In Countries in Transition from Communism

Mira Markovic is an "Honorary Academic" of the Russian

Academy of Science. It cost a lot of money to obtain this

title and the Serb multi-billionnaire Karic was only too

glad to cough it up. Whatever else you say about Balkan

cronies, they rarely bite the hand that feeds them (unless

and until it is expedient to do so). And whatever else you

say about Russia, it adapted remarkably to capitalism.

Everything has a price and a market. Israel had to learn

this fact the hard way when Russian practical-nurse-level

medical doctors and construction-worker-level civil

engineers flooded its shores. Everything is for sale in this

region of opportunities, instant education inclusive.

It seems that academe suffered the most during the

numerous shock therapies and transition periods showered

upon the impoverished inhabitants of Eastern and Central

Europe. The resident of decrepit communist-era buildings,

it had to cope with a flood of eager students and a deluge

of anachronistic "scholars". But in Russia, the CIS and the

Balkans the scenery is nothing short of Dantesque.

Unschooled in any major European language, lazily

content with their tenured positions, stagnant and formal -

the academics and academicians of the Balkans are both

failures and a resounding indictment of the rigor mortis

that was socialism. Economics textbooks stop short of

mentioning Friedman or Phelps. History textbooks should

better be relegated to the science fiction shelves. A brave

facade of self sufficiency covers up a vast hinterland of

inferiority complex fully supported by real inferiority. In

antiquated libraries, shattered labs, crooked buildings and

inadequate facilities, student pursue redundant careers

with the wrong teachers.

Corruption seethes under this repellent surface. Teachers

sell exams, take bribes, trade incestuous sex with their

students. They refuse to contribute to their communities.

In all my years in the Balkans, I have yet to come across a

voluntary act - a single voluntary act - by an academic.

And I have come across numerous refusals to help and to

contribute. Materialism incarnate.

This sorry state of affairs has a twofold outcome. On the

one hand, herds of victims of rigidly dictated lectures and

the suppression of free thought. These academic products

suffer from the twin afflictions of irrelevance of skills and

the inability to acquire relevant ones, the latter being the

result of decades of brainwashing and industrial

educational methods. Unable to match their anyhow

outdated knowledge with anything a modern marketplace

can offer - they default on to menial jobs, rebel or pull

levers to advance in life. Which leads us to the death of

meritocracy and why this region's future is behind it.

In the wake of the downfall of all the major ideologies of

the 20th century - Fascism, Communism, etc. the New

Order, heralded by President Bush, emerged as a battle of

Open Club versus Closed Club societies, at least from the

economic point of view.

All modern states and societies must choose whether to be

governed by merit (meritocracy) or by the privileged few

(oligarchy). It is inevitable that the social and economic

structures be controlled by elites. It is a complex world

and only a few can master the knowledge it takes to

govern effectively. What sets meritocracy apart is not the

number of members of its ruling (or leading) class,

usually no larger than an oligarchy. No, it is distinguished

by its membership criteria and by the mode of their

application.

The meritocratic elite is an open club because it satisfies

three conditions:

1. The process and rules of joining up (i.e., the

criteria) are transparent and widely known.

2. The application and membership procedures are

uniform, equal to all and open to continuous public

scrutiny and criticism.

3. The system alters its membership requirements in

direct response to public feedback and to the

changing social and economic environment.

To belong to a meritocracy one needs to satisfy a series of

demands, whose attainment is entirely up to he individual.

And that is all that one needs to do. The rules of joining

and of membership are cast in iron. The wishes and

opinions of those who happen to comprise the club at any

given moment are of no importance and of no

consequence. Meritocracy is a "fair play" by rules of equal

chance to derive benefits. Put differently, is the rule of

law.

To join a meritocratic club, one needs to demonstrate that

one is in possession of, or has access to, "inherent"

parameters, such as intelligence, a certain level of

education, a potential to contribute to society. An inherent

parameter must correspond to a criterion and the latter

must be applied independent of the views and

predilections of those who sometimes are forced to apply

it. The members of a committee or a board can disdain an

applicant, or they might wish not to approve a candidate.

Or they may prefer someone else for the job because they

owe her something, or because they play golf with him.

Yet, they are permitted to consider only the applicant's or

the candidate's "inherent" parameters: does he have the

necessary tenure, qualifications, education, experience?

Does he contribute to his workplace, community, society

at large? In other words: is he "worthy" or "deserving"?

Not WHO he is - but WHAT he is.

Granted, these processes of selection, admission,

incorporation and assimilation are administered by mere

humans and are, therefore, subject to human failings. Can

qualifications be always judged "objectively,

unambiguously and unequivocally"? Can "the right

personality traits" or "the ability to engage in teamwork"

be evaluated "objectively"? These are vague and

ambiguous enough to accommodate bias and bad will.

Still, at least appearances are kept in most cases - and

decisions can be challenged in courts.

What characterizes oligarchy is the extensive, relentless

and ruthless use of "transcendent" (in lieu of "inherent")

parameters to decide who will belong where, who will get

which job and, ultimately, who will enjoy which benefits.

The trouble with transcendent parameters is that there is

nothing much an applicant or a candidate can do about

them. Usually, they are accidents, occurrences absolutely

beyond the reach or control of those most affected by

them. Race is such a transcendent parameter and so are

gender, familial affiliation or contacts and influence.

In many corners of the globe, to join a closed, oligarchic

club, to get the right job, to enjoy excessive benefits - one

must be white (racism), male (sexual discrimination), born

to the right family (nepotism), or to have the right political

(or other) contacts (cronyism). And often, belonging to

one such club is the prerequisite for joining another.

In France, for instance, the whole country is politically

and economically run by graduates of the Ecole Normale

d'Administration (ENA). They are known as the

ENArques (=the royal dynasty of ENA graduates).

The privatization of state enterprises in most East and

Central European countries provided a glaring example of

oligarchic machinations. In most of these countries (the

Czech Republic, Macedonia, Serbia and Russia are

notorious examples) - state companies, the nation's only

assets, were "sold" to political cronies, creating in the

process a pernicious amalgam of capitalism and oligarchy,

known as "crony capitalism" or privateering. The national

wealth was passed on to the hands of relatively few, well

connected, individuals, at a ridiculously low price. The

nations involved were robbed, their riches either

squandered or smuggled abroad.

In the affairs of humans, not everything falls neatly into

place. Take money, for instance. Is it an inherent

parameter or an expressly transcendent one? Making

money indicates the existence of some merit, some

inherent advantageous traits of the money-making

individual. To make money consistently, a person needs

to be diligent, resilient, hard working, to prevail and

overcome hardships, to be far sighted and to possess a

host of other - universally acclaimed - traits. On the other

hand, is it fair when someone who made his fortune

through corruption, inheritance, or luck - be preferred to a

poor genius?

That is a contentious issue. In the USA money talks.

Being possessed of money means being virtuous and

meritorious. To preserve a fortune inherited is as difficult

a task as to make it in the first place, the thinking goes.

Thus, the source of the money is secondary.

An oligarchy tends to have long term devastating

economic effects.

The reason is that the best and the brightest - when shut

out by the members of the ruling elites - emigrate. In a

country where one's job is determined by his family

connections or by influence peddling - those best fit to do

the job are likely to be disappointed, then disgusted and

then to leave the place altogether.

This is the phenomenon known as "Brain Drain". It is one

of the biggest migratory tidal waves in human history.

Capable, well-trained, educated, young people leave their

oligarchic, arbitrary, influence peddling societies and

migrate to less arbitrary meritocracies (mostly to be found

in what is collectively known as "The West").

This is colonialism of the worst kind. The mercantilist

definition of a colony is a territory which exports raw

materials only to re-import them in the form of finished

products. The Brain drain is exactly that: the poorer

countries are exporting raw brains and buying back the

finished products masterminded, invented and

manufactured by theses brains.

Yet, while in classical colonialism, the colony at least

received some recompense for its goods - here the poor

country is actually the poorer for its exports. The bright

young people who depart (most of them never to return)

carry with them an investment of the scarce resources of

their homeland - and award it to their new, much richer,

host countries. This is an absurd situation, a subsidy

granted reluctantly by the poor to the rich. This is also one

of the largest capital transfers (really capital flight) in

history.

Some poor countries understood these basic, unpleasant,

facts of life. They extracted an "education fee" from those

emigrating. This fee was supposed to, at least partially,

recapture the costs of educating and training the

immigrants. Romania and the USSR imposed such levies

on Jews emigrating to Israel in the 1970s. Others

despairingly regard the brain drain as a natural

catastrophe. Very few countries are trying to tackle the

fundamental, structural and philosophical flaws of the

system, the roots of the disenchantment of those who

leave.

The Brain Drain is so serious that some countries lost up

to a third of their total young and educated population to it

(Macedonia in South-eastern Europe, some less developed

countries in South East Asia and in Africa). Others were

drained of almost one half of the growth in their educated

workforce (for instance, Israel during the 1980s).

Brains are an ideal natural resource: they can be

cultivated, directed, controlled, manipulated, regulated.

They are renewable and replicable. Brains tend to grow

exponentially through interaction and they have an

unparalleled economic value added. The profit margin in

knowledge and information related industries far exceeds

anything common to more traditional, second wave,

industries (not to mention first wave agriculture and

agribusiness).

What is even more important:

Poor countries are uniquely positioned to take advantage

of this third revolution. With cheap, educated workforce -

they can monopolize basic data processing and

telecommunications functions worldwide. True, this calls

for massive initial investments in physical infrastructure.

But the important input is the wetware, the brains. To

constrain them, to disappoint them, to make them run

away, to more merit-orientated places - is to sentence

oneself to a permanent disadvantage and deprivation.

This is what the countries in the Balkans are doing.

Driving away the best part of their population by

encouraging the worst part. Abandoning their future by

dwelling on their past. Caught in a fatal spider web of

family connections and political cronyism of their own

design. Their factories and universities and offices and

government filled to the brim with third rate relatives of

third rate professors and bureaucrats. Turning themselves

into third rate countries in a self perpetuating, self feeding

process of decline. And all the while eyeing the new and

the foreign with the paranoia that is the result of true guilt.

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