Civil Leaders – Dealing with Tough Situations
There are a few world leaders who have done an outstanding job when placed within seemingly impossible situations. Both President Vladimir Putin of Russia and President Pak Chung Hee, (the third President of South Korea) fall into this same category. President Park, Chung Hee for example, inherited a terrible mess when his nation was destroyed during the Korean war and his citizens languished in terrible poverty. He rose up to the situation and seized leadership from the incompetent leaders before him who were doing nothing to improve the situation of Korea. He then did whatever was necessary to build his nation’s economic base. The income of the people of South Korea increased tenfold during the presidency of Park, Chung Hee. He laid the economic foundation that endures today and is the foundation of the present South Korean prosperity.
See the link “Strong Leader Verses Dictator” for more details.
Vladimir Putin is another civil leader who faced a nearly impossible situation presented to him after the collapse of the former communist Soviet system. Under the former Soviet Union, the communists had seized all private industry and closed down private ownership of businesses and completely destroyed the economic base of Russia. After the fall of the Soviet Union in 1991, and the chaos that followed, the leaders before Putin were unable to deal effectively with the post-Soviet situation that went steadily from bad to worse.
For a scholarly work on this subject see the book “Putinomics” by Chris Miller:
In rebuilding Russia (after the “communist disaster” had completely destroyed it) the first step was to privatize key industries and again encourage the ownership of private businesses (which are the backbone of the economy). These things had been all seized and closed down by the Soviets who placed the people under their authoritarian rule and communist oppression for decades, that nearly wiped out all human incentive and innovation. Under the Soviet rule, industry and private enterprise and production of goods and products languished. The banking industry nearly collapsed and everyone was under survival mode. Under such conditions the mafia and the black market all rose up to provide goods (at exorbitant prices) that were not being produced in Russia. Corruption also flourished within various major industries and leadership positions were being given to those who paid the highest bribes. It was under this corrupt system that Vladimir Putin entered and began to set things in order. The chaos and anarchy created under the Soviet rule, had turned the economic system of Russian into the “Wild West” where Mafia-types and corrupt kingpins of the underground economy ruled and oligarchs controlled major Russian industries.
Vladimir Putin had a background with the former KGB intelligence service and in fact he had connections with others from this former government bureau who knew the inner workings and operations of the underground criminal organizations. This worked to his advantage because one of the first things that needed to be reestablished (to restore order) was to restore the government tax-base. Without tax revenues a government cannot serve to put the nation in order so that honest businesses can thrive. So, Putin was able to exact taxes from those operating within the underground black market and this was the first step in restoring Russian into normalcy again. Yes, he had to work with shady characters in the beginning in order to secure the tax base but these actions are all related to a leader doing whatever was necessary under the situation he found himself in so that his nation could begin to move toward progress again.
Also Putin had to deal with oligarchs who gained control of major industries such as gas and oil and mining operations. These kingpins operated with impunity because they had so much wealth that they could pay bribes and swing elections and therefore could dictate their own terms to the government. So when Putin assumed leadership, Russia was like the wild west run by kingpins that controlled the various industries. But Putin showed these kingpins who was the boss when he imprisoned a kingpin who had become outrageous in his assumptions of his own unbridled freedom to do whatever he pleased and thought he could continue to dictate to the government whatever he would demand of them. But this “kingpin arrogance” was silenced when he was placed in prison and suddenly other kingpin rulers of major industries decided they better pay their taxes or they might also suffer a similar fate.
It should be noted that whenever there is a lack of strong leadership (or poor leadership exists) then this will create leadership-voids and these voids open the door for “mafia-types” and criminal leaders to take over. These criminal leaders would demand so-called “taxes” from any business that attempted to operate. But a mafia extorting money with threat of violence is not the same as paying taxes to a government (which provides something in return). The mafia-type criminals do not provide any infrastructure or build any roads or schools or anything in return for their so-called “taxes” which they seized from the people. Therefore it was of vital importance that Vladimir Putin restore an honest government tax system in order to provide police for security and roads for moving products and everything else needed to conduct legitimate legal business.
Preparing Reserves for Lean Times
Countries that depend upon oil revenues for government income are in danger with their national budgets because of the wild fluctuation of oil prices. There are boom and bust cycles in the oil industry and Putin recognized this and so he stored up huge financial reserves when oil prices were high to cover the nation when lean times would eventually come. This is the same wisdom employed by Joseph in Egypt when he stored up great reserves of grain during the seven “boom-years” to serve as a reserve during the coming seven “bust-years” of famine. See Genesis 41:28-36.
Genesis 41:28–36 (NASB95)
28 “It is as I have spoken to Pharaoh: God has shown to Pharaoh what He is about to do.
29 “Behold, seven years of great abundance are coming in all the land of Egypt;
30 and after them seven years of famine will come, and all the abundance will be forgotten in the land of Egypt, and the famine will ravage the land.
31 “So the abundance will be unknown in the land because of that subsequent famine; for it will be very severe.
32 “Now as for the repeating of the dream to Pharaoh twice, it means that the matter is determined by God, and God will quickly bring it about.
33 “Now let Pharaoh look for a man discerning and wise, and set him over the land of Egypt.
34 “Let Pharaoh take action to appoint overseers in charge of the land, and let him exact a fifth of the produce of the land of Egypt in the seven years of abundance.
35 “Then let them gather all the food of these good years that are coming, and store up the grain for food in the cities under Pharaoh’s authority, and let them guard it.
36 “Let the food become as a reserve for the land for the seven years of famine which will occur in the land of Egypt, so that the land will not perish during the famine.”
Wise financial stewardship of assets and finances can result in the prosperity of any nation, which is run by a civil leader who operates using foresight like Joseph. In the time of Joseph, all of the wealth of the surrounding nations flowed into Egypt because only Egypt had grain for sale (while all nations surrounding Egypt languished in famine). Egypt became the richest nation on earth during the time of Joseph because of his wise leadership and good foresight and advanced planning.
Putin also brought financial stability to Russia by his foresight in storing up large financial reserves when the gas and oil prices were high. Russia now has better financial management within its government than what the “liberal-run” United States government had under the Biden regime. So in financial management this was one area where Russia beats the U.S. whose liberal government under Biden wasted billions of dollars on supporting woke ideology worldwide.
Stopping Corruption
Corruption allows a small handful of people to amass huge wealth while leaving the rest of the country in abject poverty. Putin realized this as well and therefore he does not tolerate corruption. He knows that an honest business environment is essential to developing the Russian economy. Russian now ranks 35th out of 190 in the World Bank’s Doing Business ratings. Previously Russia was ranked 124th in 2010 so this shows a great improvement as a result of Putin’s foresight in improving his nation’s business environment.
Again, see the link “Who Putin is Not” for more details.
Western liberals love to scream “corruption” and accuse Putin of being evil but the economic statistics say otherwise. If Putin was as evil as liberals say then why did his country improve from a rank of 124 and climb to an exalted position of 35 in good business ratings? Yes, Putin had to deal with shady characters in the beginning of his rule and work with corrupt oligarchs. Rampant corruption existed after the fall of the Soviet system and Putin had to take action to deal with that corruption and get the Russian government operational again. Once things were under control of the government (instead of criminal organizations) then Putin could begin to help his people and bring law and order again to a nation that had fallen into turmoil and was as unruly as the wild west.
The success of Vladimir Putin mirrors the same success as President Park, Chung Hee of South Korea. The success of these two leaders can be measured by the drastic changes that took place as seen by the horrible condition of their nations at the beginning of their tenors compared to where their nations stand today. Increasing the income of citizens by ten-times and bringing order to a nation, are all attributes of a successful leader and these things prove that these leaders were working toward the good of their own people.
Again, see the link “Strong Leader Verses Dictator” for more details.
President Park, Chung Hee had to seize leadership by military coup away from the incompetent leaders that reigned before him. Liberals scream that this is not democratic but this was something that was necessary and it was a “manly thing” to do so that national improvement could be effected. Working with mafia organizations and corrupt oligarchs was something Putin had to do in the beginning of his reign in order to get started with his program of restoring his nation back to law and order again. Today the corruption is greatly diminished in Russia from what it was following the fall of the Soviet Union. The rank of 35 shows that Russia has now moved toward the top of the list of best countries for doing business. Business cannot operate if owners are being shaken down by gangs or mafia and are being extorted by threats of violence.
Pioneer Actions
So in the examples of both President Park Chung Hee of South Korea and President Vladimir Putin of Russia both men needed to take action to save their respective countries from disaster. President Park worked with the Chaebols (large family conglomerates) to get things going and President Putin worked with the Russian oligarchs. These steps were necessary to save both nations from a bad situation. However, today the Chaebols control over 40% of the economy of South Korea and are in a position where it is now hard to reign in their power. The same can be said of the Russian oligarchs who also hold large portions of the Russian economy under their control. The free enterprise system works best when it is actually “free” – meaning that when businesses are engaged in a free market then those who who innovate and problem solve will thrive while those who do not will go out of business. Thus “free enterprise” which is actually free can be beneficial to everyone and help the economy thrive. One example is comparing the U.S. Post Office to private delivery companies who can deliver parcels and goods faster and at a lower price than that of a government run operation such as the U.S. Post Office. Government sponsored enterprises are always at the bottom of efficiency and the bottom of innovation because they have no reward for improving. Private companies are rewarded for innovating and finding ways to deliver a product faster and at a lower price. These innovative companies are rewarded with increased business and increased revenues and are unlike government enterprises whose employees are paid the same whether they are productive or not. Therefore allowing citizens to prosper should include government policies that foster free enterprise – which rewards those who are the most productive and culls those who are wasteful and slow. Breaking up Korean Chaebols and Russian Oligarchs enterprises could be a way to go beyond the stagnated economic level that both Korea and Russia are currently stalemated on.