Fall of the USSR Flashcards
What was Perestroika?
(Restructuring)
A program instituted in the Soviet Union by Mikhail Gorbachev (in the mid-1980s) to restructure Soviet economic and political policy
What did Perestroika aim to do?
. Sought to bring the Soviet Union up to economic par with Capitalist Countries such as Japan and the United States
. To stimulate economic modernisation + higher rates of economic growth + higher levels of production
What is ‘Acceleration’ also known as in Russian?
Uskorenie
What was Uskorenie?
An economic initiative that aimed to end economic stagnation and get the Soviet economy moving again
Uskorenie was at the heart of the Twelfth, and final, Five-Year Plan (1986-90)
Uskorenie meant a huge increase in …
Investment which was designed to modernise the Soviet economy and therefore make it more efficient
What did Gorbachev predict the new investment would lead to?
20 per cent increase in industrial production in the next 15 years
What is a major reason for the failure of Uskorenie and why?
The decline in the global price of oil
During the 1970s the Soviet economy had made a great deal of money from selling oil to the West but there was a drop in oil revenues
Gorbachev financed acceleration from borrowing from Western countries
The oil price fell from …
$70 a barrel in 1981 to $20 a barrel in 1985
As a result of financing acceleration from Western countries debt rose from …
$18 billion in 1981 to $27 billion in 1988
What did the increasing levels of debt mean?
The government was spending more money on interest payments
Consequently less money for further modernisation or to produce consumer goods
Rather than leading to economic growth … acceleration created an economic crisis
What did The 1988 Law on Co-operatives do?
Made it legal to set up large-scale private companies
How many Co-operatives / private companies had been set up across the USSR by 1990?
nearly 200,000
What did Gorbachev’s reforms undermine? What did this mean?
The Central Planning System
There was no effective way of distributing goods and shortages of essential goods increased
How many tones of grain did Soviet farms produce in 1990? Why did this not matter?
218 million tones of grain
There was no longer an effective distribution system - the state distribution systems had been abolished and the market was still developing
There were food shortages across the Soviet Union
Prices increased rapidly example
Price of beef in January 1990 = 2 Roubles
Price of beef in April 1990 = 7 Roubles