Perestroika

• GORBACHEV’S REFORMS : PERESTROIKA - INTENT

  • Series of political and economic reforms to encourage new ideas, increase efficiency and fight corruption.

  • Meant to give workers a sense of ownership and lift the Soviet economy out of stagnation

  • Also aimed to rejuvenate the Communist Party by admitting leaders keen on reform
• GORBACHEV’S REFORMS : PERESTROIKA - MEASURES TAKEN (ECONOMIC)

  The Command Economy would be relaxed

  • Govt no longer set targets, wages and prices.

  • 1987 Law of State Enterprise – give managers powers to decide what to produce and how much to produce

  • Factory managers to be elected by workers, and encouraged to involve workers in decision making.

  • Private ownership was allowed in some sectors and small businesses were allowed to operate for profit

  • Some foreign companies were also allowed into USSR
• GORBACHEV’S REFORMS : PERESTROIKA - PROBLEMS(ECONOMIC)

  • Reforms were not well-planned and most of the new managers were not sure of what to do

  • Some increased wages and prices haphazardly, without increasing output.

  • Government still controlled the means of production such as trucks and tractors. Infrastructure like roads and storage facilities were still inadequate.

  • Small businesses found it hard to get access to the tools, infrastructure and permits they need, had to find their own funding and deal with corrupt officials → many gave up
• GORBACHEV’S REFORMS : PERESTROIKA - IMPACT (ECONOMIC)

  • After a while, there were many unprofitable enterprises which needed

  government support.

  • As production got disrupted, basic necessities went into shortage instead, leading to unemployment and the rise of black markets.

  • Reforms actually made the economic conditions worse
• GORBACHEV’S REFORMS : PERESTROIKA - MEASURES TAKEN (POLITICAL)


  Started anti-corruption campaign

  • Elections were called for local Party positions

  • Planned for general elections for the Soviet government in 1989

  • Tried to separate the party from the government bodies at the lower levels

  • Opened up elections to people outside the Communist Party e.g. people form the trade unions or Soviet Women’s Committee could run too
• GORBACHEV’S REFORMS : PERESTROIKA - IMPACT (POLITICAL)


  • Political reforms were criticised from both the conservatives and radicals

  • The conservative hardliners felt he was changing too much, too fast.

  • Opposition members in the government e.g., Boris Yeltsin felt that his reforms were limited and moved too slowly

  • All this undermined Gorbachev’s reforms and his authority in the USSR

  • This laid the foundation for the collapse of the Soviet Union