Janine Wedel - Collision and Collusion: The Strange Case of Western Aid to Eastern Europe

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CONTENTS

Title Page

Copyright Notice

Dedication

Acknowledgements

Acronyms

Maps

A Note about Terms

A Note about Interviews

Introduction: Some Enchanted Era

Chapter I: East Meets West: A New Order for the Second World

Chapter II: Consultants for Capitalism

Chapter III: A Few Favored Cliques

Chapter IV: A Few Good Reformers: The Chubais Clan, Harvard, and Economic Aid

Chapter V: A Few Good Financiers: Wall Street Bankers and Biznesmeni

Chapter VI: Insights from the Second World

Appendix 1: Tables

Appendix 2: Methodology

Appendix 3: Interviews

Appendix 4: Economic Aid to Russia

Players

Institutions, Organizations, Commissions

GAO Chart: Organizational Profile of the Harvard Institute for International Development

Notes

Selected Bibliography

Index

Copyright

To my parents

ACKNOWLEDGEMENTS

I have been following the aid story in Central and Eastern Europe since 1989. I am grateful to the Council for the International Exchange of Scholars for the two terms in Poland as a Fulbright scholar during 1989-90 and 1991-92 that piqued my interest in the topic. My subsequent, more systematic, study would not have been possible without research and writing support provided by the National Science Foundation, the John D. and Catherine T. MacArthur Foundation, the Woodrow Wilson International Center for Scholars, the Friedrich Ebert Stiftung, and the Kosciuszko Foundation. I am greatly indebted to these institutions.

The project has been intense and ambitious in its breadth, scope, information-gathering, and fieldwork. Crucial to the conduct of this nearly ten-year project was the help of so many people who granted interviews, located materials, and checked facts, not all of whom wished to be named here.

A number of people and institutions provided administrative and logistical help in my places of fieldwork: In Poland, Pani Antonina Dachw, Micha and Irena Federowiczowie, Aka Mikoszewska, and Jacek Poznaski and the Council of Ministers; in Bratislava, Ellie Sutter; in Russia, Debbie Seward, Svetlana Glinkina, Boris Greenberg, Masha Zolotukhin, and Vadim Ivanov and the Institute for the Economy in Transition; in Ukraine, Grigory Gubsky, Marta Kolomayets, and Ian Brzezinski; in Berlin, Yvonne Barber; in Bonn, Beth Pond; and in Belgium, Deanne Lehman and Benno Barnard.

Invaluable support in the United States was provided by Catherine Allen and the Department of Anthropology, Joseph Tropea and the Department of Sociology, and James Millar and the Institute for European, Russian, and Eurasian Studies, all of The George Washington University. I also very much appreciate the support of Carolyn Ban, dean of the Graduate School of Public and International Affairs at the University of Pittsburgh, my new academic home, and other colleagues at the school.

I am especially grateful to Vivian Keller for her skilled organizational help at crucial points of manuscript preparation. I also would like to acknowledge Lynne Taylor, Karen Coats, and Paul Smolarcik for editorial help, and my mother and father, Dolores and Arnold Wedel, for indexing the book. I wish to thank Chris Caltabiano, Katrina Greene, Anthony Gualtieri, Haley Hendrickson, Christina Herzler, Erind Pajo, Martina Pechova, and Doug Pyle for research assistance.

I was fortunate to have the help of talented readers. I am especially indebted to Jeff Dumas, Chris Hann, Bill Harwood, Antoni Kamiski, Phil Parnell, and Adam Pomorski. Igor Barsegian, Michael Bernstam, Steve Collier, Stephen F. Cohen, Gerald Creed, Steve Ebbin, Dan Guttman, Michael Illner, Kristine Kassekert, David Kideckel, Dave Lempert, Dave Mathiasen, Erind Pajo, Elena Petkova, Karla Scappini, Brian Wickland, Anne Williamson, and Lou Zanardi also provided valuable guidance on issues in the manuscript.

I am grateful to Chris Suddick for her creative cartoons and willingness to work with me on the project. And I wish to thank Karen Wolny, my editor, and Diana Finch, my agent, for their support.

Throughout the project, many people assisted in selfless and gracious ways. I am indebted to Igor Barsegian, Nancy Dunne, Renata Frenzen, Charles McMillion, Ron Potter, Karla Scappini, and, as always, especially to Jeff Dumas and Adam and Basia Pomorscy for their generous help and abiding interest.

Although many people helped with the project, any shortcomings in the final product are my responsibility alone.

ACRONYMS

ACAP

American Committee for Aid to Poland, Washington, D.C.

AID

Agency for International Development (also known as USAID)

CCET

Centre for Co-operation with Economies in Transition, OECD, Paris

CIPE

Center for International Private Enterprise, Washington, D.C.

CSO

Clearing and settlement organization

EBRD

European Bank for Reconstruction and Development, London

EC

European Commission, Brussels

ECU

European Currency Unit

EU

European Union

EURO

European Monetary Unit

FIP

Forum for Nongovernmental Initiatives, Poland

FTUI

Free Trade Union Institute, AFL-CIO

G-24

Group of Twenty-Four (Canada, United States, Japan, Australia, New Zealand, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, United Kingdom)

G-7

Group of Seven (Canada, France, Japan, United Kingdom, Germany, Italy, United States)

GAO

General Accounting Office (U.S. government body)

GKI

Goskomimushchestvo or State Property Committee (Russian government body responsible for privatization)

GKOs

Russian short-term treasury bills

HIID

Harvard Institute for International Development, Harvard University

HMC

Harvard Management Company, Harvard University

IBRD

International Bank for Reconstruction and Development (also known as World Bank)

IDA

International Development Agency, Poland

ILBE

Institute for Law-Based Economy (USAID-funded organization in Russia)

IMF

International Monetary Fund

IQC

Indefinite Quantity Contract (contracting mechanism under USAID)

ITCA

International Team for Company Assistance (American consulting firm)

JRL

Johnsons Russia List (Internet mailing list, davidjohnson@erols.com)

KPN

Konfederacja Polski Niepodlegej, or Confederacy of Independent Poland (Polish political group)

LPC

Local Privatization Centers (USAID-funded organizations in Russia)

NACC

North Atlantic Cooperation Council

NATO

North Atlantic Treaty Organization

NDI

National Democratic Institute for International Affairs, United States

NED

National Endowment for Democracy, United States

NGO

Nongovernmental organization

NIK

Najwysza Izba Kontroli (Supreme Control Board), Poland

NIS

Newly Independent States (successor countries of the Soviet Union)

NRI

National Republican Institute for International Affairs, United States