Chapter 12: Yeltsin As Leader

Question 1

What is significant about Yeltsin rise to power ?

Answer 1

-he had to resign and find his way back to the political landscape
-got elected by the people for both chairman and president
-Yeltsin rise to power began from Gorbachev start of leader when he brought him from Moscow
-two year later he was disloyal to Gorbachev so from the very start he was already causing problems but still was able to maintain his position without getting sacked
-Yeltsin wasn’t exiled or removed instead he found a seat in the supreme soviet
-Gorbachev reform enable for Yeltsin to take power

Question 2

What does the political career of Yeltsin pre-Gorbachev resignation in December 1991 tell us about his character?

Answer 2

-he was resilient and go along with his aims of reform, even through he was humiliated and continued to criticise the slow pace of Gorbachev reforms but he was also disloyal

Question 3

Why would Yeltsin be the most popular man in Russia by 1991 ?

Answer 3

He was elected for both chairman and president although he was sacked, he had a strong support and openly championed the right of the soviet republics to declare their independence and supported demands for a multi-party system and free market which gained all the support for reformist while Gorbachev keep losing his power base and support

Question 4

Why is Yeltsin seen as unpredictable?

Answer 4

-his time in office clearly shows he was disloyal from the very start, which was seen as unexpected after all he owed his position in the politburo due to Gorbachev, he was once a loyal communist who went on to bring down the Soviet Union, a defender of democracy at the White House, a market reformer who bosses and an international hero who embarrassed the nation with his periods of alcoholism

Question 5

What did Yeltsin do on assuming office and why ?

Answer 5

-the KGB was reformed in 1991 but it was internal reform that the KGB itself carries out, in 1994 it rebranded itself as the federal security service but remained a very similar organisation, which is very hypocritical as he was criticising Gorbachev for his slow reform but he was doing the same
-in his personal life he aimed to continue with soviet past and moved into the luxurious mansion that had been built for Gorbachev and took frequent hunting trips in the old party retreats
-he did not start his leadership by dismantling of the old structure of the Soviet government, banning former party leaders from political offices or setting up a new constitution or his a genuine multi party system which advocated for.

Question 6

How was boris Yeltsin in office ?

Answer 6

-he was immature and very unserious in most public event he was drunk and stumbled a lot
-he wasn’t serious about important events and was just driven by his addiction to alcohol
-Yeltsin was slow to act for his wants of democracy and act to his promises which is hypocritical of him
-Yeltsin failed to bring Russian back up, inicial crisis led to lots of poverty, discontent and economic failure

Question 7

Yeltsin aim in the Soviet government ? How predictable was this ?

Answer 7

-concentrate executive powers in the presidency
-he was to a degree dependent of continuing media support and the support of the oligarchs
-this was unpredictable, beginning back private ownership through the rise of the oligarchs and putting all power onto himself was very much going against his promises of democracy

Question 8

Yeltsin aim to the CPSU ? How predictable was this ?

Answer 8

-old guard of the party conservative had not gone away and Yeltsin needed to treat them carefully with the big ministers, the FSB and the military
-most Russian had not resisted the soviet system because there was national pride related to Russia role in the world event
-this was to an extent unpredictable because he was against conservative and was the one who accused them of treason during the august coup so now that he had sole power and couldn’t even take them down show his lack of keeping his own promises

Question 9

Yeltsin aims to the KGB? How predictable was this ?

Answer 9

-was reformed in 1991 under internal reform which was carried out by itself
-rebranded itself as federal security service but still had similar characteristics to the old system
-this to an extent was predictable after criticising the Soviet Union it was obvious he would reform the KGB which was a huge representation of the Soviet Union however its also unpredictable for its lack of significant reform as they were still very similar

Question 10

Yeltsin aim in the economy ? How predictable was this ?

Answer 10

-brought in experts to fill in the details of the plan
- he introduced shock therapy into the economic system
- this was predictable as he wasn’t an economic expert himself but also he was a radical so his reforms were obviously going to be radical

Question 11

What was the state of the economy when yeltsin came to office ?

Answer 11

-economy GNP fell by 17% during 1991 after the collapse of the Soviet Union
-foreign trade fell by 39%
-Russian production of oil and gad had dipped due to low international oil prices and strikes
-budget deficit grew from 6% to 26% in 1991
-foreign debt was $88 billion because Russian had taken all of the USSR debt

Question 12

Yeltsin personal rule? How predictable was this?

Answer 12

-Yeltsin was controlling ruler in office and ensuring loyalty from the lower tanks and finding any criticism entirely unacceptable
-his leadership alternated periods of hard work and rest
-he went on holiday for a month to recover from the strains of the Augusts coup
-prone to depression and personal ill health
-confused and unclear
-it was unpredictable because he put on a mask during his rise to power of democracy and change but once in office his presidency was fuller with control and alcoholism totally the opposite of a democracy

Question 13

When were prices control lifted on most products as part of Gaidar reforms ?

Answer 13

1992

Question 14

When was the first Chechen war ?

Answer 14

1994

Question 15

When was the collapse of the Russian economy, the financial crisis ?

Answer 15

1998

Question 16

How did Yeltsin of rule differ from Gorbachevs ?

Answer 16

-Yeltsin didn’t have a clear vision or strategy
-he was very controlling and fulled by alcohol

Question 17

How did Yeltsin style of rule similar to Gorbachev ?

Answer 17

-both struggles to tackle corruption
-economic problems because both weren’t economic experts
-both wanted to implement some radical reforms

Question 18

What is shock therapy and the IMF ?

Answer 18

-shock therapy is a strategy in which a country switched over quickly to a market economy enabling price liberalisation, budget stabilisation, enabling subsidies and privatisation
-international monetary fund is an international organisation made up of 188 countries where financially trouble countries would apply for a loan

Question 19

How had price controls operated in the USSR before shock therapy ?

Answer 19

-price control deliberately aimed to keep products cheap were a major problem for the USSR
-to fix this they reduced incentives for producers to innovate or improve quality and contributed to shortages because when wages were increased people had more money to spend on the same limited supply of cheap products.

Question 20

What dud Gaidar’s free market reforms entail ?

Answer 20

-Gaidar reforms led to state planning organisation being dismantled and ministries lose their role in organising production
-state owned enterprise were privatised, small and medium enterprises were transferred to collective of their current workers and managers
-while russian citizens were offered the chance to purchase share in the large states companies
-Soviet era restriction on trade were dropped now anyone can start selling

Question 21

What was the result of Gaidar shock therapy on prices ?

Answer 21

-in January 1992 , his reforms lifted price controls on most foods and consumer products, controls remained on energy prices
-as a result prices rose rapidly on averaged by 1200% compared with 1991
-inflation rocketed ti 2500% in 1992, this led to peoples stop using roubles currency and switch to dollars
-this boosted the black markets, crime and corruption
-companies were forced to close as the government went back on its contacts and people put of buying things while prices continued to rise
-price liberalisation could lead to high prices and have an affect on society
-bills were paid as late as possible as since the amount demandes would have halved in value after weeks

Question 22

What effect did this have on soviet citizens

Answer 22

-people stopped using roubles and moved to dollars
-bills were paid as late as possible since the amount demanded would have halved in value after a few weeks

Question 23

What was the impacts of Gaidar shock therapy economic reforms in other areas of production/ construction ?

Answer 23

-agriculture only worsened and had no improvements
0construction gradually increased in 1993 by 1.0 however quantity and quality have always been an issues even through shock therapy made it worse

Question 24

What were the political consequences of shock therapy reforms and why ?

Answer 24

-reduction on things being made
-Yeltsin popularity fell and political opposition to his reforms increased e.g in 1992 conservative politicians in congress of people deputies combined together to block further reform which began a battle with his own parliament
-Yeltsin replaced key reformist including Gaidar with less radicals figures
-COPD attacked the way privatisation was proceeding
-conservatives set out amendments on the privatisation programme which allowed directors to take control of their enterprise
-his popularity fell

Question 25

Evidence of corruption with Gaidar reforms ?

Answer 25

-the second stages of privatisation was even more rife with corruption, the state entered into a relationship with oligarchs in the banking and raw materials sectors
-the goals of creating an efficient enterprise and shareholder society lacked transparency, corruption was rife and privatisation did not inspire the confidence of the Russian people
-inflation boosted the black market, crime and corruption

Question 26

Evidence of lack of faith in the new system ?

Answer 26

-Gaidar initial solution was to give every citizen $22 to enable them to buy stocks this provided another opportunity to make money dishonestly, the scandal that follow further undermined faith in the system and these shares lose value
- peasants were reluctant to buy land at a time when agriculture was very unprofitable

Question 27

Evidence of failed market based economics ?

Answer 27

• implementing shock therapy meant withdraw support from enterprise still owned by the state this would mean shutting down thousands of factories and resulting in thousands becoming unemployed
  -bills were not being paid as late as possible since the amount demanded would have halved in value after a few weeks
  -the newly rich found a way through this system to invest their money abroad
  -privatisation was hard to achieve in a country where the people did not have the capital and no managers capable of operating in the new system

Question 28

Where was Chechnya ?

Answer 28

Chechnya was a republic located in the Russia territory

Question 29

What happened in Chechnya in 1940 ?

Answer 29

-Chechnya nationalist led a revolts against soviet rule which lasted from 1940-44, after soviet troops crushed the rebellion and got accused for collaborating with nazi invaders by Stalin

Question 30

What happened in Chechnya in 1991 as a result of the collapse of the USSR ?

Answer 30

They declared it independence from Russia

Question 31

How did Yeltsin respond in 1994 and what was the impact ?

Answer 31

-Russian troops were sent to quash the independence movement, up to 50,000 people were estimated of being killed during the war by 1996

Question 32

What happened in 1996 in Chechnya ?

Answer 32

-a group of Chechen fighters infiltrated Grozny and launched a three-day surprise rain on the city taking most of it and capturing of weapons and ammunition

Question 33

How successful was Chechnya for Yeltsin ?

Answer 33

Yeltsin declared it a victory

Question 34

What does Chechnya tell us about Yeltsin policies and aims as president ?

Answer 34

-Chechnya shows how Yeltsin policies would only be for the benefit of Russia and very controlling as a president

Question 35

What are the oligarchs ?

Answer 35

Is a term used to describe those who made vast profits during Yeltsin privatisation and were very influential and some had political power

Question 36

What happened at the White House 3-4 October 1993 ?

Answer 36

-there was a campaign by congress deputies to reduce or remove Yeltsin executive powers, this led to Yeltsin using his executive power to dissolve congress in September 1993
-this led to his deputies declare that he was acting illegally
-Yeltsin used force to dissolve congress, which involved the deaths of several hundreds people during fighting around the White House

Question 37

Yeltsin new constitution ?

Answer 37

-in the new system the Russian president gained very significant power such as appointing the prime minister although the duma had to agree, to nominate senior judges and issue decrees
-the president has key ministers report directly to him, was head of the armed forces and decided both defence and foreign policy

Question 38

What included in Yeltsin new sytem ?

Answer 38

The president, prime minister, government and a new parliament

Question 39

Who was doing well in the polls before the 1996 election ?

Answer 39

-Zyuganov who had 20% while Yeltsin had 8%

Question 40

What evidence suggested that Yeltsin time in office would be up by the time he faces voters in the 1996 presidential election ?

Answer 40

-parliamentary elections in 1993 and 1995 showed voters disapprove of Yeltsin
-the reformist party split in to different political parties one led by Gaidar which was very poorly managed and the other by Chernomyrain

Question 41

What policies had Yeltsin advanced which had been unpopular in the lead up to the 1996 election ?

Answer 41

-economic meltdown, sending tanks against congress and starting a disastrous war in Chechnya did not make a very promising election platform

Question 42

How did Yeltsin manage to run a successful election campaign in spite of the opposition against him ?

Answer 42

-support from the oligarchs in running Russian media
-an improved image he even lose weight and appeared more in public
-he increased the pay for government employees and the military + pension fees
-promised and end to the war in Chechnya
-and IMF loan of $10.2 million for Yeltsin
-used scare tactics against the communist and nationalist that the IMF would take back the loan if the reformist party lose

Question 43

What was the result of the 1996 election ?

Answer 43

-Yeltsin won with a 54% vote in his favour

Question 44

What happened in 12th may ?

Answer 44

-coal miner went on strike over unpaid wages, by 1st august approx. 12.5 billion was owed to workers

Question 45

What happened the 13th July ?

Answer 45

• IMF and WB financial package of $226 billion to help stabilise and reform Russia approx. $5 billion was stolen upon it arrival on the eve of the meltdown

Question 46

What happened on the 15th July ?

Answer 46

-the state duma dominated left wing party refused to adopt most of government anti-crisis plan therefore the government was forced to to relay on the president decree
-this led to inflation 84% ,welfare cost up, many banks closed, Yeltsin domestic support was evaporating

Question 47

How did declining productivity contribute to the financial crisis ?

Answer 47

-industrial and agriculture productivity was in decline
-not producing as much as they did before
-prices are going to increase due to the fact there’s a small supply and high demand
-unemployment is going to increase and trade exports are decreasing
-relaying in import

Question 48

How did fixed pegged exchange rate contribute to financial crisis ?

Answer 48

-this was aimed to make trade and investment between countries easier and to stabilise the value of the currency
-by making the value of the roubles to be pegged at 5.3-7.11
- this meant roubles were sold if the rate went higher and brought if the rate went lower
-however this proved difficult to maintain and $27 billion of US $ reserve were spent trying to maintain the floating peg

Question 49

How did chronic fiscal deficit contribute to the financial crisis ?

Answer 49

-defending a fixed exchange rate when in trade deficit forced Russia to use deflationary measures which raised taxes and led to unemployment
-the government was struggling to pay their workers and debt
-CFD was when the government was spending more than they had coming in
-raising taxes to raise government income only worsened the situation by leading to unemployment, inflation and less productivity

Question 50

How did the war in Chechnya contribute to the financial crisis ?

Answer 50

-1994-6 the cost was $5.5 billion
-which was threatening as the government didn’t have that amount of money to spend

Question 51

How did the Asian financial crisis contribute to the financial crisis 1988 ?

Answer 51

-in July 1977 mostly affected Thailand, South Korea but also hurt Hong Kong, Malaysia and Philippines
-the led to a decline in the demand for and price of crude oil and nonferrous metals
-this was very impactful as their market shrinkend and had no income coming in

Question 52

How did economic reforms led to Yeltsin resign ?

Answer 52

-the economy appeared to be recovering by 1996 to 97 since it boosted by a total of $40 billion in IMF loans
-in 1998 Russia failed to make its loan repayment, triggering a financial crisis
-most of the money had found its way to Swiss bank and lots had been stolen
-oligarchs profits made in Russia had been taken out the country and invested abroad
-ordinary Russian saw their banks failing and inflation spiralling upwards again
-40% of Russians were living below the poverty line line by 1988
-as the market fell the rouble fell to an all time low and lost 75% of it value

Question 53

How did political instability in Russia led to Yeltsin resign ?

Answer 53

-sacked and reshuffled his ministers
-launching new reforms were blocked by the duma but his days were numbered as nationalist strikes called on Yeltsin to resign
-he sacked the duma’s preferred prime minister Primkov and appointed Vladimir putin
-between 1998 and 1999 Russian had 5 different PM in Yeltsin absence

Question 54

How did the war in Chechnya led to Yeltsin resign ?

Answer 54

-the prestige of Russia and Russian army suffered massive blow both domestic and international opinion criticised the brutalities that the Russian army inflicted on Chechnya
-this alienated many of the democrats that supported him
-the war itself was estimated to cost $5.5 billion
-the 1st war in Chechnya came to an end in 1996 with an estimated 14,000 casualties in the Russian military
-went to be an ongoing till 2009

Question 55

How did Yeltsin himself led to his resignation ?

Answer 55

-Yeltsin suffered from ill health and was an alcoholic
-his poor health caused him to be hospitalised and away from the public eyes
-on several occasions he had appeared drunk in public and behaved erratically much to be embarrassed off
-on a state visit to Ireland he was unable to disembark his plane because he was too drunk
-after his success of 1996 election he went through heart bypass surgery + hospitalised for several months