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Such an aid sys-

eral received incriminating documents about

January 1996; Chubais was placed on the

HIID's activities in Russia and began

HIID payroll.63

tem lacks outside

investigating.57 In May 1997 the agency can-

Several fallacies appear to guide those poli-

accountability and

celed most of the $14 million still earmarked

cies. One is the faith of U.S. policymakers in

precludes signifi-

for HIID, citing evidence that its two princi-

stated ideological positions. Donors tended

pal consultants had "abused the trust of the

to identify the reformer as such not because

cant oversight by

United States Government by using personal

he was an agent of change (although he

U.S. and Russian

relationships . . . for private gain."58 In partic-

might, indeed, have embraced reform). The

authorities not

prototypical "reformer" was Western orient-

ular, the project's two principals allegedly

ed; was conversant in English as well as in the

used their positions and inside knowledge as

aligned with the

donor vernacular of "markets," "reform," and

advisers to profit from investments in the

chosen group.

"civil society"; had Western contacts; and was

Russian securities markets and other private

a selfdeclared reformer (at least when talking

enterprises. The Harvard men remain under

to Westerners) who associated with other

investigation by the U.S. Department of

reformers. The most popular Russian reform-

Justice.59

ers in Western political and aid circles were

Following in Communism's Footsteps

young, energetic, and adept in their dealings

with donors. Western government officials

It is easy to understand the donors'

took them at face value. As U.S. AID's

impulse to support reformers. As U.S. AID's

Thomas A. Dine remarked, "If Maxim Boycko

Walter Coles said, "Reformers are the ones

tells me that X, Y, and Z are reformers, I be-

that are willing to take the risk. Their necks

lieve him." Dine went on to note that "it's no

are on the line."60 Although that explanation

secret that nationalists and Communists

sounds good in principle, it is less convincing

don't like [Chubais] and perhaps that's the

in practice because it is an inherently political

best proof of all [of his reform credentials]."64

approach disguised as a technical matter. As

self-styled reformers Maxim Boycko (St.

Yet identifying reformers on the basis of per-

Petersburg Clan member) and others

sonal attributes and declared ideological posi-

acknowledged, "Aid can change the political

tions--as they look in the West--is wrong-

equilibrium by explicitly helping free-market

headed. As Russian economist and former

reformers to defeat their opponents. . . . Aid

presidential candidate Grigory Yavlinsky stat-

helps reform not because it directly helps the

ed, "The new ruling elite is neither democrat-

economy--it is simply too small for that--but

ic nor communist, neither conservative nor

because it helps the reformers in their politi-

liberal. It is merely greedy and rapacious."65

cal battles." U.S. privatization aid, those

The disillusionment of those who were not

reformers added, "has shown how to . . . effec-

young or glib or "Western" enough to be cho-

tively . . . alter the balance of power between

sen was expressed by Aleksandr Lebed's

reformers and their opponents."61 In a 1997

spokesman:

interview, U.S. aid coordinator to the former

We [are] disappointed by the way you

Soviet Union, Ambassador Richard L.

Americans find friends in Russia. . . .

Morningstar, stood by this approach: "If we

Criminal and corrupted men can use

hadn't been there to provide funding to

all new opportunities with success,

Chubais, could we have won the battle to

but men of work and honor cannot

carry out privatization? Probably not. When

advertise themselves. . . . If you did not

you're talking about a few hundred million

want crisis in Russia, if you want [a]

dollars, you're not going to change the coun-

free, wealthy, democratic Russia, try

try, but you can provide targeted assistance

to help Chubais."62 U.S. assistance to Chubais

to find friends that really can work on

market reforms.66

continued even after he was dismissed by

Yeltsin as first deputy prime minister in

10