Discuss “Activity” on p.147

The economics of perestroika were being seriously affected by political changes taking place.

Central planning agencies were still in place but found it increasingly difficult to assert authority. They were ignored, especially by Republics who were looking to protect their own interests.

There were major economic disturbances, such as miners strikes in ‘89, ‘90 and ‘91. Railway workers also went on strike.

The first nationwide strike in the Soviet Union (picture opposite). Although miners are relatively well paid, the strike spread rapidly across the country. When half a million miners, representing 40 per cent of Soviet coal production, had downed tools, most of their demands were met. 

By summer 1990, it was clear there was a major economic crisis.

Most reformers now accepted that an overhaul of the system was needed to avert disaster.

A team of economic reformers was set up, led by Stanislav Shatalin.

Stanislav Shatalin

Explain what the Shatalin Plan was and what was Gorbachev’s reaction to it using “Explore the detail” and 2nd paragraph on p.148.

Also explain what the “compromise package” was in October 1990.

The compromise package Gorbachev implemented satisfied few people.

By 1991, private property was permitted spelling the end to the planned economy.

The Russian Federation started taking over oil, mining and gas which were on its territory. This took away the large economic base for the USSR.

Russian gas line