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