Memo: New Soviet Voices On Foreign And Economic Policy
Translated articles from the professional journal of Moscow's Institute of World Economy and International Relations. Published in the years 1987-1989, most are shining examples of the new thinking, keeping in step with Gorbachev, or a few paces out in front.
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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.
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.
Russia's popular new president is better positioned than his predecessor was to enact needed reforms. But all of Vladimir Putin's efforts will come to nought unless he can do what Boris Yeltsin never did: rein in Russia's plutocrats. These ruthless oligarchs have fleeced Russia of staggering sums, seizing control of its oil industry -- one of the world's largest -- in the process. Through payoffs and intimidation, they have insinuated themselves into electoral politics and virtually immunized themselves from prosecution. None of Russia's problems -- neither its crippled economy, nor its emaciated infrastructure, nor its wheezing democracy -- will be solved while the robber barons retain their power. America cannot afford to sit on the sidelines any longer.

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