If in earlier years Soviet Union was able to aid economies of these countries in order to support communist regimes, then starting from the years fro stagnation in late 1970's the situation changed. Findings were shortening and the U.S.S.R. was not able to support unprofitable industries of its partners as its own economy was experiencing troubles:
The growth of the Soviet economy has been systematically decelerating since the 1950s as a consequence of dwindling supplies of new labor, the increasing cost of raw material inputs, and the constraints on factor productivity improvement imposed by the rigidities of the planning and management system. The average annual growth of Soviet GNP dropped from 5.3% in the late 1960s to 3.7% in the early 1970s, to 2.6% in the late 1970s. Soviet GNP grew by only 1.6% per annum in Brezhnev's last years (1979-82). After reaching a low in 1979, GNP growth averaged 2.3% from 1980 to 1984. Growth in 1985 will probably be in the range of 2.5 to 3.0%. These recent improvements have been the result largely of disciplinary and incentive measures introduced under Andropov and Gorbachev. It remains to be seen if the upturn in growth can be sustained...." (Berkowitz, 1995)
After the death of Leonid Brejnev it was clear that state and society demanded reforms in order to preserve the huge empire from collapse and catastrophe. Starting from 1985 new USSR leader Mikhail Gorbachev took a new course directed on democratization and liberalization of society, he initiated economic reforms, shortened huge military budget and allowed small business activity. At the same time the leaders of Eastern European states demanded from Moscow approval on the changes in their economic policies and slow transition to market relations in order to stimulate national economies and prevent coming economical crisis:
combination of reasons ultimately persuaded the Soviet leadership to allow Eastern Europe to break free. They included: the enormous economic cost revolved in continuing to sustain unpopular regimes (it has emerged, for instance, that the military regime of General Jaruzelski in Poland was subsidised to the tune of $2 billion and many billions of roubles from Moscow); the impossibility of competing with the United States in a renewed arms race which now included 'Star Wars' technology unavailable to the Soviets; and the need to attract Western investment and high-tech equipment." (Morewood, 1998)
By the end of 1980's it was clear that USSR, which was often called in American and European press -- empire of evil --, was living in agony. It was a huge super power without order inside. Late 1980's with relative freedom initiated the raise of nationalism in all republics where Russian population was an ethnic minority. At the same time inequality of ethnic representation in different brunches of power, in distribution of goods, etc. led to the wave of ethnic conflicts countrywide in a short period of time. Local officials, army officers and directors of industrial objects were all involved in deep corruption, which started in Kremlin and went down to small state farms and workshops. Number of state officials of different ranks were involved in ties with organized crime and mafia. The negative changes were obvious not only for Soviet citizens but for foreign observers and world community in general.
In 1988 both Gorbachev and Honecker said that Berlin wall would stand some 150 years more, but in CIA they knew that it was bluff. Gorbachev would have never used tanks against demonstrations in Poland, Czechoslovakia, Hungary or Eastern Germany. The level of relations with Western Europe and the U.S.A. was different, as it was becoming more and more clear that the U.S.S.R. was dependent upon export of oil and natural gas to Europe, it's own productive economy was not competitive. Even Soviet diplomatic manipulations with oil exporters of Middle East in 1970's didn't give positive results for Soviet geopolitics. Oil price growth only initiated technological modernization of European and American industry, while industry of the U.S.S.R. remained outdated, as...
Nuclear confrontation between the two superpowers was profoundly frightening, not just for those who would have borne the full brunt of any nuclear exchange... But for the international community as a whole. Quite literally, the prospect of nuclear war constituted a threat of truly global dimensions. (O'Neil A. 2004) There are many other important aspects that mark the beginning of the Cold War Era. One was the formation of the
Cold War was a period of great danger and international tension, brought on by the power struggles between the United States and the Soviet Union. The communist ideology -- which the Soviets were aggressively trying to spread through Europe and elsewhere -- was seen as an enormous threat to the U.S., while the capitalist / democratic ideology was seen by the Soviets as a threat to their way of life
Cold War and Globalization The Cold War, and the U.S. And Asia and Globalization What was meant by the Cold War? Before defining the cold war, authors Bentley and Ziegler go into great depth to lay the foundation for the origins of the Cold War. More than sixty million people perished during WWII (965), including twenty million Soviets, fifteen million Chinese, six million Poles, four million Germans, two million Japanese, three hundred
They did not like the reforms or the way Gorbachev was running the country allowing all the freedoms -- glasnost and perestroika. They presented him with documents signing away his powers as General Secretary. Gorbachev exploded and ordered them to leave. They did, but Gorbachev knew he was in a grave situation, cut off from the world, not telephones, and guarded. Yeltsin However, the "old guard" had made one huge mistake.
Historiography of the Cold War Why and how the Cold War ended became the question of the day after the Berlin Wall came down in 1989. To people whose lives had long been circumscribed, if not terrified, by Cold War-related events, the remarkable disintegration of the Soviet Union, the collapse of communism in Eastern Europe, and the reunification of Germany signified the end of one era and the beginning of
Cold War What were the important events and factors that led to the end of the Cold War? There are several theories and explanations, and this paper reviews those theories and explanations. First of all, it should be noted that not all scholars accept that the Cold War began after WWII. Professor Jack Matlock of Princeton University -- who served as ambassador to the U.S.S.R. -- writes in the peer-reviewed Harvard
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