Gorbachev reforms Flashcards
Aims
○ Establish and maintain a reformed socialist system.
○ Revitalize the CPSU
○ Combine economic reforms with greater freedoms and democracy.
New policies
○ Perestroika - Restructuring of the economy.
○ Glasnost - Transparency of government
○ Demokratizatsiya - Democratization and liberalism
New-Thinkign foreign policy
§ Foreign Policy
□ End Soviet occupation of Afghanistan
□ Loosen the USSR control in Eastern Europe.
□ Cut costs and use money to modernize the USSR.
§ Abandoned the Brezhnev doctrine.
§ Encouraged communist leaders to adopt economic and political reforms.
§ Lead to Reform communists ruling Eastern Europe.
New Thinking- Seperation of party and state
○ Separation of Party and State
§ Heavy opposition from conservative communists.
Fear of breakup of USSR.
Economic 1985-1989 successess
• Successes: ○ Full Employment ○ Cheap Housing ○ Cheap Fuel and transport Subsidized food prices.
Economic 1985-1989 Failures
○ Continuous decline in average annual growth. ○ Rise in consumer demands. ○ Stagnation of economy. ○ Labor shortages ○ Low Productivity ○ Poor quality goods
Economic 1985-1989 Expenses
○ Investment to improve industrialization and modernization.
○ Military spending for the Arms race.
○ Improve living standards for the population
Opposition to reform
○ Enormous opposition
§ Nomenklatura
○ This lead to Gorbachev moving his supporters into the politburo.
○ Gorbachev wanted rational investments
Factory and machinery investment
Uskorenie policy aims
§ “Accelerated Growth”
§ Wanted efficiency and increased production.
§ Called for greater administrative efficiency from managers.
Perestroika aims
○ Reduced centralized planning.
○ Increased self management at local enterprise.
○ End subsided prices.
Perestroika agriculture
§ Factory and farm workers were given greater say in production and hiring.
§ Self financing phased in:
□ Enterprises paying for their operating costs by themselves.
§ Partial revitalization in:
□ Agriculture
□ Service industries
§ Encouraged greater use of private plots and cooperatives
□ Began to account for 25% of all agriculture in the USSR.
Perestroika heavy industry
§ Reduced industrial ministries.
§ Limited 6-7 super-ministries.
Law and joint enterprise
§ Allow Foreign companies to invest in joint schemes in the USSR.
§ Lead to:
□ Corruption
□ Confusion
Perestroika reduction of state control
§ Requirement for fundamental shift in Soviet priorities: □ Social Provisions: ® Housing ® Food ® Health ® Education □ Improved Industrial Technology Reform in enterprise management
Perestroika law on state enterprises
§ 60% of state enteprises were shifted to their managements instead of being state controlled.
§ Lead to:
□ Own prices
□ Negotiate trade with other firms