What explains the fall of the USSR, c1985–91?
The significance of the economic weaknesses of the USSR and the failure of reform. (/)
The effects of Gorbachev’s failure to reform the Communist Party and the Soviet
government. (/)
The impact of the nationalist resurgence in the late 1980s in the Soviet republics and in the
communist states of Eastern Europe.
How far Gorbachev and Yeltsin can be seen as responsible for the collapse of the USSR in
1991.
To do:
List and describe USSR’s economic weaknesses (/)
Describe attempts at reform and assess their efficacy (/)
Describe the national resurgences in Soviet states and the impact of this
Describe Gorbachev’s involvement in USSR’s collapse
Describe Yeltsin’s involvement in USSR’s collapse
Economic weakness/Reason for economic reform Why was this significant?
Military spending accounted for using 18% of the Despite struggling for investment in numerous key areas, the USSR
country’s resources (however it did employ 20% was pouring a significant proportion of their income into their
population) military
The current command economy was ineffective Development was slow and difficult due to the conditions of the
as targets encouraged low quality products and a economy and there was no link between prices and supply and
lack of innovation and government-set prices demand of products. Additionally, there were structural and
caused a stagnating economy fundamental issues of the Soviet economic system that would
require a complete overhaul to change.
The 1979-89 war in Afghanistan drained Consumed considerable amounts of money, causing other state-
resources funded areas to suffer, and pushing the government towards
having to go into deficit in order to fund all sectors. Also forced
increased defence spending in order to match the USA.
By 1984, oil and gas accounted for 54% Soviet A significant proportion of the USSR’s monetary imports greatly
exports and the price of these dramatically fell in decreased in value, causing a shortage of income to distribute in
late 80s key areas
By 1988-89, members of the Warsaw pact had The USSR had fewer areas to distribute its products to, as they
begun to reject communism, damaging Soviet were largely limited to communist states due to the superior
trade nature of the products of the West
Growing crisis in agriculture caused by state Lots of investment was being spent, with few improvements in
inefficiency and inflexibility productivity to show for it
Rampant alcoholism It worsened the health of the population, increasing its
dependence on health services. Additionally, it lowered the
productivity levels and punctuality of the workforce and accounted
for a proportion of household spending that could be invested in
more beneficial areas such as entertainment and consumer goods.
Inefficient industry Old factories became increasingly unproductive due to old
equipment. Soviet industry was slow to use new technology and
foreign technology imports drained valuable foreign exchange. The
focus on quantity rather than quality/meeting targets caused poor
quality products, to the extent that they were sometimes
unusable.
, Reforms Implemented Aims Results
The legal age for the Improving the productivity Some benefits
consumption of alcohol was and punctuality of the Government lost out on tax revenues of vodka,
raised to 21; the number of workforce causing budget shortfalls
retail outlets where alcohol Improving the health of Illegal and dangerous production of moonshine
could be bought was the population, therefore liquor which caused rising drinking levels
reduced; vineyards were reducing their
destroyed and distilleries dependence on health
were closed; the cost of services
vodka in shops was tripled.
Twelfth 5YP: Streamline state Construction projects tended to lead to
Construction projects apparatus in order to cut overspends due to investment needed for the
‘Superministries’ set up waste from duplication factories constructed
to achieve better and rivalry from High level of opposition to any real change, mostly
coordination of competing for resources from within the Party and state economic
economic activity and planning apparatus
avoid waste Main obstacle was the fact that the reforms had
to be implemented by privileged people whose
power would be reduced by them – therefore,
there was resistance (e.g. military against changes
in investment priorities).
Going into deficit in order to Funding new industrial Between 1985-86, the Soviet economy’s deficit
fund the military and and military investment rose from 2.4% of GDP to 6.2%
industry without reducing the By the end of 1989, the Soviet economy was
funding of other sectors or massively in debt
reducing the availability of
consumer goods
Economic Perestroika Revitalising the economy Food production growth rate rose from 1 to 2%
through restructuring between 1986-87 but was still inadequate for the
methods growing population, causing 20% of USSR’s
Causing incentives that foodstuffs to be imported
would encourage Uncertainty over supplies encouraged hoarding,
production and give often leaving shops empty.
greater flexibility than the Weakened the apparatus of state planning but
current command provided little to replace it
economy Worsened quality/availability of consumer goods
Gorbachev’s failure to bring about an improved
economic situation undermined his political
power/position
Encouragement of joint Improve relationships with Endless bureaucracy made progress slow for
ventures (Jan 87) – allowed foreign businesses, foreign companies wanting to invest in USSR
foreign firms to establish opening the USSR to more By end of 1990, there were nearly 3000 joint
businesses in USSR, usually modern technology foreign ventures in USSR, but most were small-
in joint enterprises with scale operations which had little impact on the
state economy
Law on state enterprises Prices that better reflected Enterprises still subject to state interference: state
(June 87) – loosening of the supply and demand of decided allocation of materials; devolution of
state control over wages and the products power to managers depended on attitude of state
prices, weakening authority Greater range of products bureaucrats who often kept tight control
of Gosplan. Also allowed produced due to greater Urban wages rose by 9% in 1988 and 13% in 1989
factories to produce what amount of choice
The significance of the economic weaknesses of the USSR and the failure of reform. (/)
The effects of Gorbachev’s failure to reform the Communist Party and the Soviet
government. (/)
The impact of the nationalist resurgence in the late 1980s in the Soviet republics and in the
communist states of Eastern Europe.
How far Gorbachev and Yeltsin can be seen as responsible for the collapse of the USSR in
1991.
To do:
List and describe USSR’s economic weaknesses (/)
Describe attempts at reform and assess their efficacy (/)
Describe the national resurgences in Soviet states and the impact of this
Describe Gorbachev’s involvement in USSR’s collapse
Describe Yeltsin’s involvement in USSR’s collapse
Economic weakness/Reason for economic reform Why was this significant?
Military spending accounted for using 18% of the Despite struggling for investment in numerous key areas, the USSR
country’s resources (however it did employ 20% was pouring a significant proportion of their income into their
population) military
The current command economy was ineffective Development was slow and difficult due to the conditions of the
as targets encouraged low quality products and a economy and there was no link between prices and supply and
lack of innovation and government-set prices demand of products. Additionally, there were structural and
caused a stagnating economy fundamental issues of the Soviet economic system that would
require a complete overhaul to change.
The 1979-89 war in Afghanistan drained Consumed considerable amounts of money, causing other state-
resources funded areas to suffer, and pushing the government towards
having to go into deficit in order to fund all sectors. Also forced
increased defence spending in order to match the USA.
By 1984, oil and gas accounted for 54% Soviet A significant proportion of the USSR’s monetary imports greatly
exports and the price of these dramatically fell in decreased in value, causing a shortage of income to distribute in
late 80s key areas
By 1988-89, members of the Warsaw pact had The USSR had fewer areas to distribute its products to, as they
begun to reject communism, damaging Soviet were largely limited to communist states due to the superior
trade nature of the products of the West
Growing crisis in agriculture caused by state Lots of investment was being spent, with few improvements in
inefficiency and inflexibility productivity to show for it
Rampant alcoholism It worsened the health of the population, increasing its
dependence on health services. Additionally, it lowered the
productivity levels and punctuality of the workforce and accounted
for a proportion of household spending that could be invested in
more beneficial areas such as entertainment and consumer goods.
Inefficient industry Old factories became increasingly unproductive due to old
equipment. Soviet industry was slow to use new technology and
foreign technology imports drained valuable foreign exchange. The
focus on quantity rather than quality/meeting targets caused poor
quality products, to the extent that they were sometimes
unusable.
, Reforms Implemented Aims Results
The legal age for the Improving the productivity Some benefits
consumption of alcohol was and punctuality of the Government lost out on tax revenues of vodka,
raised to 21; the number of workforce causing budget shortfalls
retail outlets where alcohol Improving the health of Illegal and dangerous production of moonshine
could be bought was the population, therefore liquor which caused rising drinking levels
reduced; vineyards were reducing their
destroyed and distilleries dependence on health
were closed; the cost of services
vodka in shops was tripled.
Twelfth 5YP: Streamline state Construction projects tended to lead to
Construction projects apparatus in order to cut overspends due to investment needed for the
‘Superministries’ set up waste from duplication factories constructed
to achieve better and rivalry from High level of opposition to any real change, mostly
coordination of competing for resources from within the Party and state economic
economic activity and planning apparatus
avoid waste Main obstacle was the fact that the reforms had
to be implemented by privileged people whose
power would be reduced by them – therefore,
there was resistance (e.g. military against changes
in investment priorities).
Going into deficit in order to Funding new industrial Between 1985-86, the Soviet economy’s deficit
fund the military and and military investment rose from 2.4% of GDP to 6.2%
industry without reducing the By the end of 1989, the Soviet economy was
funding of other sectors or massively in debt
reducing the availability of
consumer goods
Economic Perestroika Revitalising the economy Food production growth rate rose from 1 to 2%
through restructuring between 1986-87 but was still inadequate for the
methods growing population, causing 20% of USSR’s
Causing incentives that foodstuffs to be imported
would encourage Uncertainty over supplies encouraged hoarding,
production and give often leaving shops empty.
greater flexibility than the Weakened the apparatus of state planning but
current command provided little to replace it
economy Worsened quality/availability of consumer goods
Gorbachev’s failure to bring about an improved
economic situation undermined his political
power/position
Encouragement of joint Improve relationships with Endless bureaucracy made progress slow for
ventures (Jan 87) – allowed foreign businesses, foreign companies wanting to invest in USSR
foreign firms to establish opening the USSR to more By end of 1990, there were nearly 3000 joint
businesses in USSR, usually modern technology foreign ventures in USSR, but most were small-
in joint enterprises with scale operations which had little impact on the
state economy
Law on state enterprises Prices that better reflected Enterprises still subject to state interference: state
(June 87) – loosening of the supply and demand of decided allocation of materials; devolution of
state control over wages and the products power to managers depended on attitude of state
prices, weakening authority Greater range of products bureaucrats who often kept tight control
of Gosplan. Also allowed produced due to greater Urban wages rose by 9% in 1988 and 13% in 1989
factories to produce what amount of choice
