''Perestroika'' (; russian: links=no, перестройка, p=pʲɪrʲɪˈstrojkə, a=ru-perestroika.ogg) was a political movement for reform within the
Communist Party of the Soviet Union
"Hymn of the Bolshevik Party"
, headquarters = 4 Staraya Square, Moscow
, general_secretary = Vladimir Lenin (first) Mikhail Gorbachev (last)
, founded =
, banned =
, founder = Vladimir Lenin
, newspaper ...
(CPSU) during the late 1980s widely associated with
CPSU general secretary Mikhail Gorbachev
Mikhail Sergeyevich Gorbachev (2 March 1931 – 30 August 2022) was a Soviet politician who served as the 8th and final leader of the Soviet Union from 1985 to dissolution of the Soviet Union, the country's dissolution in 1991. He served a ...
and his
glasnost (meaning "openness") policy reform. The literal meaning of perestroika is "reconstruction", referring to the restructuring of the
Soviet political and
economic system
An economic system, or economic order, is a system of Production (economics), production, resource allocation and Distribution (economics), distribution of goods and services within a society or a given geographic area. It includes the combinati ...
, in an attempt to end the
Era of Stagnation
The "Era of Stagnation" (russian: Пери́од засто́я, Períod zastóya, or ) is a term coined by Mikhail Gorbachev in order to describe the negative way in which he viewed the economic, political, and social policies of the Soviet Uni ...
.
Perestroika allowed more independent actions from various ministries and introduced many
market
Market is a term used to describe concepts such as:
*Market (economics), system in which parties engage in transactions according to supply and demand
*Market economy
*Marketplace, a physical marketplace or public market
Geography
*Märket, an ...
-like reforms. The alleged goal of perestroika, however, was not to end the
command economy
A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, p ...
but rather to make
socialism
Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the e ...
work more efficiently to better meet the needs of Soviet citizens by adopting elements of liberal economics. The process of implementing perestroika added to existing shortages, and created political, social, and economic tensions within the Soviet Union. Furthermore, it is often blamed for the political ascent of nationalism and nationalist political parties in the constituent republics.
Gorbachev first used the term in a speech during his visit to the city of
Tolyatti
Tolyatti ( rus, Толья́тти, p=tɐlʲˈjætʲ(ː)ɪ), also known as Togliatti, formerly known as Stavropol (1737–1964), is a city in Samara Oblast, Russia. It is the largest city in Russia which does not serve as the administrative center ...
in 1986. Perestroika lasted from 1985 until 1991, and is sometimes argued to be a significant cause of the
collapse of the Eastern Bloc
The Revolutions of 1989, also known as the Fall of Communism, was a revolutionary wave that resulted in the end of most communist states in the world. Sometimes this revolutionary wave is also called the Fall of Nations or the Autumn of Natio ...
and the
dissolution of the Soviet Union
The dissolution of the Soviet Union, also negatively connoted as rus, Разва́л Сове́тского Сою́за, r=Razvál Sovétskogo Soyúza, ''Ruining of the Soviet Union''. was the process of internal disintegration within the Sov ...
. This marked the end of the
Cold War
The Cold War is a term commonly used to refer to a period of geopolitical tension between the United States and the Soviet Union and their respective allies, the Western Bloc and the Eastern Bloc. The term '' cold war'' is used because the ...
.
Economic reforms
In May 1985,
Gorbachev
Mikhail Sergeyevich Gorbachev (2 March 1931 – 30 August 2022) was a Soviet politician who served as the 8th and final leader of the Soviet Union from 1985 to the country's dissolution in 1991. He served as General Secretary of the Comm ...
gave a speech in
Leningrad
Saint Petersburg ( rus, links=no, Санкт-Петербург, a=Ru-Sankt Peterburg Leningrad Petrograd Piter.ogg, r=Sankt-Peterburg, p=ˈsankt pʲɪtʲɪrˈburk), formerly known as Petrograd (1914–1924) and later Leningrad (1924–1991), i ...
(now
Saint Petersburg
Saint Petersburg ( rus, links=no, Санкт-Петербург, a=Ru-Sankt Peterburg Leningrad Petrograd Piter.ogg, r=Sankt-Peterburg, p=ˈsankt pʲɪtʲɪrˈburk), formerly known as Petrograd (1914–1924) and later Leningrad (1924–1991), i ...
) in which he admitted the slowing of economic development, and inadequate living standards.
The program was furthered at the
27th Congress of the Communist Party in Gorbachev's report to the congress, in which he spoke about "perestroika", "
uskoreniye
''Uskoreniye'' ( rus, ускорение, p=ʊskɐˈrʲenʲɪɪ; literally meaning ''acceleration'') was a slogan and a policy announced by Communist Party General Secretary Mikhail Gorbachev on 20 April 1985 at a Soviet Party Plenum, aimed a ...
", "
human factor", "
glasnost", and "expansion of the
khozraschyot" (commercialization).
During the initial period (1985–87) of Mikhail Gorbachev's time in power, he talked about modifying
central planning
A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, pa ...
but did not make any truly fundamental changes (''
uskoreniye
''Uskoreniye'' ( rus, ускорение, p=ʊskɐˈrʲenʲɪɪ; literally meaning ''acceleration'') was a slogan and a policy announced by Communist Party General Secretary Mikhail Gorbachev on 20 April 1985 at a Soviet Party Plenum, aimed a ...
''; "acceleration"). Gorbachev and his team of economic advisors then introduced more fundamental reforms, which became known as ''perestroika'' (restructuring).
At the June 1987
plenary session
A plenary session or plenum is a session of a conference which all members of all parties are to attend. Such a session may include a broad range of content, from keynotes to panel discussions, and is not necessarily related to a specific st ...
of the
Central Committee of the Communist Party of the Soviet Union, Gorbachev presented his "basic theses", which laid the political foundation of economic reform for the remainder of the existence of the Soviet Union.
In July 1987, the
Supreme Soviet of the Soviet Union passed the Law on State Enterprise. The law stipulated that state enterprises were free to determine output levels based on demand from consumers and other enterprises. Enterprises had to fulfill state orders, but they could dispose of the remaining output as they saw fit. However, at the same time the state still held control over the means of production for these enterprises, thus limiting their ability to enact full-cost accountability. Enterprises bought input from suppliers at negotiated contract prices. Under the law, enterprises became self-financing; that is, they had to cover expenses (wages, taxes, supplies, and debt service) through revenues. No longer was the government to rescue unprofitable enterprises that could face bankruptcy. Finally, the law shifted control over the enterprise operations from ministries to elected workers' collectives.
Gosplan
The State Planning Committee, commonly known as Gosplan ( rus, Госплан, , ɡosˈpɫan),
was the agency responsible for central economic planning in the Soviet Union. Established in 1921 and remaining in existence until the dissolution of ...
's responsibilities were to supply general guidelines and national investment priorities, not to formulate detailed production plans.
The
Law on Cooperatives
The Law on Cooperatives was a major economic reform implemented in the Soviet Union during General Secretary Mikhail Gorbachev's perestroika and glasnost reforms. It was implemented in May 1988, allowed for independent worker-owned cooperatives ...
, enacted in May 1988, was perhaps the most radical of the economic reforms during the early part of the Gorbachev era. For the first time since
Vladimir Lenin
Vladimir Ilyich Ulyanov. ( 1870 – 21 January 1924), better known as Vladimir Lenin,. was a Russian revolutionary, politician, and political theorist. He served as the first and founding head of government of Soviet Russia from 1917 to 19 ...
's
New Economic Policy
The New Economic Policy (NEP) () was an economic policy of the Soviet Union proposed by Vladimir Lenin in 1921 as a temporary expedient. Lenin characterized the NEP in 1922 as an economic system that would include "a free market and capitalism, ...
was abolished in 1928, the law permitted
collective ownership
Collective ownership is the ownership of property by all members of a group. The breadth or narrowness of the group can range from a whole society to a set of coworkers in a particular enterprise (such as one collective farm). In the latter (narro ...
of businesses in the services, manufacturing, and foreign-trade sectors. The law initially imposed high taxes and employment restrictions, but it later revised these to avoid discouraging private-sector activity. Under this provision, cooperative restaurants, shops, and manufacturers became part of the Soviet scene.
Gorbachev brought
''perestroika'' to the Soviet Union's foreign economic sector with measures that Soviet economists considered bold at that time. His program virtually eliminated the monopoly that the Ministry of Foreign Trade had once held on most trade operations. It permitted the ministries of the various industrial and agricultural branches to conduct foreign trade in sectors under their responsibility, rather than having to operate indirectly through the bureaucracy of trade ministry organizations. In addition, regional and local organizations and individual state enterprises were permitted to conduct foreign trade. This change was an attempt to redress a major imperfection in the Soviet foreign trade regime: the lack of contact between Soviet end users and suppliers and their foreign partners.
Alexander Yakovlev
Alexander Nikolayevich Yakovlev (russian: Алекса́ндр Никола́евич Я́ковлев; 2 December 1923 – 18 October 2005) was a Soviet and Russian politician, diplomat, and historian. A member of the Politburo and Secreta ...
was considered to be the intellectual force behind Gorbachev's reform program of
glasnost and perestroika. In the summer of 1985, Yakovlev became head of the propaganda department of the CPSU Central Committee. He argued in favor of the reform programs and played a key role in executing those policies.
The most significant of Gorbachev's reforms in the foreign economic sector allowed foreigners to invest in the Soviet Union in the form of
joint venture
A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and economic risk, risks, and shared governance. Companies typically pursue joint ventures for one of four rea ...
s with Soviet ministries, state enterprises, and cooperatives. The original version of the Soviet Joint Venture Law, which went into effect in June 1987, limited foreign shares of a Soviet venture to 49 percent and required that Soviet citizens occupy the positions of chairman and general manager. After potential Western partners complained, the government revised the regulations to allow majority foreign ownership and control. Under the terms of the Joint Venture Law, the Soviet partner supplied labor, infrastructure, and a potentially large domestic market. The foreign partner supplied capital, technology, entrepreneurial expertise, and in many cases, products and services of world competitive quality.
Gorbachev's economic changes did not do much to restart the country's sluggish economy in the late 1980s. The reforms decentralized things to some extent, although price controls remained, as did the rouble's inconvertibility and most government controls over the means of production.
Comparison with China
''Perestroika'' and
Deng Xiaoping
Deng Xiaoping (22 August 1904 – 19 February 1997) was a Chinese revolutionary leader, military commander and statesman who served as the paramount leader of the People's Republic of China (PRC) from December 1978 to November 1989. After CC ...
's
economic reforms have similar origins but very different effects on their respective countries' economies. Both efforts occurred in large socialist countries attempting to liberalize their economies, but while China's GDP has grown consistently since the late 1980s (albeit from a much lower level), national GDP in the USSR and in many of its successor states fell precipitously throughout the 1990s. Gorbachev's reforms were
gradualist
Gradualism, from the Latin ''gradus'' ("step"), is a hypothesis, a theory or a tenet assuming that change comes about gradually or that variation is gradual in nature and happens over time as opposed to in large steps. Uniformitarianism, incrementa ...
and maintained many of the macroeconomic aspects of the command economy (including price controls, inconvertibility of the rouble, exclusion of private property ownership, and the government monopoly over most means of production).
Reform was largely focused on industry and on cooperatives, and a limited role was given to the development of foreign investment and international trade. Factory managers were expected to meet state demands for goods, but to find their own funding. Perestroika reforms went far enough to create new bottlenecks in the Soviet economy but arguably did not go far enough to effectively streamline it.
Chinese economic reform was, by contrast, a bottom-up attempt at reform, focusing on light industry and agriculture (namely allowing peasants to sell produce grown on private holdings at market prices). Economic reforms were fostered through the development of "
Special Economic Zone
A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increasing trade balance, employment, increas ...
s", designed for export and to attract foreign investment, municipally managed
Township and Village Enterprises
Township and Village Enterprises (TVEs, ) are market-oriented public enterprises under the purview of local governments based in townships and villages in China.
History
The State Council of the People's Republic of China first officially use ...
and a "dual pricing" system leading to the steady phasing out of state-dictated prices. Greater latitude was given to managers of state-owned factories, while capital was made available to them through a reformed banking system and through fiscal policies (in contrast to the fiscal anarchy and fall in revenue experienced by the Soviet government during ''perestroika''). Perestroika was expected to lead to results such as market pricing and privately sold produce, but the Union dissolved before advanced stages were reached.
Another fundamental difference is that where perestroika was accompanied by greater political freedoms under Gorbachev's
glasnost policies, Chinese economic reform has been accompanied by continued
authoritarian rule and a
suppression of political dissidents, most notably at
Tiananmen Square
Tiananmen Square or Tian'anmen Square (; 天安门广场; Pinyin: ''Tiān'ānmén Guǎngchǎng''; Wade–Giles: ''Tʻien1-an1-mên2 Kuang3-chʻang3'') is a city square in the city center of Beijing, China, named after the eponymous Tiananmen (" ...
. Gorbachev acknowledged this difference but always maintained that it was unavoidable and that perestroika would have been doomed to defeat and
revanchism
Revanchism (french: revanchisme, from ''revanche'', "revenge") is the political manifestation of the will to reverse territorial losses incurred by a country, often following a war or social movement. As a term, revanchism originated in 1870s Fr ...
by the
nomenklatura
The ''nomenklatura'' ( rus, номенклату́ра, p=nəmʲɪnklɐˈturə, a=ru-номенклатура.ogg; from la, nomenclatura) were a category of people within the Soviet Union and other Eastern Bloc countries who held various key admi ...
without glasnost, because conditions in the Soviet Union were not identical to those in China.
Gorbachev had lived through the era in which the attempted reforms by Khrushchev, limited as they were, were rolled back under Brezhnev and other pro-totalitarian conservatives, and he could clearly see that the same could happen again without glasnost to allow broad oppositional pressure against the nomenklatura. Gorbachev cited a line from a 1986 newspaper article that he felt encapsulated this reality: "The apparatus broke Khrushchev's neck and the same thing will happen now."
Another difference is that Soviet Union faced strong secession threats from its ethnic regions and a primacy challenge by the
RSFSR
The Russian Soviet Federative Socialist Republic, Russian SFSR or RSFSR ( rus, Российская Советская Федеративная Социалистическая Республика, Rossíyskaya Sovétskaya Federatívnaya Soci ...
. Gorbachev's extension of regional autonomy removed the suppression from existing ethnic-regional tension, while Deng's reforms did not alter the tight grip of the central government on any of their autonomous regions. The Soviet Union's dual nature, part supranational union of republics and part unitary state, played a part in the difficulty of controlling the pace of restructuring, especially once the new Russian Communist Party was formed and posed a challenge to the primacy of the
CPSU
"Hymn of the Bolshevik Party"
, headquarters = 4 Staraya Square, Moscow
, general_secretary = Vladimir Lenin (first)Mikhail Gorbachev (last)
, founded =
, banned =
, founder = Vladimir Lenin
, newspaper ...
. Gorbachev described this process as a "
parade of sovereignties
The parade of sovereignties (russian: Парад суверенитетов, translit=Parad suverenitetov) was a series of declarations of sovereignty of various degrees by the Soviet republics in the Soviet Union from 1988 to 1991. The declaratio ...
" and identified it as the factor that most undermined the gradualism of restructuring and the preservation of the Soviet Union.
Perestroika and glasnost
One of the final important measures taken on the continuation of the movement was a report from the central committee meeting of the CPSU titled "On Reorganization and the Party's Personnel Policy".
Gorbachev emphasized the need of a faster political personnel turnover and of a policy of democratization that opened the political elections to multiple candidates and to non-party members.
[ (PhD thesis).]
This report was in such high demand in Prague and Berlin that many people could not get a copy. One effect was the abrupt demand for Russian dictionaries in order to understand the content of Gorbachev's report.
Mieczysław Rakowski
Mieczysław Franciszek Rakowski (; 1 December 1926 – 8 November 2008) was a Polish communist politician, historian and journalist who was Prime Minister of Poland from 1988 to 1989. He served as the seventh and final First Secretary of the Pol ...
stated that the success of perestroika was impossible without the "absolute and uncompromising frankness" of glasnost. During the previous fifty years, the USSR's bureaucracy had become entrenched and conservative, and so it was wary of Gorbachev's restructuring. By making the party's failings public, Gorbachev hoped to end the party's complacent conservatism and to reimbue Soviet society with revolutionary fervor.
The role of the West in Perestroika
![President Ronald Reagan greets a young boy while touring Red Square during the Moscow Summit in the USSR](https://upload.wikimedia.org/wikipedia/commons/0/01/President_Ronald_Reagan_greets_a_young_boy_while_touring_Red_Square_during_the_Moscow_Summit_in_the_USSR.jpg)
During the 1980s and 1990s the United States President
George H. W. Bush
George Herbert Walker BushSince around 2000, he has been usually called George H. W. Bush, Bush Senior, Bush 41 or Bush the Elder to distinguish him from his eldest son, George W. Bush, who served as the 43rd president from 2001 to 2009; pr ...
pledged solidarity with Gorbachev, but never brought his administration into supporting Gorbachev's reform. In fact, "no bailout for Gorbachev" was a consistent policy line of the Bush Administration, further demonstrating the lack of true support from the West. President Bush had a financial policy to aid perestroika that was shaped by a minimalist approach, foreign-policy convictions that set Bush up against other U.S. internal affairs, and a frugal attitude, all influencing his unwillingness to aid Gorbachev. Other factors influenced the West's lack of aid as well like "the in-house Gorbi-skeptics" advocacy, the expert community's consensus about the undesirability of rushing U.S. aid to Gorbachev, and strong opposition to any bailout at many levels, including foreign-policy conservatives, the U.S. Congress, and the American public at large. The West seemed to miss an opportunity to gain significant influence over the Soviet regime. The Soviets aided in the expansion of Western capitalism to allow for an inflow of Western investments, but the perestroika managers failed. President Bush had the opportunity to aid the Soviet Union in a way to bring closer ties between the governments, like
Harry S. Truman
Harry S. Truman (May 8, 1884December 26, 1972) was the 33rd president of the United States, serving from 1945 to 1953. A leader of the Democratic Party, he previously served as the 34th vice president from January to April 1945 under Franklin ...
did for many nations in Western Europe.
Early on, as perestroika was getting under way, I felt like the West might come along and find it a sensible thing to do—easing Russia's difficult transition from totalitarianism to democracy. What I had in mind in the first place, was the participation f the Westin conversion of defense industries, the modernization of light and food industries, and Russia's inclusion on an equal-member footing in the frameworks of the international economic relations... like some democrats, I did not expect "manna from Heaven," but counted on the Western statesmen to use their common sense.
President George H.W. Bush continued to dodge helping the Russians, and the
President of Czechoslovakia,
Václav Havel
Václav Havel (; 5 October 193618 December 2011) was a Czech statesman, author, poet, playwright, and former dissident. Havel served as the last president of Czechoslovakia from 1989 until the dissolution of Czechoslovakia in 1992 and then ...
, laid bare the links for the Americans in his address to a joint session of Congress on 21 February 1990:
... I often hear the question: How can the United States of America help us today? My reply is as paradoxical as the whole of my life has been: You can help us most of all if you help the Soviet Union on its irreversible, but immensely complicated road to democracy.... e sooner, the more quickly, and the more peacefully the Soviet Union begins to move along the road toward genuine political pluralism, respect for the rights of nations to their own integrity and to a working—that is a market—economy, the better it will be, not just for Czechs and Slovaks, but for the whole world.
When the United States needed help with Germany's reunification, Gorbachev proved to be instrumental in bringing solutions to the "German problem" and Bush acknowledged that "Gorbachev was moving the USSR in the right direction". Bush, in his own words, even gave praise to Gorbachev "to salute the man" in acknowledgment of the Soviet leader's role as "the architect of perestroika...
ho had
Ho (or the transliterations He or Heo) may refer to:
People Language and ethnicity
* Ho people, an ethnic group of India
** Ho language, a tribal language in India
* Hani people, or Ho people, an ethnic group in China, Laos and Vietnam
* Hiri Mo ...
conducted the affairs of the Soviet Union with great restraint as Poland and Czechoslovakia and GDR... and other countries
hat hadachieved their independence", and who was "under extraordinary pressure at home, particularly on the economy."
References
Further reading
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* Ostrovsky, Alexander (2010)
Кто поставил Горбачёва? (Who put Gorbachev?) — М.: Алгоритм-Эксмо, 2010. — 544 с. ISBN 978-5-699-40627-2.
* Ostrovsky, Alexander (2011)
Глупость или измена? Расследование гибели СССР. (Stupidity or treason? Investigation of the death of the USSR) М.: Форум, Крымский мост-9Д, 2011. — 864 с. ISBN 978-5-89747-068-6.
External links
*
ttp://globetrotter.berkeley.edu/Elberg/Yakovlev/yak-elb1.html Yakovlev on perestroikaThe Economic Collapse of the Soviet UnionPerestroika – TM in UkraineThe Decline of the Soviet Union: A Hypothesis on Industrial Paradigms, Technological Revolutions and the Roots of Perestroikaby Angelo Segrillo
{{Authority control
1980s economic history
Soviet phraseology
Economic history of the Soviet Union
Soviet internal politics
Dissolution of the Soviet Union
1980s in the Soviet Union
1980s in politics
Mikhail Gorbachev
Political catchphrases
Reform in the Soviet Union
Russian words and phrases