500 Day Program

Gorbachev and the ‘500 Day Program’

The whole economy was on the point of collapse
Government took massive loans from Western banks to pay for growing imports of grain and consumer goods
Drastic action needed
He took advice from all sides
Most economic experts agreed USSR must abandon command economy for a market economy
Big question – what was the best way?
Ryzhkov, Chairman of the USSR Council of Ministers favoured gradual development of a ‘regulated market’
He said prices must rise to balance the budget – this put Gorbachev off
Radical advisers said action must be quick and decisive

Yavlinsky

Young economist working for Yeltsin and Russian government
Gorbachev was attracted to his ideas
Saw chance too of improving relations with Yeltsin
Persuaded Yeltsin to back a plan for rapid marketisation to be drawn up by a joint Soviet-Russian team of radical economists
They produced the ‘500 Day Programm’
It was a 240 page document written mainly by Shatalin with help from Yavlinsky
It was a crash plan involving –
Large-scale privatisation
Devolution of power to the republics
Setting up of market institutions
No mention of socialism
A country with such a system could not be considered communist
Gorbachev publicly approved the documents
Ryzhkov and his supporters felt it wouldn’t work – threatened to resign if it was adopted
Also opposed by the economic ministries, KGB, Red Army, most of the Party apparatus
Critics said since republics would be in control of their own economies, it would deprive the central union of its revenue-collecting powers, thus threatening the survival of Soviet Union
Ryzkhov feared mass unemployment and closure of thousands of factories

Basic Guidelines

Gorbachev had second thoughts
Asked for compromise document called ‘Basic Guidelines’ which combined the best aspects of 500 days and Ryzkhov’s more cautious plan
Accepted by Supreme Soviet (October 1990)
Unsatisfactory though – conservatives had ruined chance of swift adoption of a market economy

A Move to the Right

Retreat from 500 Days angered Yeltsin and radical reformers
Prospect of further co-operation ruined
October 1990 – March 1991 Gorbachev moved to right
Worried by strength of right-wing opposition
Saw it as a tactical retreat
7^th November 1990 attempt to assassinate Gorbachev – failed
18^th November he abolished the Presidential Council which contained his most radical advisers like Yakovlev
Increased his Presidential powers at same time
Set up new Security Council with seats for KGB, police and army
Yeltsin and the radicals shocked
24^th November first draft of a new Union Treaty
It was unacceptable to the republics – believed the centre would continue to dominate

Gorbachev’s Problem

As his relations with the republics and radicals deteriorated, he found himself pushed nearer the conservatives
Side-lined Yakovlev already
December sacked Bakatin, liberal Minister of the Interior – replaced by Boris Pugo
Pugo a hard-liner and former head of Latvian KGB
He conferred with defence minister Yazov and KGB head Khryuchkov (hard-liners)
Decided army would patrol streets of major cities
Yanayev was appointed Vice-President
He was a conservative dedicated to preserving the Union
Gorbachev made the mistake of believing he could be trusted
Ryzhkov had serious heart-attack in December – replaced by Pavlov (conservative)
Hard-liners becoming more vociferous in Congress of People’s deputies

Soyuz (October 1990)

Hard-liners formed a group called Soyuz (Union) – 600 deputies
Not all Party members but they were united in the belief that Soviet Union worth preserving
Gorbachev seen as wrecker of greatest state on Earth
December 1990 Congress met – Soyuz speakers wanted action to restore order and preserve the USSR
Gorbachev used his new powers to stop republics breaking away

Shevardnadze

Foreign Minister
Last liberal member of government
20^th December resigned
He’d been criticised by Red Army and armaments industry for months
Since October when move to the right began Gorbachev had ceased to support him
He felt isolated
Army said he’d lost Eastern Europe and let Germany unify – even though it was Gorbachev’s decision
The speech caused a sensation
He didn’t discuss it with Gorbachev in advance
Gorbachev embarrassed
Shevardnadze guessed correctly that conservatives would try to oust Gorbachev

Baltic Republics

7^th January 1991 Soviet paratroops entered all 3 republics
Excuse – looking for deserters
Complicated situation – Russian inhabitants had organised themselves into pro-Moscow anti-independence parties opposed to the democratically elected parliaments of the republics
Vilnius capital of Lithuania supporters of pro-Russian party (Edinstvo) stormed the parliament building and demanded the resignation of Lithuanian government
President Landsbergis called for all Lithuanians to support the republic
A Lithuanian counter-demo chased the Russians out of parliament
Russian officials told Gorbachev Lithuania on verge of civil war and called for presidential rule in Lithuania
Gorbachev accused Lithuanian government of trying to ‘restore the bourgeois order’ and demanded restoration of the Soviet constitution
Soviet tanks and troops went into action in Vilnius occupying key buildings
Seized radio and TV stations and TV tower which was surrounded by 5000 demonstrators
14 killed, 165 injured
People expected attack on parliament but pressure of foreign journalists and TV cameras deterred military

Latvia

Week later at Riga in Latvia Red Army attacked Ministry of Internal Affairs – 4 killed
Didn’t try to seize parliament

Gorbachev’s stance

Baltic policy had failed to remove republics’ government and impose presidential rule
Gorbachev said he didn’t give orders to use force
Blamed local commanders
Apologised for deaths in Riga
Said again republics had right to leave USSR but must be a referendum and follow the rule of law

Yeltsin

He made the most of the situation
Flew to Tallin in Estonia
Signed agreement – Russian Republic recognised Lithuania, Latvia, Estonia as independent sovereign states – not as Soviet republics
Probably feared forces of conservatism might try to overthrow his Russian government in same way
Gorbachev’s popularity fell as a result of the violence in Vilnius and Riga
He was criticised in the media
Huge demonstration in Moscow in support of the democracy movements
Lithuanian referendum (February) – 90% wanted independence
March, Estonia and Latvia voted same – 78% and 74% respectively for independence

17^th March Referendum 1991

Held throughout USSR on the question: ‘Do you consider necessary the preservation of the USSR as a renewed federation of equal sovereign republics in which the rights and freedoms of an individual of any nationality will be fully guaranteed?’
6 republics – the 3 Baltic states, and Armenia, Georgia and Moldavia refused to take part but their share of the total population was small
Over 80% of the Soviet adult population voted
76.4% voted in favour of the Union
Russian Republic added another question to its referendum – ‘Are you in favour of an elected president for Russia?’ – 70% voted ‘yes’
Both Gorbachev and Yeltsin could now claim they had mandates –
Gorbachev to reconstitute the USSR as a free association of sovereign republics
Yeltsin to hold elections for president of the Russian Republic

The Union Treaty

Despite Gorbachev’s attempts at compromise during previous 6 months the conservatives were not happy with him
It was clear he was bent on breaking up their multi-national state
He was impatient with their resistance to reform
It was obvious to him that ordinary people favoured Yeltsin and reform
From March he began to move away from hard-liners and turn back to the advisers with whom he felt most comfortable
Meeting arranged between Gorbachev, Yeltsin, and the leaders of the other 8 republics which had participated in the referendum (April 1991)
It was the first of a series to produce a constitution for a new federation
August saw final version
Soon became clear that in the new union the republics would have sovereign power
The centre would be dependent on the republics for revenue
The new union would still be called the USSR – but – now the letters stood for ‘Union of Soviet Sovereign States’
Gorbachev came under attack in the Congress – at one point he even resigned
The radicals persuaded him to stay on
The conservatives still lacked the nerve to force him out
11^th July Congress approved the general principle of the new union
Date for signing of the Union was 20^th August

Presidential Elections

12^th June – in Russian Republic
6 candidates – Yeltsin won easily
Bakatin came last (3% of vote)
Bakatin was a liberal reformer but was still in the Communist Party – that ruined his chances
Yeltsin had left Communist Party in 1990
He now banned political activity by any party in administrative institutions and economic enterprises in the Russian Republic
Gorbachev determined to stick with the Party for the time being but it was to be a drastically changed party
He told the Central Committee in July: ‘Our Party indisputably bears responsibility for the fact that it was not able to erect a barrier to despotism and allowed itself to be used as an instrument of totalitarianism’
He presented a new draft program based on ‘humane, democratic, market socialism’
He pointed out that the term ‘communism’ was mentioned only in passing
Reason – ‘our experience provides no grounds for thinking that this aim is realistically attainable in the foreseeable future’
Reluctantly the Central Committee adopted the draft program (July)
It was probably because the conservatives (in a majority) intended to elect a new General Secretary and drop the draft program at the next Party Congress (November)
Most people, including Gorbachev, believed a Party split between reformers and conservatives was inevitable
He planned to bring this about at next Party Congress – Gorbachev expected to be on the winning side

Nove-Ogorevo

It was here that the final meeting between Gorbachev and Yeltsin took place
Discussed changes to be made in government after signing of the UNION Treaty on 20^th August
Prime Minister Pavolu, KGB chief Kryuchkov and Defence Minister Yazov were to be replaced by more liberal communists
Later revealed that KGB bugged the meeting to record the conversations
It was urgent to remove Gorbachev
Yeltsin believed it was what decided the timing of the August coup

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