The budget is not a monopoly game

By Suzia van Swol-University of New Mexico, Talk Radio News Service
Congressman Phil Gingrey (R-Ga.) talks with TRNS correspondent Suzia van Swol at the 2009 House Republican Radio Row about how the democratic budget plan taxes away the assets of small businesses and the middle class. He says that “I don’t know whether it’s a ouija board, a monopoly game, or march madness, but it doesn’t feel very good.” He says that the Republicans want to lower taxes in order to stimulate the economy. (9:48)

Smart relations with Georgia to prevent conflict with Russia

“I don’t think we’re moving towards another Cold War, but the dangers do exist,” said Salome Zourabichvili, Chairwoman of the Georgia's Way Party (former Minister of Foreign Affairs in Georgia). Zourabichvili says Georgia, Russia and the European Union need to have a frank and firm discussion about border security, energy policy and security, and the Treaty on Conventional Armed Forces in Europe (CFE) in order to prevent more conflict between Georgia and Russia.

At a discussion at the Woodrow Wilson center, Zourabichvili recommended that the Obama administration recognize Georgia’s desire for Democracy, independent media, and government transparency. She warned the U.S. to aid Gerorgia’s government and institutions conditionally in order to allocate funds to the best place. Zourabichvili said private American institutions who fundraise for Georgia end up unintentionally funding the Georgian military budget (one-third of the national budget in 2007) and “regime consolidation.” With little pressure for government transparency, Zourabichvili said local levels of government practically “don’t exist,” have no budget and are largely governmentally controlled.

Zourabichvili said in exchange for a clear allocation of funds to Georgia, the U.S. will see a Democratizing nation and prevent the opportunity for escalated violent conflict between Georgia and Russia.

Pharmaceuticals may help Russia enter WTO

According to James N. Class, assistant vice president of international affairs at the Pharmaceutical Research and Manufacturers of America, Russia's acceptance into the World Trade Organization may be aided by pharmaceuticals.

During the Soviet era, Russia had a pharmaceutical industry that provided generic versions of Western drugs. After the fall of the Soviet Union, the status of these factories came into question. "You have 7,00 factories that need something to do," said Class. While many of these factories failed to meet Good Manufacturing Practices (GMP), then President Vladimir Putin made a 2004 statement in favor of meeting a better standard of GMP that put national treatment and WTO ascension on the table.

Research and development (R&D) for medicine has not yet been significantly affected by globalization, leaving the U.S. with 79.5% of the R&D market. However, Russia's status as an emerging market can help draw R&D to the country, since populations without a history of heavy pharmaceutical use are considered better for clinical testing. Once clinical testing is brought to an emerging economy, it is possible to increase funding for academic research centers. An increase of R&D funding will benefit Russia by stimulating their industries, addressing security concerns, and by giving Russia the means to stop buying overpriced generics from other European countries Class explained.

Class concluded that there are several factors that are blocking Russia's ascension to the WTO. The efforts have met with domestic resistance at home and the geopolitical situation with Georgia has stalled WTO Working Party meetings that would make the ascension possible. Still, there is a belief that meetings with the Working Party will resume in November, thus removing one of Russia's obstacles.

Reevaluating Russia

Reevaluating Russia

According to military historian and resident scholar at the American Enterprise Institute Fredrick Kagan, the threat that Russia poses following the invasion of Georgia has been severely understated.

"This is a major problem. We have not seen an overt act of aggression by a major state, at least in the northern hemisphere, since Saddam Hussein invaded Kuwait in 1990, and I fear that this is not the end of it,"

Kagan says that the threat extends to all former Soviet nations are potentially at risk, citing a 27 percent increase in Russia's military budget, a renewed attempt to create an all volunteer army, and three full scale army exercises within the past two months.

"What they are basically trying to do is to create a small American [sic] army that will have the capability to conventionally retake the Soviet Empire."

Russia has also had numerous violations of international law beyond the invasion of South Ossetia, including interrogating prisoners of war and the systematically bombing the entire Georgian military complex. Kagan says that they declaration made by Russian President Medvedev and Prime Minister Putin that Russia has the right to intervene militarily in other countries to protect the lives and dignity of Russian citizens abroad is also a dangerous precedent in international law.

"That sets the bar for Russian intervention on the floor. There is no way that the Baltic states or Ukraine can behave in such a way that the Russians will never have the opportunity to say that the dignity of Russian citizens in those territories is not under attack...dignity in this context is a meaningless concept," said Kagan.

Kagan says that a response is possible, and that the idea that the U.S. needs to maintain good relationships in order to have Russian help deter the Iranian nuclear threats is ungrounded.

"The Russians have never been helpful with the Iranian nuclear program, nor will they be helpful with the Iranian nuclear program, except in the sense that they are helping the Iranians to develop a nuclear program. What they will not do is help us to shut that program down."

Today at Talk Radio News

Pentagon Correspondent Dawn Casey will attend Secretary of Defense Robert M. Gates's honor cordon to welcome Denmark's Minister of Defense Soren Gade. Legal Affairs Correspondent Jay Goodman Tamboli will cover the Supreme Court arguments in Altria v. Good dealing with lawsuits against tobacco companies. The Washington Bureau will also be covering the House Oversight and Government Reform Committee's hearing on "The causes and effects of the Lehman Brothers bankruptcy," a discussion at the Woodrow Wilson Center on "North Ossetia's geopolitical entanglements," a protest by Vietnam veterans and Vietnam's victims of Agent Orange to have the Supreme Court consider their lawsuit against chemical companies, a discussion at the Institute for Policy Studies on "War, peace, and the 2008 presidential race," the American Enterprise Institute for Public Policy Research's discussion on "Beyond Georgia: Securing America's allies on Russia's periphery," and an address by World Bank Group President Robert Zoellick on "Development and the implications from the global financial crisis."