COLLAPSE Flashcards
why was Centralisation a cause for collapse?
it was a long term issue that meant the Soviet economy was very inefficient
- Fertilisers & pesticides often arrived at the wrong time
- Factories often received the wrong grade of products like steel and oil
- it was difficult to get hold of spare parts and administrators were unable to meet needs of factory managers
what problems were there in industry that lead to collapse?
- the economy failed to create incentive for hard work or innovation which reduced productivity
- Gosplan set target for production quantity but not quality which lead to the production of poor quality goods
what problems were there in agriculture that lead to collapse?
- Soviet agriculture required a much larger share of the population than the US yet American farms were 6x more productive
what problems were there in Soviet infrastructure that led to collapse?
- the Soviet transport system never fully developed/modernised making transporting goods very difficult
- a lack of modern storage facilities meant a lot of product was wasted
what were the stages of Gorbachev’s economic policy?
- Rationalisation
- Reform
- Transformation
what was Rationalisation under Gorbachev?
the period from 1985-86 where Gorbachev tried to improve the way the command economy worked
- Andropovs anti-alcohol campaign (cut production by 50%)
- introduced programme of investment to modernise the economy
what was Reform under Gorbachev?
the period from 1986-1990 in which Gorbachev tried to introduce market measures into the existing command economy
- Law on Individual Economic activity made it legal for people to make money of small scale jobs
- Law on State Enterprises devolved power (to set prices) from the government to factory management
- Law on Cooperatives made it legal to set up cooperatives
what was Transformation under Gorbachev?
the period from 1990-91 where Gorbachev abandoned the command economy and tried to introduce a market economy
- ‘500 day programme’ in August 1990
what were the failures of the period of Reform?
- citizens bought alcohol illegally
- alcohol sales dropped by 67 billion roubles for the government
- government debt rose from $18.1 billion in 1981 to $27.2 billion in 1988
- Gorbachev invested in energy when advised otherwise and reduced growth
what were the failures of market reform?
the reforms undermined the central planning system whilst also failing to create an effective alternate. this lead to a severe shortage of many goods (218 million tons of grain in 1990 but no way to distribute it)
what were the political consequences of economic problems?
- between 1986 and 1990 GDP shrunk by 4%
- prices were rising
- party members were rich and able to secure control of economic assets which led to a decrease in support for the communist party
- Oil production fell by 9%
- Tractor production fell by 12%
what were Gorbachev’s goals for reform?
- the creation of a democracy for the working people (help allow the people the purge the corrupt and inefficient party members)
- he wanted greater freedom of speech
- allowing people to participate in government to end cynical criticism of the party
what were some of Gorbachev’s early reforms?
in 1985:
- open up debate in the party
- allow intellectuals more freedom of expression
- allow the public to have more access to information
what did Gorbachev do to senior communists from Brezhnev’s tenure?
purged them to appoint a new generation of ministers who favoured reform
what was Glasnost?
1986: a policy of openness that made information on economic and Soviet history more readily available
- 1986 Yakolev was placed in charge of soviet media and appointed radical editors
- 1988 press published criticisms of Marx and Lenin
- 1988 people allowed to listen to Western radio and read Western news
- 1988 scale of economic problems was revealed
what were the political effects of Glasnost?
- divided the party (some feared the reform would destroy the party)
- factions emerged
- many citizens lost faith in the government
- opponents of Communism could undermine the government by publishing criticisms
what reform to government was made in 1988?
multi-candidate elections were authorised allowing citizens to vote for rival Communist candidates and elects wither radicals or moderates
when was the first multi-candidate election?
March 1989 - several high ranking Communists lost wheras radicals did well (Yeltsin won 89% of votes in Moscow)
what happened in the March 1990 elections?
- in Moscow a group called Democratic Russia won 85% of seats
- in Leningrad Democratic Elections 90 (an anti-communist group) won 80% of seats
What were the consequences of the election reforms?
- the 1989 and 1990 elections weakened the party
- the 1989 election led to the formation of the Inter-regional Deputies group which was a opposition to the Communists
- Nationalists used the elections to campaign for independence
- Yeltsin emerged as an opposition to Gorbachev