end of cold war Flashcards
What factors adversely affected the US economy in the 1970s?
The Vietnam War and global oil crises.
What economic policies did President Reagan implement to counter the oil crises?
Economic liberalisation, encouraging individual enterprise, reducing government reliance, cutting national budgets, and privatising national assets.
What was the outcome of Reagan’s economic policies in the USA and Western Europe?
A period of economic prosperity followed.
How did US economic prosperity in the 1980s involve international partners?
Economic partners like West Germany and Japan contributed to the prosperity.
How did the growth of the American economy impact the arms race?
It allowed the USA to renew the arms race, putting pressure on the Soviet Union.
What was the purpose of the Strategic Defence Initiative (SDI) or ‘Star Wars’ program?
To use space-based technologies to detect and destroy potential nuclear attacks on the USA.
How did the Soviet Union respond to the SDI program?
The Soviet Union lacked the financial and scientific resources to match the USA’s space-based military technology.
What was the purpose of the ‘Able Archer 83’ military exercise?
NATO’s joint exercise with mobile Pershing II missiles in West Germany.
How did the Soviet Union react to ‘Able Archer 83’?
They feared it was a real nuclear first strike and heightened their alert.
What were the consequences of ‘Able Archer 83’ on US-Soviet relations?
It brought the two superpowers close to nuclear war and led Reagan to reconsider his aggressive policies.
How did Reagan’s foreign policy shift after ‘Able Archer 83’?
He became more open to negotiations and nuclear disarmament talks with the Soviet Union from 1985.
What was a major reason for the stagnation of the Soviet economy from the 1970s?
What are the characteristics of a command economy?
Government control and ownership of all production aspects, founded on communist ideology, and prohibition of private enterprises.
What factors led to the failure of the Soviet command economy?
- Lack of accurate information for resource allocation.
- Widespread corruption and inefficiency.
- Lack of motivation due to unrewarded hard work and innovation.
- Focus on quantity over quality.
- Harsh control that prevented criticism and feedback.
How did Stalin’s Five-Year Plans impact consumer goods in the Soviet Union?
They emphasized industrial production at the expense of consumer goods.
How did Cold War military spending affect Soviet living standards?
Resources were diverted to the military, reducing availability of consumer goods.
What exacerbated the resentment among Soviet citizens regarding consumer goods?
The disparity between shortages in communist countries and excesses in capitalist countries, and the exclusivity of luxury goods stores for high-ranking officials.
How did Reagan’s arms race renewal affect the Soviet economy?
It forced the Soviet Union to spend more on defense than it could sustain.
What were some external economic burdens on the Soviet Union?
- Subsidies to Eastern Europe through discounted oil prices.
- Economic bartering with satellite states.
- Heavy borrowing by Eastern European countries from Western banks.
How did the war in Afghanistan impact the Soviet economy?
It drained military, financial, and human resources, worsening the economic strain.