Russia: Historical Interpretations 1 Flashcards
What would we call the type of economy in the Soviet Union from 1928 to the late 1980s
A command economy
What does perestroika mean?
Restructuring
Explain the 5 fundamental economic weaknesses of the soviet economy
Waste - gosplan rewarded production so things were overproduced
Incentives - increase in equality
Centralisation- government had little expertise
Arms race - GDP 17% keep up with America
Modernisation - transport agriculture
3 periods of “perestroika” according to Richard sakwa
Rationalism: 1985/6 - Gorbachevs initial reforms - stimulate economic growth
Reform: 1987-90 - Gorbachev introduced market forces into economy and political reforms
Transformation: 1990-91 - abandon fundamental aspects of the system such as single party rule and command economy
What was Gorbachev first initiative?
Continued anti alcohol campaign and reduced state produced alcohol by 50%
Why did Uskorenie fail?
Decline in global oil price decreased. 2/3 decrease
Gorbachev invested in energy production instead of high tech machinery… no growth
Led to more debt
What did Gorbachev do after Uskorenie failed?
Accepted that there would have to be partial market reforms
and began to give more power to factory managers
Restrict power of gosplan
What were the consequences of partial market reform?
Economic chaos - no plan. No alternative
No effective way to distribute food - shortages
How did the economic chaos have political consequences?
Gorbachevs approval rating dropped from 52% to 21%
Number of strikes increased from 260 in 1990
To nearly 2000 in 1991
What was the 500 day program?
A plan for economic transition in 1990 by Gorbachev and Yeltsin - widespread privatisation
Gorbachev backed down from communist pressure
How did the economy finally change in 1991?
1991 Supreme Soviet introduced private property and shares could be bought
What does Martin mcauley believe about the move from command to market economy?
China and Vietnam did it whilst being communist so Gorbachev had political issue not economic