9.7 - The Fall of Communism

Economic Troubles in the Soviet Union

Leonid Brezhnev's Leadership:

• Leonid Brezhnev rose to power in the Soviet Union and was focused on maintaining the status quo.

• Brezhnev believed that the Soviet Union was functioning well, but economic realities in the late 1960s and 1970s contradicted this view.

Challenges of a Planned Economy:

• The Soviet Union operated under a planned economy, where the government made all decisions about jobs, production, and distribution.

• In contrast to a market economy, where consumer demand drives production, a planned economy relies on centralized decisions, which can lead to inefficiencies.

• By the 1970s and 1980s, the Soviet bureaucracy, which was responsible for implementing the planned economy, became plagued by inefficiency and waste.

• This inefficiency led to a decline in worker productivity, contributing to the overall economic troubles.

Worker Malaise:

• In a planned economy, there was little incentive for workers to exceed basic expectations or innovate, as the benefits of increased productivity were shared collectively.

• This lack of personal reward discouraged hard work and innovation, further weakening the Soviet economy.

Crop Failures and Agricultural Challenges:

• The Soviet Union faced significant agricultural challenges due to its cold climate and large areas of land unsuitable for farming.

• Crop failures were common, and in the early 1970s, these failures were exacerbated by a severe drought in Europe in 1972.

• The drought led to food shortages, and the Soviet government was unable to feed its people.

Dependence on U.S. Grain:

• To address the food shortage, the Soviet Union turned to an unexpected source: the United States, its chief rival in the Cold War.

• The U.S. agreed to sell the Soviet Union $750 million worth of grain on credit over three years.

• However, the situation in the Soviet Union was so dire that they spent the entire $750 million in just one month.

Conclusion:

• The economic situation in the Soviet Union during this time was dire, with widespread hunger and a stagnant economy. These economic troubles would continue to plague the Soviet Union, contributing to its eventual collapse.

Gorbachev's Reforms and the Collapse of the Soviet Union

Mikhail Gorbachev's Rise to Power:

• Mikhail Gorbachev emerged as the leader of the Soviet Union in 1982, following the economic stagnation under Leonid Brezhnev.

• Unlike Brezhnev, who was focused on maintaining the status quo, Gorbachev was a serious reformer, determined to address the deepening crises within the Soviet Union.

Perestroika (Restructuring):

• Perestroika, meaning "restructuring," was Gorbachev's initiative to reform the Soviet economy by introducing elements of the free market.

• Key aspects of perestroika included:

  • The removal of government price controls on many items.

  • Allowing for more private property and individual economic activity.

• Initially, these reforms saw some moderate success in preventing the Soviet economy from collapsing.

• However, by 1988, the Soviet economy once again became sluggish, highlighting the limitations of the perestroika reforms.

Glasnost (Openness):

• Glasnost, meaning "openness," was Gorbachev's policy aimed at increasing transparency and encouraging free expression within the Soviet Union.

• Under glasnost, several significant changes were introduced:

  • People were allowed to speak openly about the problems facing the Soviet Union, a major shift after decades of repression.

  • More than one candidate was permitted to compete for political office, and political parties other than the Communist Party were legalized.

  • Political prisoners, who had been jailed for criticizing the party or state, were released.

• The extent of glasnost's openness was evident in the handling of the Chernobyl disaster in April 1986, when a nuclear reactor exploded, releasing massive amounts of radiation.

  • Unlike previous leaders, who would have likely kept such a disaster secret, Gorbachev's government communicated openly and regularly about the incident, reflecting the new era of transparency.

Impact of Reforms:

• Gorbachev's reforms, while intended to strengthen the Soviet Union, ultimately contributed to its collapse.

• Perestroika and glasnost exposed the deep flaws within the Soviet system, leading to increased demands for change and independence among Soviet republics.

• The combination of economic struggles and the newfound openness created an environment in which the Soviet Union could no longer maintain its grip on power.

Collapse of the Soviet Union

Impact of Gorbachev's Reforms:

• While Gorbachev's reforms of perestroika (restructuring) and glasnost (openness) aimed to revitalize the Soviet Union, they inadvertently led to its collapse.

• Under previous authoritarian rulers, ethnic tensions within the Soviet Union were suppressed. However, the introduction of even limited freedoms allowed these tensions to resurface dramatically.

• As openness increased, many ethnic minorities began protesting the discrimination they had experienced under Soviet rule, leading to violent conflicts in some cases.

Rise of Nationalism:

• The newfound freedom to express long-suppressed desires led to a wave of nationalism across the Soviet Union, particularly in regions like Georgia and Azerbaijan, as well as in the Soviet Bloc states.

• Gorbachev made a significant break from his predecessors in 1989 by announcing that the Soviet Union would no longer intervene militarily in the Soviet Bloc to support Communist governments.

• This announcement triggered immediate revolts in Eastern Europe, leading to the rapid unraveling of Soviet control in the region.

Examples of Nationalist Movements:

• Poland (1989 Elections):

  • Poland had long resisted Communist rule, and by 1989, the labor party Solidarity led widespread agitations against Soviet repression.

  • In 1989, the Soviet Union agreed to legalize Solidarity and allow free elections, believing that Communist candidates would still win.

  • Contrary to Soviet expectations, Solidarity candidates won the majority, beginning the process of dissolving Poland’s ties to the Soviet Union.

• Fall of the Berlin Wall (1989):

  • The Berlin Wall, erected by Stalin in 1961 to prevent East Berliners from fleeing to the Democratic West, became a potent symbol of Soviet oppression.

  • By 1989, widespread discontent and mass emigration to the West led the Soviet government to finally open the border, resulting in the fall of the Berlin Wall.

  • The fall of the Berlin Wall symbolized the crumbling of Soviet power and the beginning of the end for the Soviet Union.

End of the Soviet Union and Cold War:

• All these factors, along with numerous complementary ones, culminated in the official collapse of the Soviet Union in 1991.

• The collapse marked the end of the Cold War and led to the establishment of capitalist economies and democratic governments across Eastern Europe and the former Soviet Bloc.

• Key outcomes included the reunification of Germany, the peaceful split of Czechoslovakia into the Czech Republic and Slovakia, and the breakup of Yugoslavia into several ethnically defined states.

• The European Union also expanded as many new nations from Eastern Europe joined.