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The Gorbachev Era (1985-91). March 11, 1985--Gorbachev becomes General Secretary of the Party Feb. 25, 1986--outlines policy of Perestroika and “peaceful co-existence” with U.S. Apr. 7, 1988--agrees to withdraw troops from Afghanistan Nov. 10, 1989--Berlin Wall opens
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The Gorbachev Era (1985-91) • March 11, 1985--Gorbachev becomes General Secretary of the Party • Feb. 25, 1986--outlines policy of Perestroika and “peaceful co-existence” with U.S. • Apr. 7, 1988--agrees to withdraw troops from Afghanistan • Nov. 10, 1989--Berlin Wall opens • Aug. 18, 1991--coup fails to oust Gorbachev • Dec. 25, 1991--resigns after 11 former Soviet republics proclaim new Commonwealth of Independent States
Legacy of the Soviet Economy • Corruption/bribery • Laziness of workforce • Bureaucratic interference • Waste of resources • Lack of incentives to excel • Separation of personal success from commercial success • Inaccurate information on economic results • Nearly universal shortages of consumer goods and services
Perestroika • Attempt to save declining Soviet economy • Economic reforms proposed • Anti-alcohol campaign (1985) • Speeding up production • Decrease bureaucratic interference • Cost accounting (1987) • Cooperatives (1988) • Laws on privatization of state enterprises (1991)
Glasnost • “Openness”--let people voice their opinions and ideas • Easy to implement: remove previous restrictions/censorship • Chernobyl (1986) • revolts in the unions of arts (summer 1986) • 1987: first local multi-candidate elections--must receive 50% of vote • 1989: Congress of Peoples Deputies--contested parliamentary election