The Collapse of the USSR (1991)
- They used a command style of government through the idea of communism.
- This was because in 1987 there was the development of perestroika and glasnost.
- PERESTROIKA -this is relaxed economic controls allowing businesses to sell their products privately. They could sell their products privately and they could sell their surplus and keep the proceeds. This allowed a change to free market capitalism.
- GLASNOST -this allows a greater political freedom, e.g. freedom of speech. This allowed for the growing call of independence.
What Were the Reasons Behind the Collapse of the USSR?
- Economic reforms allow trade, private investment and personal wealth to a more capitalist focused economy.
- Realisation of the problems of pollution and the unhealthy population, i.e. alcoholism.
- ‘Loans for shares’ scandal- this is where the government sold shares in state assets such as oil reserves in exchange for loans to win the re-election and prevent an election of another communist party. This means that the state only owns 50% of Gazprom.
- To receive loans from the IMF, Russia had to undertake large clean-up operations.