--------------64551A35A4E3CC61912DB82D

The post-Yeltsin era begins

(Russia-watchers should not expect blood on the streets of Moscow, but
the country's political elite is facing up to the agony of real change)

The Guardian
28 August 1998

By James Meek in Moscow

Well before the August financial crisis exploded in Russia, warning
bells should have been ringing in the White House about the advisability

of President Bill Clinton hobnobbing with Boris Yeltsin in Moscow.

Now that the Russian debt bomb has gone off, any benefits of next week's

trip - political, human or economic - are void. This is not one of those

periodic crises that Mr Yeltsin can muddle through, or hide from and
emerge unscathed. This crisis is open-ended, and Mr Clinton flies into
Russia like an ill-prepared tourist, with an out-of-date guidebook, a
map that no longer makes sense, and no bulging bumbag of dollars to
smooth his way with the locals.

The world has grown accustomed to the cynical argument underlying Mr
Clinton's warm support for Mr Yeltsin. Their presidencies have kept in
step over the years, beginning with so much hope and now faltering
together.

All Mr Yeltsin's moral failings - his illegal dissolution of parliament
in 1993, his constant lying about the bloody war in Chechenia which he
began, his plunder of state funds during the 1996 presidential election
- were written off by the West against the gain of having an ally in
charge of the world's second-largest arsenal of nuclear weapons.

Bad as Mr Yeltsin was, the argument ran - and still seems to run in
Washington - he was better than the inevitably nationalist, inevitably
anti-US alternative.

Yet even in terms of that dubious argument, Mr Yeltsin has been a
growing threat to US and European national security for years. If there
is one thing more dangerous than a nuclear-armed, neutral state, it is a

nuclear-armed, friendly state where the people operating the weapons
don't get paid for months on end.

It was Mr Yeltsin's failure to negotiate a settlement with the Chechens
and their neighbours which threatens to make the region a new centre of
Islamic fundamentalism.

Most pertinently in the present crisis, it was Mr Yeltsin who
consistently sabotaged the liberal economic reforms, backed by Western
governments, which pro-Western Russians such as Yegor Gaidar and Sergei
Kiriyenko tried to carry out.

To be fair to Mr Clinton and other Yeltsin buddies such as Helmut Kohl,
it is not easy to stop supporting the elected leader of a reasonably
friendly country. But what has always been offensive and is now proved
unwise was the superfluous warmth towards him, the effort to yield to
his desire for praise from world leaders rather than to force him into
serious discussion, the missed opportunities to politely criticise him.

The Yeltsin era is over, and with it Russian reliance on foreign
financial bail-outs. No one can predict where Russia will go from here.

Arguments in the West about who "lost" Russia - too much aid? Too little

aid? The right Western policies wrongly applied? The wrong Western
policies wrongly applied? - are patronising. Russia was never ours to
lose. Without excusing the dreadful mistakes Western advisers and
investors have made in Russia, the country cannot be saved if it cannot
save itself.

A lifebelt from the International Monetary Fund is not enough for a
country that keeps putting lead weights in its pockets. As a Russian
journalist, Pavel Fengenhauer, put it: "Russia doesn't like to learn
from other people's mistakes. It prefers to make its own."

There is a tendency in the Western debate to see Russia as the victim of

a terrible experiment - a terrible communist experiment, in the economic

liberal view, or a terrible capitalist experiment, in the
anti-Thatcherite view. In reality, Russia is a series of incomplete
experiments, one piled on top of the other, stretching back to the
brutal 17th-century reforms of Peter the Great - even, it could be
argued, to the conversion to Byzantine Christianity 1,000 years ago,
imported, like Microsoft Windows, wholesale, off the shelf.

Slowly, but with encouraging determination, Russia's tiny political
establishment moved towards the agony of real change this week. The most

likely outcome of the upheavals is not, yet, blood on the streets, or an

extreme nationalist dictatorship.

It is a surrender of most executive powers by Mr Yeltsin, who will move
into virtual retirement; the assumption of leadership by the government,

probably headed by Viktor Chernomyrdin; a far greater role for the
parliamentary majority in forming policy; and a new economic programme
embracing inflationary spending to invest in agriculture and industry,
import tariffs, tighter currency controls, and limited nationalisation.

It sounds revolutionary. It is. It sounds good. But as long as agreement

about implementing it is not reached between president, parliament and
government, the rouble will go on falling and inflation will rocket. And

it is not enough to tackle Russia's fundamental problems.

It does not address corruption. It does not address the federal
government's inability to enforce policy in the regions. It does not
deal with the mess of ethnically based fiefdoms violating civil rights
and sucking in subsidies. It does nothing to help the millions of
Russians who are stuck in Arctic communities.

There is no parliamentary majority: even the Communists themselves are
deeply divided. And if parliament decides where to channel the newly
minted flood of roubles, we can look forward to pork-barrelling on a
grand scale, with the cash being poured into military factories and
inefficient collective farms for directors to line their pockets,
workers to pilfer and little of use to be produced.

Watching Russia's crisis unfold, there is a sense of a Western audience
impatient for a dramatic upheaval, a social explosion - now, soon,
tomorrow. But this isn't Godzilla. It isn't even Jakarta. A longer sense

of time is required, a sense, perhaps, of the time-scale of Germany from

Versailles to the Reichstag fire. A weak, indecisive Russian coalition
government could limp on under hyperinflation for months or years until
some force - the neo-Gaullist Alexander Lebed, or a genuine grassroots
liberal movement, or a genuine grassroots fascist movement - put it out
of its misery.

In 1995, Professor Alexander Yanov, author of After Yeltsin: A Weimar
Russia, wrote: ''The history of the Weimar Republic was brief - just 15
years long. But it will forever remain a striking illustration of an
implacable historical law: any attempt to reduce the giant task of
democratic transformation of an imperial leviathan to the trivial
problem of money and credits ends without fail in a world disaster."



--
Gregory Schwartz
Dept. of Political Science
York University
4700 Keele St.
Toronto, Ontario
M3J 1P3
Canada

Tel: (416) 736-5265
Fax: (416) 736-5686
Web: http://www.yorku.ca/dept/polisci


--------------64551A35A4E3CC61912DB82D

<HTML>
<FONT SIZE=+2>The post-Yeltsin era begins</FONT>

<P>(Russia-watchers should not expect blood on the streets of Moscow, but
<BR>the country's political elite is facing up to the agony of real change)

<P><I>The</I> <B>Guardian</B>
<BR>28 August 1998

<P>By James Meek in Moscow

<P>Well before the August financial crisis exploded in Russia, warning
<BR>bells should have been ringing in the White House about the advisability
<BR>of President Bill Clinton hobnobbing with Boris Yeltsin in Moscow.

<P>Now that the Russian debt bomb has gone off, any benefits of next week's
<BR>trip - political, human or economic - are void. This is not one of
those
<BR>periodic crises that Mr Yeltsin can muddle through, or hide from and
<BR>emerge unscathed. This crisis is open-ended, and Mr Clinton flies into
<BR>Russia like an ill-prepared tourist, with an out-of-date guidebook,
a
<BR>map that no longer makes sense, and no bulging bumbag of dollars to
<BR>smooth his way with the locals.

<P>The world has grown accustomed to the cynical argument underlying Mr
<BR>Clinton's warm support for Mr Yeltsin. Their presidencies have kept
in
<BR>step over the years, beginning with so much hope and now faltering
<BR>together.

<P>All Mr Yeltsin's moral failings - his illegal dissolution of parliament
<BR>in 1993, his constant lying about the bloody war in Chechenia which
he
<BR>began, his plunder of state funds during the 1996 presidential election
<BR>- were written off by the West against the gain of having an ally in
<BR>charge of the world's second-largest arsenal of nuclear weapons.

<P>Bad as Mr Yeltsin was, the argument ran - and still seems to run in
<BR>Washington - he was better than the inevitably nationalist, inevitably
<BR>anti-US alternative.

<P>Yet even in terms of that dubious argument, Mr Yeltsin has been a
<BR>growing threat to US and European national security for years. If there
<BR>is one thing more dangerous than a nuclear-armed, neutral state, it
is a
<BR>nuclear-armed, friendly state where the people operating the weapons
<BR>don't get paid for months on end.

<P>It was Mr Yeltsin's failure to negotiate a settlement with the Chechens
<BR>and their neighbours which threatens to make the region a new centre
of
<BR>Islamic fundamentalism.

<P>Most pertinently in the present crisis, it was Mr Yeltsin who
<BR>consistently sabotaged the liberal economic reforms, backed by Western
<BR>governments, which pro-Western Russians such as Yegor Gaidar and Sergei
<BR>Kiriyenko tried to carry out.

<P>To be fair to Mr Clinton and other Yeltsin buddies such as Helmut Kohl,
<BR>it is not easy to stop supporting the elected leader of a reasonably
<BR>friendly country. But what has always been offensive and is now proved
<BR>unwise was the superfluous warmth towards him, the effort to yield
to
<BR>his desire for praise from world leaders rather than to force him into
<BR>serious discussion, the missed opportunities to politely criticise
him.

<P>The Yeltsin era is over, and with it Russian reliance on foreign
<BR>financial bail-outs. No one can predict where Russia will go from here.

<P>Arguments in the West about who "lost" Russia - too much aid? Too little
<BR>aid? The right Western policies wrongly applied? The wrong Western
<BR>policies wrongly applied? - are patronising. Russia was never ours
to
<BR>lose. Without excusing the dreadful mistakes Western advisers and
<BR>investors have made in Russia, the country cannot be saved if it cannot
<BR>save itself.

<P>A lifebelt from the International Monetary Fund is not enough for a
<BR>country that keeps putting lead weights in its pockets. As a Russian
<BR>journalist, Pavel Fengenhauer, put it: "Russia doesn't like to learn
<BR>from other people's mistakes. It prefers to make its own."

<P>There is a tendency in the Western debate to see Russia as the victim
of
<BR>a terrible experiment - a terrible communist experiment, in the economic
<BR>liberal view, or a terrible capitalist experiment, in the
<BR>anti-Thatcherite view. In reality, Russia is a series of incomplete
<BR>experiments, one piled on top of the other, stretching back to the
<BR>brutal 17th-century reforms of Peter the Great - even, it could be
<BR>argued, to the conversion to Byzantine Christianity 1,000 years ago,
<BR>imported, like Microsoft Windows, wholesale, off the shelf.

<P>Slowly, but with encouraging determination, Russia's tiny political
<BR>establishment moved towards the agony of real change this week. The
most
<BR>likely outcome of the upheavals is not, yet, blood on the streets,
or an
<BR>extreme nationalist dictatorship.

<P>It is a surrender of most executive powers by Mr Yeltsin, who will move
<BR>into virtual retirement; the assumption of leadership by the government,
<BR>probably headed by Viktor Chernomyrdin; a far greater role for the
<BR>parliamentary majority in forming policy; and a new economic programme
<BR>embracing inflationary spending to invest in agriculture and industry,
<BR>import tariffs, tighter currency controls, and limited nationalisation.

<P>It sounds revolutionary. It is. It sounds good. But as long as agreement
<BR>about implementing it is not reached between president, parliament
and
<BR>government, the rouble will go on falling and inflation will rocket.
And
<BR>it is not enough to tackle Russia's fundamental problems.

<P>It does not address corruption. It does not address the federal
<BR>government's inability to enforce policy in the regions. It does not
<BR>deal with the mess of ethnically based fiefdoms violating civil rights
<BR>and sucking in subsidies. It does nothing to help the millions of
<BR>Russians who are stuck in Arctic communities.

<P>There is no parliamentary majority: even the Communists themselves are
<BR>deeply divided. And if parliament decides where to channel the newly
<BR>minted flood of roubles, we can look forward to pork-barrelling on
a
<BR>grand scale, with the cash being poured into military factories and
<BR>inefficient collective farms for directors to line their pockets,
<BR>workers to pilfer and little of use to be produced.

<P>Watching Russia's crisis unfold, there is a sense of a Western audience
<BR>impatient for a dramatic upheaval, a social explosion - now, soon,
<BR>tomorrow. But this isn't Godzilla. It isn't even Jakarta. A longer
sense
<BR>of time is required, a sense, perhaps, of the time-scale of Germany
from
<BR>Versailles to the Reichstag fire. A weak, indecisive Russian coalition
<BR>government could limp on under hyperinflation for months or years until
<BR>some force - the neo-Gaullist Alexander Lebed, or a genuine grassroots
<BR>liberal movement, or a genuine grassroots fascist movement - put it
out
<BR>of its misery.

<P>In 1995, Professor Alexander Yanov, author of After Yeltsin: A Weimar
<BR>Russia, wrote: ''The history of the Weimar Republic was brief - just
15
<BR>years long. But it will forever remain a striking illustration of an
<BR>implacable historical law: any attempt to reduce the giant task of
<BR>democratic transformation of an imperial leviathan to the trivial
<BR>problem of money and credits ends without fail in a world disaster."
<BR>&nbsp;
<BR>&nbsp;

<P>--
<BR>Gregory Schwartz
<BR>Dept. of Political Science
<BR>York University
<BR>4700 Keele St.
<BR>Toronto, Ontario
<BR>M3J 1P3
<BR>Canada

<P>Tel: (416) 736-5265
<BR>Fax: (416) 736-5686
<BR>Web: <A 
HREF="http://www.yorku.ca/dept/polisci">http://www.yorku.ca/dept/polisci</A>
<BR>&nbsp;</HTML>

--------------64551A35A4E3CC61912DB82D--



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