Collapse of the USSR: Economic Problems and Afghanistan

The Collapse of the USSR

• The USSR's economy was centrally planned, with the state controlling economic activities, which led to bureaucracy, stifled initiative, and dependence on subsidies.

Economic Problems in the USSR

• There was stagnation due to a lack of new economic thinking since Stalin's time.
• The USSR lagged behind the West in technological advancements.
• Managers provided false reports to avoid punishment.
• The focus was on quantity over quality, resulting in poor goods and limited consumer goods.
• Workers lacked incentives, with productivity significantly lower than their American counterparts.
• Chronic alcoholism contributed to declining productivity.
• The government overspent and accumulated foreign debt.

The Invasion of Afghanistan

• Afghanistan held strategic importance for the USSR, bordering Islamic regions.
• The USSR feared the spread of Islamic revolution from Iran into its Islamic territories.
• Islamic republics were vital to the USSR, supplying nearly half of its armed forces.
• Afghan communists seized power in a 1978 coup, leading to revolts by Pro-Islamic groups.
• In December 1979, Soviet troops invaded Afghanistan and installed a pro-Soviet leader.
• The USA condemned the invasion, boycotted the Moscow Olympics, and funded the mujaheddin.
• Afghanistan became the USSR's "Vietnam," draining its economy and demoralizing troops.

The Arms Race

• Ronald Reagan became US president in 1980 and aimed to increase military capacity through new technology.
• Reagan identified the USSR as an "evil empire" and significantly increased military spending.
• He increased support for anti-communist forces.
• New US military developments included the B1 Stealth bomber, Trident nuclear submarine, Pershing missiles, and the Strategic Defence Initiative (SDI).
• The USSR could not keep up with the new arms race, leading to economic strain.

The Role of Gorbachev

• Mikhail Gorbachev became the leader of the USSR in March 1985.
• He initiated reforms to save the communist system and strengthen the USSR.

Perestroika

• Introduced economic reforms from 1987, including private business ownership and trade.
• It encouraged foreign trade and investment.
• Wages were used as incentives, and professional audits aimed to combat corruption.
• State control was decentralized, and authority was granted to republics and local entities.
• There was increased worker control.
• Farms and factories could sell surplus goods for profit.
• State support was reduced to encourage companies to survive off profit.
• Western companies could invest in joint ventures.
• Private enterprise gradually increased.

Glasnost

• Introduced in 1986, it allowed freedom of speech and press to improve the system and expose corruption.
• The media could criticize the government and officials.
• The media gathered public complaints.

Demokratizatsiya

• Introduced in 1988, it allowed other political parties and non-communist candidates to participate in elections.
• The new parliament was called the Congress of People's Deputies.
• One-third of seats were reserved for the Communist Party.
• The 1989 elections were relatively free, with both communist and non-communist candidates elected.
• Opposition seats challenged the Communist Party.
• Criticism towards the government grew.
• Nationalist sentiments emerged in the republics.

Détente

• This policy of improving east-west relations was expanded.
• Gorbachev and US President Reagan met multiple times, reducing Cold War tensions.
• Military expenditure was reduced, and the USSR withdrew from Afghanistan in 1988.

Abandoning the Brezhnev Doctrine

• This doctrine, established after the "Prague Spring" of 1968, demanded that all USSR satellites remain communist states in the Warsaw Pact.
• In March 1989, Gorbachev declared that the USSR would no longer enforce this doctrine.
• Gorbachev wanted to improve the Soviet economy by not maintaining communist governments in Eastern Europe.

The Consequences of Gorbachev’s Reforms Within the USSR

• Gorbachev lost control over the reform process.
• Hard-line communists felt he went too far, while reformers wanted more change.
• Boris Yeltsin was elected President of the Russian Republic.
• In 1989, all 15 Soviet republics elected their own president.
• Perestroika created new economic problems, including shortages, inflation, and bankruptcies.
• GDP fell significantly between 1990 and 1993.
• Prices increased and living standards dropped.
• Gorbachev became unpopular, and criticism was open.
• Nationalities within the USSR sought independence, leading to conflicts.
• In August 1989, the Baltic states protested, and Lithuania declared independence in March 1990.
• In June 1990, the Russian parliament declared Russian laws superior, announcing Russian independence.
• In August 1991, hard-line communists attempted a coup against Gorbachev.
• The coup failed, Yeltsin was seen as a hero, and Gorbachev resigned on December 25, 1991.
• The USSR officially ceased to exist on December 31, 1991, and most former member states formed the Commonwealth of Independent States (CIS).
• Independence was not achieved without conflict, as seen in Chechnya and Georgia, and dictatorships emerged in some new states.

In Eastern Europe: Poland - Solidarity

• By 1989, the Polish government had tried to crush the Catholic Church.
• Pope John Paul II criticized the communist government and encouraged resistance.
• Farmers resisted collectivization.
• Poland suffered severe economic hardship.
• Solidarity, an illegal trade union formed in 1980, demanded better conditions.
• The Catholic Church supported the strike.
• Solidarity issued 21 demands on August 17, 1980, including the right to trade unions and freedom of religion.
• The government agreed to the demands.
• In 1981, martial law was declared.
• The USSR sent the Red Army to the Polish border, and members of Solidarity were arrested.
• Solidarity continued underground with the Catholic Church.
• After the Soviet Union abandoned the Brezhnev Doctrine, Lech Walesa and other prisoners were released.
• Free democratic elections were held on June 4, 1989.
• Solidarity won the elections, and Lech Walesa became the first non-communist president of Poland.

Czechoslovakia, Romania, Hungary, Bulgaria

• The success of Solidarity encouraged opposition movements in Eastern Europe in late 1989.
• In Czechoslovakia, the "velvet revolution" led to the fall of the communist government.
• Communist governments in Hungary and Bulgaria collapsed.
• In Romania, Nicolai Ceaucescu was overthrown and executed.
• By the end of 1989, communist governments had fallen, leading to free elections in 1990.
• New governments withdrew from the Warsaw Pact.

Germany - the Fall of the Berlin Wall

• East Germany was important to the USSR.
• It had 300,000 Soviet troops.
• East Germany's leader, Erich Honecker, refused to introduce reforms.
• Many East Germans could watch West German television.
• In May 1989, Hungary opened its borders with Austria.
• East Germans traveled west.
• There were demonstrations in East Germany.
• Honecker resigned.
• By November, the government was losing control.
• On November 9, the government planned to ease travel restrictions.
• Thousands went to the Berlin Wall.
• Gates were opened.
• People began to climb the wall.
• In March 1990, East Germany held its first free election.
• East and West Germany united on October 3, 1990.
• The Warsaw Pact was dissolved in April 1991.

Yugoslavia, Albania

• The collapse of Communism affected Yugoslavia, leading to its breakup.
• Slovenia, Croatia, Macedonia, and Bosnia-Herzegovina became independent.
• Albania held its first free elections in 1992.

On South Africa

• The USSR and its allies had supported the ANC.
• The collapse of the USSR weakened the ANC's military capability.
• FW de Klerk realized communism was no longer a threat.
• Apartheid South Africa lost its value as an anti-communist power.
• The collapse of the USSR helped bring the ANC and NP to the negotiating table.
• Post-apartheid South Africa was influenced by the collapse of communism.
• The new world order was dominated by the USA.
• South Africa needed to attract foreign investment.
• The ANC abandoned its socialist program for a mixed economy.
• In 1996, GEAR was introduced to make SA more competitive.
• SA followed an independent foreign policy.

On Africa

• Governments and rebel movements that relied on the USSR for support faced the drying up of their support.
• The transformation of communist regimes in Eastern Europe influenced African states to move towards democracy.
• Other leaders were removed without support.
• Old conflicts were resolved, including agreements in Mozambique and Angola.

On the USA

• The collapse of the USSR left the USA without a serious economic rival.
• The US economy was boosted by no longer devoting income to defence.
• The USA had the second-largest army and great technological superiority.
• This may have encouraged the USA to embark on foreign wars.
• The US share of world trade is declining, and multilateralism is replacing unilateralism.

A New World Order: Defining Globalisation

• The end of the Cold War led to closer contact between different regions of the world.
• Globalisation involves the integration of economies, cultures, and political systems.
• Terms like westernisation, internationalism, and Americanisation are often used synonymously with globalisation.
• Globalisation is sped up by technology.
• Four important features of globalisation:
  • Development of a common consumer culture
  • The world has become a “global village"
  • Satellite TV and the internet
  • Rapid transport and instant communication

Balance of Power and the Impact on Africa

• The end of the Cold War left one superpower: the USA.
• Francis Fukuyama proposed the final victory of western liberal democracy and capitalism.
• Samuel Huntington highlighted clashes between civilisations.
• There has been an increase in the number of countries with nuclear weapons.
• Regional conflicts have caused many deaths.
• The US and European nations face terrorism.
• In Africa, the loss of Soviet and US support resulted in the end of one-party states.
• The Organisation African Unity (OAU) was replaced by the African Union (AU) in 2002.
• Through the New Partnership for African Development (NEPAD) the AU seeks investment for Africa.
• Chinese trade with Africa increased significantly.
• Colonialism has never ended, and the risks of investment in Africa are:
  • Underdevelopment
  • High unemployment
  • Dependence on imports
  • High dependence on foreign aid
• The north exploits the south for resources, cheap labour, and as a market.

Dominance of Global Western Capitalism

• After WWII the US economy went from strength to strength.
• The New York Stock Exchange is the largest in the world.
• The US has over 30 million small businesses.
• It is still the world's largest economy.

Bretton Woods Institutions

• The International Monetary Fund (IMF) and the World Bank, aim to stabilise the world economy.

The IMF

• Funded by fees from member states, it promotes international financial stability and prevents sudden changes in exchange rates.
• It lends money to governments to settle balance of payments problems.
• These loans are subject to conditionality.
• In the 1980s many African countries had severe balance of payments problems and could only get loans from the IMF.

The World Bank

• Its members invest funds.
• It funds capital development projects and provides funds for relief after large natural disasters.
• World Bank funds are also subject to conditionality.
• The World Bank was sharply criticised by UNICEF in the late 1980s.

The World Trade Organisation (WTO)

• Established in 1948 to regulate trade between countries, it seeks to promote trade by reducing tariffs.
• The WTO also protects patents on inventions.
• Its influence is limited, and it is often accused of serving the interests of its most powerful members.

The Information Technology Revolution

• Since 1995 when the internet became widely available to the public, globalisation has been accelerated by IT.
• However, there exists a “digital divide".
• Cellphone technology has allowed lesser-developed countries to be revolutionised.

Civil Society Resistance to Global Capitalism

• The negative effects of globalisation has resulted in the growth of protest movements.
• aspects that anti-globalisation protestors feel strongly about:
  • Environmental damage "Sweatshops" The presence of western cultural dominance Trade issues International Debt

South Africa and the New World Order

• SA still faced many challenges.
• The aims if the The Government of National Unity and the Sunset Clause was to reconcile former freedom parties with apartheid SA
• A challenge that SA faces is from the overwhelming majority given to the ANC by the electorate.
• Other challenges that face the government of a democratic South Africa are the temptation to destroy opposition and weaken the power of legal system and to use the power of government to enrich rulers and their followers.
• The most pressing challenge were those of poverty and gross inequality in SA
• The first attempts to address these were land restitution through the Land Claims process and the development of house and services in neglected areas through the Reconstruction and Development Programme (RDP).

Responses to Globalisation

• Globalisation has been a challenge to the identity and cultures of groups and individuals.
• Various regions in the world have seen a growth of nationalism.
• Environmental protests against the damage caused by MNCs is growing.
• Religious and nationalist extremism has grown.
• Environmental protests have become globalised