known as restructuring in Russian.
- series of political + econ reforms → Glasnost meant to pave the way for
Involved range of measures:
- managers in companies and industries → encouraged to innovate + try new approaches without first seeking permission from govt
- managers also encouraged to involve workers in discussions and discussion making abt their businesses
intent → encourage new ideas → increase efficiency + fight prob of corruption. 1987 → Perestroika → allowed market forces to be introduced into Soviet Econ.
- first time in 60 years → no longer illegal to buy and sell for profit
Policy failed → no overall increase in output were chronic unemployment probs, growth of black markets, shortages in basic needs.
- result of conflicting methods of cooperative ownership
Cooperative ownership → meant private ownership of small businesses permitted → but state still retained control over means of production
- meant that → small businesses owners → still had to pay high taxes + deal with dishonest officials.
- infrastructure such as roads and storage facilities → remained inadequate.
- no. of unprofitable enterprises that needed govt supp. increased → while many soviet citizens lost interest in setting up own businesses
political reforms in Perestroika → did not achieve that Gorbachev hoped for.
- they did not rejuvenate comm party leadership of govt
- reforms led to criticism of Gorbachev by both party conservatives and radical opposition.
- open elections in 1989 → paved way for rise of various opposition groups in govt
- mainly consisted of liberals and nationalists → felt strongly abt ineffectiveness of Gorbachev’s policies
- summer of 1989 → these groups would form first opposition bloc led by popular reformer Boris Yeltsin