The good news is that the six-year long
Russian economic collapse has ended. Moreover, the worst post-
Soviet nightmare, rampant crime, is dramatically receding. Or is
it?
The bad news is that Russia's official statistics agency,
Goskomstat, has just been caught fiddling the figures to turn a 6 per
cent economic downturn into an unexpected spurt of growth. As for
those glad tidings about crime, well, sociologists aren't too
sure.
"All figures carry a message, and there is a real danger of
manipulation when we are dealing with complex indicators of
sensitive social or economic trends," says Nugzar Betanelli,
director of the Institute for the Sociology of Parliamentarism.
"A clever person can do almost anything with numbers."
For two months running Goskomstat has issued figures showing
that the Russian economy's long slide was finally going into
reverse. The agency has claimed that Russia's gross domestic
product -- the indicator of overall economic health -- grew by
0.3 per cent in January and then by 0.9 per cent in February,
compared with the same periods of last year.
The increases seemed modest, but coming after years of
unremitting slump and a particularly disastrous 1996 -- in which
GDP plunged a staggering 6 per cent -- the data arrived like a
bright beacon of hope. Editorialists from Toronto to Tokyo hailed
the "first stirrings of growth" Russia's perennial bad news
economy.
In his state of the nation address a month ago, President
Boris Yeltsin assured weary Russians that the long descent into
poverty was over. He claimed that economic growth was already
beginning and would total 2 per cent this year.
But last week an independent think tank revealed that it was
all smoke and mirrors. Experts at the Russian-European Centre for
Economic Policy churned over the figures and discovered they
didn't add up.
"Goskomstat arbitrarily increased their estimates of the
size of the gray economy, but failed to tell anyone about the
change in method," says Al Breach, an economist working with the
Centre.
Goskomstat, which collects data from all Russian regions and
government ministries, holds a virtual monopoly on basic
statistics covering economic and social trends.
"There is no competitor to Goskomstat," says Andrei
Kortunov, director of the independent Russian Scientific Fund.
"Virtually everyone relies on it, which makes any doubts about
its credibility very troubling."
Some Western economists have long argued that unregulated
and unmeasured activity in the gray economy make Russia's
situation less grim than it seems. They have urged Goskomstat to
alter its methods of calculating in order to account for this.
But Mr. Breach says the official statistics agency's secret
and unexplained decision to award new values to gray market
activity makes a mockery of proper reporting. And its failure to
adjust past statistics into line with the new methodology made
the month-on-month comparison extremely deceptive.
"That distorted the real picture completely," he says.
According to the Centre, if the same methods used in the
past had been employed they would have shown a 6 per cent drop
in the Russian economy from January to January instead of the=20
growth claimed by the government.
A similar problem is emerging with feel-good crime
statistics reported last week by Russia's ambitious Interior
Minister, Anatoly Kulikov. According to Mr. Kulikov, the
incidence of "serious" crimes like murder and violent robbery in
Moscow fell last year by 19 per cent while the efficiency of
police in solving crimes jumped impressively.
"Despite the difficulties of the transition period, the
criminal situation is under control," Mr. Kulikov recently said.
But sociologists note astounding discrepancies in the
figures. While violent assaults have reportedly decreased by 19
per cent, and theft is down 22 per cent, drug-related crimes have
risen a whopping 54 per cent and the ill-defined offense of
"hooliganism" is up by 13 per cent.
"It is really hard to believe narcotics violations are up
but theft is down. No one has ever seen this combination of
trends anywhere," says Olga Basmachnaya, a sociologist at Moscow
University.
"I suspect we're looking at massively doctored statistics."
Decreases in crimes such as murder (-9 per cent), extortion
(-28 per cent) and hostage-taking (-64 per cent) announced by the
Interior Ministry could actually reflect refinement in the
methods of organized criminals rather than any improvement of
police efficiency, she says.
"The Interior Ministry also tells us that 'economic crimes'
have increased by 67 per cent in one year. What does this mean?,"
she says.
"It means that organized crime is still alive and well, and
still robbing the country blind. Perhaps the criminals are just
better organized than ever, and are now able to conduct their
business without slaughtering each other as they did in the past.
I can't see this would be anything for the Interior Ministry to
brag about."

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