Impact Of Perestroika Flashcards
The results of perestroika were
Not always as intended
Often exacerbated existing problems in the economy
Food production? (Impact of perestroika)
Showed a small increase in its growth rate from one to two percent during 1986-87
BUT
still inadequate to feed the growing needs of the population
1/5 of the Soviet Union’s foodstuffs was jmported
Perestroika impact: how much of the Soviet Union’s foodstuffs were imported?
1/5
IMPACT OF PERESTROIKA enterprises were still subject to
The principle of devolving some power to managers often depended on
State interference
The attitude of state bureaucrats
Many of whom preferred to keep tight control to ensure targets were met
IMPACT OF PERESTROIKA
State shops etc
Products (esp food)
was diverted from state shops (prices low)
to co-operatives (that charged a much higher price)
INFLATION
STRIPPED STATE SHOPS OF MANY SUPPLIES
BAD IMPACT ON PENSIONERS/FIXED INCOME
IMPACT OF PERESTOIKA Co-operatives were able to shop around for a
Buyer who would offer the a good price for their goods
SO deals concluded with richer city authorities— poorer cities devoid of adequate food/basic products
IMPACT OF PERESTROIKA
Co-operatives proved to be more productive than the state sector and the potential for profits did not go unnoticed
They attracted the attention of corrupt government officials who reminded bribes for permission to continue to operate
Criminal gangs— exact money through extortion rackets: powerful due to illegal alcohol under gorbachevs campaign: now add to their wealth
IMPACT OF PERESTROIKA uncertainty over supplies encouraged
A wave of hoarding by the population
Shops were quickly emptied of goods as they arrived
Food rationing introduced in some cities to try and erase the situation — 1988, meat was rationed in 26/55 regions in Russia
In 1988, mean was rationed in
26/55 regions of Russia
IMPACT OF PERESTROIKA
The implementation of the principle of electing managers resulted in
A steep wise in ages
Urban wages rose by 9% in 1988 and 13% in 1989
Urban wages rose by ______ in 1988 and _______ in 1989
9%
13%
IMPACT OF PERESTROIKA
foreign companies keen to invest in the USSR were
Faced with endless bureaucracy that made progress slow
Sometimes it put off potential investors completely
By the end of 1990, there were nearly 3,000 joint foreign ventures in the USSR but most of these were small-scale operations that had little impact on the economy
By the end of 1990 how many foreign ventures were there in the USSR?
3,000 bro
Little impact on the economy tho
Small scale operations mostly
IMPACT OF PERESTROIKA the reforms were often undermined by
In some cities…
Officials
In some cities, the reforms were ignored, in others sabotaged
In Leningrad, the city administration withdrew all sausages from the shops and warehouses and buried them
In some cities, the perestroika reforms were ignored, in some they were sabotaged.
In Leningrad?
The city administration withdrew all sausages from shops and warehouses and buried them
What made the perestroika situation worse?
Falling oil prices.
Significant impact: USSR has become more reliant on using oil exports as a foreign exchange.
By 1984- oil and gas accounted for 54% of soviet exports
By 1984, oil and gas accounted for ________ of Soviet exports?
54
PERESTROIKA reforms had weakened the apparatus of sage planning BUT
Provided little to replace it
By what year was the soviet economy massively in debt and approaching crisis point?
1989
Gorbachevs promise of an improvement in consumer goods for the population had not been achieved
In fact
His reforms had made the situation far worse
Gorbachevs promise of an improvement in consumer goods for the population had not been achieved
In fact, his reforms had made the situation far worse
Gorbachevs reforms had made the situation far worse:
Strikes had increased
As workers such as the coal miners in the Don Basin protested over unpaid wages and food shortages
Example of strike/protest
Coal miners in Don Basin
Unpaid wages and food shortages
The governments response to the coal miners protesting in the Don Basin?
Quickly increase wages BUT only a short term measure
Little point in having more money if shops were empty of things to buy
Gorbachev’s failure to bring about an improved economic situation undermined
Led the way to what seemed the only solution:
His political power and position
A dismantling of the soviet economic system
When did the State Commission on Economic Reform issue a report that concluded a more radical solution was needed? (Than perestroika)
July 1989
What did the July 1989 report do?
Split the politburo
Reformers wanted to implement the recommendations quickly
Others (Ryzhkov) called for a more gradual transition
GORBACHEV FACED CHALLENGE OF TRYING TO REMAIN UNITY IN PARTY LEADERSHIP
HESITATED OVER MAKING A DECISION
What did the July 1989 report call for?
A move to a market- led economy
GORBACHEV FACED THE CHALLENGE OF TRYING TO MAINTAIN UNITY IN THE PARTY LEADERSHIP
Hesitated over making a decision
By what month had what one of Gorbachev economic reform advisors put forward what that recommended a rapid move to a market economy?
October
Stanislav Shatalin
500 Days Programme
What happened to the 500 Days Programme?
Rejected by the soviet government
Accepted by Russian parliament
Division between the central party leadership and that of the
National republics within the USSR caused chaos an the economy collapsed
Soviet output declined _______ between 1990 and 1991
1/5
According to critics, perestroika had led to
Catastroika— an economic catastrophe
