ch 2, The end of bipolarity Flashcards
Gorbachev and the Disintegration of the USSR.
1) Mikhail Gorbachev, who had become General Secretary of the Communist Party of the Soviet Union in 1985, sought to reform the system. He introduced economic and political reform policies of perestroika (restructuring) and glasnost (openness). But later his policies were criticised.
2) A coup took place in 1991 that was encouraged by Communist Party hardliners. The people did not want the old-style rule of the Communist Party and wanted freedom.
3) Russia, Ukraine and Belarus, the three major republics of the USSR, declared in December 1991 that the Soviet Union was disintegrated.
4) Capitalism and democracy were adopted as the basis for the post Soviet republics
Reasons for the Soviet Union Disintegration
There are several reasons which led to the collapse of the Soviet Union. These were
1)Internal weaknesses of Soviet political and economic institutions failed to meet the aspirations of the people.
2) The economy of the Soviet Union became stagnant. The Soviet economy used much of its resources in maintaining a nuclear and military arsenal.
3) The Soviet Union too became stagnant due to rampant corruption, the unwillingness to allow more openness in government, and the centralisation of authority in a vast land.
4) A section of the society was not happy with the reforms of Gorbachev. It was believed that the reforms introduced by Gorbachev were at a very slow pace.
5) Another reason for the collapse of USSR was the rise of nationalism and the desire for sovereignty within various republics including Russia and the Baltic republics.
Consequences of Disintegration of USSR
There are many consequences of the disintegration of USSR. They are as follows:
1) It led to the end of Cold War confrontations. There was no dispute of Socialist ideology and Capitalist ideology.
2) The US became the sole superpower which also backed the capitalist economy making it the dominant economic system internationally.
3) The end of the Soviet bloc paved way for the emergence of many new countries. All these countries had their own independent aspirations and choices.
4) The international system saw many new players emerge, each with its own identity, interests and economic and political difficulties.
Shock Therapy in Post-Communist Regimes.
1) The model of transition in Russia, Central Asia and East Europe from an authoritarian socialist system to a democratic capitalist system which was influenced by the World Bank and the IMF came to be known as ‘Shock Therapy’.
2) This process of transition was due to the Collapse of Communism.
3) There was a need to shift to a capitalist economy which meant rooting out completely any structures evolved during the Soviet period.
4) Shock therapy also involved a drastic change in the external orientation of these economics.
5) It also involved a break up of the existing trade alliances among the countries of the Soviet bloc.
CONSEQUENCES OF SHOCK
THERAPY
- In Russia, about 90 per cent of its industries were put up for sale to private individuals and companies. This was called ‘the largest garage sale in history’, as valuable industries were undervalued and sold at throwaway prices.
- Though all citizens were given vouchers to participate in the sales, most citizens sold their vouchers in the black market because they needed the money.
- The value of the ruble, the Russian currency, declined dramatically.
- The rate of inflation was so high that people lost all their savings.
- The collective farm system disintegrated leaving people without food security, and Russia started to import food.
- The old system of social welfare was systematically destroyed. The withdrawal of government subsidies pushed large sections of the people into poverty.
- A mafia emerged in most of these countries and started controlling many economic activities.
The disintegration of the USSR led to formation of the Commonwealth of Independent States
(CIS)
1) Russia was now accepted as the successor state of the Soviet Union.
2) Russia inherited the Soviet seat in the UN Security Council.
3) Russia accepted all the international treaties and commitments of the Soviet Union.
4) It took over as the only nuclear state of the post-Soviet space and carried out some nuclear disarmament measures with the US.