1. The Cold War Ends

2. Soviet Stagnation: Problems of a Command Economy
After the fall of Khrushchev in 1964, the Soviet Union fell into a long period of stagnation
Government central planners could not predict people’s needs
People had little incentive to work hard since a person’s salary did not depend on how hard he or she worked.
Farms failed to produce enough food; consumer goods were poor quality; living standards fell
Alcoholism & Corruption grew: Black market

3. Command vs. Free-Market
The government-run command economies of Eastern Europe were unable to compete with the free-market economies of the West.
Meanwhile, Communist party members enjoyed special privileges usually denied to ordinary citizens.

4. Detente
Soviet leaders attempted an easing of Cold War tensions with the West by pursuing a policy of détente
This policy collapsed when the Soviets sent troops into Czechoslovakia in 1968 and again into Afghanistan in 1979 to crush rebellions and to maintain Soviet rule.
Dissidents like Natan Sharansky, founder of the Reusenik Movement, were imprisoned for demanding human rights or permission to emigrate.
Sharansky was released in 1968 after 9 years in a Soviet Concentration camp

6. Afghanistan: The Soviet Union’s Vietnam
In Afghanistan, Soviet troops became engaged in a long, drawn-out war against local nationalists
The Soviets were very successful, at first, against their helpless enemies
However, when the U.S. started helping to arm the Afghan rebels, the war became long and bloody
This was made possible due to Texas Representative Charlie Wilson
This war tied up large numbers of Soviet forces and led to deaths of many of their soldiers
This war lasted from 1979 to 1989 when the Soviet Union finally pulled out

13. The Gorbachev Years (1985-1991)
In 1986, Mikhail Gorbachev became leader of the Soviet Union.
Gorbachev wanted to preserve Communism, but he sought to reform it through a number of new policies

14. Gorbachev’s Reforms: Glasnost
Glasnost introduced a greater “openness” to Soviet society.
Restrictions on speech and the press were lifted.
Dissidents were released from prison and restrictions on Soviet Jews wishing to emigrate to Israel and the West were lifted.
Eventually, a Congress of People’s Deputies was created, allowing Soviet citizens to elect their own representatives.
The deputies elected Gorbachev as “President” of the Soviet Union in 1990

15. Gorbachev’s Reforms: Perestroika
This was a program of economic reform, or “restructuring”
He hoped to move away from central planning to encourage more individual initiative in the Soviet economy
People were permitted to form small businesses, factory managers were given greater control over the production of their factories, and the foreign companies were invited to invest in the Soviet Union
Getting away from communism

16. Gorbachev’s Foreign Policy
Gorbachev withdrew troops from Afghanistan in 1989.
U.S. President Ronald Reagan had called the Soviet Union an “Evil Empire,” challenged Gorbachev to “tear down this wall (Berlin Wall),” and threatened to create a new anti-ballistic defense system.
To prevent this Gorbachev entered into talks with President Reagan to reduce nuclear arms.

19. Gorbachev’s policy towards Eastern Bloc
He also allowed dramatic changes in Eastern Europe, eventually permitting the creation of democratic, non-Communist governments, there.

21. Poland leads change in Eastern Europe
Poland led the way in the demand for change in Eastern Europe.
The Polish Cardinal of Cracow was elected Pope John Paul II in 1978.
He was the first non-Italian Pope in 400 years.
His election was an inspiration to other Poles
John Paul II visited Poland the next year and told his countrymen “Do not be afraid”

22. Poland: Solidarity & Lech Walesa
Lech Walesa organized an independent trade union named Solidarity.
From 1981 to 1983, the government tried to use martial law to crush the movement
Gorbachev came to power in 1985 and opposed the use of force
In 1988, Walesa led a strike of workers at the Gdansk shipyard, which soon spread throughout Poland.
Poles became the first Eastern European nation to elect a non-Communist government

23. Lech Walesa

24. Change throughout Eastern Bloc
These Polish changes promoted a lifting of the “Iron Curtain” elsewhere.
People in East Germany, Czechoslovakia, and across Eastern Europe staged massive demonstrations.
The Berlin Wall, Which had separated East and West Berlin since 1961, was opened in November 1989.
Throughout Eastern Europe, free elections suddenly brought non-Communist governments to power.

25. Gorbachev’s Problems Grow
Meanwhile, Gorbachev’s policies had failed to solve the economic problems within the Soviet Union
The new openness of Glasnost unleashed ethnic nationalism & social discontent
The Soviet Union had consisted of separate republics, made up of both Russian and non-Russian nationalities, many of which had been brought into the Russian empire or Soviet Union by force
Many of these non-Russian nationalities began demanding their independence from the USSR

26. Boris Yeltsin: Russia vs. The Soviet Union
The spirit of nationalism even spread to the Russian republic, the very center of the Soviet Union.
In 1991, Boris Yeltsin was elected President of the Russian Republic and began to assert Russian authority over Gorbachev’s Soviet government.
Gorbachev was helpless to stop these nationalistic stirrings without returning to the old policy of repression

27. The Soviet Union Dissolving
In August 1991, Communist hard-liners temporarily overthrew Gorbachev in a military coup
Lacking popular support, the coup quickly collapsed.
Because many Communists had supported the coup, the Communist Party was greatly discredited.
Gorbachev recognized the independence of Lithuania and the other Baltic States

28. Soviet Union Crumbles
He attempted to negotiate a new arrangement for the Soviet Union, but in December 1991, Russia, Belarus, and the Ukraine all declared their independence from the Soviet Union.
These three states formed the Commonwealth of Independent States.
Each state became completely independent, with the Commonwealth serving limited functions.
Other former republics of the Soviet Union quickly joined the Commonwealth.
The Soviet Union dissolved, and Gorbachev resigned his presidency at the end of 1991

30. The Reunification of Germany
While the Soviet Union fell apart, Germany was reunited, West Germany’s leader, Helmut Kohl, helped negotiate the reunification, which became official at the end of 1990
After half a century of division, Germany was once again a united nation.
In a series of rapid developments, Soviet troops withdrew from East Germany, currencies were merged, and the German legislature voted to move the capital of Germany back to Berlin

32. Changes come to China
China’s Communist leaders introduced free enterprise gradually without abandoning their monopoly of political power.
After Mao’s death in 1976, Deng Xiaoping became China’s leader.
Deng had opposed Mao’s Cultural Revolution and once in power he set about making practical reforms. Deng’s main goal was to “modernize” China by reforming its economy

35. Economic Changes under Deng Xiaoping
Land Reforms:
Communes were disbanded and peasants were allowed to rent former lands. This led to increased agricultural productivity, making China self-sufficient in food
Consumer Goods:
Under Mao, people had few consumer products. China began producing more consumer goods, such as radios and televisions
New Factory Management:
Central planners lost some degree of control to factory managers
Managers and workers were allowed to sell some of their production to private buyers for a profit

36. Economic Changes under Deng Xiaoping
Limited Capitalism:
Individuals could now own small businesses. An owner was even allowed to hire a few workers.
The private sector became responsible for much of China’s industrial output.
Foreign Investment:
New laws allowed foreign investment, bringing capital and high-technology to special enterprise zones.
Foreign companies were allowed joint ventures with Chinese enterprises

37. Tiananmen Square & Limits of Reform
Although Chinese leaders encouraged economic reform, they refused to abandon the Communist system.
In 1989, Chinese college students peacefully demonstrated in Beijing’s Tiananmen Square for greater personal freedom and democracy.
When the students refused to disperse, army tanks fired on the demonstrators, killing hundreds
In response, Western leaders reduced trade with China for a brief time
Since then, trade has resumed.

40. Modern China
Greater economic freedom has, now, turned China into the fastest growing economy in the world.