Theme 2: Glasnost, Peristrokia & Gradual economic reform under Gorbachev Flashcards
Increase in foreign debt under Gorbachev
- $30 Billion in 1986
- $54 Billion in 1989
What does Glasnost mean
- Openness
What does Peristroika mean
- Reform
When did Gorbachev pass the “Law on Individual Labour Activity”
1986
What did the Law on Individual Labour Activity allow? What impact did this have
- Allowed Russians to engage in business activity
- By 1989 only 300k business community which is around 1%
When was the Law on State enterprise passed?
- 1987
What did the Law on State enterpise state?
- Enterprisies should produce based on demand
- State Enterprises have to be self funded
Impact of the Law on state enterprise
- Increased Unemployment
When did Gorbachev pass his law on Co-operatives
- May 1988
What did the “Law on Co-operatives allow”
- Citizens could now own a business
What was Gorbachev’s agriculural policies
- Implemented a few thousand family farms
Describe a family farm
- Leased Land not owned
- Could only employ family members
- Relied on co-operation with nearby collectives
- Was not popular - only a few thousand
Agriculural growth under Gorbachev
- Only grew at an average of 2.7%
- Compared to industy 4.6%
When did Gorbachev pass his “Dry Law”
- May 1985
Describe the Dry Law
- Raised legal age to 21
- Reduced Vodka production by 10%
- Tripled Price
Flaws of the Dry Law
- Samogen (Moonshine) prevelent
- 17% loss in state revenue
- Increased resentment at a time where the state needed the support of the people
Pravda claim of the Dry Law
- Claimed the root of all following economic problems was the 10 billion rouble defiect thanks to the dry law