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Perestroika

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Perestroika economic restructuring businesses could dispose of surplus as they saw fit expenses must be covered by revenue (no subsidies) permitted private ownership ... – PowerPoint PPT presentation

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Title: 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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