The economy under Gorbachev 1985-91
A mind map of the Soviet economy under Gorbachev between 1985 and 1991.
- Created by: Sam Brewer
- Created on: 27-05-13 20:23
View mindmap
- The economy under Gorbachev 1985-91
- Gorbachev
- Became General Secretary after only 5 years in the Politburo in 1985
- Interpretations of his handling of the economy
- Economy already in decline when Gorbachev came into office
- Gorbachev caused the irreversible decline of the Soviet economy
- Soviet economy in 1985
- Command economy
- Economy controlled centrally by government, prioritising industrial output
- Generally lacked acceptance of new ideas
- Consumer goods were marginalised
- GNP had fallen by almost a half since the late 60's
- Command economy
- The Law on Joint Ventures
- January 1987
- Initially allowed Soviet businesses to be 49% owned by foreign investors
- Expanded to 100% by 1990
- Ended the monopoly of state run business
- Soviet businesses were able to compete with Western business
- Undermined by state
- Businesses in profit were heavily taxed
- No incentive to push for growth
- Businesses in profit were heavily taxed
- The Enterprise Law
- Aimed to allow business to make decisions themselves
- Subsidies for businesses that took this option
- Would still remain state controlled
- Good example of 'perestroika' or restructuring
- First time competition had really been allowed or encouraged in the USSR
- January 1988
- Economic reforms 1990
- Designed to increase the rate of growth
- Rushed and hurriedly agreed by Gorbachev
- Reduced state subsidies
- Move towards a market economy controlled y supply and demand
- Fears surrounding inflation and unemployment rises meant a reduction of the plans
- The collapse of Comecon
- 1984 saw cheap exports of fuel/raw materials to the Eastern bloc reduced as the Soviet economy struggled
- Forced these countries into closer links with the West
- System of isolated states prevented progress
- Partnership between Comecon and EC finalised in June 1988
- January 1991 saw the beginning of a market economy across Eastern Europe
- Final collapse on 28 September 1991
- 1984 saw cheap exports of fuel/raw materials to the Eastern bloc reduced as the Soviet economy struggled
- Gorbachev
Comments
No comments have yet been made