The changes that took place in the Soviet Union
after Mikhail Gorbachev succeeded to the position
of general secretary of the Communist Party
and to the leadership of the country in 1985
astonished the world. Gorbachev set a new
agenda for relations with the Warsaw Pact allies
and allowed Poland, Czechoslovakia, Bulgaria,
Romania and Hungary to choose their own internal
and external relations. It was the end of communist
one-party states, so jealously defended
by Big Brother for four decades. Even more
astonishingly Gorbachev laid to rest the ghost
of a revanchist Germany and allowed the East
Germans to choose unification with the West. His
policies went a long way to dispelling Western
fears of the Soviet Union. Disarmament lay at the
heart of the Kremlin’s new policies. ‘Gorby’ was
welcomed and applauded in the streets of Bonn
and amid the skyscrapers of New York. People in
the West pressured their governments to respond
more quickly and warmly to the Soviet leader’s
offer of disarmament and peace, and Gorbachev’s
genuine desire to end the Cold War finally overcame
Western suspicions. The Warsaw Pact was
dissolved and a united Germany joined NATO.
The Cold War ended in 1991 and the Soviet
Union and the US began working towards common
aims in the Middle East, Asia and Europe.
Gorbachev outlined his ideas for radical
change in his book Perestroika, published in 1987
as a paperback all over the world, its subtitle New
Thinking for Our Country and the World. In it,
Gorbachev explains his aims to ‘restructure’ and
reform Soviet society, to rekindle the initiative
and personal responsibility of every Soviet citizen.
Corruption and inefficiency would be ended, the
falsehood that cloaked the oppression of the
people – who were ‘guaranteed’ constitutional
freedoms that existed only on paper – would be
purged. The twin of perestroika or ‘restructuring’
was glasnost or ‘openness’. ‘Restructuring’ and
‘openness’ were mild words for Gorbachev’s
objectives which, in the context of Soviet history,
were truly revolutionary. The people would be
granted genuine legal freedoms and the right to
criticise, to express their views, to choose on merit
(by exercising their votes) between rival candidates
for important political functions. Did
Gorbachev indeed intend finally to rid the Soviet
Union of the ideology of the Russian Revolution
and all its works?
A careful reading of Perestroika reveals the
schism in Gorbachev’s thinking which was there
from the start. He was not a democrat in the
Western sense or a convert to the view that capitalism
would rescue the Soviet Union from its
economic backwardness. He was a socialist
reformer, inspired by beliefs that were in line with
Western idealism, that is beliefs in individual civic
rights and freedoms, and he exerted all his power
and employed all his talents to allow the Soviet
people to gain them for the first time in Soviet
history. The distinguished dissidents Anatoly
Sharansky and Andrei Sakharov were released,
from prison and from exile, respectively, in 1986.
But he also rejected capitalism. ‘Capitalism’, he
declared in a speech in February 1986, ‘regarded
the birth of socialism as an error of history which
had to be corrected at any cost by any means.’
Perestroika, he wrote, did not signify a ‘disenchantment
with socialism’, and was not motivated
by a ‘crisis for its ideals and ultimate goals.
Nothing could be further from the truth than
such interpretations’.
In the Soviet Union’s internal and external
policies much needed to be changed and improved.
But Gorbachev was not about to lead the
Soviet Union on the path that Czechoslovakia or
Poland were following. The Czechs and Poles saw
as their model the Western parliamentary multiparty
system, together with a market economy
dominated by private ownership of land and
industry. Gorbachev rejected ‘bourgeois capitalism’.
The Soviet Union’s socialist ideals were not
to be called into question, nor was the essential
cohesion of the USSR. For all his radicalism,
Gorbachev intended to place limits on ‘new political
thinking’.
But was the Soviet economy reformable if it
clung to what Gorbachev regarded as unchallengeable
– socialism? Zbigniew Brzezinski, once
President Carter’s national security adviser, wrote
a remarkable book just before the revolutionary
upheavals in central and Eastern Europe entitled
The Grand Failure: The Birth and Death of
Communism in the Twentieth Century in which he
forecast the end of communism. Gorbachev
agreed with Brzezinski on the wasted years, on
the lack of productivity of Soviet labour and on
the inefficient use of resources, but for Gorbachev
these spelt not the death of communism but the
need for renewal, for perestroika and glasnost as
the engines of change. Communism had simply
not reached its full potential. This faith prevented
Gorbachev from seeking to reform the Soviet
economy and its politics as fundamentally as he
transformed the Soviet Union’s external relationships.
Internally, his policies revealed hesitations
and ambiguities as the economy shuddered from
bad to worse.
In the towns, queues for essential foodstuffs
and goods lengthened, the black market and ‘free
market’ flourished, and it became difficult to distinguish
between the two. The reform of the
party and its corrupt bosses had the side-effect of
loosening discipline; glasnost had gone beyond
healthy criticism to challenge the fundamentals of
the Soviet state. Each of the republics became
determined to do what was best for itself, and
ethnic strife undermined the cohesion of the
Union. Better economic conditions and a clearer
policy that delivered results might have held the
Soviet people together in the absence of repressive
force. But worsening conditions fuelled strife,
and nationalism is such a primitive and powerful
force that its repression for decades had left it
ready to explode.
In 1985 as Gorbachev began his enormous
task of radically changing the Soviet Union he
was supported by a reformist minority in the
party, but he also faced a majority in key positions
who, though persuaded of the need for some
change, were not ready for a revolution entailing
the loss of their powers and privileges. Gorbachev
therefore had to work against the prevailing sentiment
of the majority. He improvised with dexterity
until the juggling came to grief. He
outmanoeuvred his opponents and displayed dazzling
political skills as he altered party and state
structures, changed their names and their functions,
introduced new electoral procedures and
created new bodies. All in all, it was a virtuoso
performance. It left the Soviet people breathless
but in the end disillusioned as standards of living
dropped precipitously after 1987. To underline
the extent of his accomplishment, it may be
helpful briefly to examine the structures of state
and party inherited by Gorbachev.
Though the different party bodies were supposed
to be chosen democratically from the grass
roots upwards, the reverse was true; they were
appointed from the top down, except for the
leading position of the general secretary of the
Communist Party of the Soviet Union, who was
chosen from among the Politburo members,
though formally the Politburo recommended and
the Central Committee approved. Gorbachev was
‘approved’ on 11 March 1985. The Politburo
consisted of ten full and six candidate members
who in theory were ‘elected’ by the Central
Committee of 319 full and 151 candidate members
meeting normally every six months. The
Central Committee also ‘elected’ the Secretariat,
whose head was the second secretary, deputy to
the general secretary. The Secretariat of eleven
members controlled twenty departments which
supervised 109 government ministries. A network
of republican, regional, city, town and district
committees spanned the Soviet Union, dependent
on the Central Committee’s Secretariat
bureaucracy of some 3,000 employees.
It is important to note that until 1985 the
party supervised the ministries, which were also
responsible to a prime minister and government
ministers. Thus there was dual control of ministries
by the government and the party, supposedly
coordinated by the general secretary. The
general secretary was also chairman of the USSR
parliament, the USSR Supreme Soviet, which was
little more than a ceremonial body, listening
annually to the general secretary and dutifully
applauding all he said. Carbon-copy supreme
soviets and soviets fanned out in republics, cities,
towns and districts.
This structure was supplemented by other bodies.
At irregular occasions a conference of the
Communist Party of the Soviet Union could be
called; the eighteenth such conference had been
convened in 1941; Gorbachev used the nineteenth,
called in 1988, to make far-reaching
changes to party structures. Finally, it was also
possible to call a congress of the CPSU, which also
met irregularly when the general secretary wished
to call one. Gorbachev used two such congresses,
the twenty-seventh in 1986 and the twenty-eighth
in 1990, as springboards for his reforms.
During his first years of power, Gorbachev
encouraged pressure from below to win support
for his reforms and to overcome party inertia and
opposition. But here he trod a thin line between
the imperatives of keeping popular protest under
control and of reassuring the party leadership that
he was not dismantling the Soviet communist
system. Economic change necessitated a reform of
the party itself, a reform of the old power structures,
the KGB, the army and the nomenklatura
– the nomenklatura being the means by which the
party elite controlled the key positions in the
administration, the judiciary, industry, agriculture
and education.
Gorbachev’s major effort at ‘democratic’ reform
was to inject some grass-roots participation
in the filling of the lower nomenklatura vacancies.
This is what he meant by the democratisation of
the Soviet state. But from the start it was questionable
whether the party could ever regain the
respect of the people, having for decades been a
virtually autonomous self-appointed group within
the state whose senior functionaries enjoyed many
privileges denied to the rest.
During Gorbachev’s first five years a plethora
of meetings, conferences and congresses took
place, their open debates televised for the Russian
people in an unprecedented attempt to mobilise
and educate public opinion. Gorbachev set the
pace in speeches that were widely reported in
1985. In the Central Committee, which had
endorsed him as general secretary, he had to
move cautiously: it was crucial for him to build
up support there and in the Politburo. In his first
year he replaced two-thirds of the key leaders at
the top and continued to make changes in later
years. But this did not remove all opposition to
his views, as the dramatic events of August 1991
were to show. At the April 1985 meeting of the
Central Committee, the blueprint of perestroika
was agreed and some practical reforms undertaken.
In an attempt to make the central ministries
more efficient, rival departments were
eliminated: in agriculture six separate ministries
were combined into one super-ministry with
20,000 staff cuts; two other super-ministries were
created in the key areas of machine-building and
computers. Unfortunately the ministries themselves
were equipped with computers whose input
and output remained flawed – they could not
cope with the complexities of the economy.
On 25 February 1986, the Twenty-Seventh
Congress of the Communist Party opened in
Moscow. The streets were festooned with slogans,
‘The Party and the People Are One’, which was
certainly not true. After its ten-day session the
Congress accepted Gorbachev’s blueprint for halfhearted
reform of the socialist economy, but
concrete reforms of the party were largely
blocked. Another failure was an attempt to revive
Khrushchev’s rule that no party official could serve
more than fifteen years and that one-third of the
members on all committees had to change every
five years. This meant that the majority of the
long-serving party officials of the Brezhnev era
would remain in place, but their privileges were
reduced over the next three years, they became
more accountable above and below, and corrupt
practices became more dangerous. Millions of
party workers thus felt nothing for Gorbachev’s
reforms but resentment and had little personal
interest in lifting a finger to further them.
In April 1986, soon after the Twenty-Seventh
Congress, disaster struck the Soviet Union: an
explosion took place within the nuclear reactor at
Chernobyl. The Ukraine was severely affected by
radiation: hundreds were killed, the health of
thousands more was affected for years to come,
and the rich farming land was severely polluted.
Moreover, the damage was a major setback for
the Soviet economy. Where was glasnost then, as
Gorbachev and the Kremlin hesitated for days
before revealing the truth about the nuclear fallout
spreading through Scandinavia to Western
Europe? The successor republics of the Soviet
Union have many nuclear reactors built to the
same design which they cannot do without. They
remain potential time-bombs.
Yet Gorbachev showed himself to be a very different
leader from his predecessors. There was a
new openness and humanity, and an air of excitement
about changes to come, but little was actually
achieved in 1985 and 1986 to improve the life
of the average Soviet citizen. The Gorbachev
media image promised much but there was a danger
that expectations would soon outrun performance.
Even so, there were real signs of change.
Glasnost was ending the persecution of humanrights
activists, most notably of Sakharov, released
from his Siberian exile in December 1986. A new
foreign minister, Eduard Shevardnadze, was
appointed in July 1985, when the old Cold War
warrior Andrei Gromyko was replaced and kicked
upstairs into a ceremonial presidency. In October
1986 the general secretary met Reagan at the
Reykjavik summit and proposed complete nuclear
disarmament; this breathtaking suggestion came
to nothing because Reagan would not accept
Gorbachev’s condition of confining the US ‘Star
Wars’ Strategic Defence Initiative to the laboratory.
Yet it proved not the end of detente but the
beginning.
As Gorbachev was breaking new ground at
home and abroad, he also faced fierce resistance
from two, opposed, sides. Yegor Ligachev, the
powerful second secretary of the party, voiced
misgivings about the direction of reform. For Boris
Yeltsin, Moscow’s active party chief and a member
of the Politburo, Gorbachev’s economic and political
reforms were far too hesitant. Yeltsin (a former
Ligachev protégé before being taken up by
Gorbachev) and Ligachev clashed bitterly in the
Politburo. Ligachev was determined to destroy the
political influence of the now radical Moscow
leader, who had been denouncing party privileges,
corruption and even what he called the new
personality cult of the general secretary. In the
Central Committee Yeltsin forced a showdown,
announcing at its meeting in October 1987 his
intention to resign from the Politburo. Gorbachev
was furious. The outward appearance of unity of
the Central Committee had been broken on the
eve of the annual November celebration of the
Russian Revolution. Yeltsin, a sick man at the time,
probably suffering from heart trouble, was obliged
to go into hospital. The streak of ruthlessness in
Gorbachev is revealed by what happened next.
Yeltsin was forced to leave hospital to attend a
meeting of the Moscow party committee; he was
humiliated and sacked. It was Ligachev’s revenge
and triumph. But Yeltsin’s disgrace also marks the
beginning of the bitter rivalry, personal and political,
that set Yeltsin against Gorbachev. For the
time being Yeltsin was cast into the political
wilderness. His re-emergence was to change the
course of Soviet history.
In 1987 Gorbachev felt secure enough to
begin to push through startling political and
structural changes to the party and the state. In
January, he proposed to the Central Committee
that deputies should not simply be appointed to
local regional and republican soviets by the party
apparat – the people should participate and
should be allowed a genuine choice of candidates.
What was more, the deputies need not be party
hacks but could be professionals, and they should
be chosen by the people in a secret ballot. It was
not democracy yet, for the candidates would all
be vetted and had to be approved by an official
selection committee, but for the Soviet Union it
was a vital break with the past. Similar elections
were to be held in factories to select managers.
Gorbachev also proposed the holding of another,
the nineteenth, national party conference.
The year 1987 also witnessed cautious initiatives
in the field of economic reform. Gorbachev
contemplated some form of leasehold of agricultural
land. Small private businesses were allowed
to start; a few individuals became wealthy. The
free-enterprise cooperative movement grew from
small beginnings to 133,000 concerns in 1989,
employing 3 million people, but they were constrained
from developing fully. The state, directly
or indirectly, was still the employer of the overwhelming
mass of the Soviet peoples, and it was
still the most important customer. Attempts to
make the state sector of the economy more efficient
by such measures as the Law of State
Enterprises in June 1987, which removed the
detailed control of central planners, ended in disaster.
Reform was slow and half-hearted. Prices
were not set by the market and the consumer but
by the state planners. Genuine cost accounting
was lacking. This, coupled with less draconian
party control, threatened the economy with the
worst of both worlds: it was no longer comprehensively
planned nor was it a market economy.
The government continued to print money to
ease workers’ discontent and so, with too many
roubles chasing too few goods, produced skyhigh
prices on the black and free markets; meanwhile,
deliveries at state prices were diminishing,
as the goods were illegally diverted to the more
profitable free market. Resistance to more fundamental
and rapid reform was strong. The radical
reformers and economists such as Yeltsin were
locked in battle with the conservatives and reactionaries.
Gorbachev now inclined to caution.
Another serious problem was surfacing in 1987
– nationalist and ethnic unrest in the republics.
In August that year there were large-scale demonstrations
in the Baltic republics, Lithuania, Latvia
and Estonia, which had been annexed by the
Soviet Union in 1940 after a pact concluded with
Hitler. In the following year the demand for
autonomy grew stronger. The Estonian parliament
claimed the right to veto laws passed by
the Supreme Soviet on national issues. In the
Caucasus the Christian Armenians of Nagorno-
Karabakh became embroiled in internecine conflict
with Muslim Azerbaijan, in whose republic
they formed an enclave; demonstrations followed
and blood was shed. The troubles spread to the
republic of Armenia, and Moscow ceased to be
fully in control. The ethnic conflicts presented a
serious threat to Gorbachev’s reforms because
they were likely to provoke a conservative backlash
against the greater freedom from central party
control which lay at the heart of his perestroika;
he told the Armenians they were stabbing him in
the back. He also recognised that to reopen now
the question of frontiers between the republics
threatened unstoppable conflict. He was therefore
unsympathetic to the nationalist agitation,
whether it arose in the Caucasus or in the Baltic.
Gorbachev achieved a major international
success in 1987. After the Reykjavik failure, negotiations
between Washington and Moscow continued.
By the close of the year agreement was
reached on getting rid of two whole classes of
nuclear missiles, those of intermediate and short
range. A treaty recording their agreement in principle
was signed in Washington by Reagan and
Gorbachev. It was an important moment: confidence
was being built up.
The Nineteenth Party Conference, summoned
by Gorbachev, brought on 28 June 1988 to
Moscow from all over the country 5,000 party
members, most of them conservatives. Despite all
the efforts of the Communist Party organisation, a
minority of radicals had made it too. Among them
was Boris Yeltsin, who secured his election in
Karelia. Nor had the elections of delegates everywhere
been the tame pre-ordained affairs of the
past. There were public demonstrations in a number
of cities against the party’s tactics – that in
Moscow’s Pushkin Square attracted worldwide
attention. Radicals within the party had formed the
Democratic Union, whose objective was to create
a multi-party democratic parliamentary system.
Many of these were among the 2,000 people who
had gathered in Pushkin Square. Heavy-handed
police attempts to remove the most militant
demonstrators were caught by the television cameras,
as was the crowd’s courageous insistence on
what were supposed to be guaranteed legal rights.
Gorbachev presided over the Conference,
doing his best to appear even-handed between
the large majority of communist conservatives and
passive middle-of-the-roaders, on the one hand,
and the small group of radicals, whose undoubted
star was Yeltsin, on the other. Gorbachev now
unfolded his radical reform plans for the party.
The party Secretariat would no longer supervise
government ministries; in this way party and state
would be separated. The Supreme Soviet would
be abolished, to be replaced by a Congress of
People’s Deputies. Two-thirds of its members
would be elected from a list of candidates approved
by electoral committees; one-third were
to be nominated – 100 by the Communist Party,
the remainder by a variety of social organisations
ranging from the Academy of Sciences, which was
allocated twenty seats, to the Society of Stamp
Collectors and the Red Cross. It was a huge body
of 2,250 members. Its main function besides listening
to speeches during its meetings (over just
two or three days a year) was to elect a (new)
Supreme Soviet of 400 to 450 members, chosen
from the deputies – a working parliament in
session for some eight months a year. The head
of state, responsible for the government, foreign
policy and defence, as well as for the party,
would be the chairman of the Supreme Soviet.
Gorbachev persuaded the party conference to
approve his plans, which enabled these constitutional
reforms to be implemented in time for the
Congress of People’s Deputies to be elected in
the spring of 1989.
The proceedings of the Conference were televised,
providing a dramatic illustration of the
debate that Gorbachev’s democratisation was
encouraging in the Soviet Union. It was a spectacle
unprecedented in Soviet history. Most notable
was the last day of the conference, when the bulky
figure of Boris Yeltsin insisted on being heard from
the rostrum. Gorbachev, presiding, could have
prevented him from speaking, but he chose not to.
Yeltsin argued for faster democratic progress, genuine
elections and the prosecution of corrupt
Communist Party bosses, the ‘millionaire bribetakers’.
Perestroika, he advocated, should first
achieve success in one or two essential areas before
it was extended to others; the people, he said, were
losing faith, dismayed by the lack of progress.
Ligachev, the arch-conservative, rebutted Yeltsin’s
arguments and tried to ridicule him. He also
denied, unconvincingly, that the party bosses
enjoyed unwarranted luxuries. But the Soviet
peoples listening to the debate throughout the
USSR knew who was telling the truth. Through
the power of the media and by his courageous
confrontation Boris Yeltsin had again catapulted
himself to national attention as the ‘alternative’
reformer to Gorbachev, and his following grew. At
its close the Conference tamely approved Gorbachev’s
constitutional proposals as the lesser of the
evils presented to them. Obedience to the general
secretary’s will was still the norm. The habits of
dictatorship served Gorbachev the reformer.
‘Democratisation’ was, for Gorbachev, creating
not just a conflict between the communist
conservatives like Ligachev, who feared that the
party would lose control of the country, and the
radicals, who accused Gorbachev of wishing to
stop at a halfway stage between the old party
system and genuine democracy.
Gorbachev’s reforms were also creating a clash
with independent republics opposed to the
Kremlin’s central domination of the Union. In
the Baltic republics this independence movement
had rapidly gathered strength. The anniversary of
the Molotov–Ribbentrop Pact of 1939, which
had delivered the three Baltic republics, Latvia,
Estonia and Lithuania, into the Soviet sphere,
prior to their absorption in 1940 and 1941 into
the Soviet Union, became the occasion for
denunciation. A human chain linked the three
republics in a spectacular demonstration of solidarity.
Popular fronts were formed between
independent-minded communists and nationalists
in the three states, the most forceful being the
Lithuanian Sajudis. Tentative declarations of sovereignty
in all three countries were condemned by
Gorbachev as ‘nationalist excesses’. Relations
between the Baltic representatives and Moscow
continued to deteriorate throughout the year.
Gorbachev believed that he could not give way
without raising similar claims in the Union’s other
republics. He would go no further than holding
out a promise of a measure of economic autonomy,
but this did not satisfy the nationalists.
Nationalism was not confined to the Baltics. In
the Caucasus the conflict over Nagorno-Karabakh
continued unabated, with Moscow’s mediation or
threats of force settling nothing. Gorbachev’s institutional
changes also alarmed the people of
Georgia, who feared that they would strengthen
the centre at the expense of the republics. In
November 1988 there had been demonstrations in
Tblisi, the capital of Georgia. The inefficiency of
the assistance rushed to the victims of a huge earthquake
in Armenia in December 1988 again
reflected badly on the Kremlin’s powers in general
and on Gorbachev in particular. Much worse followed.
In April 1989 there was another peaceful
demonstration in Tblisi. Gorbachev was out of
the country. The Georgian communist leader
appealed to the Kremlin for support and the hardliners
led by Ligachev ordered troop reinforcements.
Gorbachev returned, expecting a peaceful
outcome. Instead the troops went into action,
firing on the crowd and using gas to disperse them.
The Tblisi ‘massacre’ left twenty dead and hundreds
more injured. The brutality tarnished
Gorbachev’s image on the eve of the first meeting
of the Congress of People’s Deputies in May 1989.
The elections, conducted over several weeks,
had been chaotic. The party had done its best to
influence the outcome, but a sizeable group of
radicals was returned. Public pressure now
counted for something, especially in the large
cities. The attempt to exclude Andrei Sakharov,
the most famous of the human-rights dissidents,
backfired on the Academy of Sciences and he was
elected. But the most spectacular victory was that
of Boris Yeltsin in the Moscow constituency,
where he defeated the party apparatchik by a
landslide. With 5 million Moscow votes cast for
him, Yeltsin could now claim some democratic
credibility, in contrast to Gorbachev, who had
never submitted himself to any popular election.
The first session of the Congress of People’s
Deputies began on 25 May 1989. The lack of
respect shown for key leaders of the old regime
and the reluctance of large numbers of deputies
to conform to rules were a tribute to the atmosphere
of freedom and the absence of fear that
Gorbachev had done so much to bring about.
Gorbachev himself had a tough time controlling
the proceedings, which were televised in the spirit
of glasnost. Remarkably Andrei Sakharov gave his
support to the proposition that Gorbachev be
elected president of the Supreme Soviet, the
smaller working parliament that was to be chosen
from among the deputies. He admired the man
but had reservations about the pace of reform.
The majority of the deputies were silent conformists,
but active radicals and militant conservatives,
plus some individual eccentrics, ensured
a lively forum with many speeches on many subjects,
and Gorbachev and his ministers heard many
of their policies challenged. When it came to electing
the Supreme Soviet, the majority voted in
party conservatives, mainly nonentities. Yeltsin
and other radicals were left out. The people of
Moscow mounted a large demonstration against
the exclusion of their hero. The democratic spirit
had been truly awakened and could no longer be
smothered by old-style KGB and police repression.
Even the conservatives now understood this
and amended the laws accordingly.
Could the peoples of the Soviet Union be
granted fewer political freedoms than their allies
and neighbours in the people’s republics? Economic
crisis at home was hastening Soviet disengagement
from what had once been satellites,
in Hungary, Poland, Bulgaria, Romania, Czechoslovakia
and the German Democratic Republic.
From the spring of 1989 to the end of the year
communist rulers, no longer protected by the Red
Army, were being overthrown one after the other
by popular revolutionary movements. These assertions
of independence could not fail to make an
impact in the Soviet republics. Why should communism
survive in the Soviet Union when it was
being rejected by people everywhere else? Even
China could not entirely isolate itself from this
world revolutionary movement. In the Soviet
Union improving economic conditions might have
reconciled the people a little longer to the reform
of communism that Gorbachev was striving to
bring about. But material conditions were constantly
getting worse. A massive strike by miners in
the summer of 1989 was settled only by giving in
to all the miners’ demands, though the promises
made could not all be kept.
Gorbachev believed there was only one
answer: to push on with his political and institutional
reforms. He thought he could counteract
the increasing dangers of a breakdown by gathering
more and more power to himself. He had
no intention of becoming an autocrat, except in
the sense of seeing democratic reforms through
to their successful conclusion. At the same time
he was afraid to introduce radical economic remedies
which would raise prices and create millions
of unemployed. The people’s anger might then
sweep away perestroika and glasnost and his own
humane programme.
At the second session of the Congress of
People’s Deputies in December 1989 democratic
elections took another step forward with the abolition
of seats reserved for the Communist Party
and communist-dominated ‘social organisations’.
During the spring session of 1990, the government
of the Soviet Union was reshaped once
more, giving even greater powers to Gorbachev.
He was elected president of the Soviet Union on
15 March 1990. The president’s executive functions
were supported by two councils, a presidential
council of his personal advisers and ministers
and a federative council of representatives from
the fifteen republics; the two councils would often
meet together. These new structures completely
marginalised the old party centres of power, the
Politburo (renamed Praesidium) and the Central
Committee. Even the ‘leading role’ of the
Communist Party, enshrined in Article 6 of the
constitution, came under such heavy attack that it
had to be abandoned, and the Soviet Union
seemed on the threshold of permitting multi-party
elections. Yet for Gorbachev the preservation of
the Communist Party, as the one cohesive element
binding the Union together, remained a crucial
objective. If this could no longer be achieved by
constitutional law, as he had hoped it could be,
then a reformed party would have to win the
approval of the people in a contest with others.
Gorbachev remained by conviction a communist,
albeit a new type of ‘humane communist’. But the
tide of history was against him.
The first of the real crisis years was 1990.
Paradoxically the more constitutional power
Gorbachev acquired, the weaker in reality he
became. Under the immense strains that the great
drama was imposing on him, Gorbachev was tiring;
at times he seemed to lose heart and offered to
resign. But there was no one among the conservative
majority in the party ready to replace him, and
the radicals like Yeltsin were anathema to that
majority. The nationalist problems also kept
mounting. Gorbachev turned to strong-arm tactics
to regain control and to preserve the Union. In
January a massacre of Armenians by Azeri in Baku
led to a showdown, with Red Army units ‘retaking’
Baku on Gorbachev’s orders. The president then
visited Lithuania, where he met general hostility.
The democratising movement he had set in
motion during the spring of 1990 now led to elections
for new parliaments in each of the republics,
elections which enormously strengthened the
nationalists. The Popular Front in Lithuania swept
the board and on 11 March 1990 the Lithuanian
Parliament declared the country’s independence,
appointing Vytantas Landsbergis president. The
declaration was declared invalid in Moscow, and
Soviet tanks and paratroopers appeared in the
streets of Vilnius in a vain attempt to overawe the
population. Gorbachev next instituted an economic
blockade, then made conciliatory gestures.
But Estonia and Latvia followed Lithuania’s lead
during the course of the year. By the end of 1990
negotiations between the Baltic representatives
and Gorbachev had reached stalemate. The
Western powers hesitated to support the Baltic
moves for independence because they still relied on
Gorbachev in international affairs and wished to do
nothing to weaken him. But on the economic side
the West did little to strengthen him, having no
confidence that the economic reforms were going
far enough.
The largest of the Soviet Union’s republics was
the Russian Federation, which contained about
half the Soviet Union’s population and threequarters
of its territory. The elections in the cities
had returned radical deputies, though the countryside
was still traditional. Moscow’s new mayor
was the radical Gavriil Popov, and St Petersburg’s
(the rechristened Leningrad) mayor was another
democrat, Anatoly Sobchak. The Federation’s new
parliament appeared to be fairly evenly split
between conservatives and radicals. Boris Yeltsin,
the obvious leader of the radicals, now campaigned
for the presidency of parliament, which would
make him practically leader of the republic. He
made his aim clear: to gain independence for the
Russian Federation without leaving the Soviet
Union. The powers to be delegated to the
Union would become a matter for negotiation.
Gorbachev supported a conservative candidate,
but Yeltsin won the vote by a comfortable majority.
He now emerged as a powerful national leader.
There were deep policy differences between
Yeltsin and Gorbachev, not least on the best way to
handle the nationality conflicts. Yeltsin believed
that the republics could be associated only in a voluntary
union, preserving independence but handing
some joint responsibilities to the Soviet Union.
If any wished to leave the Soviet Union altogether,
as the Baltic republics did, no obstacles should be
placed in their way. He accordingly arranged for
the Russian Federation to sign separate agreements
with the Baltic republics. This went too far for
Gorbachev, who saw a purely voluntary association
as a recipe for disintegration and chaos. On the
issue of democratisation, Yeltsin was totally disenchanted
with the Communist Party and did not
wish to see it enjoy any special position in the
Soviet Union. For Gorbachev it remained the
backbone of unity and the only possible administrative
tool of reform. There was also the question
of how to modernise the Soviet economy.
Gorbachev hankered after some socialist halfwayhouse.
Yeltsin saw no alternative but a rapid transformation
to a market economy at whatever cost in
terms of immediate hardship to the Russian
people.
The only hope for the Soviet Union in 1990
seemed to be for the old rivals Yeltsin and
Gorbachev to work together, and both expressed
their willingness to try. At the meeting of the
Twenty-Eighth Congress of the Communist Party
in July 1990, Gorbachev delivered an address outlining
his vision of a truly free society founded on
a respect for human rights. He went further than
ever before in defining democratisation as involving
free elections and a multi-party system. He
defended perestroika and denied that it was responsible
for the lamentable condition of the Soviet
economy – yet he had little but words to offer as
remedies. He was strong on freedom, on political
and party reform, weak and cautious on how best
to tackle the crisis in the economy. He was bitterly
attacked by Ligachev and the majority of the
conservatives. Yeltsin, with an eye, as always, for
the dramatic opening, chose the Congress to
announce his resignation from the Communist
Party. The party was split and demoralised, and
most of the Soviet peoples were losing confidence
in Gorbachev and his reforms, which seemed only
to be increasing the queues, the shortages and the
exorbitant black-market profits. Corruption now
flourished in low places too. People had got used
to freedom and began taking it for granted.
At this late hour Gorbachev’s prime minister
Nikolai Ryzhkov produced a cautious proposal for
economic reform which postponed any serious
move to a market economy and to realistic, unsubsidised
prices. But were things about to change?
While Ryzhkov tinkered with the economy,
Gorbachev in January 1990 turned to a young
academic economist, Stanislav Shatalin, as an additional
adviser. By the summer Gorbachev and
Yeltsin were cooperating, and they set Shatalin to
work at the head of a team of like-minded economists
to produce a programme that would
rapidly introduce a market economy. By the end
of August the ‘500 Days’ plan was ready and
Gorbachev and Yeltsin agreed to back it.
As summer turned to autumn Gorbachev began
to have second thoughts. He saw that all control
was slipping from his hands, with the majority of
the party in opposition, the republics daily issuing
new independence claims and disregarding Kremlin
directives. Conditions had become so bad that
Gorbachev’s public credit was all but exhausted. If
he now adopted the shock therapy of the Shatalin
plan, which would entail huge price increases and
considerable unemployment, he feared that the
Soviet Union would slide into anarchy. So he withdrew
his backing from Shatalin’s radical prescription.
To save the crumbling edifice of the Soviet
Union, he discussed with Yeltsin and other republican
leaders a new treaty which would preserve
the Union while making many concessions to the
republics’ demands for sovereignty. He was trying
to gain time.
Significantly he also turned to his hitherto conservative
opponents to bolster the Kremlin’s failing
powers. In yet another change he abolished
the Presidential Council, and brought in the KGB,
army and police to a new Security Council. New
hardliners suddenly became the president’s righthand
men. Soon old Cold War rhetoric was heard
once again. The fourth session of the Congress of
People’s Deputies in December 1990 was memorable
for one astounding event: Foreign Minister
Eduard Shevardnadze publicly announced his resignation
in protest against Gorbachev’s reliance
on reactionary party members. He warned against
‘the advance of dictatorship’.
As the new year began, Gorbachev had few
ideas left about how to lift the Soviet Union out
of its crisis. When the military attempted to suppress
the nationalists in Lithuania and Latvia and
snuff out their independence movements, the
people of Riga and Vilnius rallied to the defence
of their new democratic parliaments and governments.
The deaths of twenty civilians only
strengthened popular defiance as the people
erected barricades, and Gorbachev claimed that
he had not ordered the bloodshed. His main
efforts that spring and summer were to negotiate
a new constitution with the republican leaders.
Even as Georgia declared its independence in
April 1991, Gorbachev’s extraordinary negotiating
skills scored one final success. In May 1991
the fifteen republican leaders, brought together
by the president, agreed to form a new union.
Later, nine of those republics, including the
Russian Federation, approved the ‘principles’ of
such a treaty, which was to be solemnly signed on
20 August 1991. But the hardliners struck back.
As the dramatic events unfolded in Moscow on
Monday morning, 19 August, the whole world
held its breath.
The coup that should have been foretold caught
Gorbachev completely by surprise. It was Sunday,
18 August. Gorbachev was spending the last two
days of his vacation in his villa in the Crimea,
working on the speech he was to deliver at the
ceremony on 20 August marking the signature of
the new Union Treaty. That afternoon he was
visited by a group who represented, they said, a
State Committee for the State of Emergency; they
demanded that he should proclaim a state of
emergency and hand over power to his vicepresident,
Gennadi Yanayev. Gorbachev indignantly
refused. He was then kept prisoner in his
own villa and cut off from all outside contact,
while the coup got under way in Moscow. Early
the following morning, 19 August, Moscow
awoke to the news that Gorbachev was ill and that
an eight-member State Committee for the State
of Emergency had taken over. Most shocking of
all, those men were not members of a reactionary
opposition but had been Gorbachev’s most recent
ministers, leaders and aides, the conservatives he
had chosen in 1989: Gennadi Yanayev, Boris
Pugo (minister of the interior), Dimitri Yazov
(minister of defence), Vladimir Kryuchkov (head
of the KGB since 1988), Valentin Pavlov (prime
minister) and three others. It was a total betrayal.
Gorbachev was imprisoned and powerless for
seventy-two hours; he prepared a videotape condemning
the coup, while his wife Raisa became
ill from the shock.
All the action was in Moscow. The Committee
proclaimed a state of emergency and rule by
decree; demonstrations were banned; at midday
tanks and troops appeared in the streets of
Moscow and were placed around key buildings.
The junta also issued a decree that the constitution
of the Soviet Union took precedence over
that of the republics; it was to be the end of any
notions of sovereignty for the republics or of a
new Union treaty. Boris Yeltsin just escaped arrest
and rushed to the Russian parliament building,
which was known as the White House because of
its white marble frontage. But the coup leaders
were inept and failed to act decisively and ruthlessly
on that first day. They were out of their
depth, and Yanayev, the titular head, was said to
be drunk most of the time.
Yeltsin took his life in his hands when he
rushed to the White House. The most unforgettable
image of the coup was presented by Yeltsin
climbing on to a tank just outside the Russian
parliament mid-morning on Monday the 19th.
He uncompromisingly denounced the coup and
called for a general strike and popular support.
But the response was patchy. The miners of the
Kuznetsk Basin beyond the Urals said they would
strike, but only in St Petersburg did the mayor
Anatoly Sobchak provide decisive support.
The fate of the coup would be decided in
Moscow. Yeltsin’s call for the people of Moscow
to defend the Russian parliament building proved
decisive. Before his appeal no more than 200
people had gathered in front of the White House.
Millions of Muscovites simply went about their
business, fatalistically accepting the coup. But
Yeltsin’s courage proved infectious. By Monday
night there were hundreds more. The hours
passed, and it became evident that some elements
in the army and KGB were not behind the coup.
The expected attack on the White House did not
materialise that night.
By Tuesday night not thousands but tens of
thousands had gathered to protect the White
House, and barricades were thrown up. The
young conscript tank crews were bewildered. It
was clear that, even if ordered to do so, they
could not be relied upon to fire on the people.
Around one barricade there was a scuffle that
claimed three victims, the only deaths in Moscow.
Some tanks defected and joined the people in
defence of the Russian parliament. Tuesday midnight
passed without the expected assault on the
White House materialising. Somewhat belatedly
the West on Tuesday condemned the coup outright.
On Wednesday it was all over. Kryuchkov
and Yazov tried to save themselves by fleeing
from Moscow to negotiate with Gorbachev in the
Crimea; instead they were arrested there. All the
principal plotters were soon in prison. Only Boris
Pugo escaped – by committing suicide.
On Thursday, early in the morning, Gorbachev
returned to Moscow airport, to be met by Yeltsin
and a large crowd of well-wishers. But Gorbachev
was a defeated man. Yeltsin manoeuvred shrewdly,
and made no attempt to replace Gorbachev illegally.
Over the next three months he eroded the
Soviet Union until there was no job left for its
president. After his return Gorbachev had lost the
initiative by lining himself up behind the totally
discredited Communist Party. Yeltsin had already
broken their power in the Russian Federation and
he now finished the job, shutting down the party
in Moscow altogether. Belatedly, on Saturday 24
August, Gorbachev announced his resignation as
general secretary and recommended that the
Central Committee dissolve itself, thus decapitating
the party. It was finished. Hated party statues
were toppled from their pedestals. But one relic
survived: no one could bring themselves to
remove Lenin from the mausoleum.
Yeltsin went on to sidetrack Gorbachev, who
was warning of the dangers facing the Soviet
Union if cooperation between the republics could
not be secured by a new Union treaty. Yeltsin
went ahead on his own, asserting Russian independence
of action, and in October 1991 proposed
a separate and radical economic reform
programme that was to lead to a free-market economy.
The plan had been masterminded by the
young economist Yegor Gaidar and his team.
Yeltsin also began separate negotiations with the
Ukraine and Belorussia to ensure economic cooperation
between the republics. The formal preservation
of the Soviet Union still had some
advantages for Yeltsin’s Russian Federation as a
framework for essential trade interchange, especially
with the Ukraine. But when, on 1 December
1991, the Ukraine in a referendum overwhelmingly
voted for independence the old Soviet
Union ceased to have much purpose. A week later
on 8 December Yeltsin and the leaders of the
Ukraine came to an evidently hurried decision
to make a complete break with the past and to
create a new association, the Commonwealth of
Independent States, around the Slavic core of the
three republics (the third was Belorussia). They
were joined by Kazakhstan, by the four other
Asian republics and then by three more republics.
As 1992 began, the eleven members of this new
Commonwealth still had many problems to sort
out, among them the control of nuclear missiles,
the future division of military and naval units and
what unified structures should remain, their economic
relationships and unresolved territorial
questions. The most critical issues concerned the
Ukraine and Russia, whose presidents had to sort
out the futures of the Crimea and of the Black Sea
fleet, the transfer of nuclear weapons to Russia and
trade between the two republics. The death of the
Soviet Union solved a number of old problems,
but it also raised many new ones.
On Christmas Day 1991, Gorbachev resigned,
having to the last attempted to preserve the Soviet
Union. His enormous achievements had been
rightly acknowledged with the Nobel Peace Prize.
His belief in a humane socialism was sincere, and
he knew that without legality in a state there
could be no humanity. During his years of power,
the Gulags were liquidated, political prisoners
were set free and civil rights and freedoms were
returned to the Soviet peoples. His refusal to
protect the communist bosses in the former satellites
or to use the Red Army to quell popular
unrest brought freedom to East Germans, Czechs
and Slovaks, Hungarians, Poles, Bulgarians and
Romanians. With the freedom came new problems,
in part the inheritance of decades of communist
misrule. But the nightmare of a nuclear
holocaust receded as the Cold War came to an
end.
All this was accomplished by one extraordinary
man, himself the product of a communist upbringing
and of a communist system, to which he
remained loyal to the end. He attracted able men
to support him in his policies and created a mass
following in the Soviet Union. At first suspiciously
but later with matching openness, the West
responded. It was Gorbachev who did most to initiate
the biggest change in global relationships
since the Second World War. For this alone he will
go down as one of the great leaders of the twentieth
century, his a crucial role in shaping its history.
We can also begin to understand the reasons for
Gorbachev’s failures, for they too are embedded
in his concept of ‘humane democratic socialism’.
He chose the opposite course to the Chinese
reformers of the 1980s. Gorbachev’s priority was
the reform of the party, to open the party to
democratic influences and competition, which
would revive the Soviet economy as the burdens
of war and bureaucracy were lifted from the
shoulders of the Soviet peoples. The expanded,
though still small, private sector of the economy,
which had always existed even under Stalin,
would be allowed to compete with the revived
state sector to increase efficiency without threatening
to overtake the socialist economy. But
Gorbachev always saw that the most urgent need
was for political reform, which he believed would
lead to economic improvement.
Six years from March 1985 were not such a
long time to bring about a root-and-branch
change in party and government after more than
sixty years of communist autocracy, whose basic
assumptions had never been challenged by
Khrushchev or any of his successors. Gorbachev’s
thinking was revolutionary and opened up the
possibility of a better future for the Soviet Union.
Neither he nor most of his contemporaries inside
and outside the Soviet Union foresaw where these
policies were leading, even while they could not
fail to notice the increasing hardships placed on
the Soviet peoples during the years of political
transition. Gorbachev was blamed by Yeltsin and
his supporters, as well as by some economists in
the West, for not simultaneously pursuing radical
economic market reforms as well. Significant
Western credit was denied because of their
absence. But Gorbachev feared they would have
led to anarchy and chaos. Nowhere in the world
have both drastic political and economic change
been attempted successfully at one and the same
time. During the 1980s Deng and the Chinese
reformers pursued economic reform while maintaining
communist political power largely intact.
In both China and the former Soviet Union only
half of the double transition, to a market economy
and to democracy, has been attempted – a
different half in each country.
Gorbachev’s strength and weakness lay in his
political instincts, the fertility of a mind that
appeared to conjure up compromises out of
apparently unbridgeable contradictions. He spoke
of democracy, but it was a democracy that was
meant to coexist with the role of the Communist
Party and its enormous bureaucracy, newspapers,
sanatoria, resorts and manifold privileges. He
conceded that the republics could leave the
Union if they wished, but sent in tanks and guns
to intimidate the Baltic republics when they
wanted independence without delay. The limited
sovereignty he was prepared to grant was far less
than the republics were going to take if they did
not get their way. Unfulfilled promises lost him
the support of the Soviet peoples as the economy
spiralled into decline. Compromises here resulted
in the worst of two worlds. As he himself put it,
at the end ‘the old system fell apart even before
the new system began to work’ – but to what
‘new system’ was he referring? No new economic
structures were established as the old centralplanning
apparatus disintegrated with the rise of
nationalism in the republics. And yet Gorbachev’s
precarious tightrope act might have lasted a good
deal longer if the reactionary conservative leadership
had not attempted to topple him in August
1991. Nobody seemed big enough to step into
his shoes until Yeltsin emerged as the man of the
hour, the saviour of Russia. The coup had so
diminished the Communist Party’s stature and
that of Gorbachev that the former was swept away
and Gorbachev himself was brought to the point
where he was the president of a Union that had
ceased to exist.
The Russian economy continued its catastrophic
decline in 1992. Privatisations allowed
powerful oligarchs to secure the nation’s valuable
assets including oil and gas at a fraction of their
worth. The Russian people, despite showing
extraordinary patience and fortitude, were becoming
ever more disillusioned with their rulers who
were unable to deliver a basic standard of living.
The beneficial results of Gaidar’s reforms failed
to make themselves felt in ways the Russian people
could see. Gradually the reforms requiring strict
financial controls were relaxed. Roubles were
printed to pay the wages of workers in inefficient
state industries. Without the control of a Central
Bank, the republics printed more roubles until
the whole country, flooded with paper money,
plunged into hyperinflation by the end of the year.
At the heart of Russia’s crisis lay not only an
economic but also a political problem. Who was
in charge of what? Ministries and the Central Bank
vied for control. Russia’s executive with Yeltsin
at its head was subject to parliament, Russia’s
Congress of People’s Deputies. The Congress was
still packed with the communist deputies elected
in the spring of 1990 (when it was still the
Supreme Soviet) before the failed coup of August
1991. Yeltsin and the communist majority in the
Congress who disapproved of his reforms were at
loggerheads. Yeltsin showed some readiness to
compromise by dropping Gaidar in December
1992 while assuring the international financial
world that the path of reform would not be abandoned.
The conflict between the opposition in the
Soviet parliament and the president threatened to
paralyse economic reform. On 21 September 1993
Yeltsin simply dismissed parliament and called for
new elections in December. A defiant opposition
condemned the decree, denounced it as unconstitutional
and set up a rival government with
Alexander Rutskoi as the new prime minister.
Yeltsin reacted by ordering the army to surround
the White House, but still attempted to leave the
way open for a peaceful resolution of the crisis.
Instead, the 100-odd hardcore deputies who
remained deposed Yeltsin and declared Rutskoi
president. Rutskoi and the parliamentary speaker
Khasbulatov badly miscalculated in believing that
they could swing the army and people behind
them. They attempted a coup and sent out a call
to supporters to seize Moscow’s television station.
On 4 October Yeltsin also responded with force
– ordering the tanks to fire on the White House.
The spectacle was played out on the world’s television
screens. It was all over in twenty-four hours
and the deputies, Rutskoi and Khasbulatov surrendered.
The cost was some 140 dead and many
injured. But the struggle between parliament and
the president was not over. The December elections
proved disappointing for the reformers
even though the new constitution proposed by
Yeltsin, which strengthened the power of the
president, was accepted in a national referendum.
The big shock of the elections was the emergence
of Vladimir Zhirinovsky, the populist ultranationalistic
leader of the anti-reform group misnamed
the ‘Liberal Democratic Party’, which
gained sixty-four seats. Yegor Gaidar’s Russia’s
Choice, a reformist party, secured a disappointing
seventy seats, the Communist Party forty-eight,
the anti-reform Agrarian Party thirty-three, and
the Women of Russia twenty-three. The balance
of forces is against radical reform even though 129
Independents were also elected. Russia’s new
democratic institutions are fragile; the workings of
democracy are not fully understood in a factional
conflict lacking any consensus; the economy with
its constantly declining output is only being
reformed piecemeal. And added to the difficulties
of trying to maintain standards of living is the
peripheral but lethal nationalities problem.
Russia would also like to become a member of
the European Union, but such a prospect lies years
in the future. The Russian people have faced seemingly
interminable years of reform and falling standards
of living with astounding patience and
fatalism. Serious conflicts that arose within the
country had national and ethnic causes. However,
solace is sought in the consumption of vodka.
Medical services lack the resources to deal with
endemic poor health aggravated by alcoholism and
a new threat, tuberculosis. Russia’s course of
reform has been erratic and uncertain. President
Yeltsin’s own mercurial performance was an indication
of uncertainties of his policies. Nevertheless,
although Russia’s transition to market capitalism is
far from complete it has irreversibly moved away
from communism. Despite the fact that he concealed
a near-fatal heart condition the Russians
chose to stick with the devil they knew and reelected
Yeltsin in June 1996.
After surgery, the Russian president staged
a remarkable recovery, and a new impetus to
economic reform was signalled with the appointments
of Anatoly Chubais and Boris Nemtsov
as first deputy prime ministers. The task they
faced in normalising the economy and the lives
of the Russian people was daunting. Moreover,
the young reformers faced opposition from the
Duma, controlled by communists and nationalists;
fortunately these opponents of reform have
been held in check by the threat of losing their
seats and privileges in the event of an election.
Every year since 1992 it was hoped that Russia’s
economic decline had bottomed out. By 1996 the
official economy had shrunk to about half its 1989
level. Unsurprisingly the market economy failed
to bring equal benefits to all the Russian people.
The young and enterprising, a minority, were
profiting from new opportunities. The super-rich
derived their new wealth from privatisations
riddled with corruption. Guns as well as bribery
played an important role in this process and ‘protection’
was paid to Mafia-style bosses. A small
group of bankers, who helped to finance Yeltsin’s
re-election, did particularly well by promising
loans in return for shares to cash-starved industries
selected for privatisation. However, despite
‘protection’, bankers were at risk: over a period
of just four years, after 1993, 118 were murdered.
Life has been hard for the ordinary people.
The bright lights of Moscow and St Petersburg
do not reach the rest of the country and the privatisation
of agricultural land has made virtually
no progress. The black economy flourished while
taxes remain unpaid and for months the government
was unable to pay the army, health service
employees or pensioners. Trade was conducted as
much by barter as by cash. Although privatisation
of industry has made great strides it is hampered
by mismanagement. Some factories resorted to
desperate stratagems; The Economist reported how
one manufacturer of marine equipment, unable to
pay its workforce for over a year, switched production
to rubber dildos, marketed as ‘Adam’,
only to find that they were unable to compete
against more sophisticated battery-operated
Western models available in Moscow. Market
research is evidently still in its infancy in Russia.
Surprisingly, the armed forces of 2 million have
borne all these hardships and remained loyal. Badly
led, trained and equipped, the young conscripts
were unable to defeat the rebels of breakaway
Chechnya: the region was crucial to Russia’s economy
as it is crossed by the main oil pipeline from
Baku. The unpopular war, begun in December
1994, was ended but not for long when General
Lebed took negotiations into his own hands; it had
led to more than 70,000 deaths and 240,000 casualties
and had solved nothing; the question of
independence was postponed. In June 1996
Yeltsin cleverly harnessed Lebed’s popularity to
secure his own re-election, only to dismiss him a
few months later from his senior position as
national security adviser.
The catalogue of what is wrong in Russia is
interminable and tends to overwhelm the more
positive growth economic indicators: a fluctuating
Stock Exchange, the small positive growth of
GDP in 1997 after eight years of continuous
decline, and the taming of hyperinflation from
2,500 per cent in 1992 down to a more acceptable
15 per cent. Russia possesses huge natural resources,
particularly gas, 40 per cent of the world’s
reserves of oil, much coal and timber, and almost
a third of the world’s nickel; its low costs and
educated workforce should now encourage development.
However, a country that has suffered
communist rule for over seven decades cannot be
transformed in a decade. Russia’s failure to achieve
sustained economic recovery was evident in 1999.
Corruption remained a serious obstacle. Russia
came close to economic breakdown. Instability
increased as Yeltsin changed his prime ministers
while his health was failing – troubles enough even
without renewed war in Chechnya. But the
Stalinist days of isolation are over and a fundamental
change of attitude has taken place: Russia’s
leaders no longer fear an attack by their ‘capitalist’
enemies. Their country has now joined the global
economy and lives at peace.
Over the final years of the twentieth and early
years of the twenty-first century the roller-coaster
ride of Russia’s progress came to an end. The
Russian economy had reached its nadir in 1998
with the rouble default. The income of the people
took a sharp drop, greater in an instance than during
the past five years. Inflation soared once more.
The ‘oligarchs’, the old communist bosses who
had obtained state industries and resources for a
fraction of their true value, had shifted their loot
abroad into safer currencies. Yeltsin’s court and
family were enmeshed in corruption allegations.
Worst of all, the ‘tiger’ who had stood on a Russian
tank defying and defeating the coup against
Gorbachev, seen on television occasionally receiving
a foreign guest was wooden, immobile, quite
obviously a sick man, so political instability was
added to Russia’s economic woes. When in the
summer of 1999 he appointed Vladimir Putin acting
prime minister and nominated him as his successor,
Russians and outsiders were astonished. No
one had heard of him outside a narrow Kremlin
circle. Was this another of Yeltsin’s whims, the fifth
prime minister in seventeen months? Yeltsin unexpectedly
resigned early in 2000 instead of waiting
for the end of his term designating Putin as his preferred
successor. Elections followed. Putin campaigned
to restore Russia internationally, and to
stamp out resistance in Chechnya. In March 2000
he was elected president.
As it was to turn out, Yeltsin had made a shrewd
choice. Putin had risen to power in positions
behind the scenes. Still only forty-seven, he was
young and vigorous. A law graduate of Leningrad
University in 1975, he worked for fifteen years in
the KGB espionage network. He gained civic
administrative experience in the offices of mayors
of St Petersburg and Moscow before being
brought into the centre of government. From July
1998 to March 1999 he directed the State Security
Service of the KGB as well as being secretary in the
Kremlin of the Presidential Security Council which
advised Yeltsin on the armed forces, police and the
security services. He was completely loyal to
Yeltsin and promised if elected president to safeguard
Yeltsin and his family from corruption
charges. A small athletic man with unflinching eyes
rarely seen to smile, internationally he was an
unknown quantity, his past career not auguring
well for Russia’s constitutional progress.
He began by renewing and stepping up the
deeply unpopular war in Chechnya. The towns
were in ruins, but complete pacification continued
to elude the Russian military. He attempted unsuccessfully
to counter increasing Western influence
among former satellites of Eastern Europe and
opposed their adhesion to NATO. His assertion of
Russian power got him nowhere. In the autumn of
his first year he was also wrong-footed at home.
On the 21 October 2000 there was an explosion
on the nuclear submarine, the Kursk, the pride of
the fleet. The 118 crew members were trapped on
the bottom of the icy Barents Sea. Until their oxygen
ran out most remained alive. But all foreign
rescue offers during the crucial early days were
rejected. The damage was blamed on a probable
collision with a US submarine. The true cause was
the explosion of a torpedo. Putin remained on holiday.
Popular anger mounted and Putin acted too
late. The Kursk disaster was an indication of the
perilous state of the Russian military, of a fleet left
rotting in harbour, nuclear reactors in rusting
hulks. Military budgets had been slashed, morale
was low. Putin responded by tightening his grip.
In April 2001 he moved against the critical free
press and TV stations closing them down. The
Duma was subservient. Democracy was ‘managed’.
Putin acted against the oligarchs who had been pillars
of Yeltsin’s support; some fled abroad rather
than face trial at home. Internationally Putin
became more conciliatory.
After a show of force, more theatre than reality
when an advance force of paratroopers occupied
Pristina airport in Kosovo, Putin joined NATO’s
occupation, engaged in negotiations for further
nuclear disarmament with the US, was received by
President Bush on his Texan ranch in November
2001 and made no further difficulties when the
former Eastern European satellites and Poland
voted to join the European Union. Western pressure
to persuade Russia to end its military actions
in Chechnya also weakened after ‘September 11’,
the fighting dragged on seemingly without end.
Putin was prepared to grant a measure of autonomy
but not independence. After a hiccup over
the Iraq war, Russian relations with the West
became watchfully cordial.
Putin projected leadership and strength. When
Chechnyan fundamentalists took control of a
Moscow theatre and held the audience hostage,
Putin’s message was that he was working night and
day in the Kremlin to save the hostages. A mishandled
rescue using gas to stun the Chechnyans killed
more than a hundred of their hostages as well as
the Chechnyans. But Putin was seen to have acted
decisively, he had learnt the lesson of the Kursk.
On the economic front, the Russian Federation
made a remarkable recovery. The main reason for
this was the rise in the price of crude oil which had
already begun during the last year of Yeltsin’s presidency
when gloom was at its height. Russia in the
new century was at last moving toward sustainable
development. Business confidence was growing,
an ambitious reform agenda was showing results,
above all there was political stability. The economy
grew strongly and inflation fell to manageable figures.
There was a long way to go. Health provision
could not cope with the spread of HIV, TB and
alcoholism. There is still serious corruption and
there are weaknesses in corporate legislation,
though foreign investment returned. Forty million
Russians still live in poverty. The economy remains
too dependent on the price of oil and the export of
primary products. Reform of the military lags
behind; nor is the broadening of democracy a
prime aim. The Russian people yearn more for a
better standard of living, a better quality of life,
ahead of a more accountable democratic government.
Authority is less feared than anarchy.
Russia’s future in the new millennium began to
look much brighter than during the closing years
of the last. The world learned to appreciate the
new strongman, who in 2003 officially became a
guest of the queen in Buckingham Palace. The
royal–presidential courtesies symbolically buried
the barbarities of the Soviet era. In March 2004
Putin won the elections with overwhelming support
for a second term. Since then he has increased
presidential powers at the expense of moving
towards a Western-style democracy in the belief
that it is the only way to overcome the immense
problems Russia faces, not least in the conflict in
Chechnya.