Collapse of the Soviet Union 1985-1991 Flashcards
Economic weaknesses of the USSR - Centralisation
Centralised nature of soviet command economy profoundly inefficient - administration in Moscow unable to effectively coordinate economy for such a vast country - fertilisers and pesticides often arrived at the wrong time hampering crop growth - factories recieved wrong grade of produts EG steel and oil - central planners set schedules for plating + harvesting so local farmers couldn’t take local weather conditions into account
Economic weaknesses of the USSR - Problems in industry
Soviet economy failed to create incentives for hard work and innovation - Gosplan set targets for production quantity not quality = a lot of useless goods produced
Economic weaknesses of the USSR - Problems in agriculture/infrastructure
Lack of sophisticated machinery required more hard labour than the West - inadequate transport system meant transporting food across the country was difficult - lack of modern storage facilities led to a lot of waste - EG 1990 200 million tonnes of grain produced but poor transport meant there were still shortages in the cities
Economic weaknesses of the USSR - Military expenditure
1965-1986 in the USSR - GDP spent on defence rose from 12% to 17%
1965-1986 in the USA - GDP spent on defence averaged 6%
USSR was spending too much on defence and negating other areas of the economy such as modern infrastructure
Failure of economic reform 1985-1990 - Rationalisation
Rationalisation - 1985-1986 - first set of economic measures did not alter fundamental state of the economy - continued Andropov’s anti-alcohol campaign cutting state production by 50% - this failed as people simply bought alcohol illegally which meant gov made less on alcohol sales (dropped by 67 million roubles (9% of GDP))
What was uskroenie and why did it fail?
Uskroenie = acceleration - programme of investment to modernise energy - failed due to too much borrowing - gov debt rose from $18.1 billion in 1981 to $27.2 billion in 1988 - Gorb also invested in energy production and ignored the advice of experts who suggested investment into high technology - this led to little growth and ultimately failed
Failure of economic reform 1985-1990 - Reform (law on individual economic activity)
Experiment with market reform 1987-1990 - law on individual economic activity made it illegal to make money from small scale jobs (private teaching, repairs, etc)
Failure of economic reform 1985-1990 - Reform (law on state enterprises)
Law on state enterprises during 1987-1990 period of market experimentation devolved central gov power to factories, allowing them to set prices for the good they produced
Failure of economic reform 1985-1990 - Reform (law on cooperatives)
Law on cooperatives in the same 1987-1990 period made it illegal to set up large cooperatives which functioned like companies
Reasons for the failure of economic reform 1987-1990? (3 + EG)
Market reforms created:
1) Growing economic chaos
2) Undermined central planning
3) Failed to create a market alternative
EG grain shortages in 1990 despite 200 million tonnes produced there were still shortages in the cities
Failure of economic reform 1990-1991 - Transformation
Gorb stopped trying to save command economy by 1990 - started to introduce a market economy which led to divisions in the USSR - experts proposed ‘500 day programme’ that proposed widespread privatisation and complete marketisation within two years - Gorb initially supported this but backed down after pressure from senior hardline communists - Gorb still committed to economic transformation but was convinced it should be done at a slower pace
Failure of economic reform 1990-1991 - Final reforms
Supreme Soviet introduced private property as an important step towards free market economy - people able to own land and factories for the first time since the 1920s - however economy continued to decline - oil production fell by 9% and steel production fell by 17% - by summer 1991 the USSR was bankrupt
Gorb’s reform of the party and gov - Gorb’s goals
1) Committed to the creation of a democracy for working people - single party state of Lenin designed to be temporary and create a highly democratic society later
2) Gorb knew some party members were corrupt and inefficient - he hoped a measure of democracy would help the Soviet people play a role in purging the party
3) Gorb wanted greater freedom of speech and hoped experts would contribute to building socialism in the USSR
4) Gorb was aware of cynicism about communist rule and hoped greater participation would quell this
Gorb’s early reforms 1985
1985 reforms were limited - wanted to open up debate within the party and allow intellectuals more freedom of expression and allow the public more access to information - Gorb wanted to purge the party of senior officials under Brezhnev who were not in favour of reform
Gorb’s reforms 1986-1988 (Glasnost)
Glasnost - 1986-1988 - policy of more info on Soviet economics and history became available through liberalisation of media
1986 - Gorb gave Alexander Yakolev responsibility of the media
1988 - Soviet press publishes criticisms of Marx and Lenin
1988 onwards - Citizens could listen to foreign radios and read foreign newspapers
1988 onwards - CP revealed the extent of its economic problems