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President and the general director of the United Heavy Machinery (OMZ) company Kakha Bendukidze (right) and the Advisor to the Russian President on economic issues Andrey Illarionov (left) took part in the international conference headlined "Liberal program for the new century: global view". The event was held in the "Grand-Marriott" hotel in Moscow in 2004.
Photo: Vasily Shaposhnikov
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Oct. 30, 2006
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“You can make guesses about it”
// Andrey Illarionov might become Mikhail Saakashvili’s advisor
Andrey Illarionov supported Mikhail Saakashvili
Former economic advisor to Russian president Andrey Illarionov might become the advisor of Georgian President Mikhail Saakashvili. Such rumors appeared in Tbilisi after Illarionov took part in the international conference “Freedom, trade, and the world: regional agenda” organized by the Cato Institute. The conference was actually the first event where Illarionov appeared in public as Cato’s senior fellow. Illarionov did not confirm information on his possible appointment.
State Minister of Georgia’s Economic Development Kakha Bendukidze, the ideological inspirator of the conference “Freedom, trade, and the world: regional agenda”, said the event had been scheduled a long time before the current worsening of Russia-Georgia relations. Bendukidze said the economic forum was designed after the conference held by the Cato Institute in Moscow in 2004. Back then, almost all outstanding libertarian economists of the world gathered in Russian capital. They were later received by Russian President Vladimir Putin. The reception was organized by then-economic advisor to the president Andrey Illarionov and then-Russian tycoon Kakha Bendukidze. However, liberal ideas became less popular with the Kremlin in later years. Now, 2 years later, Tbilisi harbored liberal economists.

Following Putin’s example, Georgian President Mikhail Saakashvili decided to meet with the economists as well, and invited Illarionov to dinner. Illarionov did not disclose the details of the meeting. However, the conference members began discussing the chances that former Putin’s advisor Illarionov might be appointed Saakashvili’s advisor. Up to now, former Estonian Prime Minister Mart Laar was the economic advisor of Georgian president. However, 2 weeks ago the bloc of Estonian conservative parties nominated Laar as their candidate for prime minister. So, Laar will have to focus on the pre-election campaign. Meanwhile, the chair of Saakashvili’s economic advisor remains vacant. “Well, you can make guesses about it,” was Illarionov’s response to Kommersant’s question about his possible appointment. He refused to confirm information both that Saakashvili made an offer to him, and that he intends to become Georgian president’s advisor.

Although economic sanctions imposed by Russia against Georgia were not the main subject of the conference, they were broadly discussed by the liberal economists. For instance, Andrey Illarionov said that sanctions will lead to a directly opposite result to what Moscow expects. “Such policy will make Georgia’s economy even freer, stronger, more adaptive, and faster developing than before. Estonia had a similar experience, when Russia imposed trade sanctions against it. This allowed Estonia to turn to the West. Now, Georgia will have a similar experience, which will turn it into another economic tiger. Or, a panther. Georgia can thank Russian authorities for such unusual help,” said Illarionov. It was not by accident that he mentioned Estonia. That country faced Russia’s trade sanctions during Mart Laar’s premiership. Laar later became the father of Estonian economic wonder, and now he is Saakashvili’s advisor. Laar took part in the conference as well, actively discussing its economic development prospects with Illarionov and Bendukidze.

Mikhail Zygar, Tbilisi-Moscow

All the Article in Russian as of Oct. 30, 2006

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