ABSTRACT
The new parliament elected in March 1998 was different from its predecessor in
several decisive respects. The new mixed 50:50 proportional-majoritarian
electoral law produced a parliament that was more party-based. In turn, this led
to the increased importance of party caucuses, i.e. factions, as institutions in the
Verkhovna Rada via endogenous rule changes that would move parliament
towards a linked dual-channel design. Second, the new Rada contained many
more entrepreneurs than previously (see Chapter 2) and a corollary of this was a
significant increase in the role of money in the internal functioning of parliament
and especially factions. The convocation was also distinguished by the mid-term
formation of Ukraine’s first ever parliamentary majority. This critical
development was prompted by the actions of President Kuchma and
demonstrated the important role of presidential preferences in the internal
organization of the Verkhovna Rada. The removal of presidential pressure during
the Gongadze scandal resulted in the majority’s collapse. However, during its
brief existence, the majority implemented notable structural changes in
parliament and there was a marked increase in organizational complexity and
voting discipline. Yet deputies changed their faction membership more regularly
than ever and the party spectrum became more fragmented, indicating
de-institutionalization of factions. Therefore, while factions assumed a dominant
role within the Verkhovna Rada vis-a`-vis other institutions such as standing
committees, institutionalization took place in a patchy, uneven manner and the
pre-eminent position of factions was increasingly illusory in light of the growing
influence of the president and groups of deputy-oligarchs close to him.
