Gorbachev’s New Thinking

Question 1

‘New thinking’ and its practicalities

Answer 1

First targeted alcoholism and absenteeism: prices were raised on wine, beer, and vodka, ad places selling alcohol were restricted. Arrests for public drunkenness and for being intoxicated at work.

Question 2

Perestroika

Answer 2

Designed to improve economic performance. Amend existing economic system, rather than dismantling them completely.
Panning decentralised, degree of self-management without the loss of state ownership of factories. More efficient as it allowed managers to implement econ changes without having to wait for the soviet planning agency, GOSPLAN.

Overall, the law was an attempt to maintain a command system within a market economy and set the framework for foreign investment, which was ironically what DUBCEK wanted to do 20 years ago

1988 Law on State Enterprises aimed to decentralise authority and devolve decision-making down to business and enterprise themselves. Businesses would be given a budget allocation but could use it as they wish in order to make profit and there was no suggestion of privatisation being introduced, clear example of restructuring, rather than dismantling the econ system.
Introduction of market principles and prices rise but still state ownership

Question 3

Glasnost

Answer 3

Scale of the Chernobyl disaster in 1986 and the release of the dissident Andrei Sakharov illustrates the need for more openness.
1988 glasnost
Re-examination of Soviet history and open debate on past govt action (e.g party purges and treatment of kulaks)
Gorb allowed criticism of Stalin’s nd Stalinism
Permitted criticism of govt officials and allowed the media freer dissemination of news and info

Question 4

What was GORB’S initial responses to the economic problems of the SU?

Answer 4

He linked mediocre econ growth to political, ideological and fp problems. If econ aims not fulfilled, then FP problems would deepen as the economy failed to underpin foreign policy aims
He saw a direct link between the SU’s econ performance and its ability to maintain its superpower position globally.

He stated at the 27th communist party congress that ‘without an acceleration of the country’s econ and social development, it will be impossible to maintain our positions on the international scene’.

Question 5

The economic impact of the arms race

Answer 5

The nuclear arms race with USA was debilitating for the ussr; after the promise of detente in the 1970s, the Soviet invasion of Afghanistan in 1979 renewed the CW. Jimmy carter’s imposition of econ sanctions and embargoes, and the boycott of the 1980 Moscow Olympics, furthered soviet econ deterioration and contributed to the election of avowed anticom Reagan, which led to SDI in 1983 filled the Soviet leadership with fear.
The Soviets made it clear that cheap exports of fuel and raw materials to Eastern Europe could not continue, due to its deepening domestic economic crisis. This only served to alienate eastern European states and push them closer to the western capitalist economic system.
In 1985, the secretary-general of Comecon contacted the president of European Commission suggesting mutual diplomatic recognition. This ultimately concluded in 1988 that the European Commission was able to set up trade and cooperation agreements with individual Comecon members, starting with Hungary. Allowed countries in the soviet orbit the ability to make their won trade agreements, contributing to the obsolescence of Comecon, and made trade with the SU less likely.

For Gorbachev, maintaining peace with other states was a fundamental necessity if domestic economic impact progress was to be made. Thi focus on linking the SU’s domestic priorities with its external relations was a significant shift in thinking. Contrasts the acceleration of industrialisation during the Korean War under Stalin. Previous leaders had focused on the ussr acting as the leader of global com, irrespective of the costs of the military machine necessary to promote this objective.

Question 6

The importance of soviet econ problems

Answer 6

When the price of oil dropped in the 1980s due to OPEC policies, the ussr felt it strongly
Another issue was the dependence on foreign oil grain
War in Afghanistan led to the ussr ending the subsidies for Comecon countries.

Question 7

The social and political significance of Gorb’s econ policies

Answer 7

Only a small, entrepreneurial class was benefitting from the relaxations. Econ system mostly failed
Some positive steps= Soviets made 61 joint-venture agreements with western companies by 1988, bringing much needed capital and technological developments to the ussr, crop yields increase and corrupt and redundant components of GOSPLAN had been eliminated.

Consumer goods prices and inflation was rampant

Alcohol policies did not have desired effect. It cost the soviet state almost 100 billion rubles in taxes lost, due to a drop in official consumption.

Another econ issue was the cost of a very large and corrupt bureaucracy. To eliminate these, gorb needed to remove the apparatchiks who benefited from the system.

Summary: when g came to power in march 1985, he inherited a stagnant faltering system in need of repair. He quickly recognised that an econ shift could only be acceptable if mistakes of the past were known to the population, so glasnost was introduced so that Soviets have a clearer understanding of past history