Core knowledge
Economic Problems
Key dates
● Lack of incentives, Gosplan, lack of modernisation, waste, arms race, centralisation
1985 – Gorbachev becomes
Perestroika leader of USSR
● Rationalisation, 1985-86: Uskorenie (acceleration), anti-alcohol campaign = loss of 1986 – Chernobyl
67b roubles, 12th 5YP (1986-90), decline in global oil prices = income down 2/3, Govt, 12th 5YP
debt rose = economic crisis
1987 – Law on State
● Reform, 1987- March 1990: shift to market driven economy – Law on State
Enterprises
Enterprises (Govt. debt rose more), Law on Co-operatives = 200,000 by 1990. Income
2-3 x higher than state enterprises. Govt. subsidised prices = production uneconomic. Oct – Yeltsin attacks
Shortages rose. GDP down 4%.
Gorbachev’s reforms
● Transformation, March 1990-91: more radical change. April 1990 inflation caused by
Nov – Yeltsin
cut in subsidies. Gorbachev’s approval dropped 31% and strikes rose. 500 Day
Programme rejected by Gorbachev (pressure from hardliners). Jan 1991 = dismissed as 1st
reintroduction of private property. Decline continued. Summer = catastrophe.
Secretary in Moscow
Political Reforms 1988 – Jan – co-operatives
● Early reforms: Replace Brezhnevite officials (Cadre change) Legalised
● Glasnost, 1986-88: openness. Hardliners opposed. Feb 1986, 27th Party Congress – Feb – Yeltsin
promise of ‘genuine democracy’. Liberalisation of media = Stalinist atrocities revealed, removed from
scale of economic problems, dissidents released from prison, anti-communist banned
Politburo & start of
books etc. published. 1987-88 = criticism of Marx & Lenin, citizens allowed to listen to
foreign radio. 19th Party Conference = admission of scale of problems in USSR. Demands conservative
for reform and independence.
backlash
● Democratisation, 1988-90: multi-candidate elections, 2/3 of Congress of People’s
June – 19th Party Conference
Deputies to be elected. Congress elect Supreme Soviet. Gorbachev appointed as head
of Supreme Soviet. Party = weakened. 1989 CPSU won 80% seats, but some high profile Oct – popular fronts in
defeats. Radicals did well = formation of IRDG. 1990 Republic elections anti-communist
Baltics
groups did well. Not what Gorbachev had intended.
1989 – March – Elections to
● Constitutional change: CPSU stripped of leading role. Gorbachev appointed himself
President of USSR in March 1990 + emergency powers for 18 months = crackdown. Congress of People’s
Nationalism Deputies
April – Demonstrations in
● Nationalism kept at bay by Social Contract. More difficult by 1980s
Georgia
● Cadre change, Sinatra Doctrine, Glasnost, Democratisation = increased nationalism
May – Gorbachev made
(1990 Yeltsin insisted Russian laws were superior to Soviet laws)
Chairman of Supreme
● Unrest: 1988 Azerbaijan/Armenian unrest = Soviet direct rule pleased neither side.
1989 Uzbek/Meshketian unrest = Govt. unable to restore order or negotiate Soviet
compromise. April 1989 Tblisi, Georgia protests against minority ethnic group. Soviet Oct – 500 Day Programme
armed response = alienated Georgians.
Nov – Fall of Berlin Wall
● Russian nationalism: economic crisis = put Russia first. Environmental concerns
1990 – March – Article 6
(Chernobyl) = save Russia from Soviet pollution. Protect Russian culture.
● Baltics: only part of USSR in 1940. 1988 Estonia declared sovereignty; March 1990 Repealed & Lithuania