Gorbachev and the ending of the Cold War (21) Flashcards
Example of technological gulf between the USA and USSR?
Early 1980s
Number of computers:
USA: 170,000
USSR: 15,000
Problems with the Brezhnev era?
1972 - Crop failures + food shortages
Upgrading its Soviet Navy after Cuban Missile Crisis and Space programme was absorbing large amounts of resources = 25% of GDP from 1964-82 was spent on military supplies - trying to close gap
Successful in reversing some of collectivisation
Morale and productivity declined as living standards stagnated
Tried to increase consumer goods levels in the Ninth and Tenth Ten Year Plans (1971-75 + 1976-1980) - but they remained limited
Further poor harvest in 1975 exacerbated the issues
The world went through petroleum shortages in 1970s but the USSR struggled to increase production to take advantage of low demand
Gorbachev’s views of the Soviet Union’s problems?
Came to power 1985
Linked low economic growth to political, ideological and foreign policy problems.
Saw a direct link between the USSR’s economic performance and its position as a world power
He stated his views at the 27th Communist Party Congress 1986
In 1985 he tackled alcoholism by raising the price of wine, beer and vodka, restricting the places and times for selling alcohol and there were arrests public drunkenness
Problems with the Soviet economy?
Based on an inflexible system of central planning through GOSPLAN which set the output targets - rejected innovation and efficiency
Alcoholism: Losses in productivity through absenteeism and increased workplace injuries
State Controlled business: State monopoly that focused on centralised control and planning with little recognition of consumer demand
Lack of foreign investment: Stifled growth and business innovation
Inflation and worker discontent: workers wages rarely stayed in line with inflation; led to discontent and frequent strikes
Perestroika?
Means ‘restructuring’
Planning was to be decentralised and some degree of self-management was permitted without the loss of state ownership
Managers could implement economic changes without having to wait for GOSPLAN to make them at local level
Ended state price controls - would lead to an increase in prices at first as government subsidies ended
Also included foreign policy changes - ‘New Thinking’ - enabled foreign investment
Law of Joint Ventures - allowed no more than 49% foreign ownership of businesses - extended to 100% by 1990
1988 Law on State Enterprises - aimed to decentralise authority and devolve design-making down to business and enterprises themselves
Businesses would be given their state-budget and could use it as they saw best fit
Glasnost?
‘Openness’ - allowed more public freedoms to discuss political problems
In April 1986 the Chernobyl nuclear reactor exploded
It was initially suppressed, according to Soviet censorship policies
The scale of the disaster and reports of high radiation from Swedish reports forced them to make it public through their news agency TASS
Sakharov, on his release from internal exile travelled throughout the USSR and the world, presenting information on the repression of Soviet citizens and the conditions in Soviet prison camps
Led to criticisms of government
Official recognition of this came from Gorbachev announcing glasnost in 1988
Led to a re-examination of Soviet history and an open debate on past governments - forced collectivisation and Party Purges
Arms race costing the USSR?
The Soviet invasion of Afghanistan in 1979 renewed the Cold War
Jimmy Carter imposed economic sanctions and embargoes and boycotted the 1980 Moscow Olympics furthering economic deterioration and contributed to anti-communist Ronald Reagans election
Reagan increased military spending and created SDI in 1983
Economic problems of Satellite States?
Cheap exports of fuel and raw materials to Eastern Europe could not continue due to domestic economic crisis
Further alienated the Eastern European states and pushed them closer to a capitalist system and the West
In 1985, the Secretary General of Comecon contacted the president of the European Commission suggesting mutual diplomatic recognition.
In June 1988 the European commission setup trade and cooperation agreements with separate Comecon members, starting with Hungary.
Soviet Orbit states could now make their own trade agreements, making Comecon obsolete and trade with the USSR less likely
Importance of Soviet Economic problems?
In the 70s years of communism, the USSR had only sporadic, unsustained periods of growth, usually dependent on oil exports
Oil price drop in 1980s due to OPEC policies - USSR suffered drastically
Grain imports were a drain and although production grew in 1970s and 1980s it was inconsistent with population growth - Reagan did not impose sanctions and trade with US grew
Gorbachev welcomed foreign investment to help a stagnating economy
The Afghanistan war was costly economically and socially
Economic effects of Gorbachev’s policies on the USSR?
Perestroika meant that the general public saw a decreased standard of living but a small entrepreneurial class was benefiting - rise of elite - against communism - the rest of the country was on a government fixed wage inconsistent with inflation
Soviets made 61 joint-venture agreements with Western companies by 1988 - brought FDI and technological developments
Ending collectivisation policies led to increased yields and eliminated redundant and corrupt GOSPLAN components
Transition to market economy was costly
Was able to eliminate some of the Soviet budget deficit but by 1988 the deficit was approximately 13% of Soviet GNP ( whilst USA’s was 3.5%)
Consumer prices increased and inflation was rampant (hyperinflation)
Alcohol policies led to almost 100 billion rubles lost in taxes due to a drop in official consumption - people buying on the black market - official vineyards and distilleries were forced to close
Political effects of Gorbachev’s policies on the USSR?
Eventually collectivisation ended and private farmers were granted long-term leases
Gorbachev sought to remove the apparatchiks (those who sought to maintain the status quo) who were adding to the corruption issue - transformed government into a system of elections - led to vast political changes that Gorbachev could not control
Glasnost worsened this as people openly spoke out about acquiring further change
Soviet economic problems?
- April 1985 – Soviet Union’s Central Committee privately admits that “the country finds itself on the verge of crisis”
- By early 1980s – Soviet economy in a state of zero growth (stagnation)
- Population only rising by barely 1% each year (half the rate of the 1950s)
- Arms race with USA consumed 25% of GDP
- Inefficient command economy – rigid ineffectual plant – GOSPLAN – riddled with corruption
- Economic problems in 1970s masked by oil boom and vast Siberian reserves – between 1972 and 1980, Soviet output of crude petroleum increased by 50% - 1975 the USSR displaced the United States as the worlds biggest producer
- Oil boom ended – started to slip after 1980 and fell sharply in the middle of the 1980s as Gorbachev took to power
- Between 1966 and 1980 Soviet male life expectancy fell by 3.75 years – poor health care, environmental degradation and chronic alcoholism
- Budget deficit – made worse by Gorbachev’s policies – increased Western imports to modernise industry but falling oil revenue - CIA estimated roughly $100 billion in 1987
- “regulated market economy” – allowed private cooperatives and allowed state enterprises to sell some of their goods on the open market – encouraged them to produce high-value luxuries and to cut down on basics – shortages
Transition of power after Brezhnev?
• Brezhnev died 1982 – Andropov takes power – kidney dialysis – dies - Chernenko takes power – emphysema – Gorbachev 1985
Social problems in the USSR?
- 1960 – urban population 49% - 1985 – 65% - 180 million
- Workers rose into educated middle class – 1955 2.7% university degrees – 1985 – 11%
- Urbanisation and education dissolved the old ways
- 9/10 households in the 1980s had TVs – could see glimpses of the outside world
- War in Afghanistan had taken nine years and cost the Soviets 15,000 troops as well as being extremely costly
Gorbachev’s reformist policies?
- Gorbachev was much younger than his predecessors – they had risen to power during Stalinism – he was more radical and more reformist
- New crackdown on alcoholism and a drive to promote computers and high technology
- Chernobyl nuclear reactor exploded in April 1986 – cover-up – embarrassed the USSR internationally – led to a lack of effective action – Nearly three weeks before authorities evacuated Kiev of children (population 2.5 million)
- At party congress in March 1986 – 45% of the Central Committee was replaced
- Personally changed the foreign minister from Andrei Gromyko (since 1957) with Eduard Shevardnadze – worked well with the US
- Glasnost – Feb 1987 Gorbachev wanted open history – October – Politburo commission was established to investigate controversial features of the Stalin years
- Free elections for Prime Minister in 1989 – Yeltsin won victory with 89% of voted in his region – Gorbachev told him he could not return to politics after being fired eighteen months earlier – March 1989 – 5 million votes in Moscow bring Yeltsin to power regardless – Gorbachev losing control
- First publicised Congress in May 1989 – Politburo colleagues had to listen to complaints about grievances – Gorbachev lacked control as Yeltsin took to the Congress
- June 4th 1989 – Congress in session – Chinese brutally supressing the demonstrators in Beijing – Free elections in Poland with Solidarity victory – winds of change
