http://english.pravda.ru/russia/history/05-10-2009/109665-soviet_union-0

      05.10.2009 



The Year 1989: The Beginning of the End


No one could imagine in 1989 that the German Democratic Republic would stop 
existing in a year, that the USSR would collapse in two, and Czechoslovakia 
would split into two states in three years. The pullout of Soviet troops from 
Afghanistan started in February 1989. Over 100,000 scientists and specialists 
left the country in three years. In return, all Soviet citizens obtained the 
right to travel abroad freely, the press was given the ultimate freedom, 
whereas the authorities were turning a blind eye on everything. 

The year 1989 was the period which marked the last stage of the collapse of the 
USSR. The process started at the end of 1973, against the background of the 
Arab-Israeli war, when Arabs blocked oil shipments to the West. Oil became four 
times as expensive in a week. 

The USSR was executing the program of economic reforms since 1965. Afterwards, 
the Soviet government decided to scrap the program and close the holes in the 
economy with stacks of petrodollars. The initiative continued for about a 
decade. Western countries were developing speedily, which allowed them to 
reduce the consumption of oil three times. The price on oil began to slide. The 
situation changed in 1980 because of the war between Iran and Iraq. 

Mikhail Gorbachev came to power in the USSR when the nation was going through a 
very difficult time in its economic and political development. He made a number 
of attempts to improve the economic position of the country, but they yielded 
no results. 

The point of those economic measures was about the transition from intensive 
economy to the mixed system of state-run and market-oriented economy. Deng 
Xiaoping launched such a reform in China during the 1980s. It was supposed that 
all enterprise would be given an opportunity to cooperate with each other with 
the help of market mechanisms under the control of the state, which would have 
the right to regulate the prices on strategically important goods and services. 

It just so happened that new enterprises and technologies, which were strongly 
dependent on imported spare parts, could not be launched, while the financial 
resources were exhausted. Whole chains of inter - dependent productions would 
be stopped . The USSR was raising many loans, one after another, and turned 
into a huge debtor in 1988. 

A friend is a good friend until he turns poor. The GDR was looking towards the 
FRG, other creditors wanted the USSR to pull out its troops from Afghanistan, 
color revolutions were shaking the countries of the socialist camp, whereas 
union republics were tormenting the impoverished nation. It was the grand 
finale of the Cold War. 

The living standard in the country was worsening speedily. Gorbachev was losing 
his popularity nationwide. Everyone was looking for a way out, desperately 
clinging even to absurd ideas. Yeltsin and Yakovlev appeared on the wave of 
national protests. Yeltsin was the voice of other people, the majority of whom 
was looking for a way to the top. The illness of politics dominating over 
economy has developed into the acute form. 

The collapse of the Berlin Wall triggered the collapse of the Soviet Union 
politically and economically. 

Anatoly Vasserman for 
Express Gazeta


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