6.1.1
Gorbachev & Reforms
Gorbachev and the Ending of the Cold War
Gorbachev and the Ending of the Cold War
In 1985 Gorbachev took office in the USSR. He was seen as a breath of fresh air due to the long-standing political stagnation that occurred in the USSR. His main aims were to reform the communist system internally and to reduce the tensions of the Cold War.
Inherited economic issues
Inherited economic issues
- Gorbachev inherited a poor economy which had been in steady decline for some years.
- This was due to outdated machinery and incorrect distribution of the workforce.
- Living standards dropped as production decreased and a government deficit emerged.
- Workers became discontented at the fact that they had poor wages and poor environmental standards in their towns.
The problem of centralisation
The problem of centralisation
- The whole Soviet structure was heavily reliant on being controlled centrally which meant that modernisation didn’t occur and consumer demand was ignored.
- There was still a thriving black market (particularly with Vodka) which undermined the government as there was a lack of consumer goods.
Soviet military spending
Soviet military spending
- 40% of the government’s budget was spent on the military which meant that the standard of living decreased.
- The USSR was finding it difficult to sustain funding the war in Afghanistan.
- 4% of the exports from the USSR included gas and oil however international prices (due to a lack of demand) dropped which damaged the USSR’s economy.
- This made worse by the fact that there were crop failures and food shortages across the USSR.
- The government even had to import grain from abroad which further damaged their economy.
Growing public discontent
Growing public discontent
- These inherited economic problems all contributed to growing public discontent at the government both in the USSR and in the satellite countries.
Historical interpretation
Historical interpretation
- Historian Robert McManhon The Cold War: A very short history (2003) argues that ‘the accession of Gorbachev to the position of general secretary of the Soviet Communist Party, stands as the most critical turning point in the Cold War’s final phase- the one factor above all others that hastened the end of the Cold War and the radical transformation of the Soviet-American relations’.
New Thinking
New Thinking
Gorbachev realised the link between the USSR’s economic performance and its ability to maintain its position as a global superpower. He, therefore, pursued a policy of improving internal domestic issues and wanted to promote peace.
Perestroika
Perestroika
- Gorbachev planned to restructure the whole economy; this is known as Perestroika.
- A 5 Year Plan was established for the years 1986-1990. It set a target of 25% growth in industrial production.
- There was an investment in machinery by copying the West’s automated and advanced production methods.
- There was a bid to remove central control on industry.
- Employees were given the freedom to negotiate and play an active role in their employment.
- This was not welcomed by the managers of industry.
Other changes with Perestroika
Other changes with Perestroika
- There was a new industry set up for agriculture and food processing.
- Gorbachev made other changes to the Soviet economy which included:
- Opening up the USSR to foreign investment.
- Ending price controls on goods.
- Permitting some self-management of industry.
- Amending economic systems rather than dismantling them.
Glasnost
Glasnost
- Gorbachev also planned Glasnost and the ‘democratization’ of USSR.
- Gorbachev wanted to open up the Soviet party which was criticised for being too closed.
- Gorbachev wanted to return to the true version of Communism, one which was similar to that of Lenin.
- Censorship on TV, radio and newspapers was reduced slightly.
- In 1987 BBC broadcasts were permitted to be aired in the USSR.
A more 'open' political era
A more 'open' political era
- There was a feeling of a new era where the crimes of the old Russia and the NKVD (secret police) were revealed and openly criticised.
- People that were enemies of the state were publically forgiven and restrictions on religious groups were relaxed.
- The open debate and a more democratic system was good for the people however it did not get Gorbachev the support of the party.
- The party officials liked the power that they had and the secrets that they protected; they didn’t want greater freedom.
Historical interpretations
Historical interpretations
- Historian Stephen Kotkin (2003) says that after Glasnost was rolled out, people in the Soviet Union quickly began talking about issues that had previously been taboo. Weekly newspaper Arguments and Facts exposed certain "truths" about life in the Soviet Union and had a circulation of over 30 million during this time.
- Stephen Kotkin (2003) argues that 'it was obvious well before 1991 that Soviet socialism and union was being destroyed by Gorbachev’s perestroika.'
The Results of Gorbachev's Policies
The Results of Gorbachev's Policies
Many of Gorbachev's policies failed. By 1988 there were strikes due to the failure of the 5 Year Plan. Gorbachev realised that it was the party officials who blocked economic change. Even moderate reform was met with fierce debate.
Failures in economic policy
Failures in economic policy
- By 1991 industrial output had dropped by 18%.
- Also, the Nomenklatura (ruling elite) liked their extreme privileges and they did not want to give them up.
- Gorbachev removed some of their privileges such as their ‘special shops’ and their chauffeur driven cars which lost him support amongst the most powerful Soviet leaders.
- There was also a problem with alcoholism amongst the workers, partly due to the cheap price of vodka on the black market.
- Alcoholism cost the government almost 100 million rubles in lost taxes.
- By 1988, the budget deficit was around 12% of the Soviet GNP compared to 3.5% of the USA’s.
Successful reforms
Successful reforms
- There was however success; the Supreme Soviet did support Gorbachev, as did some reformers in the party.
- In fact, the reformers wanted further reform such as free elections and secret ballots.
- Gorbachev managed to get through reforms which meant that representatives were more accountable for their actions.
- In 1989 elections were held throughout the USSR for the Congress of People’s Deputies which consisted of 2250 members.
- Gorbachev also had much success in stamping out corruption in the state bureaucracy.
Successful economic policies
Successful economic policies
- There were also 61 joint-venture programmes which were made with Western companies which brought capital and technological developments to the USSR.
- The brutal agricultural system of collectivisation, which had caused poverty and starvation, also ended.
- Lastly, in 1988 there were positive trade talks with the European Economic Community which led to positive negotiations and fair-trade agreements being established in 1988 and 1991.
Historical interpretations
Historical interpretations
- Historian McCauley argues that 'China and Vietnam have demonstrated that it is possible to move from a command to a market economy without undermining the power of the Communist Party. Hence the reasons for the failure of economic reform are political. Gorbachev removed the ideological and political pillars on which the Soviet Union was built.’
1Origins of the Cold War, 1945-9
1.1Events of 1945
1.2The Collapse of the Grand Alliance
1.3Developing Tensions
1.4US Involvement in Europe
2Widening of the Cold War
2.1US Containment in Asia
2.2The Korean War
2.3Increasing Cold War Tensions, 1949 -1953
3The Global War
3.2Cold War Rivalries
3.3Conflict in Asia
3.4Confrontation Between Superpowers
4Confrontation & Cooperation
4.2Cooperation
4.3Pressures on the USSR
5Brezhnev Era
5.1Detente
5.2Second Cold War
5.3Developments in Africa & Americas
6Ending of the Cold War
6.1Gorbachev
6.2Cooperation between US & USSR
6.3Collapse of Communism in Eastern Europe
6.4End of Tensions Across the World
Jump to other topics
1Origins of the Cold War, 1945-9
1.1Events of 1945
1.2The Collapse of the Grand Alliance
1.3Developing Tensions
1.4US Involvement in Europe
2Widening of the Cold War
2.1US Containment in Asia
2.2The Korean War
2.3Increasing Cold War Tensions, 1949 -1953
3The Global War
3.2Cold War Rivalries
3.3Conflict in Asia
3.4Confrontation Between Superpowers
4Confrontation & Cooperation
4.2Cooperation
4.3Pressures on the USSR
5Brezhnev Era
5.1Detente
5.2Second Cold War
5.3Developments in Africa & Americas
6Ending of the Cold War
6.1Gorbachev
6.2Cooperation between US & USSR
6.3Collapse of Communism in Eastern Europe
6.4End of Tensions Across the World
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