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Bertram Silverman - Winners and Losers on the Russian Road to Capitalism

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Bertram Silverman Winners and Losers on the Russian Road to Capitalism

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New Rich, New Poor, New Russia
New Rich, New Poor, New Russia
Winners and Losers on the Russian Road to Capitalism
Bertram Silverman and Murray Yanowitch
First published 1997 by ME SharpeInc Published 2016 by Routledge 2 Park - photo 1
First published 1997 by M.E. Sharpe.Inc
Published 2016 by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
711 Third Avenue, New York, NY 10017, USA
Routledge is an imprint of the Taylor & Francis Group, an informa business
Copyright 1997 by Taylor & Francis. All rights reserved.
No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.
Notices
No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use of operation of any methods, products, instructions or ideas contained in the material herein.
Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility.
Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.
Library of Congress Cataloging-in-Publication Data
Silverman, Bertram.
New rich, new poor, new Russia: winners and losers on the Russian
road to capitalism / by Bertram Silverman and Murray Yanowitch.
p. cm.
Includes bibliographical references and index.
ISBN 1-56324-704-6 (alk. paper).
ISBN 1-56324-705-4 (pbk.: alk. paper)
1. Russia (Federation)Economic conditions1991Congresses.
2. WealthRussia (Federation)Congresses. 3. PovertyRussia (Federation)
Congresses. 4. CapitalismRussia (Federation)Congresses.
I. Yanowitch, Murray. II. Title.
HC340.12.S55 1997
330.947'086dc21 97-6665
CIP
ISBN 13:978-1-56324-704-0 (hbk)
For Alice and Rose
Contents
  1. xvi
Guide
This book had its origins in our efforts to bring together leading labor scholars, labor-management experts, and trade union leaders from the United States and Russia to examine the transformation of labor market institutions in our respective countries. Some of the contributions to these symposia were published in two earlier volumes that we jointly edited with Robert Vogt (Labor and Democracy in the Transition to a Market System [M.E. Sharpe, 1992]; and Double Shift: Transforming Work in Postsocialist and Postindustrial Societies [M.E. Sharpe, 1993]). Most of the U.S. contributors shared the view that economic performance in today's rapidly changing global economy depended on constructing more equitable and democratic ways of organizing human resources. One of the participants, former U.S. secretary of labor Ray Marshall, calls this newly evolving stage "human resource capitalism."
This study reveals that Russia has chosen a different road to capitalism. Guided by free market ideology, market reforms have resulted in dramatic declines in living standards that limit the forward movement of liberalization. As another participant in our symposia, labor economist Richard Freeman, warned, the ability to promote market reforms will ultimately depend on convincing the Russian people "to accept transitional costs while protecting them against the excesses of incipient capitalism."
But the success of market reforms in Russia also depends on how the costs and benefits of marketization are shared. In Russia, a deepening divide between winners and losers is becoming a major factor influencing the type of market system emerging in the post-Soviet period. This book examines the unequal distribution of the costs and benefits of reform, its impact on the changing social and economic structure of the population, and how these changes violate perceptions of equity and fairness.
While our focus is deliberately selective, our study does explore some of the principal concerns of the Russian people as they confront the realities of an emerging market system. In the chapters that follow we examine how the face of poverty has changed, and why many Russians, despite their earlier criticism of Soviet wage leveling, now have a negative view of widening wage differentials and sharply increasing social and economic inequality. We also look closely at the changing social and economic position of women and examine why they are among the principal losers in the reform process. Some Russians have of course benefited from market reforms. A new capitalist class has been created. We explore the principal social channels of recruitment of this class and what this suggests about changes in and continuities with Russia's Soviet past. Finally, our book concludes by addressing a puzzling question: Why has social democracy played such a limited role in reforming Soviet communism?
Readers will note that we have made extensive use of statistical materials issued by both official state agencies and nonofficial research organizations. Clearly, the far-reaching institutional changes and social turmoil associated with Russia's transition to capitalism were not always conducive to accuracy in statistical reporting. In the pages that follow, we alert readers to those instances in which questions have been raised about the reliability of the statistical reports and where marked discrepancies have appeared between official and nonofficial findings.
In the course of writing this book, we have turned to many Russian scholars for advice and assistance. Many of their names appear prominently in the pages that follow. We would especially like to express our gratitude to Leonid Gordon, Vladimir Gimpelson, Natalia Rimashevskaia, Tat'iana Zaslavskaia, Vladimir Iadov, Ovsei Shkaratan, and Vladimir Magun. Our numerous discussions with them and our access to their published and unpublished work have contributed significantly to our understanding of the major issues posed in this study. We are also especially indebted to Galina Manousova, who served as our research assistant in Moscow, and to Denis Sukhodolsky, our graduate assistant at Hofstra University. The dean of Hofstra University, Robert Vogt, a collaborator in our Russian projects, has continued to contribute to and support our work. Hofstra University has generously continued to support our research efforts. Patricia Kolb, executive editor at M.E. Sharpe, has played an invaluable role in encouraging and inspiring us to complete the book. Alice Kessler-Harris read the manuscript many times. Her critical voice pushed us to write more clearly and to avoid inconsistencies in presentation.
New Rich, New Poor, New Russia

Free Market Ideology and the Specter of Inequality
As its surrounding satellites began to break free in 1989, the Soviet Union, to the surprise of most experts, seemed to implode. The defining conflict of the twentieth century, between communism and capitalism, ended, as T.S. Eliot might have said, "not with a bang but with a whimper." For the many who had lived under its oppressive yoke, the collapse of communism released a sense of new opportunities. Many of the restrictions on freedom were lifted, and suddenly it was possible to publicly voice grievances and preferences and to move more freely to pursue one's own interests. The strike movement and the emergence of political opposition groups suggested that a genuine civil society might find its place beyond the kitchen table to which previously it had been confined. To the extent that people were freer to follow their own interests, everyone has benefited from the fall of communism.
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