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- THE WEEK, Page 16WORLDYeltsin's "Boys and Girls" Win a Big One
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- A clever ploy thwarts efforts to reverse his economic reforms
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- "A catastrophic decline in living standards, famine, social
- upheavals and chaos." To some Russians that might sound like a
- description of what has happened since President Boris
- Yeltsin's government began a crash program of free-market
- reforms at the start of the year. In fact, it was what Yeltsin's
- Cabinet predicted would happen if the shock treatment were
- reversed.
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- On April 11, the 1,046-member Russian Congress of People's
- Deputies voted to do just that -- and in effect end Yeltsin's
- power to rule by decree. Two days later, the 35-member Cabinet,
- led by Deputy Prime Minister Yegor Gaidar, resigned en masse.
- Besides being genuinely alarmed, the Cabinet ministers -- many
- in their 30s and 40s -- felt insulted because Congress Speaker
- Ruslan Khasbulatov suggested that they were a bunch of
- disoriented youngsters. Protested Gaidar: "This is not a
- government of capricious boys and girls."
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- Gaidar warned that any retreat from the free market would
- imperil the desperately needed $24 billion in economic aid that
- Russia is due to receive from the West this year, a foreboding
- promptly confirmed by Washington. That fear probably helped turn
- the tide; so did a hint that Yeltsin might try to force a new
- election -- one that many Congress members, former communists
- chosen in 1990 when Russia was still part of the Soviet Union,
- might not survive. In any case, the legislature backed down. It
- did not formally repudiate its earlier resolution calling for
- tax cuts, wage increases and subsidies to declining industries;
- Yeltsinites charged that those measures would lead to ruinously
- inflationary deficits as well as undermine the whole spirit of
- free-market reform. But the legislature did approve a so-called
- compromise that is likely to leave Gaidar free to continue
- shock treatment as before.
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- The body also backed down from a demand that Yeltsin, who
- is his own Prime Minister, revamp the government in three
- months; he was given until December to do so. Gaidar and the
- other Cabinet members withdrew their resignations, and the
- crisis was over -- for the moment. But the ruckus was a warning
- that if the economy's downward spiral does not halt by year's
- end, Yeltsin could find himself in serious trouble.
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- Though the Congress is an unwieldy as well as
- unrepresentative body, it is legally the highest authority in
- the state, and is trying again to reduce presidential power in
- a new constitution that it approved on Saturday in "general
- concept." Yeltsin could probably defeat it in a test of popular
- strength right now. But that could change if the economy
- continues to slump and public discontent to grow.
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