May 16, 1996 YAVLINSKY'S CONDITIONS Yavlinsky's Conditions is a letter to President Boris N. Yeltsin of Russia written by the liberal economist and presidential candidate Grigory Yavlinsky. The English translation of the document follows. ------------------------------------------------------ Dear Boris Nikolayevich: In the course of our latest meeting, you proposed that I prepare my considerations and documents on the necessity of radical correction of the reform course regarding the presidential elections. As you know very well, the actual balance of social forces and moods of the voters in our country is extremely shaky now, one month prior to the presidential elections. You are not guaranteed to make it to the runoff, and neither am I. I am also convinced that, without support of the democratic opposition, you will lose to Mr. Zyuganov even if you get into the runoff. These are the circumstances that tactically push the "party of power" you are the leader of and the democratic opposition to this power (primarily, the Yabloko movement) represented by me toward the search for a solution. I want to emphasize: Not just a solution based on the considerations of the moment, but the one that would ensure development of democracy, free economy, and civil society. As you know, we categorically disagree with the Neo-Nomenklatura policy of restricted reforms of the recent years. Its natural failures provided social basis for the growth of influence of the Communists: Today, to many people, return to the past looks like salvation from the present! Consistent democrats and liberals oppose the "party of power" and, naturally, the party of Communists. Not changing our beliefs, we are, nevertheless, ready for a search for joint decisions if you, with outstanding wisdom and courage, recognize the necessity of the most radical change of course. This would have long-term economic, political, and social consequences. This would be a political compromise between two social forces, whose interests are conflicting and will continue to clash every day. Yet, out of mutual need and good will, these interests can be coordinated and reconciled. What would our society gain as a result of such a decision having no precedents in the Russian history? General stability, preservation of the developed property rights, confidence that there'll be no redistribution and persecution. Simultaneously, true reforms in the interests of the majority. We are talking about the possibility to begin, even in the obviously uneasy, tense co-operation with you, with the "party of power", the immediate, even if partial, implementation of concrete plans of how our society could get out of current troubles and dead ends. The proposed statements, procedures, and guarantees cannot be subject of bargaining, because they are determined by fundamental considerations mandatory for me (or any other leader of the democratic opposition who might be in my place). We propose a two-party parity system of the executive power - in the name of combining stability, continuity, with dynamic democratic development. In the specific Russian conditions, though, this idea requires substantial reservations. Neither Yabloko, nor the "party of power" (including Our Home) is consolidated as a "true" political party. They are merely notation to decribe two real, but more or less amorphous and heterogeneous social forces, trends, interests. The two-party nature of the executive power would mean, in this case, distribution of power among its centers, partnership between the president and the government. For such coordination, there is no legal basis and safeguards in Russia. Instead, we can count on a completely open to the society, widely publicized decision; on absolutely concrete conditions it would be predetermined by; on a strictly followed public procedure of its signing. I propose: For the sake of prevention of the unconstitutional development and provision for peaceful holding of presidential elections in Russia; For the faster implementation of democratic reforms in the interests of the majority; Given the present economic and political realities; we agree with the following: The newly elected President of Russia pledges to seek a radical change of the political and social-economic course. Goal - improvement of life on the basis of deep and necessary reforms; General features of the new policy correspond in general with the election programme of the democratic opposition. They consist, first and foremost, of the following steps. PART I 1. Actual halt of the war in Chechnya on the basis of the package of the military agreements achieved in Summer-Autumn of 1995. Resumption of the direct negotiations with the separatists with observance of security interests of Russia, respect for the rights of the Chechen people for free expression of their will. Establishment of a sufficiently lengthy transition period under a negotiated temporary de facto status of Chechnya; conducting a referendum in the Chechen Republic on its constitutional law status. 2. Within a month, the president sends the Federal Assembly a project of the law on additions and amendments to the Constitution of the Russian Federation on precise delimitation of powers of the president and the government, observance of the balance of powers, restriction of one-man power. Within the month, the president makes official statements that the most important priorities for him are human rights, the right of private property and free competition. 3. The State Duma is sent the amendments to the law on the federal budget providing for the increase of the minimal wage up to 2/3 of the subsistence wage in the Russian Federation and bringing the level of wages of the employees of the budget branches of the economy significantly closer to the average wage in the economy. Reservation of wage funds is reintroduced. Non-payment of the wages as fault of the federal budget is not allowed under any conditions. By the end of 1996, the restructurization of debts of the Russian companies to the federal budget is conducted, the schedule of their repayment and the mechanisms of indexation of the leftover debt are worked out. Simultaneously, the schedule of gradual reassessment of the main funds is introduced and the tax rates of several taxes imposed on the enterprises in the fuel-and-energy industry are reduced on the condition of investment of the resulting savings into the development of Russian deposits and refineries. Effect of the law "On agreements on product distribution" and stimulation of faster signing of the corresponding agreements get legal support. By the end of 1996, the government designs and implements a series of measures on protection of Russia's internal market corresponding to the WTO procedures, and also conducts the policy of exchange rate, stimulating increase of the exports. Besides, a series of special measures stimulating Russian high-tech production is designed and introduced, and all possible support of it on the international markets is provided. Based on the provisions in the economic programme of the Yabloko movement, the government develops and introduces in the State Duma a project of the law on the federal budget, the project of the law on the federal structural policy, as well as the federal privatization program for 1997 and the following years. 4. Within the nearest 3 months, decision is made on lowering tax rates to broaden the tax base. Small and medium-size enterprizes become exempt from a few taxes, a liberal and simple procedure of their registration is introduced, their protection from racket and extortion by the government officials is ensured. Effective enterprise management and investment attraction become main priorities of the privatization program. Within six months, privileges of the administrative apparatus are scrapped, the spending on high officials is reduced. 5. Within a year, a system of decentralization and power trasition from the center to the regions is implemented, first and foremost, in the spheres of joint administration. 6. The president proposes amendments to the "Law on the Press" to the Federal Assembly, creating conditions for financial and economic independence of the press, establishing administrative and legal responsibility for attempts of pressure on the media by organs of power in any form. 7. In order to fight crime, the following provisions are made: - a system of territorial militia is created, with transfer of material and budget funds, as well as the staff rosters to the local governments; - law enforcement structures independent of the other government bodies are created to fight the organized crime and corruption in the administrative apparatus; - the fundamentally different system of material support of the law enforcement employees is introduced; - the Federal service of property protection and contract supervision is created. 8. To strengthen the defensive ability of the country, it is necessary to: - rid the army from participation in the internal politics, and from all inappropriate tasks, strengthen the role of the contract system, immediately ensure complete financing; - protect the officers, the military industry, the military science, modern weapons; - abolish the draft for students and limit the term of service to 1.5 years. 9. Relations within the C.I.S. should take into consideration, from the point of view of the Democratic Russia, the economic and political conditions of development of the other C.I.S. countries; - defuse tension with Ukraine; - in relations with the Baltic states, combine constructivity and political support of the rights of the Russian-speaking population of these countries. 10. Foreign policy course of Russia should be based on our national interests and aspiration to establish steady relations primarily with the open society countries on all continents. PART II The new policy can only be conducted by new people. The candidacy of the head of the government is agreed upon by the two sides and is proposed to the State Duma. If it is rejected by the State Duma, then it is proposed two more times. If it is rejected three times by the State Duma, the president, according to article 111 of the Constitution of the Russian Federation, disbands the State Duma, sets the date of its election. The cabinet should be formed by the Prime Minister or with his agreement. Figures of a wide political spectrum may join the government. All new policy, including the personal change issues, will be determined by the President, according to the current Constitution. Yet, according to this document, the president pledges not to make any appointments on the government and other important administrative positions without a recommendation or consultation with the Prime Minister. This applies to the appointment of all ministers, including the ones of the power ministries. A procedure of mandatory signing of the President's decrees on the economic and defense policies by the Prime Minister. Without the Prime Minister's signature, the President does not sign any decrees on these issues. Actual increase of power of the head of the government is the most important condition of the implementation and one of the safeguards of this agreement. PART III 1. Before May 25, 1996, the President accepts resignation of the Prime Minister, the first Vice Premier, the Minister of Defense, the head of the President's administration and other high officials directly responsible for political and economic failures and errors. 2. The people signing this document get the opportunity to thoroughly explain the motives, the content, and the goals of it in live radio and TV addresses. 3. This document is published in the press. 4. The signing of the document is televised live. The open procedure will allow to have a direct dialog with the constituents, convince them in validity of the decisions made, guarantee their fulfillment on the part of the public opinion. Grigory A. Yavlinsky