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Our hearing today is also intended to look at the current United States-Russia relationship. However, the hearing is also designed to review the current political environmental in Russia and to assess the status of Russia's transition to democracy.

In a July 2001 Brookings Institution Policy Brief, Tom Bjorkman wrote that,

''President Putin has spoken repeatedly about his commitment to democracy as the only way forward for Russia.''

But Bjorkman went on to observe that,

''There is also a serious threat of a more resolute authoritarianism in the course that Putin has set.''

In a Los Angeles Times editorial just last week, Dr. McFaul, one of our witnesses, suggested that, ''there were clear signs that Russia is backing away from democracy.'' The article pointed out that Putin's government has seized control of Russia's last independent national television networks, silenced or changed editorial teams at several newspapers, continued to harass human rights activists, has created state-sponsored civil society organizations and has launched criminal investigations against corporation executives who have opposed him or who have contributed to opposition political parties.

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Who is Vladimir Putin?

Since the rise to power in Russia of this obscure bureaucrat and former KGB agent in the fall of 1999, two groups in the West have answered this question very differently.

For some bankers, investors and diplomats, Russian President Vladimir Putin was a godsend. On his watch, Russia's 1998 devaluation and rising oil prices began to fuel economic growth for the first time since the collapse of the Soviet Union. If not personally responsible for the turnaround, Mr. Putin did initiate reforms designed to sustain it over the long haul. He replaced the personal income tax with a 13% flat tax, cut corporate taxes, balanced the budget, paid foreign debts, legalized land ownership, supported the restructuring of the big monopolies, and even began to tackle sensitive social services reforms. Compared with the last years of Boris Yeltsin, Mr. Putin looked like a dedicated proponent of capitalism.

In parallel to this storyline of Vladimir Putin as hero, a more sinister subplot emerged. As liberal tax reforms sailed through the Russian parliament, Mr. Putin's team was implementing illiberal political changes. During the Putin era, all national television networks effectively came back under the state control. The closing of TVS last month was the final blow. Russian soldiers have continued to abuse the human rights of Russian citizens living in Chechnya. (To be sure, Chechen fighters have practiced similar inhumane tactics, but two wrongs don't make a right.) Human rights organizations have been harassed, journalists imprisoned, and Western aid workers thrown out of the country. Of course, Mr. Putin personally rarely intervened in these rollbacks of democracy. But that's the point: he did nothing to stop these obvious steps toward authoritarian rule.

These two Vladimir Putins -- economic reformer and democratic backslider -- have lived side-by-side without meeting. Business people brushed aside the crackdown on the media as a necessary response to the anarchy unleashed during the Yeltsin era. The apologists claim Vladimir Gusinsky and Boris Berezovsky, the two media magnates who were forced to flee the country to avoid jail, got what they deserved: Mr. Putin wasn't suppressing freedom of the press, only limiting the power of corrupt oligarchs. Some bold voices in the business community even championed interim dictatorship in Russia as the only way to provide the stability for investment and economic growth.

For their part, critics of Mr. Putin's anti-democratic policies undermined the punch of their analysis by exaggerating the Russian president's ruthlessness and failing to recognize his accomplishments in other sphere. They cast Mr. Putin as a new dictator who has more in common with Stalin than Boris Yeltsin or Mikhail Gorbachev.

Last week, the arrest of billionaire Platon Lebedev brought the two Vladimir Putins together. Mr. Lebedev runs Menatep, the bank for the Yukos financial-industrial group headed by Mikhail Khodorkovsky, Russia's richest man. Like Mr. Lebedev and others in the Yukos-Menatep organization, he made his fortune by using personal relationships with government bureaucrats to acquire state assets -- in this case, oil and mineral companies -- for a song.

When Mr. Putin first came to power, many billionaires worried the new Russian president would redistribute property rights once again, this time to a new set of cronies. Instead, Mr. Putin implicitly offered the oligarchs a deal: you keep what you had before as long you run your companies without looking for government handouts and get out of politics.

Unlike Vladimir Gusinsky or Boris Berezovsky, Mr. Khodorkovsky eagerly accepted this bargain. He and his team kept out of jail and built Yukos into one of Russia's most profitable, most transparent, and most Westernized companies. He grew to be first among equals among Russia's other oligarchs. He also began to operate differently than the rest, establishing his own foundations, charitable causes, and think tanks. In this election year, he also openly donated money to two of Russia's largest political parties, Yabloko and the Communists. Mr. Khodorkovsky calculated that all this fell within the bounds of the implicit pact between the Putin administration and the oligarchs.

Last week's arrest, and the police questioning of Mr. Khodorkovsky, suggest that the Russian president interprets the pact differently. Mr. Khodorkovsky's economic power and political ambitions threatened Mr. Putin. So the president changed the rules of the game. Economic deals of the past once thought to be beyond scrutiny are now suddenly in question. If there are now new rules, then the alleged claim against Mr. Lebedev -- that he illegally acquired assets in the 1994 privatization of the Apatit fertilizer company -- or similar ones, could be leveled against nearly every businessman who operated in Russia since the early 1990s.

If these new informal rules are being remade to scare Mr. Khodorkovsky away from politics, then the arrest of Platon Lebedev is even more sobering. It means that Russians are not allowed to try to influence electoral outcomes -- an essential feature of even the most minimal democracy. Of course, oil tycoons should not be allowed to deploy their financial resources to skew the electoral playing field. But the enforcement of campaign finance laws is the tool that most democracies use to address this problem, not random arrest.

Arbitrary rule by the state is not only undemocratic. It's bad for business. A state that isn't constrained by checks and balances, the rule of law, the scrutiny of an independent media, or the will of the voters is unpredictable at best, predatory at worst. Two weeks ago, Mr. Lebedev probably would have argued that President Putin's economic accomplishments outweighed its democratic failures. Today, he probably has a different view. So should the rest of us.

STANFORD -- In May 1988, President Reagan traveled to Moscow for a summit with Soviet leader Mikhail S. Gorbachev. When he became president, Reagan had called the Soviet Union the "evil empire," but at the time of his historic trip its leader was a personal friend. Reagan didn't allow his friendship with Gorbachev to overshadow his human rights agenda. Speaking in Helsinki two days before entering the Soviet Union, Reagan proclaimed: "There is no true international security without respect for human rights.... The greatest creative and moral force in this new world, the greatest hope for survival and success, for peace and happiness, is human freedom."

In Moscow, Reagan echoed this theme at a luncheon at the American ambassador's residence with nearly 100 Soviet human rights activists. Reagan ordered that the ambassador's finest silverware and linens be used to symbolically underscore his respect for the activists, the same as he would accord to Gorbachev.

Reagan's dual-track diplomacy produced results. A few years later, many of his lunch guests occupied positions of authority in a democratizing Russia, a change that had national security implications. Although Russia still possessed thousands of nuclear weapons, its intention to use them against the United States greatly diminished as democratic and market institutions took hold there.

Like Gorbachev and Reagan in 1988, presidents Vladimir V. Putin and Bush have a budding friendship, one that has fostered U.S.-Russian cooperation on important strategic matters like anti-terrorism. Yet, there's a disturbing difference. Some of the same people who attended Reagan's luncheon are again fighting for basic human rights and democratic practices in Russia -- and Bush seems indifferent to their fate.

Putin's backsliding on democracy can no longer be ignored. The Russian leader has overseen a war in Chechnya marked by summary executions, rape, indiscriminate bombing of villages and the inhumane treatment of prisoners of war.

The two largest national television networks do Putin's bidding, and his government and its surrogates have now wrested control of NTV, Russia's third-largest TV network and the only station truly critical of Putin. Print journalists reporting the "wrong" news about Chechnya have been either intimidated, arrested or pushed into exile. Oleg Panfilov, head of the Center for Journalism in Extreme Situations, says, "The number of criminal cases opened against journalists in three years of Vladimir Putin's rule is more than the number during the entire 10 years of Boris Yeltsin's regime."

There is more unnerving evidence of Putin's slide toward authoritarianism. The State Security Service, whose budget is dramatically rising, increasingly harasses human rights activists, environmental leaders and religious groups. Recently, the Russian government expelled the Organization for Security and Cooperation in Europe from Chechnya, terminated its agreement with the U.S. Peace Corps and refused reentry into Russia to American Irene Stevenson, director of the AFL-CIO's Solidarity Center in Moscow. The government has even interfered in electoral politics, removing opposition candidates from the ballot and preventing incumbents from seeking reelection in various regions of the country.

Putin didn't personally orchestrate all these democratic rollbacks, but he also has done nothing to reverse them. The battle over democracy within Russia will largely be won or lost internally. Fortunately, in poll after poll, Russians continue to value democratic ideals and practices. But the Bush administration cannot continue to sit on the sidelines.

Amazingly, it has proposed drastic cuts in the amount of democratic assistance earmarked for Russia next year on the ground -- ironic in light of recent evidence -- that Russian democracy is firmly enough established.

Bush's stance is perplexing. His new national security doctrine declares the promotion of liberty abroad a U.S. priority. Tell that to Russian human rights activists, who feel alienated by the lack of U.S. encouragement.

But democratic activists in Russia need more than words of support. They also need continued U.S. financial and technical help. At a minimum, budgets for democracy assistance, already minuscule, cannot be reduced further. Cutting assistance now, moreover, would send a terrible message about U.S. staying power, not only to democrats in Russia but to those in Afghanistan, Iraq and Uzbekistan.

Congress also has a role to play. Last year, the House and Senate overwhelmingly approved, and Bush signed into law, the Russian Democracy Act, which establishes a minimum for democratic assistance to Russia. Budget cutters in the administration have found creative ways to meet these minimal thresholds by calling programs like high school exchanges "democracy assistance." This sleight of hand must not become law.

Furthermore, in a major report on U.S.-Russian relations a few years ago, Rep. Christopher Cox (R-Newport Beach) called for increased engagement "of the Russian people, not just the Russian government." Now more than ever, Cox and the other authors of this congressional study need to reaffirm their recommendations.

Bush and his foreign team certainly have their hands full. Yet, they cannot allow past victories to slip away while pursuing new ones. A return of dictatorship in Russia, a country armed with thousands of nuclear weapons, would present a much greater threat than the current set of tyrants now threatening U.S. security. To maintain U.S. credibility on issues of democracy and to encourage those within Russia dedicated to the cause of democracy, the Bush administration has to find a way to work constructively with Putin without ignoring Russian society. A good way to start might be a luncheon at the American ambassador's residence in Moscow.

There is a metaphysical crisis in human rights. And just as this crisis is troubling those who write about legal institutions, it is posing a conundrum for those who write in pure philosophy, in comparative political and international studies, and in all the academic areas that deal with identity, values and human belief. Across these disciplinary fields, scholars are asking the same question: as between radically different forms of human existence, how are 'we' to decide whose values ought to trumps others values? Can human rights only be defended from within a set of foundational beliefs that are particular to Western ideological and cultural commitments? This question about the universality of human rights has given rise to a vigorous debate about cultural relativism. Law, as an institution that enforces core political and social values, cannot sidestep this debate. What are global institutions to do, and how is law to aid those institutions, when there is no global consensus about the values that ought shape political and social relations? Put differently, how can decisions about the content of human rights be made without committing cultural imperialism in the same (though possibly subtler) ways that 19th century colonists committed cultural imperialism?

President George W. Bush has demonstrated impressive flexibility in reshaping his approach to foreign policy to deal with the new international challenges brought to the fore by the terrorist attacks.

Before Sept. 11, President Bush embraced a humble mission for the United States in the world. This country, he believed, had to "preserve the peace" by seeking to maintain the basic balance of power between nations. Now, Bush has abandoned the preservation of the old system. Instead, he seeks to change it by promoting liberty, freedom and eventual democracy in countries ruled by autocrats.

In doing so, Bush lines up next to "idealists" or "liberals" such as Ronald Reagan, Woodrow Wilson and Immanuel Kant, and implicitly distances himself from realists focused solely on the balance of power such as Richard Nixon, Thucydides and his own father, the 41st president.

In a second remarkable change, Bush has become a supporter, at least rhetorically, of nation building. Before Sept. 11, the Bush administration derided nation building as a Clinton-era distraction from the more important issues in international politics. Now, Bush has clearly identified the connection between rebuilding the failed state of Afghanistan and American national security interests. If Congress approves his proposals, Bush will be the author of the greatest increase in the American foreign aid budget since John F. Kennedy's presidency.

Third, the Bush administration before Sept. 11 expressed disdain for multilateral institutions. But in his speech this month before the United Nations, Bush outlined an ambitious proposal for revitalizing the United Nations and American cooperation with this most important multilateral institution.

To be credible, President Bush needs to do more to demonstrate his commitment to the promotion of democracy, nation building and multilateralism. Bush must show that he wants to see political reform in Saudi Arabia as well as in Iraq. Words about promoting liberty ring hollow if they apply only to some people.

To show seriousness on nation building, Bush should press for increases in the peacekeeping forces in Afghanistan. Those working to rebuild Afghanistan unanimously complain that the lack of security throughout the country is the No. 1 impediment to their work.

To make credible his pledge to reinvigorate the United Nations and other multilateral institutions, the president should complement his pledge to enforce U.N. resolutions on Iraq with a rededication of American participation in other international regimes. Bush could start with the ratification of the United Nations Convention on the Elimination of All Forms of Discrimination Against Women, an agreement that American officials helped craft.

Because many are suspicious of the president's recent embrace of democracy promotion, nation building and multilateralism, he must demonstrate a sustained commitment to his new foreign policy strategy.

If Bush has shown a willingness to consider new ideas about foreign policy, his critics -- both at home and abroad -- have demonstrated amazing conservatism. In a reversal of positions, those most opposed to Bush's new approach to foreign policy now seek to "preserve the peace" by defending the status quo. The core flaw in this is the assumption that the old international system was working. It was not.

Before Sept. 11, the United Nations had failed to enforce its own resolutions on Iraq. If the "international community" cannot act to execute its will when dealing with such grave issues as the proliferation of weapons of mass destruction, then it has no credibility on anything.

The international community is ineffective in dealing with despotism, poverty and human rights violations because it seeks to preserve state sovereignty above all else. Fifty years ago, this was a progressive idea, which brought about the end of colonialism. Today, it is a regressive idea, which preserves the sovereignty of dictators who defy international law, denying the sovereignty of their people.

It is odd to hear the international community invoked so often as the defender of high ideals and then see representatives from Iraq in the U.N. General Assembly. Should the United States really be a member of the same organization that includes Saddam Hussein? Eventually, autocracy should go the way of slavery and colonialism as simply unacceptable.

To be effective, the international community and the United States need each other. U.N. Security Council resolutions can only be enforced if the United States helps to enforce them. The United Nations can only assist in the building of new states or prevent the destruction of vulnerable regimes if the United States participates, and vice-versa. The international community has no army and no economy, but even the mighty and rich United States can't afford to remake the world alone. For an effective partnership, change has to come from both sides.

Michael McFaul is an associate professor of political science and Hoover Fellow at Stanford University and a senior associate at the Carnegie Endowment for International Peace.

To make his case, [Bush] has a powerful historical experience to draw upon: the end of the Cold War. Regime change in Eastern Europe and the Soviet Union fundamentally enhanced American national security. If Iraq possessed Russia's nuclear arsenal today, the United States would be in grave danger. Two decades ago we feared this same arsenal in the hands of the Kremlin. Today we do not. The reason we do not is that the regime in Russia has become more democratic and market-oriented and therefore also more Western- oriented.

Second, democratization on the periphery of Europe has stalled. A dictator who praises Stalin and Hitler runs Belarus. President Vladimir Putin has weakened democratic institutions and grossly violated the human rights of his own citizens in Chechnya in his attempt to build "managed democracy" in Russia. In Ukraine, President Leonid Kuchma aspires to create the same level of state control over the democratic process as Putin has achieved in Russia to ensure a smooth -- that is, Kuchma-friendly -- transition of power when his term ends in 2004. In contrast to Russia, Ukraine has a vibrant democratic opposition, whose leader, Viktor Yushchenko, is likely to win a free and fair presidential election. This vote in 2004 will be free and fair, however, only if the West is watching. Only in Moldova has authoritarian creep been avoided, but that's because of the weakness of the state, hardly a condition conducive to long-term democratic consolidation.

Drawn from outstanding articles published in the Journal of Democracy, The Global Divergence of Democracies follows the enthusiastically received earlier volume, The Global Resurgence of Democracy.

The tremendous momentum of democratic expansion that characterized the 1980s and the first half of the 1990s has drawn to a halt. Significantly, this halt has not yet been followed by a "reverse wave"of democratic breakdowns, and democracy remains unchallenged as a global model and ideal of governance. The values of freedom, human rights, and popular sovereignty have continued to gain strength in the world. The first section of The Global Divergence of Democracies presents a few outstanding examples of the accumulating body of argument and evidence in favor of the universality of democratic principles and their basic compatibility with diverse religious and cultural traditions.

Nonetheless, in practice, the performance of the world's newer democracies has become increasingly varied, a trend reflected in the title of this volume: The Global Divergence of Democracies. The divergence in the quality or depth of democracy is matched by a parallel divergence in progress toward the consolidation of democracy. The second section of this volume is devoted to the hotly contested debate among leading scholars of comparative democracy of the utility and meaning of the concept of consolidation.

A third section examines some of the key building blocks of successful democracy, including political party systems, elections, federalism, the rule of law, a market economy, an independent judiciary, and civilian control of the military. The volume concludes with a series of appraisals of the divergent paths that democracy is taking both among and within various regions of the world, as well as in such key countries as Russia and China. With contributions by more than thirty of the world's leading scholars of democracy, this volume presents the most comprehensive assessment available of the state of democracy in the world at the beginning of the new millennium.

This paper introduces a new methodology to examine the empirical relationship

between democracy and economic growth. Democratic institutions are assumed to affect growth through a series of channels. We specify and estimate a full system of equations determining growth and the channel variables. Results suggest that democracy fosters growth by improving the accumulation of human capital and, less robustly, by lowering income inequality. On the other hand, democracy hinders growth by reducing the rate of physical capital accumulation and, less robustly, by raising the ratio of government consumption to GDP. Once all of these indirect effects are accounted for, the overall effect of democracy on economic growth is moderately negative. Our results indicate that democratic institutions are responsive to the demands of the poor by expanding access to education and lowering income inequality, but do so at the expense of physical capital accumulation.