Knowra Perestroika Perestroika Perestroika was Mikhail Gorbachev’s program of political and economic restructuring in the Soviet Union during the 1980s. It loosened central controls but failed to stabilize the economy or preserve the union.
Law on State Enterprise : A 1987 Soviet law that gave state enterprises greater independence over production, finances, and labor. It was an early attempt to make state firms more autonomous under perestroika.
Era of Stagnation : The period of slowing economic growth and political rigidity in the Soviet Union, especially during Leonid Brezhnev’s rule. Its accumulated failures made restructuring an urgent priority for Gorbachev.
Revolutions of 1989 : A series of largely peaceful uprisings that ended communist rule across much of Central and Eastern Europe in 1989. Gorbachev’s reforms and reduced Soviet intervention helped create conditions for these upheavals.
Shock therapy (economics) : A rapid transition strategy that removes price controls and privatizes state assets over a short period. It contrasts with perestroika’s gradual, partial changes within existing Soviet institutions.
Law on Cooperatives : A 1988 Soviet law that legalized cooperative businesses in services, manufacturing, and trade. It allowed limited private-style enterprise, widening the market elements of reform.
Mikhail Gorbachev : The Soviet leader from 1985 to 1991 who pursued perestroika, glasnost, and other reforms. He initiated the program and shaped its political direction.
August Coup : A failed coup by Soviet hardliners in August 1991 that sought to stop reforms and preserve the Soviet Union. The attempted reversal fatally weakened the central government perestroika had already unsettled.
New Economic Policy : A Soviet policy from 1921 that restored limited private trade and small-scale enterprise after wartime communism. Both introduced market elements under Communist Party rule, but in different crises and political settings.
Glasnost : A policy of greater openness in public discussion and the media, promoted in the Soviet Union under Mikhail Gorbachev. Political openness accompanied restructuring and exposed problems that economic reform had not solved.
Soviet-Afghan War : A war from 1979 to 1989 between Soviet forces and Afghan resistance groups, with substantial costs for the Soviet Union. The conflict added financial and political pressure as restructuring began.
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