War Economy 'Czars' Move up the Soviet Ladder

Total Page:16

File Type:pdf, Size:1020Kb

War Economy 'Czars' Move up the Soviet Ladder Click here for Full Issue of EIR Volume 15, Number 10, March 4, 1988 War economy 'czars' move up the Soviet ladder by Konstantin George and Rachel Douglas On Feb. 17-18, the Soviet CentralCommittee held a two-day sin as Moscow City party boss. The plenum confirmed him plenum, called to draft and adopt measures to upgrade the in both the Moscow party funotion and his continuing func­ Soviet education system. The plenum was dominated by tion as Central Committee Secretary in charge of the Soviet Yegor Ligachov, the Politburo member who runs the party defense industry. This combination of functions is unprece­ through his direction of the all-powerful Central Committee dented in Soviet history. Secretariat. Ligachov delivered the keynote address. Without losing Zaikov, the CC Secretariat gained yet The plenum's results, most striking in the personnel de­ another representative from the defense sector, as Oleg D. cisions that it ratified, demonstrate that the subject of "edu­ Baldanov became a CC secretary.Since April 1983, Baldan­ cation" was treated strictly as a means to further the devel­ ov has been Minister of General Machine Building, in charge opment of the Soviet war economy. The results also certified of missile and spaceship production. the consolidation of power by an institutional "troika"of the Early Februaryalso saw an infusion of military-industrial party Secretariat through Ligachov, the military through managers into the Soviet government. Yuri Maslyukov, for­ Marshal Nikolai Ogarkov, and the KGB led by Politburo mer head of the State Military-Industrial Commission, be­ member Viktor Chebrikov. came chief of the State Planning Commission (Gosplan), first The two new candidate Politburo members named illus­ deputy prime minister, and candidate member of the Polit­ trated the power of the war economy "czars" and of Liga­ buro, while Minister of ShipQuilding Igor S. Belousov be­ chov's Secretariat. They are: 1) Yuri Maslyukov, who short­ came a deputy prime minister. ly before the plenum was named head of the State Planning The emphasis on the military's line, and on launching a Committee (Gosplan), and thus put in charge of running the "cultural" revival of Great Russian chauvinistic traditions, Soviet economy. Since April 1983, Maslyukov has directed formed the most crucial portions of the plenum's concluding the government's defense industry commission; 2) Georgii speech by General Secretary Gorbachov. Razumovsky, Central Committee Secretary in charge of the party's Organizational Work Department. He has been the 'Education' and war buildup purge "hatchet man"for the Secretariat, dispatched to super­ The emphasis, both in Ligachov's speech and throughout vise personnel changes at republic, regional, and local levels. the plenum, was on bringing Soviet education up to the levels Much attention has been focused in the Western media required by perestroika, the modernizationof the U.S.S.R.'s on establishing a "geographic proof' that Razumovsky, first military-industrial base. As Ligachov and other speakers Secretary of the Krasnodar Krai (region), Gorbachov'shome stressed, Soviet youth must receive the kind of scientific, turf, from1983-85, is therefore a "Gorbachov protege."What technical, and vocational education and training necessary is ignored in this "Kremlinology"is that Razumovsky, during for them to perform industrial labor in plants that are to be that time, carried out a major "anti-corruption"purge, and in modernized. that capacity cooperated closely with Yegor Ligachov. There was a heavy concentration of plenum speakers Serving to underline the point, is the case of Lev Zaikov, from the Soviet Academy of Sciences, including its chair­ the Politburo member who in November replaced Boris Yelt- man, Yuri Marchuk; V.A. Koptiug, its vice president and 46 International EIR March 4, 1988 © 1988 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. chairman of the Siberian branch in Novosibirsk; A.A. Lo­ have been noticeably increased. They are in a hurry to 'com­ gunov, also vice president and rector of Moscow's Lomo­ pensate'for the missiles to be removed! under the treaty. They nosov University; as well as party first secretariesof regions are planning a modernization and a buUd-up of other types of in the Urals, where military industry predominates. nuclear weapons, especially at sea and in the air, cynically The plenum also devoted attention to the military's de­ claiming that the latter are not covered by the treaty." He mand for increased teaching of Russian to youth in the non­ attacked Britain and France for planning to increase their Russian republics, above all in the non-Slavic Turkic repub­ nuclear forces, and their bilateral military cooperation,"It is lics of Azerbaijan and Central Asia. An increasing number precisely after the signing of the treaty that the NATO states of draft-age youth, about one-third of the total pool, come demonstrate enhanced activity in the field of bilateral and from these republics. Their low level of proficiency in Rus­ multilateral integration." sian has been repeatedly identified by the military as an ob­ Special anger was revealed over anti-INF forces' suc­ stacle to Soviet war preparations. cesses in puncturing the myths of Gorbachov the "reformer" A total of 27 speakers addressed the two-day plenum, 19 and "liberal,"so widely propagated in the Western media. on the first day. 8 on the second. All 8 speakerson the second Gorbachov complained that not everyone in the West is fall­ day spoke at length. One of them was General of the Army ing for his "charm."He mentioned �t to some, Moscow's A.D. Lizichev, the chief of the military's Main Political "diplomacy of smiles" arouses suspicion. "Western radio Directorate. It can be assumed that his theme was measures stations," he said, are spreading "ptovocative inventions" to properly "educate" Soviet youth to upgrade the quality about a leadership struggle in Moscow. "They wish to sow recruits in general and entrants into the officers' academies. uncertainty, disbelief in the possibility of achieving the aims of the party." Gorbachov echoes the military Gorbachov the "liberal" utterly vanished in the Great As concerns Gorbachov's plenum speech, the foreign Russian chauvinism of the "cultural"section of his speech. policysection could have been delivered by Defense Minister "Bolshevism based itself on the leading humanistic traditions Dimitri Yazov, and the "cultural" section could have been of the great culture of Russia. We know how Lenin valued stated by super-Russian chauvinist Pobedonovtsev, the Rus­ the richness and humanism of so-called old culture, which sian Orthodox Church Procurator of the Holy Synod in the played an important role in world civilization. And now we late 19th century, who embodied the person of the Grand should, without any hesitation, energetically expand the cul­ Inquisitor. tural realm of perestroika, using and developing all the spir­ The tough foreign policy line was linked to the Feb. 21 itual richness given us by our forefathers. " arrival in Moscow of Secretary of State George Shultz. After Any illusions concerning better living standards were the INF treaty's signing, Moscow has only escalated its de­ shattered. His message was austerity, "One can't live by mands on the Reagan administration. How many more sel­ bread alone."In his conclusions on the subject of perestroika: louts can be procured from Washington, on arms control, on ''There are no such things as miracles.· perestroika is hard and regional issues such as Mghanistan, the Near East, and the complicated. Perestroika is work, wotk, and more work." Gulf? And, last but not least, as the Gorbachov speech made One other important item to be noted in the speech was clear,the Reagan administrationis being told by the Kremlin the announcement that the next Central Committee plenum to "liquidate"the opponents of the "Munich II"treaty and the would deal with the nationalities question, which Gorbachov "New Yalta"agreement it embodies. identified as "the most vital question�' facing Soviet society In this spirit, Gorbachov focused his rage on the "consol­ today. The next plenum will be held in the spring, certainly idation of reactionary, extreme anti-Soviet forces. All kinds before theJune 28 extraordinary 19th Party Conference. Li­ of so-called analysts, and Kremlinologists, are presenting gachov, in his keynote speech, had strongly denounced "ex­ recommendations to their governments that there will be tremist"and "chauvinist manifestations,"that is, anti-Soviet catastrophic consequences for the West if the process of riots and demonstrations in Kazakhstan, the Baltic republics, disarmament continues." and Yakutia in the far northeast of Siberia. Since the Reykjavik summit, a repeated Soviet demand Nationalist unrest was surging on the eve of the plenum, has been that Western establishment forces eliminate those withmass demonstrations and church vigils in Catholic Lith­ political forces, beginning with Democraticpresidential can­ uania on Feb. 14 and Feb. 16, the 7001 anniversary of Lith­ didate Lyndon LaRouche, who are opposed to a "New Yalta" uania's short-livedindependence. Since the plenum, Armen­ and to reversing the economic, military, and moral collapse ia was rocked Feb. 19-22 by mass demonstrations involving of the West. Or, as Gorbachov put it, ''the importance of tens of thousands, (article, page 48) Nor has the unrest in the liquidating the militarists. " Balticdied down. There were large demonstrations and clashes Gorbachov's venom was also directed at European op­ with the police Feb. 2 in the Estonian university town of positionto the INF treaty,in particular, in Britain and France: Tartu, and more actions on Feb. 24, the 70th anniversary of ''The militaristic activities in the European part of NATO Estonian independence. EIR March 4, 1988 International 47 .
Recommended publications
  • The Russians Are Coming
    CCC-LeBaron 1 (1-64) 8/16/02 9:36 AM Page 5 CHAPTER ONE The Russians Are Coming MIGHT NEVER HAVE GONE to Russia had it not been for two phone calls, one Ifax, and a submarine. The first call, in the summer of 1990, was from a friend who led a Boston-based research group called Defense and Disarmament. Together with the Soviet Academy of Sciences, his organization was sponsoring “Swords into Plowshares,” a conference at Harvard University focused on production conversion, military to civilian, in both the United States and the Soviet Union. Would I be interested in addressing that unusual as- sembly? I would indeed. Harvard’s venerable red brick buildings and the placid Charles River seemed an appropriate setting for the subject. But I noticed an important disparity. The Soviets sent high-ranking government officials and senior managers of the factories that produced military hardware. The United States was represented by a sprinkling of middle-level managers from military-industrial companies like General Electric and Raytheon. That the American companies attached little importance or urgency to con- verting from military to civilian production was evidenced by the ranks of their representatives. In their choice of delegation leader, the Soviets sent a very different sig- nal. Vladimir Koblov was first deputy chairman, and soon to be chairman, of 5 CCC-LeBaron 1 (1-64) 8/16/02 9:36 AM Page 6 6 RUSSIA the State Commission on Military Industrial Production of the Council of Ministers of the Union of Soviet Socialist Republics (U.S.S.R.) (the “State Commission”).
    [Show full text]
  • The Russian Transition Challenges for German and American Foreign Policy
    THE RUSSIAN TRANSITION CHALLENGES FOR GERMAN AND AMERICAN FOREIGN POLICY Washington, DC Conference Report Conference Report 9-10 June 1999 American Institute for Contemporary German Studies The Johns Hopkins University Conference Report THE RUSSIAN TRANSITION CHALLENGES FOR GERMAN AND AMERICAN FOREIGN POLICY Washington, D.C. 9-10 June 1999 American Institute for Contemporary German Studies The Johns Hopkins University The American Institute for Contemporary German Studies (AICGS) is a center for advanced research, study, and discussion on the politics, culture, and society of the Federal Republic of Germany. Established in 1983 and affiliated with The Johns Hopkins University but governed by its own Board of Trustees, AICGS is a privately incorporated institute dedicated to independent, critical, and comprehensive analysis and assessment of current German issues. Its goals are to help develop a new generation of American scholars with a thorough understanding of contemporary Germany, deepen American knowledge and understanding of current German developments, contribute to American policy analysis of problems relating to Germany, and promote interdisciplinary and comparative research on Germany. Executive Director: Jackson Janes Research Director: Carl Lankowski Development Director: Laura Rheintgen Board of Trustees, Cochair: Steven Muller Board of Trustees, Cochair: Harry J. Gray The views expressed in this publication are those of the author(s) alone. They do not necessarily reflect the views of the American Institute for Contemporary German Studies. ©1999 by the American Institute for Contemporary German Studies ISBN 0-941441-45-8 This AICGS Conference Report paper is made possible through grants from the German Program for Transatlantic Relations. Additional copies are available at $5.00 each to cover postage and processing from the American Institute for Contemporary German Studies, Suite 420, 1400 16th Street, NW, Washington, D.C.
    [Show full text]
  • Moscow Puts Moderate in Charge of Finances: Ruble Off Sharply As Banks Cut Losses by Mark Whitehouse
    The Wall Street Journal September 16, 1998 Moscow Puts Moderate in Charge of Finances: Ruble Off Sharply as Banks Cut Losses by Mark Whitehouse MOSCOW -- Russia appeared to be seeking a that we used earlier [and] that we now need to middle road between command and free-market consider again," he said. models yesterday as Alexander Shokhin, a leading lawmaker and moderate economist, said he would The new Central Bank chairman, Viktor accept a job as deputy prime minister in charge of Gerashchenko, said yesterday that Russia would the country's finances . discuss revising its monetary targets with the International Monetary Fund. The IMF's senior The ruble, meanwhile, weakened sharply after a official for Russia, John Odling-Smee, arrived in rally analysts said was engineered by banks to cut Moscow yesterday for talks. Mr. Primakov is to their losses on forward contracts due yesterday. meet Mr. Odling-Smee today. Mr. Shokhin, who heads the centrist Our Home Groping for an alternative to the austerity Is Russia party in the parliament, will join the advocated by the IMF, the government has turned to Communist Yuri Maslyukov, former head of the a group of veteran economists, including Leonid Soviet-era planning agency Gosplan and now first Abalkin, Oleg Bogomolov and Nikolai Petrakov. Mr. deputy prime minister, in reshaping economic Bogomolov told the Interfax news agency yesterday policy. Boris Fyodorov, the last liberal reformer in that the group would present a detailed plan within the government, lost his post as head of the State two weeks. A preliminary version published in the Tax Service to Georgy Boos, another Our Home Russian daily Kommersant featured greater member, according to the Interfax news agency.
    [Show full text]
  • Gabinete Adjunto De Crisis KGB Guerra Fría
    Gabinete Adjunto de Crisis KGB Guerra Fría 12 DE MARZO DE 1947 [email protected] Manual de Procedimientos COSMUN 2020 Manual de Procedimientos GAC Presidente: Gregorio Noreña Vice-Presidente: Ilana Garza 1. Página de portada 2. Cartas de la mesa 2.1. Carta del presidente 2.2. Carta del vice presidente 3. ¿Qué es un GAC? (Composición) 3.1. Gabinetes 3.2. Sala de crisis 3.3. Funcionamiento 4. Historia 4.1. Creación de la KGB 4.2. La KGB en el bloque socialista 4.3. Esctructura 5. La Guerra Fría 5.1. Introducción 5.2. Antecedentes históricos 5.3. Información general 5.4. Guerras subsidiarias 5.5. Final de la guerra 6. Situación Actual 6.1. (1947) 7. Cargos 7.1. Presidente del consejo de ministros de la Unión Soviética 2 7.2. Presidente del presidium del Soviet Supremo 7.3. Primer viceprimer ministro de la Unión Soviética (3) 7.4. Secretario general del partido comunista de la Unión Soviética 7.5. Director de la KGB 7.6. Ministro de relaciones exteriores de la Unión Soviética 7.7. Embajador de la Unión Soviética a los Estados Unidos 7.8. Representante permanente de la Unión Soviética ante las Naciones Unidas 7.9. Ministro de justicia de la Unión Soviética 8. Personajes importantes 8.1. Iósif Stalin 8.2. Nikita Jrushchov 8.3. Leonid Brézhnev 8.4. Nikolái Bulganin 8.5. Vasili Mitrojin 8.6. Albrecht Dittrich/Jack Barsky 8.7. Andrei Zhdanov 8.8. Mijail Gorbachov 8.9. Aleksei Kosyguin 8.10. Nikolai Podgorni 8.11. Konstantin Chernenko 8.12.
    [Show full text]
  • Linkages Between Domestic and Foreign Policies Under Gorbachev: the Case of Korea
    LINKAGES BETWEEN DOMESTIC AND FOREIGN POLICIES UNDER GORBACHEV: THE CASE OF KOREA TAI KANG CHOI Submitted for the degree of Doctor of Philosophy at the Institute of Soviet and East European Studies University of Glasgow (C) October 1993 ProQuest Number: 13833807 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a com plete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. uest ProQuest 13833807 Published by ProQuest LLC(2019). Copyright of the Dissertation is held by the Author. All rights reserved. This work is protected against unauthorized copying under Title 17, United States C ode Microform Edition © ProQuest LLC. ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106- 1346 ° \ 8 GLASGOW I UNIVERSITY LIBRARY j ABSTRACT A shrinking world is a knot of intertwined political, economic, ethnic, national, military, and environmental problems. Foreign and domestic matters have become inextricably linked in contemporary international relations. Nations are becoming increasingly interdependent in a highly developed industrialized society. In this process we may find a key to unlocking the riddle about how domestic and foreign policy stimuli interact in an environment characterized as 'cascading interdependence'. In this thesis, I have attempted to highlight the internal and external factors which were very interactive under Gorbachev. Domestic policy within the Soviet Union had a profound impact on the nature of its foreign policy and, similarly, the impact of the latter determined significant aspects of domestic policy-making.
    [Show full text]
  • The Rise and Fall of START II: the Russian View
    The Rise and Fall of START II: The Russian View Alexander A. Pikayev Non-Proliferation Project GLOBAL POLICY PROGRAM Number 6 September 1999 THE RISE AND FALL OF START II © 1999 by the Carnegie Endowment for International Peace All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without permission in writing from the Carnegie Endowment. Carnegie Endowment for International Peace 1779 Massachusetts Avenue, N.W. Washington, D.C. 20036 Tel: (202) 483-7600 Fax: (202) 483-1840 Email: [email protected] Web: www.ceip.org Carnegie Endowment Working Papers Carnegie Endowment Working Papers present new research by Endowment associates and their collaborators from other institutions. The series includes new time-sensitive research and key excerpts from larger works in progress. Comments from readers are most welcome; please reply to the authors at the address above or by e-mail to [email protected]. * * * This paper expands on a chapter originally written for a forthcoming study on the non- proliferation regime, Repairing the Regime, edited by Joseph Cirincione and published by Routledge and the Carnegie Endowment for International Peace. Toby Dalton, project associate with the Carnegie Non-Proliferation Project, provided extensive editing and production assistance toward the completion of this working paper About the Author Alexander A. Pikayev is a scholar-in-residence at the Carnegie Moscow Center, where he directs activities for the Non-Proliferation Project. Dr. Pikayev was previously a director of the section on arms control and nonproliferation at the Institute of World Economy and International Relations, Russian Academy of Sciences; and chief counselor of the State Duma Committee on Defense (1996–1997) and Subcommittee on Arms Control and International Security (1994–1995).
    [Show full text]
  • The Development of Russian Military Policy and Finland
    AND FINLAND AND FINLANDAND FINLAND AND FINLAND MILITARY POLICY MILITARY POLICYMILITARY POLICY MILITARY POLICY Stefan Forss, Lauri Kiianlinna, Pertti Inkinen & Heikki Hult Stefan Forss, Lauri Kiianlinna, Pertti Inkinen & Heikki Hult Stefan Forss, Lauri Kiianlinna, Pertti Inkinen & Heikki Hult THE DEVELOPMENT OF RUSSIAN Stefan Forss, Lauri Kiianlinna, Pertti Inkinen & Heikki Hult THE DEVELOPMENT OF RUSSIAN THE DEVELOPMENT OF RUSSIAN THE DEVELOPMENT OF RUSSIAN National Defence University Department of Strategic and Defence Studies Series 2: Research Reports No 49 National Defence UniversityNational Defence University Department of Strategic and Defence StudiesDepartment of Strategic and Defence Studies Series 2: Research Reports No 49Series 2: Research Reports No 49 National Defence University Department of Strategic and Defence Studies Series 2: Research Reports No 49 Stefan Forss, Lauri Kiianlinna, Pertti Inkinen & Heikki Hult The Development of Russian Military Policy and Finland Series 2: No 49, 2013 .maanpuolustuskorkeakoulu. .maanpuolustuskorkeakoulu..maanpuolustuskorkeakoulu. .maanpuolustuskorkeakoulu. w ww w ww wwww ww +358 299 800 +358 299 800+358 299 800 +358 299 800 Tel. strategianlaitos@mil. Tel. Tel. [email protected]@mil. Tel. strategianlaitos@mil. National Defence University Department of Strategic and Defence Studies P.O.Box 266, 00171 HELSINKI Suomi Finland National Defence UniversityNational Defence University Department of StrategicDepartment of Strategic and Defence Studiesand Defence Studies P.O.Box
    [Show full text]
  • The Russian Economy in March 2000
    THE RUSSIAN ECONOMY IN MARCH 2000 Keith Bush Director, Russian and Eurasian Program - Center for Strategic and International Studies, Washington, DC Highlights • From 1989 through 1998, the gross domestic product (GDP) of the RSFSR, then Russian Federation, declined each year apart from a 0.8 percent growth in 1997. In 1999, a growth of 3.2 percent was claimed, primarily attributable to the import substitution effect after the devaluation of August 1998, the increase in value of Russia’s oil exports, and some restructuring. The 1999 GDP was about 58 percent of the 1989 level. At an official rate of exchange of 28.5 rubles to the dollar, the 1999 GDP of 4,476 billion rubles was valued at about $158 billion: at purchasing power parity, the Russian GDP was estimated by the World Bank at around $630 billion. • The IMF released the first of seven $640 million tranches of its $4.5 billion standby loan on July 30. The second may not be released before April at the earliest because, the Fund maintains, the Russian side has not fully met the commitments it made in the July 13, 1999 joint memorandum of the Russian Government and Central Bank. • The federal budget for the year 2000 envisages revenues of 797.2 billion rubles ($24.9 billion, or 14.9 percent of GDP), expenditures at 855.1 billion rubles ($26.7 billion, or 16 percent of GDP), with a primary surplus of 3.2 percent of GDP and an overall deficit of 1.1 percent of a GDP of 5,350 billion rubles ($167.2 billion).
    [Show full text]
  • Who's Who in Primakov's New Russian Government
    No. 1232 November 6, 1998 WHOS WHO IN PRIMAKOVS NEW RUSSIAN GOVERNMENT EVGUENI VOLK, PH.D. On September 11, 1998, the Russian State THE PRIMAKOV GOVERNMENT Duma approved President Boris Yeltsin’s choice of Evgeny Primakov as Prime Minister by a vote of Primakov and most of his Cabinet officials built 317 out of 450. The Duma’s action came in the their political careers in the former Communist regime. wake of the August 17 devaluation of the ruble, Produced by the dismissal of former Prime Minister Sergei A former senior Commu- The Kathryn and Shelby Kiriyenko and his government, and the Duma’s nist Party of the Soviet Cullom Davis International failure to approve Yeltsin’s choice of Viktor Cher- Union (CPSU) nomenkla- Studies Center nomyrdin. tura member and former member of the CPSU’s rul- Published by Primakov used his first month in office to shape ing body, the Politburo, he The Heritage Foundation his new government and draft the semblance of a managed to survive when 214 Massachusetts Ave., N.E. crisis management program to address the coun- President Boris Yeltsin took Washington, D.C. 200024999 try’s serious financial problems. His choices prove over. He was appointed head of the Russian foreign (202) 546-4400 him to be a master of compromise: His Cabinet intelligence service in 1991. http://www.heritage.org members represent every major political faction in and became Foreign Minis- the Duma, and his economic proposals are ter in January 1996. designed to please both the left and the right. Primakov has challenged Primakov is wary of the United States and has America’s global leadership been a consistent opponent of U.S.
    [Show full text]
  • Economic Developments and Reforms in Cooperation Partner Countries: the Link Between Economics, Security and Stability
    ECONOMIC DEVELOPMENTS AND REFORMS IN COOPERATION PARTNER COUNTRIES: THE LINK BETWEEN ECONOMICS, SECURITY AND STABILITY L’EVOLUTION ET LES REFORMES ECONOMIQUES DANS LES PAYS PARTENAIRES DE LA COOPERATION: LE LIEN ENTRE L’ECONOMIE, LA SECURITE ET LA STABILITE Reiner Weichhardt Editor Deputy Director Economics Directorate, NATO ECONOMIC DEVELOPMENTS AND REFORMS IN COOPERATION PARTNER COUNTRIES: THE LINK BETWEEN ECONOMICS, SECURITY AND STABILITY Colloquium 3-5 November 1999 Brussels L’EVOLUTION ET LES REFORMES ECONOMIQUES DANS LES PAYS PARTENAIRES DE LA COOPERATION: LE LIEN ENTRE L’ECONOMIE, LA SECURITE ET LA STABILITE Colloque 3-5 novembre 1999 Bruxelles Copyright © 2000 NATO All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic tape, mechanical, pho- tocopying, recording or otherwise, without permission in writing from the copyright holders. First edition 2000 ISBN: 92-845-0137-7 This is the latest in a series bringing together papers presented at the NATO colloquia organised by the NATO Economics Directorate and Office of Information and Press on economic issues in the former USSR and Central and East European countries. For further information please write to the Director, Office of Information and Press, 1110 Brussels, Belgium. The articles contained in this volume represent the views of the authors and do not necessarily reflect the official opinion or policy of member governments or NATO Contents Preface Reiner
    [Show full text]
  • Russia's Financial Crisis: the Failure of Neoliberalism?
    Russia's Financial Crisis: The Failure of Neoliberalism? by David M. Kotz Economics Department Thompson Hall University of Massachusetts Amherst, MA 01003 U.S.A. Office telephone 413-545-1248 Fax 413-545-2921 E-mail [email protected] November, 1998 This article was published in Z Magazine, January, 1999, 28-32. Russia's Financial Crisis, by David Kotz This past summer Russia suffered a financial crisis so severe that it not only brought down former Prime Minister Sergei Kiriyenko=s government but also shook financial markets around the world, including on Wall St. This episode may appear to be just one more failure of the post-Soviet Russian regime, in its so far futile quest to build a stable and prosperous capitalist system. However, there is another side to the Russian travail. Russia=s experience in applying neoliberal economic policies can be seen as a metaphor for the destructive social and economic trends unleashed by neoliberalism throughout the world in this decade, including right here in the U.S.A. Neoliberalism is the contemporary incarnation of the old ideology that asserts the superiority of an unregulated, or Afree market,@ capitalist system. That ideology, which had been dominant in Europe and the U.S. in the 19th century, lost influence after the Great Depression persuaded even apologists for capitalism that the survival of the system required an interventionist welfare state. Then in the late 1970s and early 1980s the old free market religion returned in Britain and the U.S., when the postwar system of regulated capitalism encountered a period of economic and financial instability.
    [Show full text]
  • RUSSIA in CRISIS: YELTSIN's LAST STAND Introduction Ever Since
    RUSSIA IN CRISIS: YELTSIN'S LAST STAND Introduction Ever since Boris Yeltsin stood on top of a tank in defiance of the 1991 military coup against Mikhail Gorbachev, he has been portrayed as something of a political cowboy in the frontier democracy of Russia, the world's largest nation. But after a tumultuous seven years, it seems that the summer of 1998 may indeed have been Yeltsin's last stand. Plagued by ill health, Yeltsin has had a rocky second term in office, during which Russians have seen their standard of living drop sharply. Known for firing his entire cabinet when things aren't going right, in March 1998 Yeltsin replaced Viktor Chernomyrdin, his prime minister of six years, with Sergei Kiriyenko. But the Russian economy continued to nosedive throughout the summer of 1998, necessitating a bailout on July 20 of $22-billion (U.S.) by the International Monetary Fund. It was hoped that this bailout would prevent a devaluation of the ruble. However, this did not prove to be the case, and the ruble declined sharply against the U.S. dollar in August, falling by a third in one day alone. Notwithstanding its sharp decline in value, the ruble no longer seems to matter much to the average Russian. The breakdown of the economy has been so thorough that many Russians have not been paid wages for months, and the government in turn has not been able to collect any taxes. To subsist, Russians have learned to get by without cash, and as a result there is an active and flourishing barter economy operating in the country, an underground economy that makes matters even worse by decreasing the flow of rubles between buyers and sellers.
    [Show full text]