21 - Gorbachev and the ending of the Cold War

What year did Gorbachev become leader of the USSR?

1985

What was Gorbachev’s two main aims coming into power?

• Reduce tensions of the ‘Second Cold War’

• Reform the communist system to save it from collapse.

Evidence of Crop Failure and food shortages coming into Gorbachev’s ministry:

• Brezhnev’s agricultural reform was blocked by communist hardliners.

• Poor grain harvests in 1972 and 1975 caused food shortages.

• The government was importing grain at the expense of domestic production.

Evidence of huge military expenditure:

• 25% of GNP spent on Soviet Military 1964-1982 to try and gain superiority over USA.

• Burden of military spending increased by the ongoing Afghan War.

• Even higher spending was required to match Reagan’s proposed ‘Star wars’ initiative.

Evidence of a lack of consumer goods:

• The Soviet black market flourished.

• Availability of consumer goods remained limited despite emphasis in the ninth and tenth five year plans.

Evidence of Workers discontent:

• Worker’s wages rarely stayed in line with inflation causing strikes.

• Poor air and water quality due to a lack of environmental standards.

• Alcoholism was a major, national problem causing absenteeism.

Evidence of Public dissent:

• Pressure groups became increasingly vocal - such as Mothers Against the War.

• Minority groups such as Jews and Baltic states were anxious to obtain greater independence.

What was Gorbachev’s ‘New Thinking’

That the USSR’s foreign policy was holding back the country’s domestic potential - maintaining peace was necessary for economic progress.

Who opposed the policies of Perestroika?

Hardlines a part of the ‘Old Guard’

Perestroika:

• Maintain state ownership

• End the state price controls

• Open the USSR to foreign investment

• Decentralised planning - some decisions to be made independently by Gosplan

• Allow managers to use their budget as they see fit

What accident was covered up by Soviet media in April 1986 but then leaked by Swedish?

Chernobyl

Glasnost:

• Came from the handlings of Chernobyl

• Called for more open reporting from TASS (Soviet News Agency)

• To release high-profile dissidents from exile - like physicist Andrei Sakharov

• Rehabilitate those persecuted in the Stalinist Era

• Encouraged questioning of past governments such as Stalin’s purges and Ukrainian famine

Soviet Economic problems:

• Needed to increase foreign investment for farmers to end dependency on imported grain.

• Diversify the economy - to specialised in oil and so oil price drop in 1980s hurt economy

• How to withdraw from Afghanistan due to the wars expense.

• Also could no longer provide subsidies to satellite states.

What two organisations came to a bilateral trade agreement in 1988?

EEC and Comecon

How many joint-venture agreements did the USSR make with European countries?

61 joint-ventures

How much was the USSR budget deficit in 1988 compared to the US’

12.5% of GNP compared to the USA 3.5% of GNP

How much did Agricultural output fall by between 1985-1990?

13% fall in agricultural output

How much did Labour productivity fall by between 1985-1990?

9% fall in Labour productivity

How much did Exports and Imports fall by?

Exports down by 18% and Imports down by 45%

How much did alcohol policies cost the government in lost taxes?

100 Million Rubles