Historical interpretations: What explains the fall of the USSR, c. 1985–91? Flashcards
(48 cards)
What were the long term economic weaknesses of the Soviet economy?
- From 1928 until the late 1980s the Soviet economy was essentially a command economy.
- One major problem was that the Soviet economy failed to create incentives for hard work or innovation. From 1945 to 1980 the Soviet Union was increasingly egalitarian – the difference between the richest and the poorest was much smaller than in the West.
- A second problem was waste. Gosplan, the State Planning Committee, measured and rewarded production. The quality of production was irrelevant, as was the proportion that was actually used. Therefore, although large amounts of goods were produced, they were often waste.
- Next, the Soviet economy had never been fully modernised. This was a particular problem in agriculture. Although there were too many tractors, Soviet agriculture lacked more sophisticated machinery.
- The Soviet economy also struggled due to the arms race with the US. From 1945, Russia produced ever more expensive missiles, nuclear bombs, tanks and fighter planes.
- A final chronic problem was centralisation. The economy was controlled by government administrators. In farming, for example, the government set the timetable for planting and harvesting. As a result, farmers could not use their expertise to adjust the schedule to take weather conditions into account.
What were the three aims of Perestroika?
- Rationalisation, 1985–86: This was a period of initial economic reforms. Led by the Communist Party, the reforms were designed to stimulate economic modernisation, higher rates of economic growth and higher levels of production.
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Reform, 1987–March 1990: Gorbachev initiated reforms intended to introduce market forces into the Soviet economy. At the same time he initiated
political reforms designed to build support for greater economic change. - Transformation, March 1990–August 1991: During this stage of perestroika Gorbachev began to abandon the fundamental aspects of the system such as single-party rule and the command economy.
What was the economic initiative of acceleration and why did it fail?
- In essence, acceleration meant a huge increase in investment which was designed to modernise the Soviet economy and therefore make it more efficient.
- Acceleration failed. A major reason was the decline in the global **price of oil88. The oil price fell from $70 a barrel in 1981 to $20 a barrel in 1985. As a result, Soviet oil revenues dropped by more than two-thirds.
- Therefore Gorbachev financed acceleration from borrowing from Western countries.
- Therefore the investment did not lead to greater growth. Increasing levels of debt meant that the government was spending more and more money on interest payments. Consequently, there was less money for further modernisation or to produce consumer goods.
What was the 1987 Law on State Enterprise in relation to partial market reform and why did it fail?
- It was intended to devolve power from central government to factory management. For example, factory managers were allowed to set the prices for their production.
- This reform failed in two ways.
- Firstly, very little power was actually devolved as Gosplan found new ways of maintaining central control.
- Secondly, the ability to charge higher prices meant that the government had to pay more for goods, which further increased government debt.
What was the 1987 Law on Co-operatives in relation to partial market reform?
- The 1988 Law on Co-operatives made it legal to set up large-scale private companies. By 1990 nearly 200,000 private companies, or co-operatives, had been set up across the USSR. Many co-operatives were successful. In the first year, the turnover of the co-operatives increased from 29.2 million roubles to 1.04 billion roubles.
- Moreover, the incomes of co-operative members were between two and three times higher than people employed by state enterprises.
What were the problems with the market due to Perestroika?
- From 1987 to 1990 Gorbachev’s economic reforms created a partial market. Gorbachev hoped that he could combine the best features of the market with the best features of planning and in so doing revive the economy.
- However, markets require prices that accurately reflect the true value of goods and services. The Communist Government subsidised prices – allowing consumers to buy goods at a price well below the market rate.
- Initially, the new co-operatives could sell goods at a price of their choosing. But these were more expensive than state prices, making them unpopular.
- The government responded by imposing low prices on the co-operatives. This ‘price capping’ made production uneconomic .
Why did partial market reform create economic chaos?
- The reforms undermined the central planning system, while at the same time failing to create an effective market alternative. As a result, there was no effective way of distributing goods, and shortages of essential goods increased.
- Although Soviet farms had produced 218 million tons of grain, there was no longer an effective distribution system.
How did Gorbachev’s economic reforms fail?
- Government figures showed that between 1986 and 1990 GDP had shrunk by four per cent, although the official figures are likely to underestimate the drop. This was the worst economic performance in Soviet history.
- The economic chaos had political consequences. Price rises led to widespread dissatisfaction with the Communist Government:
- Gorbachev’s approval rating dropped from 52 per cent in December 1989 to 21 per cent in November 1990.
- The number of strikes increased.
What was the ‘500 Day Programme’?
- It proposed widespread privatisation and complete marketisation in less than two years.
- Gorbachev initially supported the proposals, but under pressure from senior hardline communists he backed down.
- He remained committed to an economic transformation, but was persuaded that it should happen at a slower pace.
- Ultimately, radical reform continued during 1991. However, the government did not adopt an overall plan, largely because of Gorbachev’s refusal to act decisively.
What reforms were made in 1991 to step towards a freee market?
- The Supreme Soviet introduced private property as an important step towards a free market economy. As a result, the Soviet people could own land and factories in a way that had been impossible since the 1920s.
- In April, a law was passed to allow citizens to trade stocks and shares. Again, this reform was designed to revitalise the economy through the introduction of market forces.
How did the Soviet economy collapse by 1991?
- Oil production fell by 9 per cent, while steel and tractor production both fell by 12 per cent. An official government report stated that the Soviet economy was moving beyond crisis to catastrophe.
- By the summer of 1991, the Soviet Government and the republican governments were effectively bankrupt.
Why was political reform problematic?
- Crucially, any policy which weakened the authority or discipline of the Party risked weakening the Soviet Union, as the Communist Party held the Union together.
- True democracy could lead to the fall of Communism.
- In essence, the Soviet people became increasingly aware of the corruption of Party officials. Nonetheless, in general terms, the Soviet people tolerated the government as the Party was improving living standards year on year.
What were Gorbachev’s political objectives?
- He wanted to end the stagnation of the Brezhnev
period, including the corruption of senior members
of the Party. - He also wanted to end the cynicism and apathy of the Soviet people.
- He wanted to open up debate within the Party, allow intellectuals more freedom of expression and allow the public to have more access to information.
What were Gorbachev’s early political reforms?
- Gorbachev’s first priority as General Secretary was to replace the senior officials who had been close to Brezhnev. He appointed young communists, who supported reform, to senior positions.
- He hoped that democratisation would limit the power of traditionalists and therefore speed up economic reform. He also hoped that democratisation would end strict centralisation by passing some power to the people.
- Gorbachev hoped openness would help economic recovery by ending the distortion of economic information.
What programme did the Twenthy-Seventh Party Congress set out?
- Gorbachev’s new programme committed the Party to the ‘systematic and all round improvement of socialism’, including ‘genuine democracy – power exercised for the people and by the people’.
- However, there were few signs of genuine openness at the Party Congress. Nor did Gorbachev set out detailed proposals for achieving the Party’s new goals.
What was the result of Liberalisiation of the media?
- Newspapers began to publish accounts of the scale of Stalin’s atrocities, as well as stories that admitted problems in the Soviet economy. Yakovlev permitted the publication of previously banned books, plays and films by anti-communist intellectuals.
- Gorbachev also authorised the release of dissidents from prison. Indeed, in December 1986 he invited Andrei Sakharov to Moscow from exile in Gorky to support political reform.
How was glasnost extended between 1987 and 1988?
- Initially, the media had criticised Stalin. However, in 1988 Aleksandr Tsipko, supported by Yakovlev, went much further, publicly criticising Marx and Lenin. Tsipko’s criticisms attacked the foundations of Soviet Communism.
What were the consequences of glasnost?
- Fundamentally, glasnost destabilised party rule because it permitted profound criticism of the Party that Gorbachev had not anticipated.
- Moreover, groups in the Soviet republics began to demand not merely reform, but independence from the Soviet Union.
What did Gorbachev introducing multi-candidate elections to the Supreme Soviet lead to?
- From 1989 onwards, Soviet citizens had the right to vote in elections where there was a choice of Communist Party candidates. Independent candidates could also stand for election.
- In multi-candidate elections 1500 of the Congress of People’s Deputies would be elected.
- The remaining 750 would be appointed by the Communist Party and other official organisations.
- Equally, multi-candidate elections did not allow citizens to vote for different political parties.
- Gorbachev hoped that the Soviet people would back radical candidates and in so doing provide a mandate for further reform.
How was the election of 1989 was an important step in reducing the power of the Communist Party?
- As a result of the election, the communists won 80 per cent of the seats in the Congress of People’s Deputies.
- Yeltsin won with 89 per cent of the vote in Moscow.
- Soon after the election a group of newly elected deputies, including Yeltsin and Sakharov, formed the Inter-regional Deputies’ Group (IRDG), which embraced a radical anti-communist agenda including the introduction of private property and greater autonomy for the republics.
How did the election of 1989 have consequences on Gorbachev?
- Nationalists who wanted to break up the Soviet Union used the election to campaign for independence. In Georgia, these campaigns resulted in violence.
- Yeltsin emerged from the election as a popular figure and a rival to Gorbachev. Indeed, Yeltsin’s desire to replace the Soviet Union with a loose confederation of truly independent states was extremely popular with nationalists across the Soviet Union, and therefore a threat to the Soviet Union.
What were the anti-communist trends seen in the Republic elections of 1990?
- In Moscow, for example, a group called Democratic Russia won 85 per cent of the seats.
- Similarly, in Leningrad the group Democratic Elections 90, another new anti-communist group, took 80 per cent of the seats.
Why did Gorbachev create the Presidency as Constitutional reform?
- First, he wanted to increase his power. Democratisation had weakened his position. He had hoped that democratisation would give him a power base independent of the Party.
- However, while democratisation had given the Supreme Soviet new authority, Gorbachev was **not able to control88 the new institution.
- Therefore he decided to set up a new position, President of the Soviet Union, which would be independent of the Party and the Supreme Soviet.
Why did Gorbachev’s Presidency lack legitimacy?
- Gorbachev decided that the President would be appointed by the Congress of People’s Deputies, where he had a majority of support.
- While this ensured Gorbachev’s appointment as President, it meant that Gorbachev lacked democratic legitimacy, unlike his rivals who, like Yeltsin, had been elected to their positions.