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Perestroika 1989 1991


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Perestroika 1989 1991

  1. 2. <ul><li>Discuss “Activity” on p.147 </li></ul>
  2. 3. <ul><li>The economics of perestroika were being seriously affected by political changes taking place. </li></ul><ul><li>Central planning agencies were still in place but found it increasingly difficult to assert authority. They were ignored, especially by Republics who were looking to protect their own interests. </li></ul>
  3. 4. <ul><li>There were major economic disturbances, such as miners strikes in ‘89, ‘90 and ‘91. Railway workers also went on strike. </li></ul><ul><li>The first nationwide strike in the Soviet Union (picture opposite). Although miners are relatively well paid, the strike spread rapidly across the country. When half a million miners, representing 40 per cent of Soviet coal production, had downed tools, most of their demands were met.  </li></ul>
  4. 5. <ul><li>By summer 1990, it was clear there was a major economic crisis. </li></ul><ul><li>Most reformers now accepted that an overhaul of the system was needed to avert disaster. </li></ul><ul><li>A team of economic reformers was set up, led by Stanislav Shatalin. </li></ul>Stanislav Shatalin
  5. 6. <ul><li>Explain what the Shatalin Plan was and what was Gorbachev’s reaction to it using “Explore the detail” and 2 nd paragraph on p.148. </li></ul><ul><li>Also explain what the “compromise package” was in October 1990. </li></ul>
  6. 7. <ul><li>The compromise package Gorbachev implemented satisfied few people. </li></ul><ul><li>By 1991, private property was permitted spelling the end to the planned economy. </li></ul><ul><li>The Russian Federation started taking over oil, mining and gas which were on its territory. This took away the large economic base for the USSR. </li></ul>Russian gas line