Yeltsin’s Challenges and the Pendulum of reform

1/25/07 12:28 PM Yeltsin mes into office in 1991 nd heafces a lot of problems Three big tranitions that yeltsin is set on making •wants to move to a decentralized economy and politics •wants to focus on a privatized economy •transform from a multinational kingdom to a single country osupprted a limited form of independence Faces a number of inherited problems •economic stagnation olots of command economy problems •he’s also facing abysmal living standards for most Russians “living lean” •living standards for most Russians were below that of every other country •lack of military strength odue to fghanistan oand uprising in European countries •a culture not based on the rule of law but rather on arbitrary rulers and laws •corruption oa serious issue under Brezhnev and a general disregard of human rights Yeltsin’s agenda for society and economics “Shock Therapy” •set on keeping Russia together •prevent the return of communism and withdraws from the communist party •establishing a market economy •address poverty •create a democracy yeltsin starts out as a protégé to gorbechev, however yelsin is much more radical in the way of changing an not a communist •yeltsin did not like ryca, gorbechev’s wife •the president was much more the figure head IN AUGUST YELTSIN’S BIG CHANCE TO SEIZE POWER from gorbechev came. •massive coup Gorbechev was stuck in the crimea so yeltsin responds to the coup by making a speech about the need for human rights and economic freedom othe coup is stifled because the speech is successful oGorbechev’s power fades •through the fall of 1991 russia begin building a constitutional system •and each ministry was taken over by non communist parties so by the end of 1991 the communist party was no longer in power

•and in December Russia takes •Yeltsin meets with Bela Russia and creates the common wealthof independent states •Ukraine declares independence Dec 24 the Russian federation takes a seat in the UN •Dec 25 gorbechev resigns Yeltsin serves from 92-99 and ends his career in disgrace an resignation •shock therapy failed oa significant event, officially announced as thefair distribution of land •he Voucher system ad the loans for shares program ogave a certain number of vouchers to each person and those vouchers could be used to buy shares of a business othe loans for shares program was for oligarchs to give the govt money and give them lotsof shares in a company othe vouchers were basically worthless, where as the people with the loans making a lot of money owestern investors would actually buy the vouchers from the people in exchange for cash othe country quickly entered into the chaos. opeople took such advantage of russia’s economic weakeness opeople’s savings became worthless •At this time in 94 yeltsin’s popularity began to fall •in 1993 the leaders of the legislature decided that they are going to impeach Yeltsin,ad instead in response he orders that the parliament should be dissolved, he grants himself special powers which provked the Russian Constitutional Crisis. ocongres says they refuse to leave the whitehouse othy go ahead and impeach him and swear in the vice president oYeltsin decides this is not going to work and he attacks the white house oMassive riots all around the streets. omilitary invasion of Chechnya Jully 1996 yeltsin is re elected •things do not get berter for yeltsin •spring 1998 russia defaults on its loans •1/3 o the states entire budget was being used to service the debt •as many workers went unpaid in 1998 •Yetsin’s health was failing •shuffled his cabnet five times •Yeltsin finally resigns and brings in putin oputin pardon’s yeltsin

•profiteering •The Duma in the 1990s the duma is very conservative, contrary to Yeltsin Russian government •Russian Federation Maintain a lose connection with Russia ad remains negotiations with Russia and governors are represented in the federal council •The president o4 year term t erm limit oappoints the PM, cabinet, ad the constitutional court •The executive branch, Cabinet PM, elected by the president •Bicameral parliament oduma directly elected mixed electoral system initiate legislation oFederal Council 178 members, indirectedly appointed by regional governors made up of the 89 autonomous regions •constitutional court oserves as a third check against the parliament ad executive •supposed to be indepenedent but aren’t really Political parties •Iabloko party •Unidted Russian party (Putin) •Cummunist party of the russian federation •Agricultural party of Russia • o

the right man for the job

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Because of yeltsin’s resignation Who is putin? • Very controversial an complicated figure •for the majority of Russia he is a strong leader •however for the west he is a figure head of collectivizarion Putin’s problems •Cronyism •Lak of centralized control •Corruption •After effects of major privitization •Four national projects •He made an effort in more closely monitoring foreign investment oHe nationalized large companies to avoid taxes oIncomes have grown by 50% since coming to power •Fixing the military •When youtake out the central command things like this happen •Reduced military by 600,000 •Terrorism oBudyonovsk took 1500 hostage

1/25/07 12:28 PM