Gorbachev's Economic Reform

Question 1

1. What were the 3 stages of Perestroika, and their dates? (6).

Answer 1

1. Rationalisation, 1985-86.
2. Reform, 1987-1990.
3. Transformation, 1990-91.

Question 2

1. What was Gorbachev’s first reform initiative? (1)
2. What was the alcohol consumption in 1987 compared to 1960? (1)
3. How many registered alcoholics were there in the USSR in 1987? (1)
4. What kind of alcohol were Soviets now drinking and why was this bad for the government? (2)
5. What year was the initiative abandoned? (1)

Answer 2

1. The continuation of Andropov’s anti-alcohol campaign.
2. 1987: Double that of 1960.
3. 4.5 million.
4. Samogon, illegally manufactured alcohol. This was bad for the Soviet government because they made much less money from vodka sales, worsening the economy.
5. 1988.

Question 3

1. What was acceleration and what was it aimed at? (2)
2. What growth in industrial production did Gorbachev predict in the next 15 years? (1)
3. Why did acceleration fail? (1)
4. What were the drops in oil prices/barrel between 1981 and 85? (1)
5. What was the rise in government debt between 1981 and 88? (1)

Answer 3

1. Acceleration was an economic initiative, aimed at ending economic stagnation and making the economy more efficient to get it moving again.
2. 20% increase.
3. Decline in global price of oil.
4. From $70 to $20/barrel
5. $18b to $27b. (Aprox. 20-30bn).

Question 4

1. What was the first small market reform Gorbachev introduced, and when did he introduce it? (2).
2. What did this reform legalise? (1)
3. What was the 2nd reform Gorbachev introduced? (1)
   - What was it aimed at? (1)
   - Why did it fail? (2)
4. What was the 3rd reform Gorbachev introduced? (1)
   - What did this make legal? (1)
   - How many co-ops were set up by 1990? (1)
   - What did co-ops turnover increase to in the first year? (1)

Answer 4

1. Law on Individual Economic Activity, Nov. 1986.
2. Families and individuals making money from small-scale work.
3. 1987 Law on State Enterprise
   - Devolving power from Central government to factory management.
   - GOSPLAN found new ways of maintaining control, so very little power was actually devolved.
   - Ability to charge higher prices meant govt had to pay more for goods, increasing debt.
4. 1988 Law on Co-operatives
   - Made it legal to set up large-scale private companies.
   - Nearly 200,000.
   - 29m -> 1b roubles first year.