economy

Question 1

economic weaknesses by 1985?

Answer 1

-centralisation made the economy inefficient

-lack of incentives meant low productivity and innovation

-the us was progressing forward while the ussr’s economy was stagnating

-underdeveloped infrastructure

Question 2

how much did GDP fall by between 1986-90?

Answer 2

4%

Question 3

what was uskorenie and why did it fail?

Answer 3

Uskorenie (acceleration) meant a programme of investment and modernisation.

-It failed because borrowing money from Western governments led to a huge rise in the national debt.

-This led to inflation.

-Investment in energy did not have the desired effect.

Question 4

what was the 500 day programme?

Answer 4

Gorbachev and Yeltsin’s programme in 1990 was designed to transition the economy rapidly to a market model

Question 5

what were the three stages of Gorbachev’s reform?

Answer 5

-rationalisation
-reform
transformation

Question 6

when was private property introduced?

Answer 6

1991