Yeltsin Banks On The West And On Grass Roots Capitalism

On the surface, it may appear that Russian President Boris N. Yeltsin is doomed. Bent on turning back the clock, hard-line conservatives at the Congress of People's Deputies humiliated Yeltsin, rejecting his appeal for a constitutional referendum and squashing his ability to rule by presidential decree. But Yeltsin seems to have a two-pronged strategy, at home and with the West, for staying in power, and he's making quiet but surprising progress on both fronts.

Just a few days after the diehards were fulminating in Moscow, for example, a major milestone was passed in the move to capitalism. Massive sell-offs began on Mar. 15 for shares of ZIL, the giant Moscow conglomerate that makes trucks, refrigerators, and the limousines once favored by Communist Party bosses. The principal investors are private citizens from 100 Russian cities. The lesson of the ZIL sell-off is clear. Despite the political stalemate at the top, economic changes are still percolating from the bottom up in many Russian cities and towns. Empowering and enriching average citizens remains Yeltsin's best chance to hold out.