Perestroika

1
Perestroika

• economic restructuring
• businesses could dispose of surplus as they saw
  fit
• expenses must be covered by revenue (no
  subsidies)
• permitted private ownership in services,
  manufacturing and foreign trade
• foreign investment now allowed, including
  majority ownership
• some higher quality products now available
• tax revenues dropped sharply (anti-alcohol
  campaign)
• no central planning nor a free market economy
• created many problems

2
Results of Perestroika

• huge decline in economy
• 17 decline in GDP and decline growing
• retail prices increased by 140
• massive inflation
• entire Russian economy in major trouble
• strikes now legal in Russia
• many people protest poor working and living
  conditions
• Yeltsin chief political rival to Gorbachev
• wanted faster change to free market economy
• would supply needed food, housing and medical
  supplies

3
Glasnost

• transparency openness
• allow freedom of the press (gradually)
• start to allow dissent and protest
• intellectual and cultural openness which
  encouraged public debate and participation
• relaxation of censorship
• media starts to expose problems
• poor housing, food shortages, alcoholism
• public learned about Stalins brutality
• negative aspects of Soviet life brought into
  view
• start to undermine faith in Soviet system

4
Glasnost

• satellite nations started to vote against Moscow
  policies
• Moscow unable to impose its will on other
  nations
• many nationalists elected in satellite states
• much nationalism in Baltic States (Estonia,
  Latvia, Lithuania)
• nationalism also in Ukraine, Georgia, and
  Azerbaojan
• much contact with foreign nations, especially
  United States
• eased restrictions on travel
• more business and cultural contact
• thousands of political prisoners released
• Gorbachevs goal of Soviet reform failed

5
Social Problems in the USSR

• industrial production continued to fall
• famine threatening in many northern areas
• inflation increasing 2-3 per week
• US willing to help with money, but unstable
  political situation US money went to
  individual republics
• huge increase in corruption and crime
• decrease in health care system
• decrease in public health rise in infant
  morality
• very high pollution levels
• high levels of toxins and radioctive wastes
• serious alcohol problem
• 3rd most common cause of death

6
Social Problems in the USSR

• Women
• supposedly equal but paid only 65 mens wages
• still traditional roles domestic chores and
  child care
• would spend long hours in food lines after a
  full days work

7
The Break-up of the Soviet Union

• Glasnost
• supposed to reform Soviet life by making society
  open, stimulating and rewarding
• citizens would be able to make more informed
  decisions
• this would create a better society
• removal of censorship allows freedom of
  information and media can criticize
• dissident views could now be heard
• western radio broadcasts now allowed
• allowed many opposition groups critical of the
  government

8
The Break-up of the Soviet Union

• Gorbachev allowed free elections to Supreme
  Soviet (1989)
• hoped that Communist would be seen as party of
  reform
• Communists swept out of office
• many other political parties elected
• satellite states wanted independence
  (nationalism)
• Hungary, Czechoslovakia, and Poland voted
  Communists out
• introduced democratic reforms
• Poland, then Hungary, broke free of Soviet Union
• both countries guaranteed human and civil rights

9
Re-Unification of Germany

• Hungary had a reform government
• allowed many people to cross the border
• many East Germans crossed into West Germany
  through Hungary
• 30,000 by end of September, 1989
• Germans demanded change huge demonstrations
  all over East Germany
• by November 9, all East German border points
  were opened
• including the Berlin Wall
• October 3, 1990 East and West Germany are
  re-united as one country

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