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the collapse of the soviet union


									        Warm Up Activity
You and your teammates are going
camping in the desert for one week. You
are taking an RV, but there will be no
access to ANY other resources once you
get there.

In one persons notebook, create a list of
items you need to bring and how much of
each item you are going to take.
           Economic Decisions
•   How to use resources
•   How to produce goods
•   How much to produce
•   What to charge for goods and services
•   How to distribute goods and services
•   How wealth will be distributed
•   Who will be educated
•   Who will perform which jobs
•   How much regulation should exist
             Economic Systems
Free Market Economy             Command Economy
• Almost NO regulation         • Almost TOTAL regulation
• All economic decisions are   • All economic decisions are
  made by the market             made by the government
                                 (“Central Planning”)
• Owners get rich
                               • The government may get
• Workers work hard and are
  usually poor
                               • Workers work hard and are
• “Capitalism”
                                 all poor
                               • “Communism”
                     Warm Up
1. Glasnost
2. Perestroika
3. INF Treaty
4. Commonwealth of Independent States
5. Vladimir Putin

1. What are the major differences between a free-market
    economy and a command economy?
2. What is central planning?

Learning Goal
    Today I will learn the changes that brought on the
    collapse of the Soviet Union.
The Collapse of the
   Soviet Union
A. Gorbachev Begins the Policy of
   Glasnost (openness) in 1985
   1. Changes undo totalitarianism in the
a. Churches were allowed to open

b. Dissidents were released from prison

c. Previously banned authors were

d. Reporters investigated problems and
   criticized officials
B. Gorbachev Begins Perestroika
   (Economic Reform) in 1986
1. Central Planning was deemed inefficient

 a. Local managers gained more authority
    over their farms and factories

 b. People were allowed to open small
     private businesses

 c. Communism was maintained, but
     changes were made to make the
     economy more efficient and productive
C. Gorbachev Begins
Democratization in
1. The Communist Party loosened its
    grip on the government

 a. A new legislative body was elected
      i. Candidates were chosen from a list
      ii. Many surprises occurred
2. Foreign Policy also changed
a. Reagan and Gorbachev signed the
Intermediate-Range Nuclear Forces (INF)
Treaty which banned nuclear missiles with
range between 300 - 3400 miles
D. The Break up of the Soviet Union
1. Gorbachev’s reforms opened the door
    for revolution in the Republics
 a. Lithuania declared its independence
     i. Gorbachev ordered an economic blockade
     and eventually an armed attack of the
2. Other politicians began to criticize Gorbachev
   a. Boris Yeltsin attacked Gorbachev’s
      handling of Lithuania and he was
      elected Russia’s first directly elected

   b. Members of the Communist Party
      attempted to lead a coup on August
      18, 1991 but at Yeltsin’s request the
      people refused to follow them and the
      August Coup failed
3. The failed Coup led to more change
 a. Gorbachev resigned
 b. The Communist Party collapsed
 c. Within 4 months all 15 republics declared
   their independence
 d. Yeltsin created the Commonwealth of
   Independent States
VI. The Return of Russia
A. Boris Yeltsin makes even bigger reforms

  1. “Shock Therapy” abruptly returns the economy
    to a free-market system
        a. Trade barriers were lowered, Price
           controls were removed, Subsidies for
           state-owned industries were stopped
        b. At first prices soared, inflation
           skyrocketed, factories shut down, and
           unemployment jumped
c. Legislators rebelled and Yeltsin
attacked them with military force
B. Chechnya
 1. Muslim citizens declared Chechnya’s
    independence in 1991
 2. Yeltsin refused to allow the secession
    and ordered the military to attack in
3. The election loomed and the two
signed a cease-fire, Yeltsin was re-
elected, the war resumed
4. Unrest grew
and Yeltsin
stepped down
naming Vladimir
Putin his
C. Russia under Putin
1. Putin continued to use force to
control Chechnya
2. Hundreds of thousands were homeless in
  Moscow; 30,000 – 50,000 were children
Fourteen-year-old Erika Ulyamaeva is one of the thousands of
homeless children who are picked up off the streets of Moscow each
year. Some of them have fled from homes far away to escape poverty or
abusive parents. Erika said she left Ukraine six years ago after her
impoverished mother sold her and her younger sister, Anya, to a group
of transients. "We used to live at home [in Ukraine]. I was a child of
about 8 or 9 years old when our mother sold me [and my sister] to the
gypsies. We came here to Moscow with the gypsies and they forced us
to beg. But I ran away many times. When we asked for money, we used
to work in [the central] Arbat street," Erika said.
3. Domestic violence and unemployment
rates are high
4. The standard of living and life
expectancy rates are declining
5. Putin instituted a form of democracy
“adapted to Russia’s special
6. When he left office in 2008, he hand-
picked, hand-groomed, and held the hand
of his successor Dmitry Medvedev

       The New Russia:
Moscow: From Marx to McDonalds

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