Economic Weaknesses and Failure of reform (collapse of USSR)


Economic Weakenesses and Failure of Reform 

  • Perestroika had three stages:
  • Rationalisation, attempt at modernisation 
  • Reform from 1987-1990. introduction of free market elements 
  • Transformation, March 1990 to August 1991, abandoned command economy
  • 1985 reduced alchohol production by 50% 
  • Failed, 1987 alcohol consumption double of 1960, drank illegal samogon
  • Acceleration, part of 12th five year plan from 1986 to 1990, aim was to modernise economy and increase production by 20% in 15 years
  • Failed, mainly due to drop in oil prices from $70 a barrel in 1981…


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