The Russia You Never Met
The Russia You Never Met MATT BIVENS AND JONAS BERNSTEIN fter staggering to reelection in summer 1996, President Boris Yeltsin A announced what had long been obvious: that he had a bad heart and needed surgery. Then he disappeared from view, leaving his prime minister, Viktor Cher- nomyrdin, and his chief of staff, Anatoly Chubais, to mind the Kremlin. For the next few months, Russians would tune in the morning news to learn if the presi- dent was still alive. Evenings they would tune in Chubais and Chernomyrdin to hear about a national emergency—no one was paying their taxes. Summer turned to autumn, but as Yeltsin’s by-pass operation approached, strange things began to happen. Chubais and Chernomyrdin suddenly announced the creation of a new body, the Cheka, to help the government collect taxes. In Lenin’s day, the Cheka was the secret police force—the forerunner of the KGB— that, among other things, forcibly wrested food and money from the peasantry and drove some of them into collective farms or concentration camps. Chubais made no apologies, saying that he had chosen such a historically weighted name to communicate the seriousness of the tax emergency.1 Western governments nod- ded their collective heads in solemn agreement. The International Monetary Fund and the World Bank both confirmed that Russia was experiencing a tax collec- tion emergency and insisted that serious steps be taken.2 Never mind that the Russian government had been granting enormous tax breaks to the politically connected, including billions to Chernomyrdin’s favorite, Gazprom, the natural gas monopoly,3 and around $1 billion to Chubais’s favorite, Uneximbank,4 never mind the horrendous corruption that had been bleeding the treasury dry for years, or the nihilistic and pointless (and expensive) destruction of Chechnya.
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