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Gorbachev and pressures on the USSR - Coggle Diagram
Gorbachev and pressures on the USSR
Gorbachev
Reduce the tensions of the second Cold War
And to reform the communist system in order to save it from collapse
Gorbachev two main aims were to:
When gorbachev became leader of the USSR in 1985, he inherited an economic crisi and a stagnant system of government that was failing to deliver progressive improvement relative to the west
Issues facing Gorbachev in the USSR
Reliance on central planning
The inflexible slow and corrupt system of central planning tended to reject innovation and ignore consumer demand
workers discontent
Stagnating living standards led to a decline in morale and productivity
There was poor air and water quality in the towns and cities due to lack of environmental standards
Workers wages rarely stayed in line with inflation leading to the unrest and frequent strikes
alcoholism was a national problem causing abesenteeism and decreased productivity
Continued lack of consumer goods
During the 1970s the availability of consumer goods remained limited despite an emphasis on them in the ninth and tenth year plans
the black market flourished as a result
Public dissent
Pressure groups were increasingly vocal such as the mother against the war, which demanded an end to the war in Afghanistan
Minority groups, for example Jews and those in the Baltic states were anxious to obtain greater independence
Criticism of the government grew as the general public relapsed there would not be a return to the Stalinist scale of terror
Huge military expenditure
The USSR was faced with the need for even higher spending to match president Reagan’s Star Wars inititiative
The burden of high military spending was increased by the long draining war in Afghanistan
In an attempt to gain military superiority over the US, around 25% of the GNP was spent on Soviet military every year between 1964-82
Lack of foreign investment
the USSR was largely closed to foreign investment, which stifled its growth and business innovation
Crop failures and food shortages
Poor grain harvests in 1972 and 1975 led to food shortages
the government had to purchase grain from abroad, at the expense of depositing funding to the production of consumer goods
Brezhnev attempts at agricultural reform had been blocked by communist hardliners
Perestroika
This posed a challenge to the centrally planned system
Economic policies linked to perestroika
End state price controls
Open the USSR to foreign investment
Maintain state ownership
Permit some self management; allow managers to use their budgets as they see fit
Amend rather than dismantle existing systems where possible
Decentralize planning; allow some decisions to be made independently of gosplan,( the Soviet agency responsible for central economic planning)
With the policy of perestroika, Gorbachev aimed to restructure and improve the economy
hardliners in the old guard of the party opposed these policies as a move away from communism and because they feared they would result in instability
new thinking and its practicalities
He believed that Soviet foreign policy was of cricitical importance to improving domestic conditions in the USSR
Maintaining peace was a fundamental necessity if domestic economic progress was to be made
Gorbachev saw a direct link between the USSR’s economic performance and its ability to maintain its position as a global superpower
This represented a significant shift in thinking for the USSR
Glasnost
The Soviet government made the belated decision to acknowledge the disaster and inform both its citizens and other countries of the outcomes
The handling of the Chernobyl disaster in part led to Gorbachev to announce the policy of glasnost in 1988.
The accident was initially covered up, but Swedish reports tracing high levels of radiation back to Ukraine forced the Soviet’s to publically acknowledge the accident
this was the policy of more open communication between the Soviet government and its people, in the hope it would lead to greater understanding of government actions and improved relations
In April 1986 there was an explosion at a nuclear reactor in cheronobyll in Ukraine. This released radiation into the atmosphere that spread west through the USSR and into European countries
Glasnost was intended to demonstrate that the government was acting with the best interests of Soviet citizen in mind, and to express a willingness to address the actions of past leader
Changes resulting from the policy
The release of high profile dissidents from exile
The rehabilitation of those prosecuted or disgraced in the Stalinist era
More open reporting by TASS the Soviet news agency)
The re- examination and questioning of Soviet history and past government actions
Soviet’s economic problems
The need to diversify the economy ( most of the USSR’s income came from petroleum and arms sales so the price drop in oil in the 1980s was a significant problem)
The need to withdraw from the Afghanistan war for economic and social reasons ( the war was both expensive and unpopular, contributing to public dissent)
The need to increase foreign investment to assist soviet farmers and to end the dependency on imported grain
The need to send subsidies to the satellite states; proving this material support was very expensive and brought little yield
Economic issues faced by Gorbachevs government included:
Impacts of Gorbachev economic policies
Positives
61 joint venture agreements were made with western companions by 1988, brining capital and technological developments to the USSR
Corruption in the state bureaucracy was cut
In 1988 Comecon and the European economic community came to an agreement that included diplomatic recognition allowing bilateral negotiations regarding trade and exchanges. It paved the way for trade agreements that were implemented between 1988 and 1991
Collectivization ended: the state still owned the land but farmers paid to lease the land and were taxed on their products. This acted as an incentive to farmers and provided the basis for agricultural improvement in the long term
Negatives
Agricultural output fell 13 percent between 1985 and 1990
Exports were down 18% important were down 45 %
Industrial production declined slightly
Alcohol policies cost the government almost 100 million rubles in lost taxes
By 1988 the budget deficit was around 12 per cent of Soviet GNP
Consumer prices increased with the end to price controls contributing to inflation