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<text id=93TT0070>
<title>
Oct 18, 1993: The Last Best Chance For Yeltsin
</title>
<history>
TIME--The Weekly Newsmagazine--1993
Oct. 18, 1993 What in The World Are We Doing?
</history>
<article>
<source>Time Magazine</source>
<hdr>
RUSSIA, Page 69
The Last Best Chance For Yeltsin
</hdr>
<body>
<p>By BRUCE W. NELAN--Reported by Sally B. Donnelly, John Kohan and Yuri Zarakhovich/Moscow
and Ann M. Simmons/Bryansk
</p>
<p> The armed mutiny had ended. Ordinary Muscovites were in the
streets, flocking to stare at the charred shell of the White
House, the skyscraper parliament building they had sardonically
renamed "the Black House." Wiping tears from her cheeks, a woman
with henna-streaked gray hair said to fellow gawkers, "I don't
know what Rutskoi would have been like as a leader, but I'm
fed up with Yeltsin."
</p>
<p> "It's a good thing we won't have a chance to find out what Rutskoi
is like," a well-dressed young man snapped. A Rutskoi supporter
responded, "You will wake up when you have to clean American
boots." A man in scholarly glasses murmured, "Just imagine what
would have happened if parliament had seized power. Armed bands
would be roaming the streets and robbing us."
</p>
<p> Three years into the country's heart-wrenching drive to reinvent
itself--and hours after a hard-line coup attempt--Russians
found themselves last week swapping expressions of political
drift. "It could have been worse," has long been a favorite
conversation clincher among Russians. Last week it was also
true. If the rampaging gangs of fascists, communists and nationalists
had managed to take over in the Kremlin, the world would be
staring at them, fearful about the guns they were so willing
to use and about the immense nuclear arsenal at their disposal.
</p>
<p> Americans, obsessed today with the image of a soldier's pale
body dragged through the streets of Mogadishu, will find the
power struggle in Russia a bigger worry in the long run. After
the U.S. is out of Somalia, Yeltsin's foes will still be everywhere
in Russia. The atavistic forces may have lost last week, but
they will reorganize and wait for another opportunity.
</p>
<p> For Yeltsin that lurking danger is a challenge he must face
now. To do it, he is launching what some are calling, without
irony, a period of authoritarian democracy. He will rule by
decree--at least until elections are held--to try to get
his country back on track toward economic and political reform.
To accomplish this, he must do nothing less than prepare for
elections, revitalize the stalled economy, pacify a politicized
military and demonstrate that he heads a functioning government.
"Yeltsin must get down to governing quickly," says Peter Frank,
an expert on Russia at Essex University, England. "The government
has broken down, and things cannot be allowed to drift further."
</p>
<p> Bill Clinton, like other Western leaders, fully backed Yeltsin's
use of force, saying the Russian President had "no other choice
than to try to restore order." Still, many in the West were
worried that Yeltsin might choose to emphasize the authoritarian
part of his new activism at the expense of the democracy. Their
concern was eased when Yeltsin declared on television last week
that parliamentary elections would be held as scheduled on Dec.
12. Now Western attention will focus on how free and fair they
are.
</p>
<p> Or even if they are possible. A raft of procedural and substantive
questions surrounds those elections. Yeltsin suspended
the Communist Party last week, and one of his most senior aides,
Sergei Filatov, said the Party should be banned from the elctions.
Yeltsin also dissolved city government and called on all regional
soviets, the legislative councils subordinate to the Supreme
Soviet, to resign so new local governments can be elected in
December.
</p>
<p> No one is clear about what kinds of local government organs
may replace the hundreds of soviets, and in only two months
Russians are to vote for members of a parliament that has not
been established or finally defined. Last May, Yeltsin introduced
the draft of a new constitution providing for a strong presidential
system, a federal structure and a two-house parliament. But
like so many other reforms in Russia, it was blocked by the
old legislature, which had no incentive to put itself out of
work.
</p>
<p> In such uncertain circumstances, the Moscow government will
need a great deal of help from outlying regions to organize
the voting in December. But it is likely that many of the provincial
towns and districts across Russia's 11 time zones will not rally
to the task. They have a variety of reasons for not wanting
to legitimize a strong central government: many of them are
jealous of their natural resources, like oil, gold and diamonds,
and want to maintain control of them and share in the profits
from sales. And these localities fret that they pay ever higher
taxes to Moscow and receive fewer services in return. Some provincial
Russians are simply anti-Moscow or anti-Yeltsin.
</p>
<p> In Bryansk, for example, a city of 500,000 about 210 miles southwest
of Moscow, many defense plants have closed or cut back. Unemployment
and inflation are rising to the point where the monthly minimum
wage will buy only 10 lbs. of meat. Old communists like Pyotr
Shirshov, a former army general who now heads the city soviet,
predictably accuse Yeltsin of practicing "a pure form of dictatorship."
More ominous for the President, disaffection has spread to young
people, who might be expected to back reform. "I'm not really
interested in politics," says Sergei Mishin, 20, an industrial
technician, "but I know that people just don't believe anyone
anymore. Too many promises have been made and not kept."
</p>
<p> Now the reformers in Moscow, freed from parliamentary veto,
will have to deliver on some of the promises. Yeltsin had already
reappointed his reformer in chief, Yegor Gaidar, as Deputy Prime
Minister, the post he lost last December under pressure from
parliament. Gaidar says his top priority will be to rein in
inflation, which was running at 21% a month in September and
at a predicted rate of 1100% for 1993.
</p>
<p> But here's the challenge: to reduce inflation the government
will have to get a grip on the Central Bank, which up until
now has been happily engaging in printing large quantities of
money and passing out huge low-interest loans. Meanwhile, industrial
production has been plunging as parliament has insisted on supporting
state factories as a jobs program, arguing that spreading unemployment
could lead to riots. With elections set for December and a presidential
vote next June, Yeltsin will have to be careful not to throw
too many of his potential supporters out of work as he does
battle against inflation.
</p>
<p> Employed or not, Russia's consumers are screaming that prices
on basics are too high, and they are right. The problem is that
with government funds and workers concentrated in state-controlled
industries, production of high-quality civilian goods has not
caught up with demand. Nor is it likely to until the factories,
farms and retail outlets are privatized--a process that will
take years. Only about 20% of workers are employed in the private
sector, and there is evidence most people are not even convinced
that privatization is a good idea. In a study by the Russian
Center for Public Opinion Research last summer, 72% of almost
2,000 respondents had negative feelings about such a conversion
for large state enterprises.
</p>
<p> Yeltsin's economic plans may also be hampered by his debt to
the armed forces. The military has twice saved the President--once by not firing on the White House in August 1991 and
again by firing on it last week. Now the generals will be looking
for a payoff for services rendered. While they will certainly
try to influence overall security policy, their strongest concerns
are at home. The army has been humiliated by its loss of status,
the poor housing provided for its officers returning from service
in Eastern Europe and the Baltics, and a general decline in
its living standards. So it will demand improvements. And it
will also insist on a freer hand in dealing with security threats
along Russia's borders with the newly independent republics
and within Russia itself. "The generals," says Michael Dewar,
deputy director of the International Institute for Strategic
Studies in London, "see nothing but instability inside Russia
and on its periphery. They want the government to end the former
and give the military the power to protect against the latter."
</p>
<p> With so many concerns calling for stern management, Yeltsin
might be expected to stay at his desk. Instead he announced
he would fly to Japan this week for a long-scheduled three-day
visit. He may have felt he had to keep the date this time, because
he twice had to cancel to deal with crises at home. Beyond that,
Yeltsin knows that appearances matter. Even if everything in
Russia is not completely under his control, his arrival in Tokyo
will invite the world to think he has everything firmly in hand.
</p>
<p> In a televised speech last week Yeltsin declared, "We need a
normal, democratic constitution as badly as we need the air
to breathe. We need a united Russia. We need to carry on economic
transformation unswervingly." For the first time since he was
elected President in June 1991, he is free to set the course
and give the necessary orders to his government. He--and his
well-wishers in the West--will have no one else to blame if
he should fail in his last, best chance to transform Russia.
</p>
</body>
</article>
</text>