Collapse of Soviet Union
Yeltsin
Economy
Politics and Government
Key Takeaways
100

What did Gorbachev fail to anticipate? I.e. his fundamental problem 

failure to anticipate that reforms would reignite the Nationalities Question and then failure to comprehend potential explosiveness

100

What was Yeltsin's Secret Speech? 

lays out his vision, 1) invigorate the people (more participation and more involved population), 2) democratize politics - how we get the people to participate and get involved (Gorbachev wanted nothing to do with this), 3) asks to be removed from politburo - which shows his commitment; people are not very supportive of this speech at the time.

100

What are shuttle traders? 

came with wild capitalism, mostly women would start to travel, buy cheap consumer goods, lug them home (shopping tours sometimes), and then would sell them. Women then, if successful, would manage shuttle traders or open businesses.

100

super presidential system 

 makes executive branch most powerful, extensive power of appointment, can dissolve the Duma, does not give a reason for a veto, can issue binding decree at will

100

One (of many) key differences between G and Y

Gorbachev relates with Party = thought Communist Party and glasnost/pereoistroka could work together, and communist party could be a guiding hand. Yeltsin thinks you can only have one or the other, because CP is an obstacle to glasnost and pereoistroka

G = pro party; Y = leaves party 

200

Explain the coup - how did it fail. 

August 1991 Coup - Catalyst is the announcement of the date for signing the new union

  • 8 high military, elites, KGB, Conservatives, army, party, appointed by Gorbachev all represent security interests of the union and choose a military strategy to pursue political goals 


    • These people were personally threatened by new union = final straw 

  • Put Gorbachev under house arrest in Crimeria and held him as hostage 


    • They hold press conference, emergency committee, issue decrees, seize control of government buildings → use loyal troops ang go to Moscow 

    • Yeltsin gets news of the coup and rallies the people, he marches to white house, the press conference occurs, the emergency committee says they’re in charge, yeltsin says they’re not, Yeltsin goes into the crowd and appeals to the military, the military stands down and backs Yeltsin and the coup fails. 

  • Gorbachev is released from house arrest, but meets with Yeltsin and agrees his reign (Gorbachev’s) is over. Gorbachev resigns and the Soviet Union collapses. 

Resignation speech - I can’t agree with dismemberment of Soviet Union 

200

What were the parade of treaties? 

consensual and defensible way of keeping the federation together – kremlin concessions for recommitment to the federation, hands off position toward regional development, chaotic ad hoc like system of treaties with different regions

200

Explain at least 2 of the 3 ways Chubais tried to make privatization work

1 - Cash

1991/1992 – people are given money to invest in the economy, but need to/end up investing in food/basic goods. No educational component was paired with cash campaign, so people didn’t know what they should do with cash.

2 - Vouchers 

1992/1994 – created vouchers that wouldn’t work at the grocery store, trying to get people to buy into stocks with them. Still no education component, so they end up trading vouchers for food. Vouchers become advantageous to certain groups only, mainly factory directors, political and economic elites, and upstarts.

3 - Loans for Shares 

1995 – Yeltsin strikes a deal with banks where the banks would loan state some money, the state would pay the banks back and if Yeltsin is reelected the banks will be treated well and will have access to Yeltsin at any time, and the banks will be given shares in Russia’s most valuable assets (through auctions) – elites get major assets

200

Law on Sucession 

grants right to secede, but impossible in practice because contingent on supreme soviet vote.  

200

key takeaway of coup

collapse of older order shook up society and social structures without creating a viable new one; the disintegration of the soviet union must be understood as a revolution

300

What was the referendum, and what were it's consequences? 

sent out a questionnaire, Do you consider it necessary to preserve the union? 76% say yes, but 6 regions don’t participate at all (act of defiance), Gorbachev interprets these results to mean that people will sign the new union treaty

Gorbachev vs. Yeltsin - G: strong union, strong republic. Y: weak union, strong republic. 

August 1991 Coup - Catalyst is the announcement of the date for signing the new union

300

What are the 2 deals Yeltsin makes? Explain at least one in detail.

1 - Loans for Shares again - Yeltsin strikes a deal with banks where the banks would loan state some money, the state would pay the banks back and if Yeltsin is reelected the banks will be treated well and will have access to Yeltsin at any time, and the banks will be given shares in Russia’s most valuable assets (through auctions) – elites get major assets

2nd deal - with the oligarchy! Oligarchs own state TV, Yeltsin strikes deal to better his image. Gives them political power.

1st deal = economic power, 2nd deal = political power

300

3 Phases of Shock Therapy and explain at least 2 

1 - Price Liberalization

Hits everyday Russians. Before, prices were set, but when lift the prices the market sky rockets and people can’t buy basic goods. Hyperinflation.

2 - Macroeconomic Stabilization 

goal is by cutting budget deficits and expenses (like cradle-to-grave benefits) you can stabilize economy. Consequently, people went to work but there was not money to pay them with big impacts on institutions already in place.

3 - Privatization of State Property 

State isn’t getting any inflow of money, privatize houses (no more cradle-to-grave benefits) and consequently a rise in homelessness. Things can’t be owned in capitalism, so you have to create a massive class of owners to buy in.

300

Explain "The Family" in connection to Yeltsin 

Russia’s real government. Yeltsin sought advice from who he trusted most, meaning his blood relatives (especially his daughter), high state officials, oligarchy, and they usually had very similar opinions to him. If they didn’t agree with him, they were gone. Never consulted duma really.

300

Major Consequences of Privatization - what happened with elites, upstarts, and oligarchy? 

Factory directors and vouchers – able to buy the factory they were directing if they could trade their vouchers (which they got more of) or get even more from their workers

Elites and vouchers – knew what privatization was and knew vouchers were valuable and were in an advantageous position to get them.

Upstarts and vouchers – people who, during perestroika, were entrepreneurial enough to start something little and over years had amassed capital (ex. Gusinsky – starts taxi company); these people were in the right place, right time, and could get vouchers easily

Consequences – oligarchy is created, idea of a large class of property owners fails and only few people benefit

400

What was the Russian Question?

Bonus if you name the 2 other nationality problems 

Russian Question – ethnic Russians problems of either 1) subsidies to other unions should instead stay in Russia and help Russians – stop focusing on all union needs and focus on Russian ones; 2) need for self-government grows, desire to be on their own; 3) concerned they’ll become a minority over night (ex. Estonia is 70% Estonian, if E. gets independence from Soviet Union the 30% Russians become minority).

other 2:

Separation demands within union republic – ethnic minority were dissatisfied with status quo

Separation from Soviet Union – demands shifted from culture to radical after seeing glasnost was legitimate (that G wouldn’t send tanks in); the demand became a desire to be independent from Soviet Union, which was not ok with Gorbachev (didn’t like criticism of party)

400

Explain the 1993 Constitutional Crisis

low point for yeltsin; Russian congress started to have issues with reforms, start reducing Yeltsin’s power to block, but - key - when they try to impeach him it fails. Puts the issue to the people, which further irritates congress, constant back and forth, and creates a political grid lock. Uses power to rule by decrees in extreme situations and dissolves parliament. Literally erupts, orders parliament to dissolve, but lots of parliament members refuse to obey, and just stay in parliament. This threatens his legitimacy, so, calls in the military.

400

1998 Financial Crisis - What was it? 

Russian government is poor, low oil income, and investors are worried about the risk it would be to invest in Russian stocks/businesses. They have also amassed high state debt. Strikes are happening. East Asia Crisis. Ruble value crashes.

East Asia Crisis - economic crisis originates in Asia (Thailand), spreads, and hits Russia. 

400

Explain Political Democratization as it happened under Yeltsin. 

Russia’s electoral system; in the 1990s there were too many parties which became confusing to the voters and none of these parties were close to having a majority.

1993 electoral law – mixed proportional representation with single member district system

1995 electoral law – 200,000 signatures are required across 14 regions; goal was to consolidate party and lessen the number of potential parties

1999 electoral law – parties and individuals gather signatures or pay deposit; only parties that surpass a 5% threshold and candidates who get on the SMD ballot get money back; goal was to consolidate the system and make it easier for parties and individuals to get on ballots

400

Yeltsin and the late 1990s

economy is abysmal, political parties are in exess (too many of them and there’s little trust in them), no coherence with federal law implementation in the regions, and Yelstin’s health is declining

500
Build off NQ and talk about turning point for Gorbachev in 1989

1989 Gorbachev’s turning point – released reforms from above but turned into revolution from below; party v. society, elections (yeltsin’s victory), Marxism can’t resolve everything, elimination of Article 6, multiple simultaneous revolts for sovereignty within and outside country, etc.

500

Teach Yeltsin's rise to power and legitimacy 

Yeltsin became disillusioned with party, believing it an obstacle to reform and then resigns. Russian congress elects Yeltsin chair, which is the debut of managing a Russian institution, not a party institution. Gorbachev fights back but isn’t conservation enough to pacify all parties so he passes law on secession.

Yeltsin; engineer background (not a career politician), very independent

The people, not duma, elect Yeltsin as the President of Russia.

500

Consequences of 1998 Financial Crisis

imports decrease (even fewer basic goods available) but manufacturing increases which means exports also increase. State intervention also increases, which is not synonymous with a free market. Russian economy had to be bailed out.

500

Final Yeltsin resignation tipping points and succession process = explain 

Impeachment - charges were: 1993 accessory to murder charges, ruining the military during the Checyna War, 1991 collapse of Soviet Union, and genocide - ruining lives of everyday Russians with economic policy. This impeachment fails. But impeachment trial + declining helath = Yeltsin is essentially done.

1998 succession process - Putin is named head of KGB which is a high power position, but not visible to the people. Putin is a “Dark Horse” - he’s an unknown that comes into position of power. Yeltsin informally names Putin as the next president.  

500

Name 1 of the 3 key events during the Nationalities Question and explain why some regions were ready for a collapse. 

Key events – 1986 Kazakh SSR, 1998 Nagorno-Karabakh, 1989-Baltic states start making cultural, then political demands

Key Point – as the Soviet Union verged on a collapse, certain union republic elites were ready to be independent, had a following base, an ideological base, and institutions ready to go. They could be confident of their own survival.