficult. To his credit, President Medvedev outlined the path to sustainable growth, irrespective of oil prices, shortly after taking office. It was then, Medvedev declared that " . . . we must achieve true respect for the law and end the legal nihilism that is seriously hindering modern development."
When there was talk of tearing down the Mausoleum in late 2005, the Western news outlets covered this issue with wonder. From the perspective of the American political elite, it would be proof that Russia had changed. The narrative throughout 1990s in the Western news cycle was always based around the question of whether the communists would exploit the difficult economic times and return to power. In this decade, Russia's narrative is that Putin and the KGB is already slowly returning the country to some of the Soviet ways.
It is currently impossible for investors, who came of age in the Cold War, to seriously believe that Russia is committed to the rule of law when there is a monument near the Kremlin to an ideology, which is the antithesis to those ideals. However, there one action that would be an unmistakable first step to showing the world that freedom is once again on the march in Russia.
Mr. Medvedev: If you seek long term prosperity, the rule of law, and freedom for the people of Russia, then bury Lenin next to his mother in St. Petersburg as he personally requested in his will. Mr. Medvedev, tear down this mausoleum!




