Economic reform:
- Perestroika (restructuring)
- St. Petersburg May 1985 criticism
- Co-operatives legalised in 1988
- Number of private shops increased very quickly
- Taubman: “this was a way of introducing private enterprises without calling it that”
to seem more appealing to the conservatives who feared the dismantling of socialism
- Gorbachev subtly introduced a freer market system which had not been permitted in
the USSR after Lenin’s new economic policy of 1922- showing the dismantling and
breaking down of the soviet government
- Food production increased from 1 to 2% between 1986-87, but this was still
inadequate to feed the needs of the Soviet population as 1/5 was imported
- Products were taken from state shops where they were cheap to co-operatives who
charged them for a higher price. This affected those on fixed incomes and most of the
population as they could not afford these prices
- Shops were quickly emptied of goods causes uncertainty and the hoarding of supplies
- Rationing had to be introduced
- Meat rationed in 26/55 regions of the USSR which reduced support for the
communist government- people were angered by the fact that Gorbachev’s reforms
plunged the economy into deeper decline and escalated the situation
- Principle of electing managers: urban wages rose from 9% in 1988 to 13% in 1989
- 300,000 miners went on strike in 1991 and the govt. quickly increased wages which
led to dangerous inflation.
- People could no longer feel the benefits of socialism- even though wages had
increased there was no point in having more money if shops were empty
- The law on state enterprises of 1987 allowed businesses to create the products they
wanted in any quantity for any price once they met state targets
- This outraged bureaucrats who began to see the unravelling of socialism. Although
this incentivised businesses to aim for profits, it went against the strict rules of Soviet
economic policy such as price controls- showing the weakening of the soviet
government as Gorbachev loosened centeralised control over businesses
- Weakened the authority of Gosplan
- Gorbachev’s policy of perestroika plunged the failing economy into deeper decline
and undermined his political power, leading to opposition, inflation, and food
shortages
- Catastroika
- Shifted power from central govt to local bodies
Glasnost:
- Openness and transparency
- Encouraged the soviet people to put forward new ideas and show initiative
- Naïve as this allowed the media freedom of expression- they could now publish
criticisms against the government without fear of persecution
- Revealed the horrors of the past such as Stalin’s mass terror, reducing the support for
the soviet government
- New congress met in May 1989 and this featured open conflict between conservatives
and liberals on tv, radio and in newspapers
- Relaxed censorship lead to an increase in demand for freedoms
- Perestroika (restructuring)
- St. Petersburg May 1985 criticism
- Co-operatives legalised in 1988
- Number of private shops increased very quickly
- Taubman: “this was a way of introducing private enterprises without calling it that”
to seem more appealing to the conservatives who feared the dismantling of socialism
- Gorbachev subtly introduced a freer market system which had not been permitted in
the USSR after Lenin’s new economic policy of 1922- showing the dismantling and
breaking down of the soviet government
- Food production increased from 1 to 2% between 1986-87, but this was still
inadequate to feed the needs of the Soviet population as 1/5 was imported
- Products were taken from state shops where they were cheap to co-operatives who
charged them for a higher price. This affected those on fixed incomes and most of the
population as they could not afford these prices
- Shops were quickly emptied of goods causes uncertainty and the hoarding of supplies
- Rationing had to be introduced
- Meat rationed in 26/55 regions of the USSR which reduced support for the
communist government- people were angered by the fact that Gorbachev’s reforms
plunged the economy into deeper decline and escalated the situation
- Principle of electing managers: urban wages rose from 9% in 1988 to 13% in 1989
- 300,000 miners went on strike in 1991 and the govt. quickly increased wages which
led to dangerous inflation.
- People could no longer feel the benefits of socialism- even though wages had
increased there was no point in having more money if shops were empty
- The law on state enterprises of 1987 allowed businesses to create the products they
wanted in any quantity for any price once they met state targets
- This outraged bureaucrats who began to see the unravelling of socialism. Although
this incentivised businesses to aim for profits, it went against the strict rules of Soviet
economic policy such as price controls- showing the weakening of the soviet
government as Gorbachev loosened centeralised control over businesses
- Weakened the authority of Gosplan
- Gorbachev’s policy of perestroika plunged the failing economy into deeper decline
and undermined his political power, leading to opposition, inflation, and food
shortages
- Catastroika
- Shifted power from central govt to local bodies
Glasnost:
- Openness and transparency
- Encouraged the soviet people to put forward new ideas and show initiative
- Naïve as this allowed the media freedom of expression- they could now publish
criticisms against the government without fear of persecution
- Revealed the horrors of the past such as Stalin’s mass terror, reducing the support for
the soviet government
- New congress met in May 1989 and this featured open conflict between conservatives
and liberals on tv, radio and in newspapers
- Relaxed censorship lead to an increase in demand for freedoms
