Problems with the market, economic chaos & political problems

Question 1

1. What reforms did Gorbachev create between 1987 and 1990? (1)
2. Why couldn’t the new market function properly? (think prices) (2)
3. Why were free market goods unpopular? (2)
4. How did the Communist Party respond to this? (1)
   - Why did this cause problems for new co-ops? (1)

Answer 1

1. Partial market reforms.
2. Communist Party subsidised prices allowing consumers to buy goods at prices well below market rate.
3. Co-operatives could sell goods at chosen prices, but free market goods were higher-priced than state-subsidised goods.
4. Imposed low prices on co-operatives.
   - Made production uneconomic.

Question 2

1. What did partial market reform create? (1)
2. What were the 2 main problems with the reforms? (2)
3. There were severe ____ _________ in 1990? (1)
   - What was this due to?
4. How many tons of grain did Soviet farms produce in 1990? (1)
5. What % had GDP shrunk by between 1986 and 1990? (1)
6. In April 1990, what did Gorbachev do to allow prices to rise? (1)
7. What was the price of Beef/kilo in January 1990, and what was its price/kilo by April? (2)

Answer 2

1. Economic chaos.
2. Undermined central planning system, while failing to create effective market alternative.
3. Food Shortages.
   - No longer an effective distribution system.
4. 220 million.
5. 4%
6. Cut government subsidies for basic products.
7. January 1990: 2 roubles, April 1990: 7 roubles.

Question 3

1. What was Gorbachev’s approval rating in December 1989?
   - What was this by November 1990?
2. How many enterprises were affected by strikes in 1990?
   - What was this in 1991?
3. Who did the decline in Communist government faith lead to support for?

Answer 3

1. Dec. 1989: 52% (50%).
   - Nov. 1990: 21% (20%).
2. 260. • 1755. (1750).
3. Nationalist movements demanding the break-up of the Soviet Union.