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- <text id=90TT1629>
- <title>
- June 25, 1990: Soviet Union:And The Breadwinner Is...
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1990
- June 25, 1990 Who Gives A Hoot?
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- WORLD, Page 32
- SOVIET UNION
- And the Breadwinner Is...</hdr>
- <body>
- <p>...Mikhail Gorbachev, who reclaims the initiative by
- acknowledging that half a loaf is better than none
- </p>
- <p> Amid the constant shortages and discomforts of Soviet life,
- one of its good things has always been a crusty loaf of nutty
- Russian bread. Comforting to stomach and soul, bread is a
- mainstay of the masses' daily existence. For that reason, Moscow
- for almost 30 years has held the price of the average loaf at
- a heavily subsidized 23 kopecks--about 40 cents.
- </p>
- <p> When the government suggested tripling the price of bread
- from July 1 as a start on dismantling the vast subsidy system,
- nationwide fury was the completely predictable result. Last week
- legislators in the Supreme Soviet voted 319 to 33 to delay any
- increase for at least two months. Only the day before, the
- parliament had approved an outline for a more rapid "transition
- to a regulated market economy" than originally envisioned by the
- government.
- </p>
- <p> More defeats for Gorbachev and his reforms? Not
- necessarily. The Supreme Soviet may have done him a favor. He
- had given only tepid support to the program presented by Prime
- Minister Nikolai Ryzhkov in late May; in fact, many Western
- experts believe Gorbachev had little to do with fine-tuning it.
- Almost immediately, the plan's half measures were attacked by
- conservatives and liberals alike. When the advance warning of
- price increases set off panic buying across the country, the
- Kremlin lost enthusiasm for the proposals.
- </p>
- <p> Supreme Soviet Chairman Anatoli Lukyanov, Gorbachev's
- deputy, took last week's votes philosophically. Economic reform,
- he said, "is a new revolution. Of course it needs perfecting."
- Just before adjourning for the summer, parliament instructed the
- government to come back with a new package in the fall. The next
- plan, the Supreme Soviet urged, should be far bolder in cutting
- government spending, deregulating economic activity and
- decontrolling prices.
- </p>
- <p> Meanwhile the legislators affirmed Gorbachev's decree
- powers as President and called on him to use them to break up
- monopolies, sell state property and establish a banking system.
- This, says Ed Hewett, a senior fellow at the Brookings
- Institution in Washington, amounts almost to a vote of
- confidence and gives Gorbachev the option to "move quickly
- toward a market economy"--if he wants to.
- </p>
- <p> The Soviet President also reclaimed the initiative in his
- struggle with the forces of nationalism and separatism. He had
- been visibly dismayed when his populist nemesis, Boris Yeltsin,
- won election as chairman of the Russian Federation's Supreme
- Soviet and engineered a declaration of the republic's desire for
- "sovereignty." Gorbachev countered by ordering up a commission
- to draft a new treaty that would establish a loose federation
- among the 15 Soviet republics, providing each of them with
- economic "sovereignty." In a show of goodwill, he partly eased
- the natural-gas embargo against breakaway Lithuania. After
- meeting with the leaders of all the republics for five hours
- last week, Gorbachev seemed to have dampened his antagonist's
- fervor. Said Yeltsin: "We shook hands, and we met each other
- halfway...We agreed that Russia cannot survive without the
- entire country and the country cannot survive without Russia."
- </p>
- <p> So many vital issues are competing for Gorbachev's
- attention that he has decided he needs technical assistance from
- an unlikely source: the White House. A six-member Soviet
- delegation toured the premises last week, and John Sununu, the
- markedly conservative chief of staff, will go to Moscow to offer
- pointers on the best way to organize a presidential branch of
- government. The Soviets, Sununu observes, are now encountering
- not only the benefits of reform but "all the things that make
- democratic political systems so...[pained smile]...interesting."
- </p>
- <p>By Bruce W. Nelan. Reported by Ann Blackman/Moscow.
- </p>
-
- </body>
- </article>
- </text>
-
-