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Ideological differences
The US (capitalism) The USSR (communism)
Political aspect • Multi-party politics • One-party dictatorship
• Diplomatic government elected • Elections under state supervision
through free elections
Economic aspect • Adopted free market economy • State planned economy
• Recognized private ownership of • Only recognized state ownership of
properties properties
• Emphasis on pay for more work • Emphasis on share of resources
Social aspect • Emphasis on freedom, human rights, • Adopt collectivism
liberty • Government controls people’s life
• Minimum government interference on
people’s life
• Often criticized and rejected each other and caused conflicts
Course
• Gorbachev the new leader of USSR conduct a series of economic and political reform
• Aiming at restructuring (rebuilding the national economy) and openness (political reforms)
‘Restructuring’ ‘Openness’
• Stopping planned economy • Reducing control over election results
• Allow individual labour and free trade • Congress of People’s Deputies the highest
• Allowing private enterprises legislative body of the state
• State enterprises can set prices and wages • Replacing one-party dictatorship with multi-
• Reducing army size, giving up armaments party system
race, cut down military expenses • Allow freedom of speech and of the press
• Diplomacy
o Meetings with US and British leaders
o Malta Summit with George Bush: stated their willingness to end the Cold War
Impact
• Split within the Communist Party of the Soviet Union (CPSU)
End of Eastern European communist regimes: Poland à Hungary à East Germany à Czechoslovakia à
Romania à Bulgaria
August Coup
• Conservative of the CPSU started a coup to put Gorbachev under house arrest
• Ended in failure, Gorbachev backed in office but lost much influence
• Gorbachev lost control over the political situation