gorbs ecnomic reforms and effect Flashcards
(34 cards)
What was perestroika?
‘Reconstruction’ of social, political, and economic systems.
What did perestroika do to the economy?
Amended the existing system to decentralized planning where the state owned businesses with owners having a degree of self-control.
What did perestroika do to state-controlled pricing and what effect did this have?
Removed it, which lowered living standards.
How were state-owned enterprises treated in perestroika?
Given a budget to spend how they saw fit to be a profit-making wholesale targeting business.
What does glasnost translate to?
Openness.
What two things led to glasnost?
Chernobyl and the return of Sakharov.
When was Chernobyl and what was the initial USSR reaction?
April 1986; suppressed it in line with censorship.
What made the USSR make glasnost public and how accurate were the reports?
Swedish reports of radiation and the scale of it; accuracy could be questioned though.
What was the impact of the release of Sakharov?
He traveled expressing the repression of the USSR and treatment in prison camps.
When and what was glasnost?
1988; re-examination of Soviet policy, rehabilitation of enemies.
What was the largest economic drain on the USSR and why?
Foreign policy - supporting the economies of all Eastern countries was costly.
In what way did Carter renew the costly arms race?
Economic sanctions, embargos, boycott of the 1980 Moscow Olympics.
In what way did Reagan renew the costly arms race?
Increased military spending and SDI.
Why did the USSR cut off exports of fuel and raw material to the Eastern bloc and what effect did this have?
Due to deepening economic crisis; alienated them and pushed them closer to capitalism.
What did Gorbachev do in 1985?
Contacted the European Commission to propose mutual diplomatic recognition.
What did the European Commission do in June 1988?
Established trade and cooperation agreements with individual Comecon members.
What did trade agreements with the European Commission do to the Eastern bloc?
Allowed them to make their own trade agreements, making Comecon and trade with the USSR less necessary.
How did Gorbachev normalize foreign policy?
Linked it to domestic policy.
What were some of the economic pressures on the USSR?
Oil price drop, dependence on foreign grain, Afghanistan, ineffective state-run industry, slow new tech, poor credit and capital, poor management.
What was the short-term effect of perestroika?
General public suffered whilst businesses thrived.
In what way did the general public suffer in perestroika?
Wages didn’t match inflation; food too expensive.
In what way did perestroika bring capital and tech?
61 joint venture agreements by 1988.
How did collectivization change?
It was questioned and ended; began transition to privatization, state-owned land made consumer goods increasing yields and production.
How did the budget deficit change under perestroika?
Eliminated a bit - 13% GNP by 1988.
