The Cold War Ends

Soviet Stagnation: Problems of a Command Economy

After the fall of Khrushchev in 1964, the Soviet Union fell into a long period of stagnation

Government central planners could not predict people’s needs

People had little incentive to work hard since a person’s salary did not depend on how hard he or she worked.

Farms failed to produce enough food; consumer goods were poor quality; living standards fell

Alcoholism & Corruption grew: Black market

Command vs. Free-Market

The government-run command economies of Eastern Europe were unable to compete with the free-market economies of the West.

Meanwhile, Communist party members enjoyed special privileges usually denied to ordinary citizens.

Detente

Soviet leaders attempted an easing of Cold War tensions with the West by pursuing a policy of détente

This policy collapsed when the Soviets sent troops into Czechoslovakia in 1968 and again into Afghanistan in 1979 to crush rebellions and to maintain Soviet rule.

Dissidents like Natan Sharansky, founder of the Reusenik Movement, were imprisoned for demanding human rights or permission to emigrate.

Sharansky was released in 1968 after 9 years in a Soviet Concentration camp

Afghanistan: The Soviet Union’s Vietnam

In Afghanistan, Soviet troops became engaged in a long, drawn-out war against local nationalists

The Soviets were very successful, at first, against their helpless enemies

However, when the U.S. started helping to arm the Afghan rebels, the war became long and bloody This was made possible due to Texas Representative

Charlie WilsonThis war tied up large numbers of Soviet forces

and led to deaths of many of their soldiersThis war lasted from 1979 to 1989 when the

Soviet Union finally pulled out

The Gorbachev Years (1985-1991)

In 1986, Mikhail Gorbachev became leader of the Soviet Union.

Gorbachev wanted to preserve Communism, but he sought to reform it through a number of new policies

Gorbachev’s Reforms: Glasnost

Glasnost introduced a greater “openness” to Soviet society.

Restrictions on speech and the press were lifted.Dissidents were released from prison and

restrictions on Soviet Jews wishing to emigrate to Israel and the West were lifted.

Eventually, a Congress of People’s Deputies was created, allowing Soviet citizens to elect their own representatives.

The deputies elected Gorbachev as “President” of the Soviet Union in 1990

Gorbachev’s Reforms: Perestroika

This was a program of economic reform, or “restructuring”

He hoped to move away from central planning to encourage more individual initiative in the Soviet economy

People were permitted to form small businesses, factory managers were given greater control over the production of their factories, and the foreign companies were invited to invest in the Soviet Union Getting away from communism

Gorbachev’s Foreign Policy

Gorbachev withdrew troops from Afghanistan in 1989.

U.S. President Ronald Reagan had called the Soviet Union an “Evil Empire,” challenged Gorbachev to “tear down this wall (Berlin Wall),” and threatened to create a new anti-ballistic defense system.

To prevent this Gorbachev entered into talks with President Reagan to reduce nuclear arms.

http://www.youtube.com/watch?NR=1&v=mN3z3eSVG7A&feature=endscreen

Gorbachev’s policy towards Eastern Bloc

He also allowed dramatic changes in Eastern Europe, eventually permitting the creation of democratic, non-Communist governments, there.

http://www.youtube.com/watch?v=YtYdjbpBk6A

Poland leads change in Eastern Europe

Poland led the way in the demand for change in Eastern Europe.

The Polish Cardinal of Cracow was elected Pope John Paul II in 1978.

He was the first non-Italian Pope in 400 years.

His election was an inspiration to other Poles

John Paul II visited Poland the next year and told his countrymen “Do not be afraid”

Poland: Solidarity & Lech Walesa

Lech Walesa organized an independent trade union named Solidarity.

From 1981 to 1983, the government tried to use martial law to crush the movement

Gorbachev came to power in 1985 and opposed the use of force

In 1988, Walesa led a strike of workers at the Gdansk shipyard, which soon spread throughout Poland.

Poles became the first Eastern European nation to elect a non-Communist government

Lech Walesa

Change throughout Eastern Bloc

These Polish changes promoted a lifting of the “Iron Curtain” elsewhere.

People in East Germany, Czechoslovakia, and across Eastern Europe staged massive demonstrations.

The Berlin Wall, Which had separated East and West Berlin since 1961, was opened in November 1989.

Throughout Eastern Europe, free elections suddenly brought non-Communist governments to power.

Gorbachev’s Problems Grow

Meanwhile, Gorbachev’s policies had failed to solve the economic problems within the Soviet Union

The new openness of Glasnost unleashed ethnic nationalism & social discontent

The Soviet Union had consisted of separate republics, made up of both Russian and non-Russian nationalities, many of which had been brought into the Russian empire or Soviet Union by force Many of these non-Russian nationalities began

demanding their independence from the USSR

Boris Yeltsin: Russia vs. The Soviet Union

The spirit of nationalism even spread to the Russian republic, the very center of the Soviet Union.

In 1991, Boris Yeltsin was elected President of the Russian Republic and began to assert Russian authority over Gorbachev’s Soviet government.

Gorbachev was helpless to stop these nationalistic stirrings without returning to the old policy of repression

The Soviet Union Dissolving

In August 1991, Communist hard-liners temporarily overthrew Gorbachev in a military coup

Lacking popular support, the coup quickly collapsed.Because many Communists had supported the coup, the

Communist Party was greatly discredited. Gorbachev recognized the independence of Lithuania and the

other Baltic States

Soviet Union Crumbles

He attempted to negotiate a new arrangement for the Soviet Union, but in December 1991, Russia, Belarus, and the Ukraine all declared their independence from the Soviet Union.

These three states formed the Commonwealth of Independent States.

Each state became completely independent, with the Commonwealth serving limited functions.

Other former republics of the Soviet Union quickly joined the Commonwealth.

The Soviet Union dissolved, and Gorbachev resigned his presidency at the end of 1991

The Reunification of Germany

While the Soviet Union fell apart, Germany was reunited, West Germany’s leader, Helmut Kohl, helped negotiate the reunification, which became official at the end of 1990

After half a century of division, Germany was once again a united nation.

In a series of rapid developments, Soviet troops withdrew from East Germany, currencies were merged, and the German legislature voted to move the capital of Germany back to Berlin

Changes come to China

China’s Communist leaders introduced free enterprise gradually without abandoning their monopoly of political power.

After Mao’s death in 1976, Deng Xiaoping became China’s leader.

Deng had opposed Mao’s Cultural Revolution and once in power he set about making practical reforms. Deng’s main goal was to “modernize” China by reforming its economy

Economic Changes under Deng Xiaoping

Land Reforms: Communes were disbanded and peasants were allowed

to rent former lands. This led to increased agricultural productivity, making China self-sufficient in food

Consumer Goods: Under Mao, people had few consumer products. China

began producing more consumer goods, such as radios and televisions

New Factory Management: Central planners lost some degree of control to factory

managers Managers and workers were allowed to sell some of

their production to private buyers for a profit

Economic Changes under Deng Xiaoping

Limited Capitalism: Individuals could now own small businesses. An owner

was even allowed to hire a few workers. The private sector became responsible for much of

China’s industrial output.Foreign Investment:

New laws allowed foreign investment, bringing capital and high-technology to special enterprise zones.

Foreign companies were allowed joint ventures with Chinese enterprises

Tiananmen Square & Limits of Reform

Although Chinese leaders encouraged economic reform, they refused to abandon the Communist system.

In 1989, Chinese college students peacefully demonstrated in Beijing’s Tiananmen Square for greater personal freedom and democracy.

When the students refused to disperse, army tanks fired on the demonstrators, killing hundreds

In response, Western leaders reduced trade with China for a brief time

Since then, trade has resumed.

Modern China

Greater economic freedom has, now, turned China into the fastest growing economy in the world.