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Republic, and Russia (and printed materials pro-

60. Interview with Coles, June 6, 1996.

vided by the funds); as well as representatives of

61. Boycko, Shleifer, and Vishny, p. 142.

similar programs such as the EU's Struder pro-

gram and Caresbac.

62. Interview with Ambassador Richard L. Morn-

ingstar, U.S. aid coordinator to the former Soviet

80. Public Law 101-179 (1989), Support for East

Union, February 11, 1997.

European Democracy (SEED) Act of 1989,

November 28, 1989, sec.201(a).

63. This information was confirmed by Taylor

and by Thomas A. Dine of U.S. AID in an inter-

81. See U.S. General Accounting Office, "Enter-

view on August 16, 1996.

prise Funds Evolving Models for Private Sector

Development in Central and Eastern Europe,"

64. Dine, interview of August 16, 1996.

March 1994, pp. 60­62.

65. Quoted in Jim Hoagland, "Specializing in

Incumbency," Washington Post, February 13, 1997.

82. See ibid., pp. 20­21.

66. Vladimir Titov, chief of staff to Aleksandr

83. Interview with Zbigniew Brzezinski, March 10,

Lebed in the state Duma, letter to Janine R. Wedel,

1994.

August 28, 1996.

84. Interview with Jacek Szlachta, April 22, 1994;

67. Igor Kliamkin, "Elektorat Demokraticheskikh

and Jacek Szlachta, "Poland's Regional Develop-

Sil," in Analiz Elektorata Politicheskikh Sil Rossii

ment under Economic Transformation," Paper

(Analysis of the Electorate of Russia's Political Forces)

presented at a conference on "Regional Develop-

(Moscow: Carnegie Endowment for International

ment in Poland," sponsored by the Friedrich Ebert

Peace, 1995), pp. 16­17.

Stiftung in Poland, September 30 to October 1,

1993, p. 16.

68. "Popular Rule Group Wants Probe into U.S.

Agencies' Presence," Interfax in English, April 30,

85. Interview with Szlachta, June 18, 1998. See

1997, cited in Johnson's Russia List, May 2, 1997.

also Glowny Urzad Statystyczny, Rocznik Statysty-

czny Wojewodztw (Warsaw: Glowny Urzad

69. Information from Veniamin Sokolov, inter-

Statystyczny, 1997).

view of May 31, 1998, and talk at American

University, June 2, 1998.

86. Interview with Charles Huebner, April 25,

1994.

70. Anne Williamson, "Russia's Fiscal Whistle-

blower: Chief Auditor Venyamin Sokolov Says

87. Development Alternatives, Inc., Program

Western Loans Are Hijacked by the Corrupt

Evaluation of the Central and Eastern Europe Enter-

Yeltsin Government," Interview by Anne William-

prise Funds: Final Report (Washington: Develop-

son, MoJo Wire, June 16­22, 1998.

ment Alternatives, Inc., 1995), p. ix. For additional

information and analysis of the Enterprise Funds,

71. Ibid.

see Doug Bandow, "Uncle Sam as Investment

72. Ibid.

Banker: The Failure of Washington's Overseas

Enterprise Funds," Cato Institute Policy Analysis

73. Information from Sokolov.

no. 260, September 19, 1996.

74. Thomas A. Dine, "U.S. Aid for the Newly

88. In Poland, for example, much privatization

Independent States," Problems of Post-Communism

was accomplished through liquidation, with the

42, no. 3 (May­June 1995): 29.

major players company insiders and the Ministry

of Industry. Meaney, p. 29.

75. Taylor, interview of August 9, 1996.

89. Development Economics Group/Louis Berger

76. Interview with Dine, August 16, 1996.

International, Inc., and Checci and Company

Consulting, Inc., pp. 16­17, arrived at the same

77. U.S. General Accounting Office, "Foreign

conclusion.

Assistance," p. 6.

78. Conversations with Louis H. Zanardi of the

GAO audit team.

79. This section is based on interviews with

observers of recipient country financial condi-

tions; beneficiaries of Enterprise Fund loans;

Enterprise Fund principals in the United States,

Poland, Hungary, the Czech Republic, the Slovak

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