Theme 5 - fall of the USSR
Intro
1986 - Gorbachev elected as GenSec
chance of revival for the regime
reform taken - weakened the communist party
resurgence of nationalism in Eastern Europe - hold of central gov over republics
weakensed
power play between Gorbachev and Yeltsin
coup by conservatives 1991 - undermined Gorbachev's postition + strengthened
Yeltsins ****
Gorbachev no longer in control of events - Yeltsin was
Dec 1991 - republics dissolved Soviet Union
Gorbachev resigned 25th Dec
Economic factors
long term economic weakness
soviet economy in decline
agricultural innefficiency and inflexibility
Gorbachev realised reform was needed - but not clear on a solution
trial and error - economy in distruption and chaos
gov in weak and vulnerable position - could not improve the lives of the population
initial reforms - discipline and acceleration
initial steps cautious - postitioned reformers in key positions
echoed Andropov's reforms - campaign to tackle alcoholism - improve health and
productivity - 'We can't build communism on vodka'
measures - drinking age raised to 21, number of alcohol retail outlets reduced,
distilleries and vineyards destroyed
tax revenues from alcohol fell dramatically and encouraged a black market of
dangerous alcohol
Twelth Five-Year plan
hope that it would accelerate growth in the economy
key weaknesses -
construction projects lead to overspends
equipment was out of date and prone to breaking down
imports of foreign technology
agricultre swallowing large sums of investment and were not leading to improvements
in productivity
focus remained on quantitiy rather than quality - quality often poor
did little to adress the fundamental weaknesses of the economy
, opposition to any real change - e.g Gosplan
tried to streamline the state apparatus to avoid waste - superministries - failiure
changes to investment priorities were opposed by the military - military investment
would mean that other sectors suffered
had to go into deficit - but the deficit rose
war in Afghanistan consumed considerable amounts of money
real change needed more funamental reform
Economic perestroika
1987 - more fundamental restructuring was needed
introduced market mechanism - element of private enterprise economy - more
incentives
Key reforms -
encouragement of joint ventures Jan 1987
o allowed foregin firms to establish in the Soviet Union
o hoped that it would open the USSR to more modern tech
law on state enterprises June 1987
o loosening of state controls over wages + prces
o element of election in choice of managers
o factories allowed to produce what they like once state targets had been met
o basically more flexibility
co operatives legalised 1988
o small scale private enterprises
o could set own prices
o cafes, restaurants, small shops developed
o 'co opretives' appeased conservatives - disguise a move to a more market
based economy
Impacts of prerestroika
food production did not increase enough - 1/5 still imported
enterprises still subject to state interference (allocation of materials) - most
beaurocrats wanted to keep tight control
products diverted from state shops (low prices) to co-operatives (higher prices) -
inflation and stripped state shops of supplies
co operatives - able to shop around for a buyer - deals concluded with richer city
authorities and poorer cities without adequete food
co operatives more productive than state sector - profits - lead to corruption
uncertainty over supplies - food rationing introduced in some areas
electing managers = steep rise in wages
foreign companies keen to invest - endless beaurocracy (slow progress and sometimes
put them off completely) - joint ventures were small scale - little impact on economy
reforms undermined by officials
Situation made worse by fall in price of oil
gorbachevs reforms made the situation worse
strikes had increased
increase in wages - no point in having money as there was so little to buy
Intro
1986 - Gorbachev elected as GenSec
chance of revival for the regime
reform taken - weakened the communist party
resurgence of nationalism in Eastern Europe - hold of central gov over republics
weakensed
power play between Gorbachev and Yeltsin
coup by conservatives 1991 - undermined Gorbachev's postition + strengthened
Yeltsins ****
Gorbachev no longer in control of events - Yeltsin was
Dec 1991 - republics dissolved Soviet Union
Gorbachev resigned 25th Dec
Economic factors
long term economic weakness
soviet economy in decline
agricultural innefficiency and inflexibility
Gorbachev realised reform was needed - but not clear on a solution
trial and error - economy in distruption and chaos
gov in weak and vulnerable position - could not improve the lives of the population
initial reforms - discipline and acceleration
initial steps cautious - postitioned reformers in key positions
echoed Andropov's reforms - campaign to tackle alcoholism - improve health and
productivity - 'We can't build communism on vodka'
measures - drinking age raised to 21, number of alcohol retail outlets reduced,
distilleries and vineyards destroyed
tax revenues from alcohol fell dramatically and encouraged a black market of
dangerous alcohol
Twelth Five-Year plan
hope that it would accelerate growth in the economy
key weaknesses -
construction projects lead to overspends
equipment was out of date and prone to breaking down
imports of foreign technology
agricultre swallowing large sums of investment and were not leading to improvements
in productivity
focus remained on quantitiy rather than quality - quality often poor
did little to adress the fundamental weaknesses of the economy
, opposition to any real change - e.g Gosplan
tried to streamline the state apparatus to avoid waste - superministries - failiure
changes to investment priorities were opposed by the military - military investment
would mean that other sectors suffered
had to go into deficit - but the deficit rose
war in Afghanistan consumed considerable amounts of money
real change needed more funamental reform
Economic perestroika
1987 - more fundamental restructuring was needed
introduced market mechanism - element of private enterprise economy - more
incentives
Key reforms -
encouragement of joint ventures Jan 1987
o allowed foregin firms to establish in the Soviet Union
o hoped that it would open the USSR to more modern tech
law on state enterprises June 1987
o loosening of state controls over wages + prces
o element of election in choice of managers
o factories allowed to produce what they like once state targets had been met
o basically more flexibility
co operatives legalised 1988
o small scale private enterprises
o could set own prices
o cafes, restaurants, small shops developed
o 'co opretives' appeased conservatives - disguise a move to a more market
based economy
Impacts of prerestroika
food production did not increase enough - 1/5 still imported
enterprises still subject to state interference (allocation of materials) - most
beaurocrats wanted to keep tight control
products diverted from state shops (low prices) to co-operatives (higher prices) -
inflation and stripped state shops of supplies
co operatives - able to shop around for a buyer - deals concluded with richer city
authorities and poorer cities without adequete food
co operatives more productive than state sector - profits - lead to corruption
uncertainty over supplies - food rationing introduced in some areas
electing managers = steep rise in wages
foreign companies keen to invest - endless beaurocracy (slow progress and sometimes
put them off completely) - joint ventures were small scale - little impact on economy
reforms undermined by officials
Situation made worse by fall in price of oil
gorbachevs reforms made the situation worse
strikes had increased
increase in wages - no point in having money as there was so little to buy
