September 21, 1993

Economics of Crime

As president, Yeltsin is leading Russia on a course of shock therapy to a free market economy, although the Russian economy has never been a full participant in the world. As a result, unemployment is rising in the country, production is falling, crime is booming, and millions of people are living below the poverty line. At the same time, the limited circle of the political elite is incredibly rich, a strong foundation is being laid for the stratum of the Russian oligarchs, and economic crime is flourishing.

In 1993, Russian opposition makes common cause against Boris Yeltsin’s policies. So he decides to respond with a military crackdown on the “inconvenient” people. In 1993, Boris Yeltsin sends tanks against opposition parliamentarians. The biggest crisis under Yeltsin’s presidency starts. He may even lose his position. At this time, about 150 people are killed in shootings around parliament buildings and central television. This is becoming the worst civil conflict in Russia since the Russian Revolution in 1917.

Later, Yeltsin pushes for constitutional reform that strengthens presidential power through parliament. However, his actions draw criticism of the autocracy.