Yeltsin first term — chaotic shock therapy and loans-for-shares 1991-1996

Doctrine — stated goals and content

Yeltsin's first term attempted Russia's transition from Soviet command economy to market capitalism via shock therapy, mass voucher privatisation, and — fatefully — 1995 loans-for-shares. Economic school: chaotic shock- therapy neoliberalism — price liberalisation, convertibility, and privatisation executed against hyperinflation, constitutional crisis, and resurgent parliamentary opposition, with policy oscillating between Gaidar-reform and Chernomyrdin-gradualist poles. Left-right axis: centre- right on economic content, super-presidential on institutional content. Core policy content: (i) January 1992 Gaidar price liberalisation — overnight removal of most price controls, inflation spiked to 2,500% in 1992; (ii) rouble convertibility July 1992; (iii) voucher privatisation October 1992-July 1994 under Chubais — 148 million vouchers issued at 10,000 rubles nominal, massively devalued by inflation; (iv) October 1993 constitutional crisis — Yeltsin dissolved Supreme Soviet, tanks fired on White House, new presidential constitution adopted by referendum December 1993 (58% yes); (v) 1994 "Black Tuesday" 11 October rouble collapse forced stabilisation tightening; (vi) loans-for-shares November 1995-1996 — crown-jewel oil/metals companies (Yukos, Sibneft, Norilsk Nickel, Lukoil) transferred to "oligarch" insider owners at heavily discounted prices; (vii) 1994-1996 First Chechen War; (viii) IMF Extended Fund Facility March 1996 and Paris Club arrangements; (ix) MMM pyramid collapse 1994 and other financial-sector frauds. Macro: cumulative GDP fall ~40% 1991-1996; hyperinflation 1992-1994 then falling to 22% by 1996; unemployment official 7-9%, real higher; life expectancy dropped 5 years. Popularity: Yeltsin won June 1991 RSFSR presidency (57%); approval <10% by early 1996; won re- election July 1996 (54% second round vs Zyuganov) after massive oligarch-media-state mobilisation. Coherence: low — reform and counter-reform phases alternated; the loans-for-shares scheme and oligarchisation of the resource base fundamentally compromised the market-liberal programme's legitimacy.