Mikhail Gorbachev's reforms have unleashed an unprecedented tide of protests and demonstrations across the U.S.S.R. in which national grievances occupy a central place alongside economic unrest. From Alma Ata to Abkhazia, from Tallinn to Tbilisi, virtually no region of this vast and complex multinational society appears immune to the rising tide of national self-assertion. Whether in the form of anti-Russian demonstrations, as in Kazakhstan and Georgia, or in the emergence of new sociopolitical movements demanding greater economic and political autonomy, such as the Popular Fronts of Estonia, Lithuania and Latvia, or in more volatile outbursts of communal violence that have resulted in a tragic loss of lives and many thousands of refugees, as in Armenia, Azerbaijan and Uzbekistan-all pose a growing threat to Gorbachev's leadership and to the future of his reforms.
Gail W. Lapidus is Professor of Political Science at the University of California at Berkeley and directs the Berkeley-Stanford Program in Soviet Studies. The author of a number of articles and books on Soviet politics and foreign policy, she is at work on a study of ethnonationalism and political stability in the U.S.S.R.
Mikhail Gorbachev's reforms have unleashed an unprecedented tide of protests and demonstrations across the U.S.S.R. in which national grievances occupy a central place alongside economic unrest. From Alma Ata to Abkhazia, from Tallinn to Tbilisi, virtually no region of this vast and complex multinational society appears immune to the rising tide of national self-assertion. Whether in the form of anti-Russian demonstrations, as in Kazakhstan and Georgia, or in the emergence of new sociopolitical movements demanding greater economic and political autonomy, such as the Popular Fronts of Estonia, Lithuania and Latvia, or in more volatile outbursts of communal violence that have resulted in a tragic loss of lives and many thousands of refugees, as in Armenia, Azerbaijan and Uzbekistan-all pose a growing threat to Gorbachev's leadership and to the future of his reforms.
The increasing intensity of ethnonationalism among Russians and non-Russians alike, sometimes taking extreme and chauvinistic forms, has not only provoked increasing alarm among Soviet citizens and leaders, it has also precipitated a sharp controversy over Soviet policy toward the "nationalities question" and over the nature and future of the Soviet federal system itself.1
The complacent official assertion that the victory of socialism in the U.S.S.R. created a new historical community in which national antagonisms were obliterated has been exposed as a myth. A gamut of sensitive issues previously closed to discussion is the subject of heated public debate: the extent to which the national republics that comprise the Soviet federation should enjoy real sovereignty; the legal status of the Baltic republics, annexed as a result of the Molotov-Ribbentrop pact; the criteria for resource allocation among the regions of the U.S.S.R., and the degree to which more developed areas should subsidize the less developed; the representation of different nationalities in leadership positions; the language and cultural rights of different national groups; the role of Russian as a lingua franca; and finally the question of where the right to make such decisions should reside.
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Reprints excerpts of the article under title, first published in the FA issue of Jul 1946, noting that it contains "some sage observations that have stood the test of time".
Russia does not need a Pinochet, but it does need the Chilean economic model. For Russia to grow at self-sustaining annual rates of seven to ten percent for a decade or two -- the only way it can pull itself out of poverty -- it needs much more economic liberalization. Four reforms inspired by Chile's dramatic turnaround can help Russia out of its doldrums: pension privatization, tax reform, radical deregulation of coddled industries, and the replacement of the ruble with the euro. The indispensable element is not a strong four-star general but a team of determined economic policymakers who know that freedom works.
The neoliberal economic and political models used by Western analysts to explain Russia's recent transformation ignore the interrelationship between the economy and politics. Russia is in the midst of a social revolution. Economic reform without political reform-as attempted by Yegor Gaidar-will fail. Prime Minister Viktor Chernomyrdin's policies have met with some success because of accompanying political changes. This interrelated pattern of reform must continue.

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