62 The expression is associated with the views of the economist Jeffrey Sachs. Shock therapy in the narrow sense was first applied in Bolivia in 1985 and, in Eastern Europe, in Poland in 1990. Sachs, then at Harvard University and now at Columbia, modeled his approach on Ludwig Erhard, the architect of West Germany’s postwar recovery.
63 Yel’tsin,
64
65 Yel’tsin,
66 Burtin, “Gorbachev prodolzhayetsya,” 60.
67 Ibid.
68 Yurii Afanas’ev, “Proshël god . . . ” (A year has passed), in Burtin and Molchanov,
69 Telen’, “Izbiratel’ Boris Yel’tsin.”
70 Gaidar,
71 Baturin et al.,
72 “Yeltsin Discusses Candidacy, Issues, Rivals,” FBIS-SOV-91-110 (June 7, 1991), 64–65. During the campaign Yeltsin also made crowd-pleasing promises that were sure to complicate any move to the market, such as indexing minimum wages, pensions, and student stipends at 150 percent of the USSR average. These benefits, he assured voters, would be funded by withholding financial transfers to the Soviet government. In June 1990 he stated that he was working with three alternative schemes for price reform, all of which “foresee a mechanism that will rule out a lowering of living standards.” L. N. Dobrokhotov, ed.,
73 “Obrashcheniye Prezidenta Rossii.”
74 Gaidar, first interview with the author (September 14, 2000). Yeltsin said in his October speech that he had promised improvement by late 1992 in his presidential election campaign; I have not found any such statement. Gaidar writes in his memoir that, beginning with Five Hundred Days, the time limits in various reform plans were useful mostly as hooks for getting Yeltsin and the politicians to sign on to radical reform. “By itself, the realism or unrealism of a program had no significance from an economic point of view. But even a false idea, once taken aboard by the masses, becomes a material force.” Gaidar,
75 Nine percent of Russian workers polled by sociologists in 1993 had not received the previous month’s wage in full. This proportion reached 49 percent in 1994 and 66 percent at the beginning of 1996. Eighteen percent of employees in 1994, and 32 percent in 1996, received