chapter 15- economic dilemmas, european unity, and the collapse of communism

mikhail gorbachev (1931-2022)

- The last leader of the Soviet Union, serving as General Secretary from 1985 until its dissolution in 1991.
- Once Gorbachev came into power, he was described as a "volcano of energy," who captivated non-Russians and was very good at presenting himself, especially on TV.
- His policies of glasnost and perestroika were aimed at reforming the political and economic systems of the Soviet Union, promoting greater transparency and decentralization.
- He agrees to unravel the USSR with Yeltsin in 1992, however Gorbachev was still a communist up until the very end, He just believed that communism was mismanaged

margaret thatcher (1925-2013)

- A conservative leader with radical intention who became the prime minister of the United Kingdom in 1979.
- She sought to conquer inflation, tame the country's traditionally powerful labor unions, and dramatically reduce the size and scope of the state.
- Though some of her policies had good effects, such as her privatizations making bureaucratic enterprises more efficient, critics accused her government of sacrificing public services for private profits

lech walesa (1943-)

- joined other activists to create a new national trade union to be called Solidarity, which spread like wildfire
- it became the first independent labor union in a Eastern Bloc country

ronald reagan (1911-2004)

President 1981-1989. Vowed to sink the Soviet economy by forcing it to make military expenditures that it could not afford

boris yeltsin (1931-2007)

- Challenges Gorbachev and wants to make Russia an outside influence.
- Advocates for more democracy and capitalism.
- Yeltsin is the head of the Soviet Republic of Russia and he declares sovereignty within the USSR.
- Following this, every other country in the USSR declares independence, and the USSR finally unravels

helsinki accords (1975)

- "Ostopolik" (new Eastern policy) sought to normalize relationships between the two halves of the divided continent and did much to legitimize the Eastern regimes.
- a non-binding agreement signed in 1975 to reduce tensions between the Soviet Union and Western Europe during the Cold War

charter 77

Became a basis of a loose organization dedicated to "the will to strive individually and collectively for respect of human and civil rights in our country and throughout the world

glasnost

Meaning openness, in which Gorbachev believed that the Soviet system needed some well-planned, strategic reforms and needed to adopt innovative ideas

perestroika

- Meaning restructuring, which was Gorbachev's new vision of the economy.
- He gave industrial firms a measure of autonomy, had managers elected rather than appointed, and released enterprises from some requirements of centralized planning by allowing them to deal directly with one another

stagflation

The unholy combination of stagnation, lack of activity, growth, or development, and inflation, of economic contraction, unemployment and skyrocketing prices

bretton wodos

- A meeting of 44 nations in 1944 that established a new international monetary system and created two intergovernmental organizations.
- The conference replaced the prewar gold standard with a new arrangement in which they all agreed to peg their currencies to the dollar at fixed, but adjustable currencies of exchange. It collapsed in 1971, which contributed to inflation and contraction

iron curtain

- Coined by Churchill, it describes the ideological and physical division between communist Eastern Europe, controlled by the Soviet Union, and capitalist Western Europe, led by the United States.
- It symbolized the start of the Cold War, as the Soviet Union imposed strict control over Eastern Bloc countries, isolating them from the democratic nations of the West.
- The Iron Curtain also represented the lack of communication, trade, and political exchange between the two blocs, reinforcing the division between the East and West during the post-World War II period.
- The fall of the Iron Curtain in 1989, symbolized by the collapse of the Berlin Wall, marked the end of Soviet dominance in Eastern Europe and the eventual dissolution of the Soviet Union

iron rice bowl

A feature of China's socialist economy during the Maoist era (1949-1976) that provided guarantees of lifetime employment, income, and basic cradle-to-grave benefits to most urban and rural workers.

free market economies post cold war

- 1990: All Eastern European countries shift from one party system/communism → free market and open elections (Romania only exception)
- Markets should be free from religion and other biases
- Problems with free market economy:
Lack of expertise in free markets - Need economists to manage new free economy, but no one is qualified
Selling off of state enterprise - Anything state ran needs to be privatized, but there is not a lot of money to buy enterprises
What is being sold off won't run well