Historical interpretations: What explains the fall of the USSR, 1985-91?

A) Economic weaknesses and the failure of reform (1-

Specific facts of economic problems under Brezhnev

600 million tonnes of oil were being exported by 1980 yet dropped from $70-$20 a barrel.

Needed to import 40million tonnes of grain from the USA.

40% of output wasted 1930. 400,000 tractors produced under Brezhnev but 20% were wasted

20% hidden unemployment = low productivity

Absenteeism was 10%

Stability of cadres caused corruption. Galina Brezhnev was involbed in diamond smuggling, Shchelokov

Wasted money with Egypt and Syria against Israel yet Egypt didn’t even become part of the Soviet Union.

18% of budget spent on military

What long-term economic weaknesses did Gorbachev inherit?

Gorbachev was appointed general secretary in March 1985

The Command economy was extenisve and good at quick economic growth yet not long-term growth.

The annual growth rate was decreasing with stagnation most severe in 1973. 1950s (7.1%), ‘64 (5.3%), 70s (2%), 1980 (0.6%).

It was very wasteful (20% of tractors not used), inedfficeint (labour-intensive) and spent 27% on agri.

1965-85, USSR spent 12-17% on defence, USA spent 6%.

What Economic reforms did Gorbachev implace?

Rationalisation and acceleration (c.1985-6)

Economic Perestroika (c.1987-9)

Transition to a market economy (c.1990-1)

Rationalisation and Acceleration c.1985-6

Gorbachev intial economic reforms were quite modest this was because:

• he did not realise how serious the problems were,

• he was still a communist so belived a command econmy could work,

• It would have been dificult as a new general secetary to overcome the opposition in the com party.