Perestroika and Glasnost

As we move on to Gorbachev, we’ll be looking at his policies of Perestroika and Glasnost objectively before delving into their part in the break-up of the USSR, that will be a separate section!

First we just need to establish the following:

Perestroika = policy of restructuring (economically and politically)

Glasnost = policy of openness

PERESTROIKA

Perestroika was divided into four periods:

1. ACCELERATION: 1985 -> 1987

2. RADICAL REFORM FROM ABOVE: 1987-8 -> Spring 1989

3. ATTEMPTED MARKET-BASED REFORM: 1989 -> 1990-1

4. INDECISION, CRISIS & BREAK-UP: 1990-1 -> December 1991

OPPOSITION TO PERESTROIKA

There were two main groups resistant to change for different reasons.

1. The Members of the Party Elite

These people dominated the ministries and planning agencies, and had been brought up to believe in an established system. Furthermore, they enjoyed their ranks and respective privileges, and so a policy that sought to alter these ranks threatened their status and the implications that had on their lives. The Party Elite also influenced the lower ranks of the Party, creating even more opposition to Perestroika.

2. Military-Industrial Complex

This complex that had previously been prioritised under Russian leaders opposed perestroika out of fear that resources would be diverted away from their personal empire, and that they would thereby not be able to meet targets and continue the success of the complex.

However, it is important to note that not all interest groups were resistant to change, but change to them meant streamlining the existing system, and NOT radical change.

While Perestroika faced its opposition, it also had the support of the dissidents of Brezhnev’s regime: intellectuals, scientists and specialists, who by this time had increasingly grown in size and grown impatient of the “old ways”. They resented having no political influence unless they were in the Party, they also resented the travel restrictions and censorship laws imposed on them. They wanted more freedom to make contacts abroad, meaning they would have more opportunities to make money, share their ideas, further their careers, etc. This support was less concerned with party ideology, rather it was more concerned with the restrictions in their lives.

But whether someone was supportive of or resistant to change depended on individual circumstances; there were potential gains to be made from it, as well as the possibility of losses.

PHASE ONE: ACCELERATION 1985 -> 1986-7

Gorbachev believed that the problems facing the USSR could be solved through “accelerated growth” rather than radical change, but this started wrong on the outset as he believed over-optimistic analyses, citing national income growth to be at 3%.

12^th Five Year Plan

This had considerably higher targets

-          Workers were not happy about this because they had to work harder for the same pay

Gorbachev had the targets greatly increased despite being advised not to

-          The draft plan was sent to Gosplan three times before being accepted

What was the result? -> FAILURE! (what a surprise) It put more pressure on the economy by denying it of breathing space, an insufficient amount of resources and many people either overtly didn’t comply, or lied about results like they did in the past.

There were some innovations from Acceleration:

-          Law on Individual Labour Activity Nov 1986

·         This allowed some private enterprise, mainly in service sectors.

·         It was ineffective because of bureaucratic obstructionism

·         There was a continued suspicion of private enterprise and profit motive, which was called “unearned income” and deemed antisocial and anti-socialist

-          Alcoholism

·         A whole Politburo session was devoted to discussing this issue in April 1985

·         Distilleries were closed down as Gorbachev hoped that people would drink beer and wine instead (as if nothing beats Russian Standard)

·         This was a disaster as there was illegal home-brewing of spirits, sugar ran out and alcoholism actually increased!

·         Gorbachev became known as the “lemonade” or “mineral water” leader, and the State lost lots of revenue

-          Anti-Corruption

·         Leading ministers and officials were arrested

·         Some of those prosecuted were leading figures in Republican administrations, which fuelled opposition to Moscow from the nationalities

-          “Superministries”

·         Gorbachev wanted to regroup over 60 industrial ministries and state committees into a maximum of 7 “superministries”

·         In the 1^st year, they created 3:

o    Agriculture

o    Machine-building

o    Energy

·         These recognised the need for prizing quality over quantity and proposed more investment in agriculture and engineering

-          Law on Joint Enterprises Dec 1986

·         This law allowed enterprises to work with foreign companies

·         It didn’t work because foreign companies operated on profit motive, unlike Soviet enterprises

·         There was confusion and corruption. Joint investment funds were often profited by corrupt managers

The Results of Acceleration

Further to these failures, there were continued shortages and higher prices. The law allowing for workers’ collectives and elected managers in enterprises created confusion. The economy was still operating within a traditional framework, and despite ambitious targets to double national income by the year 2000, in April 1987, economic growth had declined.

A fall in oil prices led to a trade deficit with the West

-          Key sectors like coal, oil and gas were running at a loss

-          The USSR became increasingly reliant on grain imports and foreign loans

The existing Soviet budget deficit increased from 3% of national income in 1985, to 14% by 1989

-          Money became increasingly worthless

New investment went into energy and agriculture, but not machine-building

-          Former sectors were controlled by powerful ministries which used their influence to get favourable treatment

After 1988, “acceleration” was dropped and consumer goods were made a priority

-          There was no restructuring of the economy, and consequently it was not reinvigorated

Persistent imbalances and shortages created popular dissatisfaction and largely ruined Gorbachev’s credibility as a reformer

GLASNOST

Gorbachev didn’t advocate complete freedom, particularly in the media. Instead he wanted a greater willingness to explain the reasoning behind his decisions publicly. This was an aspiration, but not a concrete plan for reform.

Gorbachev believed there couldn’t be effective reform unless there was the unambiguous admission that changes were necessary.

-          He believed this would strengthen the regime

Pravda: “Timely and frank release of information is evidence of trust in people, respect for their intelligence and feelings, and their ability to assess events.”

-          This would promote an awareness of incompetence, corruption and assist Gorbachev to root them out.

Glasnost got off to a bad start with the Chernobyl disaster. Despite receiving widespread coverage throughout the world, but coverage of the disaster was limited within the USSR, in terms of the details shared about the disaster, as well as the frequency of this coverage. Gorbachev only publicly spoke about it two weeks after it occurred!

Aleksandr Yakolev was a leading force in these reforms who believed Perestroika couldn’t succeed without Glasnost.

-          He was responsible for the media, who were given considerable freedom although this was too much freedom from Gorbachev’s view.

·         But there was not a complete freedom of media. Publishers still monitored output

o    But it became possible to publish previously banned works, like Doctor Zhivago, Lolita, Mein Kampf and 1984, the latter two being published in the USSR for the first time

o    Films appeared addressing social issues

o    Restrictions on movement were relaxed, e.g. the former émigré ballet dancer Mikhail Baryshnikov returned back to the USSR

o    The press debated taboo subjects like suicide, abortion and crime

-          There was religious toleration

·         Over 400,000 churches, mosques and synagogues returned to religious use

·         There was the rehabilitation of Stalin’s victims

Response to Glasnost

-          Intellectuals were enthusiastic supporters because they had more (if not total) freedom

-          Conservatives & Party Members were the fiercest critics

·         They were used to a controlled society and believed “publicity” invited social instability (which Brezhnev had sought to avoid)

·         It proved difficult to confine political criticism just to Brezhnev and Stalin, there was less respect for the Party and people doubted its claim to legitimacy

-          The majority of people had a mixed response, or none at all

·         There were more pressing concerns in daily lives, like the queues for necessities

It was difficult to believe official attitudes would change overnight in a society where frank exchanges of view were rare.

PHASE TWO: RADICAL REFORM FROM ABOVE 1987-8 -> 1989

They moved on to phase two once party reformers realised that simply tinkering the economy wasn’t enough. It was still too centralised, there was a lack of accountability or meaningful reform, and calls for discipline and the crackdown on corruption weren’t enough.

But there was no unanimity on how to proceed, Gorbachev saw the need for popular participation and accountability, realising that political reform was needed, so they:

-          Reduce power of the Party

·         The Party had less interference with economy

·         Power was transferred from Moscow to Republics, as well as power being taken from planners to farms and factories

-          Reduce power of all-Union ministries

-          Law on State Enterprises Jan 1988

·         This gave workers the chance to elect managers

·         Provided more personal incentives to improve production

·         Enterprises had more control over finances and decision-making

o    But ministries still had final control

-          Law on Cooperatives May 1988

·         This legalised private enterprises

·         Service sector cooperatives were slow to develop because of regulations and obstructionism

·         Enterprises were starved of resources because they were outside of the central planning system

The economic results were disappointing, by the end of 1988 there was widespread rationing of basic foodstuffs (meat, potatoes and sugar), and ration coupons didn’t guarantee these foodstuffs. By 1990, levels of poverty were on the rise. Because factories found it hard to get what they needed from the State, they were forced to barter with other enterprises. While national income was 4.2% between 1986-90, by 1990 this was -4%.

PHASE THREE: MARKET-BASED REFORM 1989 -> 1990-1

There were central planning authorities still in place but couldn’t assert control. They were ignored as the Republics took measures for their own survival, increasing nationalist tensions.

As there was growing economic collapse, major disturbances in the USSR occurred, including the coal miners’ strikes in 1989, continued into 1990 and 1991, as well as a railway workers’ strike.

PHASE FOUR: INDECISION, CRISIS AND BREAK-UP 1990-1 -> DEC 1991

By summer 1990 there was a major crisis in the economy, tinkering was over and only a rapid move to a full market-based economy could avoid catastrophe. Gorbachev allied with Yeltsin to set up a team of leading economists, headed by Shatalin.

The Shatalin Plan

This plan was designed to transform the economy to a market-based structure within the space of 500 days. Oddly enough, it recognised the importance of the 2^nd economy, arguing that it should be legalised.

On 1^st Sept. 1991, both Gorbachev and Ryzhkov rejected the plan because it proposed the decentralisation of economic power to the Republics. Instead, Gorbachev sought compromise.

In October, the Supreme Soviet approved a compromise package, which entailed a 4 stage process over a “relatively short time”.

1. Commercialisation of State Enterprises

2. Relaxation of State Control over Prices -> social security would protect vulnerable citizens during this

3. Changes to Housing Market

4. Rouble becomes Fully Convertible Currency -> so the USSR could trade with other nations

This plan satisfied few people on the left or right. In January 1991 the Supreme Soviet implemented a law permitting private property ownership.

-          This effectively ended the planned economy since private enterprise could be set up

-          The Russian Federation took over oil, mining and gas concerns on its territory

·         BUT all-Union concern

·         The remaining economic base of the USSR was being destroyed

And so that’s Perestroika and Glasnost summed up in events and consequences. In another section I’ll be analysing how these policies caused the break-up of the USSR and their significance in comparison to other factors. There’s a few facts in this section for you to learn for the exam, so I would definitely revise this before moving on to the next one.