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Page 1: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

RussiaRussia

Page 2: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

I. Authoritarian Oligarchy or Budding I. Authoritarian Oligarchy or Budding DemocracyDemocracy Between 1945-1991 global politics defined by Between 1945-1991 global politics defined by

competition between the USA and USSRcompetition between the USA and USSR Collapse of Soviet Union in 1991 left the Collapse of Soviet Union in 1991 left the

Russian Federation as the largest piece of Russian Federation as the largest piece of territory remaining from the USSR, its territory remaining from the USSR, its population was cut in half, but it still remained population was cut in half, but it still remained the largest country in the world in terms of the largest country in the world in terms of geographic sizegeographic size

Boris Yeltsin became 1Boris Yeltsin became 1stst president of the president of the Russian Federation, he initiated Russian Federation, he initiated ““Shock Shock TherapyTherapy”” reforms reforms– DemocracyDemocracy– Free Market EconomyFree Market Economy

Page 3: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Oligarchy vs. Democracy Oligarchy vs. Democracy (Continued)(Continued)

OligarchyOligarchy – a small group of Yeltsin – a small group of Yeltsin’’s s family members and personal advisors family members and personal advisors took control of government and granted took control of government and granted themselves favors and invited political and themselves favors and invited political and economic corruptioneconomic corruption

Page 4: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Oligarchy vs. Democracy Oligarchy vs. Democracy (Continued)(Continued) Vladimir Putin replaced Yeltsin in 1999 and Vladimir Putin replaced Yeltsin in 1999 and

has attempted to contain the oligarchies has attempted to contain the oligarchies influence in some aspects of governmentinfluence in some aspects of government– Centralization of Power in PresidentCentralization of Power in President– Movement towards authoritarian ruleMovement towards authoritarian rule– Unpredictability of Russia (No experience with Unpredictability of Russia (No experience with

democracy and free market economy)democracy and free market economy)– Slavic roots provide strong tendency to Slavic roots provide strong tendency to

autocratic ruleautocratic rule

Page 5: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

II. Sovereignty, Authority, and II. Sovereignty, Authority, and PowerPower

Most of 20Most of 20thth century authority in Soviet Russia century authority in Soviet Russia came from the Politburo of the Communist came from the Politburo of the Communist PartyParty

Politburo Politburo – small group of men who climbed – small group of men who climbed the ranks of the party through the the ranks of the party through the nomenklatura nomenklatura system.system.– NomenklaturaNomenklatura – ordered path from local party – ordered path from local party

soviets to the soviets to the ““commanding heightscommanding heights”” of leadership of leadership When the Soviet Union dissolved the authority When the Soviet Union dissolved the authority

and power of the Politburo dissolved with it.and power of the Politburo dissolved with it.

Page 6: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

III. LegitimacyIII. Legitimacy Political legitimacy for Russia is currently very low, partly Political legitimacy for Russia is currently very low, partly

because changes are a drastic departure from the pastbecause changes are a drastic departure from the past Putin may use authoritarian strategies to solidify RussiaPutin may use authoritarian strategies to solidify Russia’’s s

weak, weak, illiberal democracy.illiberal democracy. Historically RussiaHistorically Russia’’s political legitimacy has been based s political legitimacy has been based

on strong, centralized, autocratic ruleon strong, centralized, autocratic rule– TsarsTsars– Communist rule propagated by Marxism-LeninismCommunist rule propagated by Marxism-Leninism

Democratic-CentralismDemocratic-Centralism: rule by a few for the : rule by a few for the benefit of the manybenefit of the many

– Stalinism changed the regime to Stalinism changed the regime to totalitarianismtotalitarianism Constitution of 1993 Constitution of 1993 – provided for a strong president, – provided for a strong president,

although power of the president can technically be although power of the president can technically be checked by popular elections and the Duma checked by popular elections and the Duma (representative assembly)(representative assembly)

Page 7: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

IV.IV. Political CulturePolitical CultureCharacteristicsCharacteristicsGeographic SettingGeographic SettingEastern OrthodoxyEastern OrthodoxyEquality of ResultEquality of Result

Page 8: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Geographic SettingGeographic Setting Geographic SettingGeographic Setting

– Largest country in worldLargest country in world– Contains 11 time zonesContains 11 time zones– Majority of country is north of 49Majority of country is north of 49thth degree degree

latitude (U.S. – Canada border)latitude (U.S. – Canada border)– Abundance of natural resources that exist in Abundance of natural resources that exist in

inhospitable or inaccessible geographic inhospitable or inaccessible geographic locationslocations

Page 9: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Eastern OrthodoxyEastern Orthodoxy Eastern OrthodoxyEastern Orthodoxy

– Early in their history Russians adopted Eastern Early in their history Russians adopted Eastern Orthodox Christianity as their religionOrthodox Christianity as their religion

– This meant that they did not share the values of the This meant that they did not share the values of the Renaissance, Reformation, Scientific Revolution and Renaissance, Reformation, Scientific Revolution and EnlightenmentEnlightenment

– Russians came to value a strong state to protect them Russians came to value a strong state to protect them from geographic vulnerabilities instead of individualismfrom geographic vulnerabilities instead of individualism

– Eastern Orthodoxy also linked with the state, separation Eastern Orthodoxy also linked with the state, separation of church and state therefore did not exist in Russiaof church and state therefore did not exist in Russia

– Russia developed a sense of global mission linked to Russia developed a sense of global mission linked to there self-proclaimed title as the there self-proclaimed title as the ““Bastians of Eastern Bastians of Eastern ChristianityChristianity””. This sense of global mission would be . This sense of global mission would be promoted by the Soviet Union in their spread and promoted by the Soviet Union in their spread and preservation of communism.preservation of communism.

Page 10: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Equality of ResultEquality of Result Equality of ResultEquality of Result

– Communist regime instilled a value of equality Communist regime instilled a value of equality in the Russian people already strong in a in the Russian people already strong in a country of peasants with similar living standardscountry of peasants with similar living standards

– Egalitarianism has survived the fall of the Soviet Egalitarianism has survived the fall of the Soviet UnionUnion

– Most Russians resent differences of wealth or Most Russians resent differences of wealth or incomeincome

– Equality of Result vs. Equality of OpportunityEquality of Result vs. Equality of Opportunity– Russian political culture is not particularly Russian political culture is not particularly

conducive to the development of capitalismconducive to the development of capitalism

Page 11: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

V. Political & Economic V. Political & Economic ChangeChange

1.1. Long period of Autocratic rule by TsarsLong period of Autocratic rule by Tsars – – ruled Russia from the 14ruled Russia from the 14thth century to the early century to the early 2020thth. Control of Russia passed down through the . Control of Russia passed down through the Romanov family from the 17Romanov family from the 17thth century on, but century on, but transitions were often accompanied by brutality transitions were often accompanied by brutality and assassinationsand assassinations

Peter The Great

Nicholas I

Page 12: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

VI. Political & Economic VI. Political & Economic ChangeChange

2.2. 2020thth century rule by Communist Party century rule by Communist Party – – began in 1917 when Leninbegan in 1917 when Lenin’’s Bolsheviks seized s Bolsheviks seized control of the government after the last tsar, control of the government after the last tsar, Nicholas II, was deposed. The regime toppled in Nicholas II, was deposed. The regime toppled in 1991 when a failed coup from within the 1991 when a failed coup from within the government created chaosgovernment created chaos

3.3. Regime change to Democracy and Free Regime change to Democracy and Free Markets in 1991Markets in 1991 – President Boris Yeltsin put – President Boris Yeltsin put western-style reforms in place to help create western-style reforms in place to help create the Russian Federationthe Russian Federation

Page 13: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Early Tsarist RuleEarly Tsarist Rule First tsars were princes of Moscow who First tsars were princes of Moscow who

cooperated with Mongol rulers in the 13cooperated with Mongol rulers in the 13thth centurycentury

After Mongol empire weakened, the After Mongol empire weakened, the princes named themselves princes named themselves ““tsarstsars”” in the in the tradition of the tradition of the ““CaesarsCaesars”” of ancient Rome of ancient Rome

Autocratic from the beginning to protect Autocratic from the beginning to protect themselves against invasion and attackthemselves against invasion and attack

Tsars served as official head of Eastern Tsars served as official head of Eastern Orthodox Church, they were seen as Orthodox Church, they were seen as political and religious leaderspolitical and religious leaders

Page 14: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

““WesternWestern”” Tsars Tsars Peter the GreatPeter the Great

– Ruled in late 17Ruled in late 17thth and early 18 and early 18thth century century– Introduced western technology and culture to Introduced western technology and culture to

RussiaRussia– First tsar to travel to Germany, Holland, & First tsar to travel to Germany, Holland, &

EnglandEngland– Brought engineers, carpenters, and architects to Brought engineers, carpenters, and architects to

RussiaRussia– Set Russia on course to becoming a world powerSet Russia on course to becoming a world power

Page 15: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

““WesternWestern”” Tsars Tsars Catherine the GreatCatherine the Great

– Originally from GermanyOriginally from Germany– Ruled during the late 18Ruled during the late 18thth century century– Russia gained warm water access to the Black Russia gained warm water access to the Black

Sea under her reignSea under her reign– ““Enlightened DespotEnlightened Despot”” – interested and read – interested and read

Enlightenment ideas, she ruled absolutely but Enlightenment ideas, she ruled absolutely but with the good of the people in mindwith the good of the people in mind

– Tsars after Peter and Catherine alternated Tsars after Peter and Catherine alternated between emphasizing Slavic roots and tolerating between emphasizing Slavic roots and tolerating western reformswestern reforms

Page 16: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

1919thth Century Century Russia invaded by Napoleon in 1812Russia invaded by Napoleon in 1812 Alexander I resists invasion and ultimately drives Alexander I resists invasion and ultimately drives

French out of RussiaFrench out of Russia Russian intellectuals influenced by Western Russian intellectuals influenced by Western

thought grew weary of tsarist absolutism and thought grew weary of tsarist absolutism and revolted: revolted: Decembrist Revolt of 1825Decembrist Revolt of 1825– Revolt crushed by Nicholas IRevolt crushed by Nicholas I

Page 17: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

1919thth Century Century Crimean War Crimean War – Russia defeated by UK, France, – Russia defeated by UK, France,

and Ottoman Empire. Defeat was a significant and Ottoman Empire. Defeat was a significant blow for confidence in tsarist leadership among blow for confidence in tsarist leadership among RussiansRussians

Tsars used secret police for investigations, as well Tsars used secret police for investigations, as well as exiling and execution of dissenters in 19as exiling and execution of dissenters in 19thth centurycentury

Alexander II only 19Alexander II only 19thth century tsar to embrace century tsar to embrace reforms, however he was assassinated in 1881.reforms, however he was assassinated in 1881.– He freed Russian serfsHe freed Russian serfs– Set up regional Set up regional zemstvaszemstvas (assemblies) (assemblies)

Alexander III reacted to assassination by undoing Alexander III reacted to assassination by undoing reforms and intensifying efforts of secret police.reforms and intensifying efforts of secret police.

Alexander III

Page 18: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Revolution of 1917Revolution of 1917 CausesCauses

– RussiaRussia’’s defeat in Russo-Japanese War (1904-s defeat in Russo-Japanese War (1904-1905)1905)

– Ineffectiveness in World War IIneffectiveness in World War I Riots first break out in 1905 after Russians Riots first break out in 1905 after Russians

defeated by Japanesedefeated by Japanese Revolts were suppressed but state collapsed in Revolts were suppressed but state collapsed in

1917 amidst World War I1917 amidst World War I Russian soldiers were fighting without guns and Russian soldiers were fighting without guns and

shoes, military defections from the war helped shoes, military defections from the war helped send the state into chaossend the state into chaos

Page 19: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Lenin and the BolsheviksLenin and the Bolsheviks MensheviksMensheviks – Russian Marxists who believed – Russian Marxists who believed

that socialist revolutions would first take place in that socialist revolutions would first take place in industrialized countries such as Germany and industrialized countries such as Germany and England, Russians would have to wait to England, Russians would have to wait to modernizemodernize

Vladimir Lenin Vladimir Lenin – communist who disagreed with – communist who disagreed with Mensheviks, he argued for democratic-centralism, Mensheviks, he argued for democratic-centralism, or a or a ““vanguardvanguard”” leadership group to lead the leadership group to lead the revolution in the name of the peoplerevolution in the name of the people

BolsheviksBolsheviks – followers of Lenin, practice – followers of Lenin, practice Marxism-Leninism, took control of Russian Marxism-Leninism, took control of Russian government in late 1917 government in late 1917 (October Revolution).(October Revolution).

Page 20: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Lenin & Bolsheviks Lenin & Bolsheviks continuedcontinued Brest-Litovsk TreatyBrest-Litovsk Treaty – negotiated between – negotiated between

Bolsheviks and Germans to end Russian Bolsheviks and Germans to end Russian involvement in WWI. Russians ceded a third of involvement in WWI. Russians ceded a third of their arable land to the Germans under the Treatytheir arable land to the Germans under the Treaty

In 1918 civil war broke out in Russia between the In 1918 civil war broke out in Russia between the White ArmyWhite Army, led by Russian military leaders and , led by Russian military leaders and backed by the Allies, and the backed by the Allies, and the Red ArmyRed Army led by led by Lenin and the Bolsheviks. Red Army victorious.Lenin and the Bolsheviks. Red Army victorious.

Page 21: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Lenin & Bolsheviks Lenin & Bolsheviks continuedcontinued

New Economic Policy (NEP)New Economic Policy (NEP) – instituted by – instituted by Lenin in 1920 following civil war, allowed for a Lenin in 1920 following civil war, allowed for a great deal of private ownership to exist under a great deal of private ownership to exist under a centralized leadershipcentralized leadership

Lenin dies in 1924, after brief struggle for power Lenin dies in 1924, after brief struggle for power amongst Bolsheviks he is succeeded by Josef amongst Bolsheviks he is succeeded by Josef Stalin, Stalin, ““Man of SteelMan of Steel””

Page 22: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

StalinismStalinism

Stalin places Communist Party Stalin places Communist Party (CPSU) at center of control(CPSU) at center of control– Leaders identified through Leaders identified through nomenklatura nomenklatura – process of – process of

selecting individuals from lower levels within party (Kept selecting individuals from lower levels within party (Kept a file for anybody who was somebody)a file for anybody who was somebody)

– Central Committee: Central Committee: group of 300 party leaders who group of 300 party leaders who were the top government officialswere the top government officials

– Politburo: Politburo: ““heart and soulheart and soul”” of Communist Party, group of Communist Party, group of 12 men from the Central Committee who ran the of 12 men from the Central Committee who ran the country, all government agencies and departments were country, all government agencies and departments were at their disposal and carried out their decisionsat their disposal and carried out their decisions

– General Secretary:General Secretary: head of the Politburo, head of the Politburo, ““dictatordictator”” of of the country (Stalin was General Secretary from 1927–the country (Stalin was General Secretary from 1927–1953)1953)

Page 23: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Stalinism IIStalinism II

Collectivization & IndustrializationCollectivization & Industrialization– Replaced the NEP with Replaced the NEP with ““collective farmscollective farms””– Private land ownership abolished, Private land ownership abolished, kulaks kulaks forced to move to forced to move to

cities or labor campscities or labor camps– Five-Year PlansFive-Year Plans: ambitious goals for production of heavy : ambitious goals for production of heavy

industry such as oil, steel, and electricity. Labor and industry such as oil, steel, and electricity. Labor and factories fueled by agricultural surplus produced from the factories fueled by agricultural surplus produced from the farmsfarms

– GosplanGosplan: Central State Planning Commission, in charge of : Central State Planning Commission, in charge of Five-Year Plans, became the center for the economy, Five-Year Plans, became the center for the economy, determined production and distribution of virtually all goods determined production and distribution of virtually all goods in Soviet Unionin Soviet Union

StalinismStalinism – the two-pronged program of – the two-pronged program of collectivization and industrialization, carried out by collectivization and industrialization, carried out by central planning, executed with force and brutalitycentral planning, executed with force and brutality

Page 24: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

StalinStalin’’s Foreign Policys Foreign Policy Primary concern internal development, foreign policy Primary concern internal development, foreign policy

was meant to support thiswas meant to support this Stalin advocated Stalin advocated ““socialism in one countrysocialism in one country”” Signed Non-Aggression Pact with Nazi Germany in Signed Non-Aggression Pact with Nazi Germany in

19391939 After Nazis invade Soviet Union in 1940, Stalin joins After Nazis invade Soviet Union in 1940, Stalin joins

the Allies to fight Germans in World War IIthe Allies to fight Germans in World War II Red Army drives Nazis out of Soviet Union and back to Red Army drives Nazis out of Soviet Union and back to

Berlin where the Germans are defeated in 1945.Berlin where the Germans are defeated in 1945. Red Army occupies majority of Eastern Europe during Red Army occupies majority of Eastern Europe during

this time periodthis time period Tensions between Soviets and the West, particularly Tensions between Soviets and the West, particularly

the United States, become a growing foreign policy the United States, become a growing foreign policy concern for Stalinconcern for Stalin

Cold WarCold War

Page 25: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

The PurgesThe Purges

Execution of millions of Soviet citizensExecution of millions of Soviet citizens As many as one million communist As many as one million communist

party members executedparty members executed Stalin obsessed with disloyalty within Stalin obsessed with disloyalty within

the partythe party Generals, Central Committee Generals, Central Committee

members, and Politburo officials members, and Politburo officials purged as a result of Stalinpurged as a result of Stalin’’s paranoias paranoia

Page 26: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

KhrushchevKhrushchev

Follows Stalin as General Secretary Follows Stalin as General Secretary after brief power struggle in CPSUafter brief power struggle in CPSU

1956, gives 1956, gives ““secret speechsecret speech”” (based on (based on letter written by Lenin) denouncing letter written by Lenin) denouncing Stalinism, initiates reforms that lead to Stalinism, initiates reforms that lead to ““DeStalinizationDeStalinization”” process in Soviet Union process in Soviet Union

Diplomatic and military failure of the Diplomatic and military failure of the Cuban Missile Crisis Cuban Missile Crisis leads to his leads to his downfall and removal as General downfall and removal as General SecretarySecretary

Page 27: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

KhrushchevKhrushchev’’s Reformss Reforms

Loosen government censorship of Loosen government censorship of presspress

Decentralization of economic decision-Decentralization of economic decision-makingmaking

Restructuring of collective farmsRestructuring of collective farms ““Peaceful CoexistencePeaceful Coexistence”” foreign policy foreign policy

in Cold War diplomacy with U.S. in Cold War diplomacy with U.S. (Cuban Missile Crisis threatens this (Cuban Missile Crisis threatens this initiative)initiative)

Page 28: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

BrezhnevBrezhnev

Eventually succeeds Khrushchev as Eventually succeeds Khrushchev as General Secretary of CPSU and head of General Secretary of CPSU and head of state of the Soviet Unionstate of the Soviet Union

Hard-line, conservative member of Hard-line, conservative member of Communist partyCommunist party

Ends reforms initiated by KhrushchevEnds reforms initiated by Khrushchev ““DétenteDétente”” is dominant foreign policy in is dominant foreign policy in

Cold War diplomacy with U.S., this ends Cold War diplomacy with U.S., this ends with the Soviet invasion of Afghanistan with the Soviet invasion of Afghanistan ordered by Brezhnev in 1979ordered by Brezhnev in 1979

Page 29: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

GorbachevGorbachev

Takes over as General Secretary in the Takes over as General Secretary in the mid-1980mid-1980’’ss

Leads a younger generation of Leads a younger generation of communistscommunists

Educated and more Educated and more ““westernizedwesternized”” then then previous Soviet leadersprevious Soviet leaders

Initiates a wave of reforms that included:Initiates a wave of reforms that included:– GlasnostGlasnost– PerestroikaPerestroika– DemokratizatsiiaDemokratizatsiia

Page 30: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Glasnost – Glasnost – ““OpennessOpenness””

Open discussion of political, social, and Open discussion of political, social, and economic issueseconomic issues

Allowed for open criticism of government Allowed for open criticism of government and government policiesand government policies

Gorbachev stressed that the ultimate test Gorbachev stressed that the ultimate test of the party lay in improving the economic of the party lay in improving the economic well-being of the country and itwell-being of the country and it’’s peoples people– Open market relationsOpen market relations– Pragmatic economic policyPragmatic economic policy– Less secretive governmentLess secretive government

Page 31: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Perestroika – Perestroika – ““RestructuringRestructuring”” Loosened controls of the Communist Party, Loosened controls of the Communist Party,

allowing group formation in other sectors allowing group formation in other sectors of societyof society

Economic RestructuringEconomic Restructuring– Modernization from withinModernization from within– Transfer economic power from central Transfer economic power from central

government to private hands and market government to private hands and market economyeconomy Authorization of privately owned companiesAuthorization of privately owned companies Penalties for under-performing state factoriesPenalties for under-performing state factories Price reformsPrice reforms Encouragement of joint ventures with foreign Encouragement of joint ventures with foreign

companiescompanies Leasing of farm land outside the collective farmsLeasing of farm land outside the collective farms

Page 32: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

DemokratizatsiiaDemokratizatsiia Gorbachev wanted to insert some Gorbachev wanted to insert some

democratic characteristics into the old democratic characteristics into the old Soviet structureSoviet structure

However, he did want to maintain However, he did want to maintain Communist Party controlCommunist Party control

Reforms included:Reforms included:1.1. A new Congress of PeopleA new Congress of People’’s Deputies with s Deputies with

directly elected representativesdirectly elected representatives2.2. New position of New position of ““PresidentPresident”” that was selected that was selected

by the Congressby the Congress Deputies were often critical of GorbachevDeputies were often critical of Gorbachev Increasing levels of displeasure with government from Increasing levels of displeasure with government from

both liberal and conservative members of Communist both liberal and conservative members of Communist PartyParty

Page 33: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Revolution of 1991Revolution of 1991 August 1991August 1991 Led by Led by ““ConservativesConservatives”” (those opposed to, or who (those opposed to, or who

wanted to abandon Gorbachevwanted to abandon Gorbachev’’s reforms)s reforms)– Vice-presidentVice-president– Head of the KGBHead of the KGB– Top military advisersTop military advisers

Coup failed when popular protests erupted and Coup failed when popular protests erupted and soldiers defected rather than support their leaderssoldiers defected rather than support their leaders

Protesters were led by Boris Yeltsin, president elect Protesters were led by Boris Yeltsin, president elect of the Russian Republicof the Russian Republic

Gorbachev restored to power, but by December Gorbachev restored to power, but by December 1991 eleven Soviet republics declared their 1991 eleven Soviet republics declared their independenceindependence

Gorbachev officially announces dissolution of Soviet Gorbachev officially announces dissolution of Soviet UnionUnion

Page 34: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Boris YeltsinBoris Yeltsin Former member of Politburo, removed because Former member of Politburo, removed because

his radical views offended conservativeshis radical views offended conservatives– Even more extreme than GorbachevEven more extreme than Gorbachev

Elected president of Russian Republic as result of Elected president of Russian Republic as result of voting procedures put in place by Gorbachevvoting procedures put in place by Gorbachev

Emerged as president of the largest republic, Emerged as president of the largest republic, Russian Federation, after Soviet Union dissolvesRussian Federation, after Soviet Union dissolves

Attempts to create a Attempts to create a ““western-stylewestern-style”” democracy democracy ““Shock TherapyShock Therapy”” economic reforms (Immediate economic reforms (Immediate

market economy)market economy)– Russian economy does not respond to Russian economy does not respond to ““shock therapyshock therapy””

reformsreforms– Conflict erupts between Yeltsin and the DumaConflict erupts between Yeltsin and the Duma

Page 35: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Yeltsin IIYeltsin II

Poor presidentPoor president Hires and fires numerous prime Hires and fires numerous prime

ministersministers Alcoholic & frequently ill; this leads to Alcoholic & frequently ill; this leads to

erratic political behaviorerratic political behavior Resigns before the 2000 electionsResigns before the 2000 elections Vladimir Putin, YeltsinVladimir Putin, Yeltsin’’s prime minister, s prime minister,

takes over and wins the 2000 & 2004 takes over and wins the 2000 & 2004 electionselections

Page 36: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

VII. Citizens, VII. Citizens, SocietySociety, and the , and the StateState

NationalityNationality Most important single cleavage in Most important single cleavage in

RussiaRussia 80% of population is Russian80% of population is Russian Others include:Others include:

TatarsTatars UkrainiansUkrainians ArmeniansArmenians ChuvashesChuvashes BashkisBashkis ByelorussiansByelorussians MoldaviansMoldavians

Page 37: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

Nationality continuedNationality continued

Nationality cleavages determine the Nationality cleavages determine the organization of the country into organization of the country into ““federationsfederations””, , ““autonomous regionsautonomous regions””, , republics, and provincesrepublics, and provinces

Many ethnic groups would like to have Many ethnic groups would like to have their independence, but are enticed by their independence, but are enticed by trade benefits with the Russian trade benefits with the Russian government to stay in the Federationgovernment to stay in the Federation

Chechnya is the one exceptionChechnya is the one exception

Page 38: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

ChechnyaChechnya Primarily Muslim region of RussiaPrimarily Muslim region of Russia Contains some valuable resources, such as Contains some valuable resources, such as

oil fieldsoil fields Independence movement is strong, and Independence movement is strong, and

Russian government has struggled to keep Russian government has struggled to keep Chechnya region within its controlChechnya region within its control

Chechens have reverted to terrorist tactics Chechens have reverted to terrorist tactics including taking over a heavily attended including taking over a heavily attended Russian theater and in 2004 the seizure of Russian theater and in 2004 the seizure of a school that resulted in the deaths of over a school that resulted in the deaths of over 350 people, mostly children350 people, mostly children

Page 39: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

VII. VII. Citizens, Society, and the Citizens, Society, and the State continuedState continued

ReligionReligion Russian Orthodox under the tsarsRussian Orthodox under the tsars All religion prohibited during the Soviet All religion prohibited during the Soviet

Unions ruleUnions rule Boris Yeltsin encouraged Russian Orthodox Boris Yeltsin encouraged Russian Orthodox

Church to reestablish itself as a signal of a Church to reestablish itself as a signal of a break from communism and a reflection of break from communism and a reflection of old Russian nationalismold Russian nationalism

Other religions represented in very small Other religions represented in very small percentages (Roman Catholic, Jews, percentages (Roman Catholic, Jews, Muslims, Protestants)Muslims, Protestants)

Page 40: Russia. I. Authoritarian Oligarchy or Budding Democracy Between 1945-1991 global politics defined by competition between the USA and USSR Between 1945-1991

VII. VII. Citizens, Society, and the Citizens, Society, and the State continuedState continued

Social ClassSocial Class Russian society much more egalitarian than western Russian society much more egalitarian than western

societies with a few notable exceptionssocieties with a few notable exceptions– NomenklaturaNomenklatura:: only about 7% of the citizenry were CPSU only about 7% of the citizenry were CPSU

members, and all political leaders were chosen from this group. members, and all political leaders were chosen from this group. However within this group egalitarian measures were followed, However within this group egalitarian measures were followed, and little significance was given to economic and social and little significance was given to economic and social backgroundbackground

– Business OligarchyBusiness Oligarchy:: emerged during Yeltsinemerged during Yeltsin’’s regime, often s regime, often former KGB and CPSU leaders, granted favors by Yeltsin former KGB and CPSU leaders, granted favors by Yeltsin government to promote business. Struggled in late 1990government to promote business. Struggled in late 1990’’s but s but have emerged as leaders in Russia after acquiring major have emerged as leaders in Russia after acquiring major corporations, ie. Media Most & Yukos Oil. Putin had to arrest or corporations, ie. Media Most & Yukos Oil. Putin had to arrest or send into exile CEOsend into exile CEO’’s of these companies for refusing to pay or s of these companies for refusing to pay or underpaying government taxesunderpaying government taxes

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Rural vs. Urban LifeRural vs. Urban Life

73% of all Russians live in urban settings, usually 73% of all Russians live in urban settings, usually in the western part of the countryin the western part of the country

Economic divide between rural and urban Economic divide between rural and urban residents is wide, however, all Russians have residents is wide, however, all Russians have been hit hard by recent economic woes of the been hit hard by recent economic woes of the post-Cold War Russiapost-Cold War Russia

Urban residents tend to be more educated and in Urban residents tend to be more educated and in touch with western culturetouch with western culture

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Beliefs and AttitudesBeliefs and Attitudes

Mistrust of GovernmentMistrust of Government – – result of treatment and result of treatment and government secrecy during tsarist and Soviet regimesgovernment secrecy during tsarist and Soviet regimes

StatismStatism – – despite mistrust of government, Russian despite mistrust of government, Russian citizens still expect the state to take active role in their livescitizens still expect the state to take active role in their lives

Economic BeliefsEconomic Beliefs – – nearly all groups and political nearly all groups and political factions favor market reforms, although not all do so factions favor market reforms, although not all do so enthusiasticallyenthusiastically

Westernization Westernization - - ““Slavophile vs. WesternizerSlavophile vs. Westernizer”” – some – some political parties emphasize nationalism, Russian interests, political parties emphasize nationalism, Russian interests, and Slavic culture; others emphasize reform, and and Slavic culture; others emphasize reform, and integration of Russia into world economy and global tradeintegration of Russia into world economy and global trade

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Political ParticipationPolitical Participation During Soviet rule political participation was forced, and During Soviet rule political participation was forced, and

therefore was close to 100%therefore was close to 100% GorbachevGorbachev’’s reforms created competitive elections in the s reforms created competitive elections in the

Soviet Union that followed through to the Russian FederationSoviet Union that followed through to the Russian Federation In 1991 voter turnout in the Russian Federation was higher In 1991 voter turnout in the Russian Federation was higher

than the U.S.than the U.S. Political participation for the Duma elections of 1993 was only Political participation for the Duma elections of 1993 was only

50.3%, but this followed a failed attempt by the Duma to take 50.3%, but this followed a failed attempt by the Duma to take over the countryover the country

Presidential voter turnout has declined from 75% in 1991 Presidential voter turnout has declined from 75% in 1991 elections to less than 65% for the 2004 electionselections to less than 65% for the 2004 elections

Lack of participation may be due to RussiaLack of participation may be due to Russia’’s underdeveloped s underdeveloped civil societycivil society

Only 1% of RussiaOnly 1% of Russia’’s citizens report being a member of a s citizens report being a member of a political partypolitical party

Few Russians are members of clubs, churches, or cultural Few Russians are members of clubs, churches, or cultural groupsgroups

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VIII. Political Institutions VIII. Political Institutions (Federalism or Unitary)(Federalism or Unitary)

Although the Soviet Union was highly centralized, it Although the Soviet Union was highly centralized, it still maintained a still maintained a federal government structurefederal government structure

Russian Federation has retained this model, with Russian Federation has retained this model, with the current regime consisting of 89 regions, 21 of the current regime consisting of 89 regions, 21 of which are ethnically non-Russian by majoritywhich are ethnically non-Russian by majority

Each region is bound by treaty to the Federation, Each region is bound by treaty to the Federation, not all have officially signed on (Chechnya)not all have officially signed on (Chechnya)

Most regions are called Most regions are called ““republicsrepublics”” Many republics ruled themselves independently, but Many republics ruled themselves independently, but

Putin has cracked down on thisPutin has cracked down on this Putin ended direct election of the 89 regional Putin ended direct election of the 89 regional

governors, they are now nominated by the governors, they are now nominated by the president and confirmed by the regional legislaturespresident and confirmed by the regional legislatures

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IX. Linkage InstitutionsIX. Linkage Institutions

Political PartiesPolitical Parties ElectionsElections Interest GroupsInterest Groups MediaMedia

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Political PartiesPolitical Parties Began forming after Revolution of 1991Began forming after Revolution of 1991 Small, factionalSmall, factional Formed around particular leadersFormed around particular leaders

– ““Bloc of General Andrey Nikolaev and Academician Bloc of General Andrey Nikolaev and Academician Svyaloslav FyodorovSvyaloslav Fyodorov””

– ““Yuri Boldyrev MovementYuri Boldyrev Movement”” ( (““YablokoYabloko””)) Formed around particular issuesFormed around particular issues

– ““Party of PensionersParty of Pensioners””– ““Agrarian Party of RussiaAgrarian Party of Russia””– ““Women of RussiaWomen of Russia””

Political Parties Today (United Russia, Communist Party, Political Parties Today (United Russia, Communist Party, Reform Parties)Reform Parties)

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United RussiaUnited Russia Founded in April 2001Founded in April 2001 Merger between Merger between ““Fatherland All-RussiaFatherland All-Russia”” Party and Party and

the the ““United Party of RussiaUnited Party of Russia””– United Party put together by oligarch Boris Berezovsky and United Party put together by oligarch Boris Berezovsky and

other entrepreneurs to support Putin in the election of 2000other entrepreneurs to support Putin in the election of 2000 Merger put even more political support behind PutinMerger put even more political support behind Putin United Russia won 221 of the 450 Duma seats in United Russia won 221 of the 450 Duma seats in

2004 elections2004 elections Putin won re-election in 2004 as the United Russia Putin won re-election in 2004 as the United Russia

candidatecandidate United Russia is hard to define other than that it is United Russia is hard to define other than that it is

pro-Putinpro-Putin

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Communist Party of the Communist Party of the Russian Federation (CPRF)Russian Federation (CPRF)

Communist Party of the old Soviet Union (CPSU)Communist Party of the old Soviet Union (CPSU) After 1995 elections held 157 of the 450 Duma seatsAfter 1995 elections held 157 of the 450 Duma seats After parliamentary election of 2003 only retained 51 of After parliamentary election of 2003 only retained 51 of

the 450 Duma seatsthe 450 Duma seats Party leader Gennady Zyuganov finished second in the Party leader Gennady Zyuganov finished second in the

1996 and 2000 elections, but support for the party 1996 and 2000 elections, but support for the party dropped each time, he withdrew from the race in the dropped each time, he withdrew from the race in the 2004 election2004 election

Party was weakened in 2004 when a breakaway faction Party was weakened in 2004 when a breakaway faction led by Vladimir Tikhonov split from the partyled by Vladimir Tikhonov split from the party

Party is less reformist than other parties, Zyuganov Party is less reformist than other parties, Zyuganov opposed the reforms initiated by Gorbachevopposed the reforms initiated by Gorbachev

Party emphasizes central planning and nationalismParty emphasizes central planning and nationalism Would like to see Russia regain territories it lost after Would like to see Russia regain territories it lost after

Soviet Union dissolutionSoviet Union dissolution

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Reformist PartiesReformist Parties

YablokoYabloko– Taken strongest stand Taken strongest stand

for pro-democracyfor pro-democracy– Survived since 1993Survived since 1993– Grigori Yavlinski, leader, Grigori Yavlinski, leader,

finished 3finished 3rdrd in 2000 in 2000 presidential electionpresidential election

– Name is acronym for its Name is acronym for its three founders, also three founders, also means means ““appleapple””

– Gained 4.4% of vote in Gained 4.4% of vote in 2003 parliamentary 2003 parliamentary elections (4 seats) elections (4 seats) making it ineligible for making it ineligible for proportional proportional representationrepresentation

Union of Right Union of Right ForcesForces– ““RightestRightest”” only in the only in the

sense of seeking truthsense of seeking truth– Emphasizes Emphasizes

development of free development of free marketmarket

– Supports privatization Supports privatization of industryof industry

– Had 29 seats in Duma Had 29 seats in Duma prior to 2003prior to 2003

– After 2003 elections After 2003 elections only won 3 seats (less only won 3 seats (less than 5% of the vote)than 5% of the vote)

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Liberal Democratic PartyLiberal Democratic Party Controversial partyControversial party Headed by Vladimir ZhirinovskyHeaded by Vladimir Zhirinovsky

– Extreme nationalistExtreme nationalist– Anti-semiticAnti-semitic– SexistSexist– Attacks reformist leaders and disliked YeltsinAttacks reformist leaders and disliked Yeltsin– Said he would use nuclear weapons on Japan if he were Said he would use nuclear weapons on Japan if he were

electedelected Party reformulated as Party reformulated as ““ZhirinovskyZhirinovsky’’s Blocs Bloc”” for for

2000 presidential election, he received 2.7% of 2000 presidential election, he received 2.7% of votevote

Party did receive about 11% of vote in 2003 Party did receive about 11% of vote in 2003 Duma elections (won 37 seats)Duma elections (won 37 seats)

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ElectionsElections

3 types3 types

– ReferendumReferendum

– Duma ElectionsDuma Elections

– Presidential ElectionsPresidential Elections

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1993: Year of Elections – Year 1993: Year of Elections – Year of Transitionof Transition

March 1993 parliament attempts to impeach YeltsinMarch 1993 parliament attempts to impeach Yeltsin Legislative-led coup tries to usurp control of the Legislative-led coup tries to usurp control of the

governmentgovernment Yeltsin dissolves legislature, calls for new electionsYeltsin dissolves legislature, calls for new elections Although opposition leaders were arrested, YeltsinAlthough opposition leaders were arrested, Yeltsin’’s s

opponents won the majority in the new legislatureopponents won the majority in the new legislature– Radical Vladimir ZhirinovskyRadical Vladimir Zhirinovsky’’s Liberal Party did surprisingly wells Liberal Party did surprisingly well

Despite losing control of the legislature Yeltsin was Despite losing control of the legislature Yeltsin was able to get approval for the new constitution: able to get approval for the new constitution: Constitution of 1993Constitution of 1993

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Constitution of 1993Constitution of 1993

Created a three-branch governmentCreated a three-branch government– President & Prime MinisterPresident & Prime Minister– Lower legislative house (DUMA)Lower legislative house (DUMA)– Constitutional CourtConstitutional Court

Referendum Referendum - - allowed for president to call for allowed for president to call for national referenda by popular vote on important national referenda by popular vote on important issuesissues

YeltsinYeltsin’’s first referendum was on his job performances first referendum was on his job performance Second was for approval of the constitution itselfSecond was for approval of the constitution itself

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Interest GroupsInterest Groups OligarchyOligarchy

Tied closely with the Tied closely with the Yeltsin familyYeltsin family

By mid-1990s By mid-1990s monopolized Russian monopolized Russian industry and built huge industry and built huge fortunesfortunes

Boris Berezovsky – Boris Berezovsky – admitted that he and six admitted that he and six other entrepreneurs other entrepreneurs controlled over half the controlled over half the GNPGNP

Dominant in oil, media, Dominant in oil, media, and television industriesand television industries

Helped Yeltsin win 1996 Helped Yeltsin win 1996 electionelection

Created and financed the Created and financed the Unity Party in 2000 and Unity Party in 2000 and got Vladimir Putin electedgot Vladimir Putin elected

Russian MafiaRussian Mafia Larger and perhaps even Larger and perhaps even

more influential than the more influential than the oligarchyoligarchy

Initially involved in Initially involved in underworld crimeunderworld crime

During Revolution of 1991 During Revolution of 1991 gained control of gained control of businesses, natural businesses, natural resources, and banksresources, and banks

Involved in money Involved in money laundering, drugs, laundering, drugs, prostitution, and business prostitution, and business payoffs (payoffs (““protection protection moneymoney””))

Includes former members Includes former members of the KGBof the KGB

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Interest Groups IIInterest Groups II Huge fortunes made by oligarchs and the mafia offend the Huge fortunes made by oligarchs and the mafia offend the

equality of opportunity principle of the Russian peopleequality of opportunity principle of the Russian people In the past, lawlessness in Russia has been dealt with by In the past, lawlessness in Russia has been dealt with by

repressive, authoritarian rule, and these groups represent a repressive, authoritarian rule, and these groups represent a threat to the new democracythreat to the new democracy

Putin arrested television magnate Vladimir Gusinsky for Putin arrested television magnate Vladimir Gusinsky for corruption and his company was given to a state-owned corruption and his company was given to a state-owned monopolymonopoly

In 2003, Mikhail Khodorvsky, the richest man in Russia and In 2003, Mikhail Khodorvsky, the richest man in Russia and CEO of the Yukos Oil Company was arrested as a signal that CEO of the Yukos Oil Company was arrested as a signal that the Russian government was consolidating powerthe Russian government was consolidating power

Yukos was slapped with massive penalties and additional Yukos was slapped with massive penalties and additional taxes, forcing it into bankruptcytaxes, forcing it into bankruptcy

Russian MediaRussian Media – a linkage institution with close – a linkage institution with close ties to both the state and the oligarchy, has been ties to both the state and the oligarchy, has been manipulated by dominant political and interest manipulated by dominant political and interest groups to pursue their own causesgroups to pursue their own causes

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X. X. Institutions of Institutions of GovernmentGovernment

A. President & Prime MinisterA. President & Prime Minister Duties of the PresidentDuties of the President

Appoints the prime minister and cabinetAppoints the prime minister and cabinet – – Duma Duma must approve prime ministermust approve prime minister’’s appointment, but if they reject s appointment, but if they reject the presidentthe president’’s nominee three times, the president may s nominee three times, the president may dissolve the Dumadissolve the Duma

Issue decrees that have force of lawIssue decrees that have force of law – – cabinet has cabinet has great deal of power, Duma can not censure cabinet according great deal of power, Duma can not censure cabinet according to Constitution of 1993to Constitution of 1993

Dissolve the DumaDissolve the Duma – done by Yeltsin during legislative – done by Yeltsin during legislative coup attempt of 1993coup attempt of 1993

– Prime Minister: Prime Minister: relationship between PM and President relationship between PM and President not exactly clear, but with no vice-president if anything not exactly clear, but with no vice-president if anything happens to president the PM assumes the office of happens to president the PM assumes the office of presidentpresident

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B. Bicameral LegislatureB. Bicameral Legislature

DumaDuma– Lower HouseLower House– 450 deputies450 deputies– Half chosen by Half chosen by

proportional proportional representation representation

– Half by single-member Half by single-member district pluralitydistrict plurality Passes BillsPasses Bills Approves BudgetsApproves Budgets Confirms presidentConfirms president’’s s

political appointmentspolitical appointments

Federation CouncilFederation Council– Upper HouseUpper House– Two members elected Two members elected

from each of the 89 from each of the 89 regions of the federationregions of the federation

– Power to delay Power to delay legislationlegislation On paper Federation On paper Federation

Council can change Council can change boundaries of republics, boundaries of republics, ratify use of armed ratify use of armed forces, and appoint and forces, and appoint and remove judges. These remove judges. These powers have yet to be powers have yet to be use howeveruse however

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C. JudiciaryC. Judiciary

Supreme CourtSupreme Court– Created by 1993 ConstitutionCreated by 1993 Constitution– Serves as final court of appeals in Serves as final court of appeals in

criminal & civil casescriminal & civil cases Constitutional CourtConstitutional Court

– Created by 1993 ConstitutionCreated by 1993 Constitution– 19 members19 members– Appointed by president and confirmed Appointed by president and confirmed

by Federation Councilby Federation Council

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D. MilitaryD. Military Was a source of strength during the Soviet era, 1945-Was a source of strength during the Soviet era, 1945-

19911991 Once stood at over 4 million menOnce stood at over 4 million men Generally did not get involved in politics, this Generally did not get involved in politics, this

continues under the Russian Federationcontinues under the Russian Federation One prominent general, Alexander Lebed, gained One prominent general, Alexander Lebed, gained

political following before the 1996 election and had to political following before the 1996 election and had to be coopted by Yeltsin in order for Yeltsin to win be coopted by Yeltsin in order for Yeltsin to win reelectionreelection

Suffered significant humiliation from the late 1980Suffered significant humiliation from the late 1980’’s to s to early 21early 21stst century century– Withdrawal from AfghanistanWithdrawal from Afghanistan– Defeated by Chechen guerrillas in 1994-1996 conflictDefeated by Chechen guerrillas in 1994-1996 conflict– Often ill-equipped, Russian soldiers had to feed themselves Often ill-equipped, Russian soldiers had to feed themselves

and went unpaid for months in late 1990and went unpaid for months in late 1990’’s and early 21s and early 21stst centurycentury

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XI. Public Policy/Current XI. Public Policy/Current IssuesIssues

The EconomyThe Economy– At the heart of the Soviet demise in 1991At the heart of the Soviet demise in 1991– Perestroika reformsPerestroika reforms – market economy programs inserted into – market economy programs inserted into

traditional centralized state ownership designtraditional centralized state ownership design– ““Shock Therapy reformsShock Therapy reforms”” – created chaotic conditions that – created chaotic conditions that

resulted in a small group of entrepreneurs running the resulted in a small group of entrepreneurs running the economyeconomy

– In 1997 economy collapsed when government defaulted on In 1997 economy collapsed when government defaulted on billions of dollars of debtsbillions of dollars of debts

– Russian stock market lost half its value, threatened global Russian stock market lost half its value, threatened global markets as wellmarkets as well

– Ruble lost value rapidly, by 2002 it took more than 30,000 Ruble lost value rapidly, by 2002 it took more than 30,000 rubles to equal one dollarrubles to equal one dollar

– The overall economy did see slight improvements in 1999–The overall economy did see slight improvements in 1999–20002000

– In 2004 the economy grew 7%, and standards of living In 2004 the economy grew 7%, and standards of living improved, the first real signs that the Russian economy was improved, the first real signs that the Russian economy was starting to thrive againstarting to thrive again

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Foreign PolicyForeign Policy Relations with Relations with

Former RepublicsFormer Republics– Confederation of Confederation of

Independent States (CIS)Independent States (CIS)– Russia is the clear leader Russia is the clear leader

of organizationof organization– Is not nearly as successful, Is not nearly as successful,

economically and economically and politically, as the EUpolitically, as the EU

– Bonded together by trade Bonded together by trade agreementsagreements

– Tensions of nationality Tensions of nationality issuesissues

– PutinPutin’’s meddling in s meddling in Ukrainian election of 2004 Ukrainian election of 2004 was cause for concernwas cause for concern

Relations with the Relations with the WorldWorld– Adjustment period for Adjustment period for

Russia following Cold Russia following Cold War and loss of War and loss of superpower statussuperpower status

– Offered aid and foreign Offered aid and foreign investment by U.S.investment by U.S.

– Accepted into the G-7 Accepted into the G-7 (now known as G-8)(now known as G-8)

– UN Security Council UN Security Council permanent memberpermanent member

– Russia set to join the Russia set to join the WTO in July 2007WTO in July 2007