Luzhkov, Yury Mikhaylovich

▪ 1998

      In September 1997 Moscow Mayor Yury Luzhkov was host of a lavish birthday party for his native city. The three-day extravaganza, which cost at least $60 million, was intended not only to celebrate Moscow's rich 850-year history but to show the world that the Russian capital, already home to two-thirds of the country's foreign investment, was eager to maintain its rapid pace of development. Since becoming mayor in 1992, Luzhkov had transformed Moscow into the engine of post-Soviet state capitalism, overseeing a wave of entrepreneurialism and a building boom that pushed office rents higher than those of New York City. The birthday bash over which Luzhkov presided also marked his unofficial entry into the race to succeed Russian Pres. Boris Yeltsin, who indicated that he would not seek a third term in 2000. Even though he had not announced his candidacy, Luzhkov was cited as the front-runner in a poll published in October. His June unveiling of a regional television network owned and operated by the city was further testimony to the mayor's desire to reach a wider audience.

      Popular and powerful, Luzhkov was the quintessential khozyain ("boss"), a strong-willed, at times bullying, leader who had harnessed his loyal team to the single goal of remaking the city of Moscow. Through careful manipulation of post-Soviet privatization, the city owned about 1,500 businesses outright and had a financial stake in some 300 more. Luzhkov took a personal interest in these enterprises, from regular visits of construction sites to approving the menu and logo of Russkoye Bistro, a fast-food chain created to compete with McDonald's. Though cognizant of mafia influence in some new businesses, his administration was untainted by any major scandals. Outlying provinces harboured suspicions of Moscow's newfound wealth, but Luzhkov was praised by his constituents, nearly 90% of whom reelected him over a communist challenger in June 1996.

      Often appearing in public in an open collar and peaked leather cap, the mayor affected a populist stance in his public battles with the Kremlin. Although he had backed Yeltsin in times of crisis—the coup attempt of August 1991, the parliamentary revolt of October 1993, and the presidential elections of June and July 1996—Luzhkov was often critical of the president and his young reform-minded advisers, particularly First Deputy Prime Minister Anatoly Chubais. Luzhkov frequently squared off against Chubais over the handling of the privatization process in Moscow. In 1994 Luzhkov persuaded Yeltsin to give him control over the city's vast inventory of state holdings, and in 1996 Moscow took in $1 billion in privatization revenues.

      Luzhkov was born into a poor Muscovite family on Sept. 21, 1936. He studied mechanical engineering at Gubkin Academy of Oil and Gas in Moscow and worked as a technical manager until 1987, when he became first deputy chairman of the Moscow government. In 1990 he rose to the position of executive committee leader under Mayor Gavril Popov, and he became deputy mayor when Popov was reelected in 1991. Popov's resignation in June 1992 prompted Yeltsin to name Luzhkov the new mayor.

TOM MICHAEL

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