Booklet 13: The End of the Cold War
● 1985: Mikhail Gorbachev becomes new leader of the USSR. Alcohol policies are
introduced.
● 1986: 27th Communist Party Congress takes place. ‘Perestroika’ and ‘Glasnost’ are
announced. Chernobyl meltdown occurs.
● 1988: Law on State Enterprises. Soviet decision to withdraw from Afghanistan.
How did Gorbachev affect the Cold War?
Mikhail Gorbachev became Soviet leader in 1985 and introduced major reforms to
modernise the USSR. His policies of perestroika (restructuring) and glasnost (openness) led
to democratisation and increased freedoms, both in the USSR and Eastern Europe. These
changes eased Cold War tensions and earned him the Nobel Peace Prize in 1990. However,
they also encouraged criticism of communism, which ultimately led to his downfall.
Why did Gorbachev embark on such a programme of reform?
The Soviet economy was stagnating, especially in consumer goods. Gorbachev recognised
that economic reform was essential, but this required reducing military spending. To achieve
this, he aimed to improve relations with the US, making foreign policy reform a key part of
his strategy
Factors undermining Soviet economic growth:
● Alcoholism: A common factor of Soviet life. It led to losses in productivity through
absenteeism and frequent workplace injuries.
● Lack of foreign investment: The USSR was largely closed to foreign investment.
This stifled growth and business innovation. The state had a total monopoly.
● State controlled business: The monopoly the state held over business was focused
on centralised control/planning, and there was little recognition for consumer
demand.
● Inflation and worker discontent: Worker’s wages rarely stayed in line with inflation.
This led to unrest and frequent strikes, which in turn undermined productivity.
, Gorbachev’s ‘New Thinking’:
New Thinking (Foreign Policy):
● Announced at the 27th Party Congress.
● Focused on:
○ Arms control.
○ Greater UN involvement.
○ Increased global economic cooperation.
○ Rejection of the Brezhnev Doctrine.
● Aimed to reduce military spending (e.g., $40 billion spent annually on aid to allies) to
support internal reform.
● Closely tied to perestroika.
Perestroika (‘Restructuring’):
● Goal: Modernise the economy and prevent stagnation while remaining within a
communist framework.
● Policies:
○ 1985–88: Restrictions on alcohol introduced.
○ 1986: Gorbachev stresses need for economic acceleration.
○ 1986: End of state price controls → caused inflation.
○ 1988: Law on State Enterprises allowed local decision-making and budget
responsibility.
○ 1987: Law on Joint Ventures permitted up to 49% foreign ownership; brought
in foreign capital, though businesses remained state-owned.
Glasnost (‘Openness’):
● Aim: Encourage free expression and support for reform.
● Policies:
○ Relaxation of censorship.
○ Dissident Andrei Sakharov allowed to return to Moscow (1986).
○ May 1989: Congress of People’s Deputies introduced – 2/3 of seats elected.
○ Live broadcasts of parliamentary debates allowed public criticism of the KGB
and former leadership – previously unheard of.
○ Gorbachev hoped the public would use this freedom to support reform efforts.
Resistance:
● Apparatchiks (Communist Party bureaucrats) opposed changes, preferring to
maintain the old system.
● 1985: Mikhail Gorbachev becomes new leader of the USSR. Alcohol policies are
introduced.
● 1986: 27th Communist Party Congress takes place. ‘Perestroika’ and ‘Glasnost’ are
announced. Chernobyl meltdown occurs.
● 1988: Law on State Enterprises. Soviet decision to withdraw from Afghanistan.
How did Gorbachev affect the Cold War?
Mikhail Gorbachev became Soviet leader in 1985 and introduced major reforms to
modernise the USSR. His policies of perestroika (restructuring) and glasnost (openness) led
to democratisation and increased freedoms, both in the USSR and Eastern Europe. These
changes eased Cold War tensions and earned him the Nobel Peace Prize in 1990. However,
they also encouraged criticism of communism, which ultimately led to his downfall.
Why did Gorbachev embark on such a programme of reform?
The Soviet economy was stagnating, especially in consumer goods. Gorbachev recognised
that economic reform was essential, but this required reducing military spending. To achieve
this, he aimed to improve relations with the US, making foreign policy reform a key part of
his strategy
Factors undermining Soviet economic growth:
● Alcoholism: A common factor of Soviet life. It led to losses in productivity through
absenteeism and frequent workplace injuries.
● Lack of foreign investment: The USSR was largely closed to foreign investment.
This stifled growth and business innovation. The state had a total monopoly.
● State controlled business: The monopoly the state held over business was focused
on centralised control/planning, and there was little recognition for consumer
demand.
● Inflation and worker discontent: Worker’s wages rarely stayed in line with inflation.
This led to unrest and frequent strikes, which in turn undermined productivity.
, Gorbachev’s ‘New Thinking’:
New Thinking (Foreign Policy):
● Announced at the 27th Party Congress.
● Focused on:
○ Arms control.
○ Greater UN involvement.
○ Increased global economic cooperation.
○ Rejection of the Brezhnev Doctrine.
● Aimed to reduce military spending (e.g., $40 billion spent annually on aid to allies) to
support internal reform.
● Closely tied to perestroika.
Perestroika (‘Restructuring’):
● Goal: Modernise the economy and prevent stagnation while remaining within a
communist framework.
● Policies:
○ 1985–88: Restrictions on alcohol introduced.
○ 1986: Gorbachev stresses need for economic acceleration.
○ 1986: End of state price controls → caused inflation.
○ 1988: Law on State Enterprises allowed local decision-making and budget
responsibility.
○ 1987: Law on Joint Ventures permitted up to 49% foreign ownership; brought
in foreign capital, though businesses remained state-owned.
Glasnost (‘Openness’):
● Aim: Encourage free expression and support for reform.
● Policies:
○ Relaxation of censorship.
○ Dissident Andrei Sakharov allowed to return to Moscow (1986).
○ May 1989: Congress of People’s Deputies introduced – 2/3 of seats elected.
○ Live broadcasts of parliamentary debates allowed public criticism of the KGB
and former leadership – previously unheard of.
○ Gorbachev hoped the public would use this freedom to support reform efforts.
Resistance:
● Apparatchiks (Communist Party bureaucrats) opposed changes, preferring to
maintain the old system.
