February 17 Notes

• 1989- First contested elections in 60 years were held in Soviet Parliament
• 1990- Soviet Union changed constitution, taking out language that made the communist party the only party

The newly formed groups (like interest groups) begin to act as political parties
Gorbachev issues: 1. Greater autonomy from 15 republics- 15 republics are dominant national groups. Political groups begin the form in the republics, and are known as popular fronts. Popular fronts begin to ask for more authority and freedom 2. Economic policy- Inflation increases, and the economy declines.

• October 19, 1991- Conservative Soviet leaders try to stop Gorbachev reform. Gorbachev is arrested, but the Coup d'etat eventually fails.
• End of 1991- Soviet Union collapses

Russia, Ukraine, and Belarus break off and form the CIS. The other 12 republics declare their independence shortly after, and all 15 former republics are recognized as new nations.

YELTSIN- Yeltsin was popularly elected. He wanted a western style democracy with a market economy.

Russia began to feel pressure from sub national units calling for independence. Yeltsin feels opposition to his reform. Under Yeltsin, all service industries that existed before 1991 are privatized. Big industries to through 'shock therapy'. This means that ownership is taken away from government and put into private hands. Citizens get privatization vouchers, which they can trade in for stocks in any company that they choose. Businesses no longer receive subsidies. Prices are free from central control, and now rely on consumer demand.

Former government managers gain control of the newly privatized industries. Dramatic price increases and runaway inflation occurs because price controls were lifted. GNP and industrial output fall. Entrepreneurs take advantage of the new system ( called Oligarchs). Oligarchs gain tremendous wealth by gaining control of industry, and use the wealth to gain political leverage.

The reform movement is controversial and the executive and legislative branch begin fighting.

• Dec. 1992- Legislature agree to hold a referendum vote in April of 1993 to create a new constitution.
• March 1993- Parliament takes emergency Legislative powers away from Yeltsin. Yeltsin says Legislative branch can't overrule his decrees.
• Judicial branch sides with the Legislative branch
• April 1993- Referendum vote held. Yeltsin says that he won, and continued his ways
• Sept. 1993- Yeltsin illegally disbanded Parliament and called for new elections in December.
• Oct. 1993- Yeltsin disbands Constitutional court
• Dec. 1993- Constitution is passed. It entails a strong presidential rule, changes in Parliament, and models after the French constitution.
• Spring 1998- Yeltsin and Parliament argue over the naming of a Prime Minister. Yeltsin nominates the same person for a third time, and Parliament passes him ( if they didn't, Parliament would be dissolved according to the Constitution)
• August 1998- Russian currency loses its value, and stocks and bonds decrease. Many Russians lose their life savings.
• 1999- Russian government becomes completely dysfunctional. They can't maintain a military, or collect taxes, etc. Yeltsin is in bad shape suffering from heart attacks, having a bleeding ulcer, and being an alcoholic....
• The central government pushes responsibility onto regional governments. They are responsible for housing military, taking care of their law enforcement officers, and funding the courts. Governors lose respect for Yeltsin.
• August 1999- Putin is acting Prime Minister
• March 2000- Putin is named President of Russia

Putin pushed legislation that divided Russia into 7 federal districts. Each district had a presidential appointee to supervise the other government authorities. The appointees were superior to the heads of the regional governments.

• March 2004- Putin reelected with 71.2% of the vote

Putin: 1. Moves to reign in regional government. He has the lower house of Parliament (Duma) pass a law that says that governors could not hold seats in the federation council. Each region will elect 2 representatives to the federation council. Duma gives central government the right to discipline leaders if they believed they were not following the Constitution, and Putin had the right to fire governors.