In early December of 1989, a few weeks after the Berlin Wall fell, Mikhail Gorbachev attended his first summit with President GeorgeH. W. Bush. They met off the coast of Malta, aboard the Soviet cruise ship Maxim Gorky. Gorbachev was very much looking forward to the summit, as he looked forward to all his summits; things at home were spiralling out of control, but his international standing was undimmed. He was in the process of ending the decades-long Cold War that had threatened the world with nuclear holocaust. When he appeared in foreign capitals, crowds went wild.
Bush was less eager. His predecessor, Ronald Reagan, had blown a huge hole in the budget by cutting taxes and increasing defense spending; then he had somewhat rashly decided to go along with Gorbachevs project to rearrange the world system. Bushs national-security team, which included the realist defense intellectual Brent Scowcroft, had taken a pause to review the nations Soviet policy. The big debate within the U.S. government was whether Gorbachev was in earnest; once it was concluded that he was, the debate was about whether hed survive.
On the summits first day, Gorbachev lamented the sad state of his economy and praised Bushs restraint and thoughtfulness with regard to the revolutionary events in the Eastern Bloche did not, as Bush himself put it, jump up and down on the Berlin Wall. Bush responded by praising Gorbachevs boldness and stressing that he had economic problems of his own. Then Gorbachev unveiled what he considered a great surprise. It was a heartfelt statement about his hope for new relations between the two superpowers. I want to say to you and the United States that the Soviet Union will under no circumstances start a war, Gorbachev said. The Soviet Union is no longer prepared to regard the United States as an adversary.
As the historian Vladislav Zubok explains in his recent book Collapse: The Fall of the Soviet Union (Yale), This was a fundamental statement, a foundation for all future negotiations. But, as two members of Gorbachevs team who were present for the conversations noted, Bush did not react. Perhaps it was because he was recovering from seasickness. Perhaps it was because he was not one for grand statements and elevated rhetoric. Or perhaps it was because to him, as a practical matter, the declaration of peace and partnership was meaningless. As he put it, a couple of months later, to the German Chancellor, Helmut Kohl, We prevailed and they didnt. Gorbachev thought he was discussing the creation of a new world, in which the Soviet Union and the United States worked together, two old foes reconciled. Bush thought he was merely negotiating the terms for the Soviets surrender.
The most pressing practical question after the Berlin Wall came down was what would happen to the two Germanys. It was not just the Wall that had been keeping them apart. In 1989, even after four years of Gorbachevs perestroika, there were still nearly four hundred thousand Soviet troops in the German Democratic Republic. On the other side of the East-West border were several hundred thousand NATO troops, and most of the alliances ground-based nuclear forces. The legal footing for these troop deployments was the postwar settlement at Potsdam. The Cold War, at least in Europe, was a frozen conflict between the winners of the Second World War. Germany, four and a half decades later, remained the loser.
West German politicians dreamed of reunification; the hard-line Communist leaders of East Germany were less enthusiastic. East Germans, pouring through the dismantled Wall to bask in the glow of Western consumer goods, were voting with their feet. What would Gorbachev do? Throughout the months that followed, he held a series of meetings with foreign leaders. His advisers urged him to extract as many concessions as possible. They wanted security guarantees: the non-extension of NATO, or at least the removal of nuclear forces from German territory. One bit of leverage was that NATOs nuclear presence was deeply unpopular among the West German public, and Gorbachevs hardest-line adviser on Germany urged him, more than a little hypocritically, to demand a German popular vote on nukes.
In February, 1990, two months after the summit with Bush on the Maxim Gorky, Gorbachev hosted James Baker, the U.S. Secretary of State, in Moscow. This was one of Gorbachevs last opportunities to get something from the West before Germany reunified. But, as Mary Elise Sarotte relates in Not One Inch: America, Russia, and the Making of Post-Cold War Stalemate (Yale), her recent book on the complex history of NATO expansion, he was not up to the task. Baker posed to Gorbachev a hypothetical question. Would you prefer to see a unified Germany outside of NATO, independent and with no U.S. forces, Baker asked, or would you prefer a unified Germany to be tied to NATO, with assurances that NATOs jurisdiction would not shift one inch eastward from its present position? This last part would launch decades of debate. Did it constitute a promiselater, obviously, broken? Or was it just idle talk? In the event, Gorbachev answered lamely that of course NATO could not expand. Bakers offer, if thats what it was, would not be repeated. In fact, as soon as people in the White House got wind of the conversation, they had a fit. Two weeks later, at Camp David, Bush told Kohl what he thought of Soviet demands around German reunification. The Soviets are not in a position to dictate Germanys relationship with NATO, he said. To hell with that.
The U.S. pressed its advantage; Gorbachev, overwhelmed by mounting problems at home, settled for a substantial financial inducement from Kohl and some vague security assurances. Soon, the Soviet Union was no more, and the overriding priority for U.S. policymakers became nuclear deproliferation. Ukraine, newly independent, had suddenly become the worlds No. 3 nuclear power, and Western countries set about persuading it to give up its arsenal. Meanwhile, events in the former Eastern Bloc were moving rapidly.
You know your mistake? When they say Speak, you speak.
Cartoon by Peter Steiner
In 1990, Franjo Tudjman was elected President of Croatia and began pushing for independence from Yugoslavia; the long and violent dissolution of that country was under way. Then, in February of 1991, the leaders of Poland, Hungary, and Czechoslovakia, as it was then, met in Visegrd, a pretty castle town just north of Budapest, and promised one another to cordinate their pursuit of economic and military ties with European institutions. These countries became known as the Visegrd Group, and they exerted pressure on successive U.S. Administrations to let them join nato. They were worried about the events in Yugoslavia, but even more worried about Russia. If the Russians broke bad, they argued, they would need NATOs protection; if the Russians stayed put, the alliance could mellow out and just enjoy its annual meetings. Either way, there would be no harm done.
The counter-argument, from some in both the Bush and the Clinton Administrations, was that the priority was the emergence of a peaceable and democratic Russia. Admitting the former Warsaw Pact countries into the alliance might strengthen the hand of the hard-liners inside Russia, and become, in effect, a self-fulfilling prophecy.
After the Soviet collapse, Western advisers, investment bankers, democracy promoters, and just plain con men flooded the region. The advice on offer was, in retrospect, contradictory. On the one hand, Western officials urged the former Communist states to build democracy; on the other, they made many kinds of aid contingent on the implementation of free-market reforms, known at the time as shock therapy. But the reason the reforms had to be administered brutally and all at oncewhy they had to be a shockwas that they were by their nature unpopular. They involved putting people out of work, devaluing their savings, and selling key industries to foreigners. The political systems that emerged in Eastern Europe bore the scars of this initial contradiction.
In almost every former Communist state, the story of reform played out in the same way: collapse, shock therapy, the emergence of criminal entrepreneurs, violence, widespread social disruption, and then, sometimes, a kind of rebuilding. Many of the countries are now doing comparatively well. Poland has a per-capita G.D.P. approaching Portugals; the Czech Republic exports its koda sedans all over the world; tiny Estonia is a world leader in e-governance. But the gains were distributed unequally, and serious political damage was done.
In no country did the reforms play out more dramatically, and more consequentially, than in Russia. Boris Yeltsins first post-Soviet Cabinet was led by a young radical economist named Yegor Gaidar. In a matter of months, he transformed the enormous Russian economy, liberalizing prices, ending tariffs on foreign goods, and launching a voucher program aimed at distributing the ownership of state enterprises among the citizenry. The result was the pauperization of much of the population and the privatization of the countrys industrial base by a small group of well-connected men, soon to be known as the oligarchs. When the parliament, still called the Supreme Soviet and structured according to the old Soviet constitution, tried to put a brake on the reforms, Yeltsin ordered it disbanded. When it refused to go, Yeltsin ordered that it be shelled. Many of the features that we associate with Putinismimmense inequality, a lack of legal protections for ordinary citizens, and super-Presidential powerswere put in place in the early nineteen-nineties, in the era of reform.
When it came to those reforms, did we give the Russians bad advice, or was it good advice that they implemented badly? And, if it was bad advice, did we dole it out maliciously, to destroy their country, or because we didnt know what we were doing? Many Russians still believe that Western advice was calculated to harm them, but history points at least partly in the other direction: hollowing out the government, privatizing public services, and letting the free market run rampant were policies that we also implemented in our own country. The German historian Philipp Ther argues that the post-Soviet reform process would have looked very different if it had taken place even a decade earlier, before the so-called Washington Consensus about the benevolent power of markets had congealed in the minds of the worlds leading economists. One could add that it would also have been different two decades later, after the 2008 financial crisis had caused people to question again the idea that capitalism could be trusted to run itself.
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