Extended Essay Sarah Furtado

"1964-1982- The Period of Stagnation," last modified July 2016, GlobalSecurity.org, http://www.globalsecurity.org/military/world/russia/cccp-history-period-of-stagnation.htm
Ibid.
"1964-1982- The Period of Stagnation," last modified July 2016, GlobalSecurity.org, http://www.globalsecurity.org/military/world/russia/cccp-history-period-of-stagnation.htm

Ted Grant, "Russia: from Revolution to counter revolution: The Period of Stagnation," last modified September 1997, Wellred Books, http://easyweb.easynet.co.uk/socappeal/russia/part6.html.
Orlando Figes, "Economic Stagnation", accessed on December 4, 2016, http://www.orlandofiges.info/section17_EraofStagnation/EconomicStagnation.php
Orlando Figes, "Economic Stagnation", accessed on December 4, 2016, http://www.orlandofiges.info/section17_EraofStagnation/EconomicStagnation.php
Orlando Figes, "Economic Stagnation", accessed on December 4, 2016, http://www.orlandofiges.info/section17_EraofStagnation/EconomicStagnation.php
Figes, "Economic Stagnation."
"Period of Stagnation."
Ibid.
"Decline During the Brezhnev Years," last modified in 2014, Macrohistory and World Timeline, http://www.fsmitha.com/h2/ch33-2.htm.
Ibid.
Ibid.
Sasha Gitomirski, "Glasnost and Perestroika," last modified May 2010, The Cold War Museum, http://www.coldwar.org/articles/80s/glasnostandperestroika.asp.
"Perestroika and Glasnost," last modified 2010, History.com, http://www.history.com/topics/cold-war/perestroika-and-glasnost.
"Perestroika and Glasnost," last modified 2010, History.com, http://www.history.com/topics/cold-war/perestroika-and-glasnost.
Ibid.
John C. Dewdney, Edward Louis Keenan, "Russia," last modified August 2016, Encyclopædia Britannica, https://www.britannica.com/place/Russia/The-Gorbachev-era-perestroika-and-glasnost.
Ibid.
Dewdney and Keenan, "Russia."
Ibid.
Ibid.
John C. Dewdney, Edward Louis Keenan, "Russia," last modified August 2016, Encyclopædia Britannica, https://www.britannica.com/place/Russia/The-Gorbachev-era-perestroika-and-glasnost.
Trina L. Larsen and Robert T. Green, "Export Opportunities in a Crumbling Economy: The Soviet Union in 1990," Journal of International Marketing 1, no. 4 (1993), 71-90, http://www.jstor.org/stable/pdf/25048520.pdf?loggedin=true.
Trina L. Larsen and Robert T. Green, "Export Opportunities in a Crumbling Economy: The Soviet Union in 1990," Journal of International Marketing 1, no. 4 (1993), 71-90, http://www.jstor.org/stable/pdf/25048520.pdf?loggedin=true.
Mark Joseph Stern, "Did Chernobyl Cause the Soviet Union to Explode," last modified January 2013, The Big Questions, http://www.slate.com/articles/health_and_science/nuclear_power/2013/01/chernobyl_and_the_fall_of_the_soviet_union_gorbachev_s_glasnost_allowed.html.
Ibid.
Stern, "Chernobyl Explosion."
Mark Joseph Stern, "Did Chernobyl Cause the Soviet Union to Explode," last modified January 2013, The Big Questions, http://www.slate.com/articles/health_and_science/nuclear_power/2013/01/chernobyl_and_the_fall_of_the_soviet_union_gorbachev_s_glasnost_allowed.html.
Ibid.
John C. Dewdney, Edward Louis Keenan, "Russia," last modified August 2016, Encyclopædia Britannica, https://www.britannica.com/place/Russia/The-Gorbachev-era-perestroika-and-glasnost.
Dewdney and Keenan, "Russia."
"Brezhnev Attempted to Advance Soviet Goals Through Detente; Soviet Leader Used Consensus in Politburo on Domestic Issues," last modified November 1982, The New York Times, http://www.nytimes.com/learning/general/onthisday/bday/1219.html
"Fall of the Soviet Union," last modified 2016, The Cold War Musuem, http://www.coldwar.org/articles/90s/fall_of_the_soviet_union.asp
"Nikita Khrushchev," last modified 2009, History.com, http://www.history.com/topics/cold-war/nikita-sergeyevich-khrushchev
"1964-1982- The Period of Stagnation," last modified July 2016, GlobalSecurity.org, http://www.globalsecurity.org/military/world/russia/cccp-history-period-of-stagnation.htm
"1964-1982- The Period of Stagnation," last modified July 2016, GlobalSecurity.org, http://www.globalsecurity.org/military/world/russia/cccp-history-period-of-stagnation.htm
Ibid.
Ibid.
Ibid.
"Chernobyl Accident 1986," last modified November 2016, World Nuclear Association, http://www.world-nuclear.org/information-library/safety-and-security/safety-of-plants/chernobyl-accident.aspx
Ibid.
Mark Joseph Stern, "Did Chernobyl Cause the Soviet Union to Explode," last modified January 2013, The Big Questions, http://www.slate.com/articles/health_and_science/nuclear_power/2013/01/chernobyl_and_the_fall_of_the_soviet_union_gorbachev_s_glasnost_allowed.html.
Ibid.
Laura Cummings, "Gorbachev's Perestroika and the Collapse of the Soviet Union," History, https://www.lagrange.edu/resources/pdf/citations/2012/08_Cummings_History.pdf
Cummings, "Gorbachev's Perestroika and the Collapse of the Soviet Union."
Cummings, "Gorbachev's Perestroika and the Collapse of the Soviet Union."
Laura Cummings, "Gorbachev's Perestroika and the Collapse of the Soviet Union," History, https://www.lagrange.edu/resources/pdf/citations/2012/08_Cummings_History.pdf

you have also said stagnation a lot. Try to use a different word or phrase sometimes
this is the proper short form. Use it once you have already cited the source once

International Baccalaureate
Extended Essay

History







The Economic Difficulties in Russia in Relation to the Collapse of the Soviet Union









In what ways were economic difficulties from 1973-1988 the main reason for the collapse of the Soviet Union?


Word Count: 3,979










Abstract
This essay investigates the question "To what extent were economic difficulties from 1973-1988 the main reason for the collapse of the Soviet Union."
The investigation uses a range of secondary sources to understand the different perspectives on the events leading to the collapse of the Soviet Union. In order to understand the cause of the collapse there was background research done about the Soviet Union during the 1970's prior to the investigation. For example, prior to the collapse both world wars had occurred where the Soviets had suffered numerous casualties as well as the beginning of the Cold War with the spread of communism. Both drastic conditions, ideological change and heavy losses had a large impact on the people of what is now Russia. There was change that was forced upon and so the effects of these changes were closely examined in this essay. Finally, a cause and effect structured analysis on the economic difficulties from 1973-1988 and their importance to the collapse of the Soviet Union in 1991.
After conducting research this investigation used different perspectives (revisionist, post-revisionist) and made use of various sources where a conclusion could be drawn that economic sufferings were the main reason for the collapse of the Soviet Union. Overall, the difficulties of the building nation were influential due to stagnation, reform, scarce resources and ineffective political systems.

Word Count: 224



Table of Contents

Page
A. Abstract…………………………………………………………………………………...........1
B.Introduction……………………………………………………………………………..............3
C.Investigation…………………………………………………………………………….............4
Stagnation and Recession throughout the 1970's…....………………………………….4-8
The Chernobyl Accident…………………………………………………………….....9-11
Gorbachev's Reforms………………………………………………………………...11-15
D.Conclusion…………………………………………………………………………………15-17
E.Bibliography…………………………………………………………………………………...18












Introduction

The topic of this essay is important to understand in regards to current worldwide events. Issues present today are associated with what happened in the past. The Soviet Union is a well-known communist government that provided support to Russia and the rest of Europe in times of war. The economic difficulties that lead to the collapse of the Soviet Union must be justified to understand present day situations and potential crises. Although much time has passed and the country has had time to recover, there are gaps in the economy that would have little explanation without the knowledge of past events.
The period in which the essay focuses on deems to be important, as it still remains relevant after several years. Much of the conflict is a result of what happened in the past. The question "To what extent were economic difficulties from 1973-1988 the main reason for the collapse of the Soviet Union?" will be investigated in this essay.
This essay will demonstrate that the scarcity of resources and inflation in prices is a result of past economic difficulties present in the collapse of the Soviet Union and their lasting effects on Russia's present day economy. The evaluation of stagnation throughout the 1970's, the Chernobyl accident and Mikhail Gorbachev's reforms allow for an analysis of the economic difficulties most detrimental to Soviet economy from 1973-1988- leading to the collapse of the Soviet Union in December 26th, 1991.







Investigation

a.) Stagnation and Recession throughout the 1970's

During the 1970's, the Soviet Union went through a damaging period of stagnation, which took a major toll on their economy that would be difficult to recover from. The traditional criminal world began to intertwine with the economic or white-collar criminals of the shadow economy and with the party bureaucracy. The crime of the Soviet Union was becoming a part of the political scene and party, leading to failure as the criminals began switching sides. This intertwining reflected the pervasive nature of corruption during the period of stagnation under Soviet leader, Leonid Brezhnev, in power from 1964 to 1982. This problem showcased the already corrupting political system, one that could not be trusted to run the people nor the country. The ruler of states, Brezhnev, was reluctant to change and believed his desires were of greater importance than that of the peasants. As a result, this created corruption in the areas of desperate need.
One of the principal problems that both individuals and rulers of a state face is perceiving "the need for transformation and directing the pressures for change in which they considered useful and fruitful." This applies to both the short term and the long term fate of the Soviet Union as the attitude of Brezhnev held the fate of the Soviets. These failures led to increased stagnation, especially in the midst of the Cold War when "the country depended on a loyal and experienced leader." The Soviets were traditionally considered the backwards country. As a result of this common conception, when they entered a minimal period of capitalism, the system did not succeed, but rather made things worse for the economy. By being involved with the world market, the Soviet economy could have benefited from the world division of labour. If the Soviets had participated in the world economy, it could have benefitted their economy and put a stop to an indefinite era of stagnation.
However, since Khrushchev put his ideological differences ahead of the benefits for the country, stagnation worsened as the economy declined to a system with no opportunity for recovery. Nikita Khrushchev, a former politician of the Soviet Union during the Cold War, made many economical promises of agriculture, basic industry and defense to the people before being succeeded by Leonid Brezhnev. However, an era of stagnation came as these promises fell short of any success. There were shortages of basic household goods, leaving people without food or water for a lengthy amount of time. As the government began to import grain to feed the Soviet population and expand livestock herds from 1962 onwards, agriculture began to show as the main problem. The problem of food production falling low began in the rural areas. Many of whom who lived in these rural areas were not instructed on the principles of farming which resulted in the demand for imported grain. This caused the price of grain to rise which is . This affected the economy of the Soviet because of the increasing demand for food which had since then become a valuable resource to the densely populated empire. Meat and dairy products were in short supply. With no meat or milk, the scarcity of food was worsened, thus crumbling the economy to a greater extent because there was higher rates of starvation and few jobs producing food. In Novocherkassk, workers strikes and demonstrations against the doubling of meat and butter prices on 1 June 1962 were put down by troops with machine-guns, resulting in the death of 26 protesters and 87 wounded. When revolts broke out, the government began to eliminate the ones who had enough money and food to withstand this period of inactivity and inflation. In doing so, they lost the support of the people and created chaos amongst the civilians. With stagnation on the rise, this loss of support would be difficult to regain, as the chances of recovering the economy were slim.
All of the problems, including agriculture and imports, were rooted in the catastrophe of Stalinist collectivization. Orlando Figes, a British historian, argues that the principles of Stalinist collectivization "aimed at class struggles to separate richer peasants who were simply better farmers than lower peasants. His perspective is valuable to the essay because of his in-depth analysis on the topic of Russian history. His proficiency on the subject has provided exceptional hindsight into the world of Soviet democrats and economics. His arguments explain the government's role in the damage of Soviet society and their incoherent efforts to support the people. The source is both valuable and effective in explaining the hegemony of Soviet leaders but elicits counterevidence. Having only studied one side limits the extent of the argument because it ignores the perspective of other countries.
This wave of collectivization had more drawbacks than benefits, with over 2.5 million peasant deaths. These casualties were due to starvation, because one side was producing more wheat than the other. While one end of the Soviet Union was able to maintain a substantial production the other could not manage to do the same. This resulted in an uneven distribution of food amongst the population and led to numerous deaths evidently caused by starvation.
The Soviets established the Tenth Five-Year Plan in February 1976, which succeeded in some regards with aims to improve the economy. The dramatic shift in the agricultural balance of power between the United States (U.S.) and Soviet Union had been decades in the making. The success in this plan came from the rise in production of grain, but would not be able to provide for the entire Soviet population of 170.6 million people. By 1970, both countries were exporting grain, with the U.S. exporting 38 million tons and the Soviet Union exporting eight million tons. This increase, however, was not permanent, and U.S. grain exports humped to a staggering 115 million tons and the Soviets were importing 43 million tons by 1981. The Tenth Five-Year Plan was a success in that imports increased dramatically. Although it was a short term success, the plan can be seen as a drawback and was removed, as there was still a drop in agriculture. This was the fuel for the people and could result in the collapse of the Soviet Union if it ever failed.
Civilians of the Soviet Union could not keep up with the demands of the West that Brezhnev, General Secretary of the Central Committee of the Communist Party, wished for to keep with United States. Brezhnev and his colleagues wished for Soviet citizens to be as prosperous as those in the capitalist nations and to produce more for consumers. As a result, they tried to incorporate innovations from the west. In an attempt to increase productions, the Soviets tried to incorporate western methods. However, this resulted in failure as the peasants were not educated in the methods they wanted to incorporate.
The Soviet Union was not keeping up with sophisticated techniques in technology in relation to Taiwan and Korea, and in result lost its second place standing in manufacturing. This caused them to fall behind the defeated nations of World War II, Japan and Germany, as well as Britain and Italy. Slowly, the Soviet Union was falling further and further behind, eventually becoming unable to catch up to their modernizing neighbours, sending a blow to their already crumbling economy. Stagnation was a rippling effect of disaster after disaster. Unfortunately for the Soviet Union, they struggled to turn back once the damage had been down.
The rigid command economy, created by Stalin in the 1930s, was not suited for the rapid changes in technology. Nonetheless, the Soviet Union also had no independently wealthy individuals looking to bankroll a new business with a new idea. The government wanted to make numerous changes to a system where the people needed help first. However, the lack of resourceful leaders resulted in the continuous downfall of the Soviet economy. The decreasing support of the government meant there was little time until supplies would run low in which a new government would need to step in.
b.) The Chernobyl Accident
The April 26th, 1986 accident at Chernobyl was another Soviet mistake that economically contributed to the collapse of the Soviet Union. It was a nuclear accident that caused fatalities from radiation emitted from the accident. The explosion cost the Soviets heavy reparations to decontaminate and remove substantial amounts of chemicals from livestock, settlements and clean food. The economy was in deep crisis, as its problems exacerbated for a number of reasons, including a costly and unsuccessful war in Afghanistan, only ending in 1988-1989 and decentralization of the Soviet Union leading to shortages of funds in the central budget. The Chernobyl accident, like other disasters, continuously weakened the economy so that it could no longer recover because of the large sums of money that were needed to fix one problem after another. Gorbachev introduced his policy of Glasnost, also known as openness of ideas and expression, not long before the Chernobyl explosion. It was his remedy for widespread censorship and government secrecy. To Gorbachev, Chernobyl proved the wisdom and necessity of glasnost, therefore the explosion and attendant tumult, he claims, "made absolutely clear how important it was to continue the policy of Glasnost." Chernobyl proved to be a key factor in Gorbachev's plan of reforms. His thinking concluded if the city went down then the plan would go down and eventually the Soviet Union. With no base for his plan, the Chernobyl accident proved to be one of the short-term economic causes for the collapse of the Soviet Union, creating economic hardship for the people in Chernobyl, and for the Soviets living in surrounding areas. Chernobyl occurred early enough in Gorbachev's first phase of Glasnost to hasten the process and eventually drive the state into the ground. Gorbachev was in the early stages of his developments, making it even easier for the accident at Chernobyl to interfere. With only the beginning stages underway, Glasnost was no more than another idea which was soon erased in a matter of hours at Chernobyl.
Radioactivity was a novel menace for Soviets, as poisoning was personal and permanent, making it frightening due to its vague and lingering effects. In the heart of the Cold War, nuclear threats and explosion were anything but unheard of to the Soviet Union. The dangers and precautions of the nuclear explosion at Chernobyl were detrimental in which 237 people were diagnosed with Acute Radiation syndrome (ARS). As a result, 30 operators and firemen were killed within three months. Apprehension over the radioactive fallout from Chernobyl extended beyond the borders of the Soviet Union. Across Europe, the anti-nuclear movement boomed in popularity, converting a minor issue into a major cause for environmental activists. A toxin imperceptible to the eye is as unavoidable as it is terrifying, and Soviets were unable to rely upon their ostensibly dependable government to inform and protect them. As panicked citizens kindled one another's fright and horror, the regime lost their remaining control over the public discourse. Glasnost, fueled by frenzied dismay over the perils of radiation, had careened out of control. The whole city was in chaos, so much to the point where all control and command was lost. With panic in full motion, Gorbachev's once mildly effective reforms ceased to exist after the incident at Chernobyl. The future of the Soviet Union lay in the hands of Gorbachev with no reforms and no control.
The Chernobyl accident proved to be one of the most influential economic difficulties, which became one of the main reasons for the collapse of the Soviet Union. The year 1986 was a year of despair and loss for the Soviet Union. The decline of their economy and reduced amount of food due to raised prices made the Chernobyl accident the tipping point. Once that day arrived, it was clear that the Soviet Union would severely struggle, but it was just a matter of time until they could not hold on any longer.

c.) Gorbachev's Reforms
Throughout the the 1980s, the Soviet Union was engulfed in a multitude of problems, including the crumbling economy, and the agricultural sector, leading the country to slowly fall apart. In the end, it became a contributing factor for the collapse of the Soviet Union. The country lacked technological advancements and used inefficient factories, in addition to consumers buying low-quality products and suffering from a shortage of social freedoms. With a deficiency of resources and inefficient technology, the economy was declining more rapidly each day along with the lack of social freedom. This created a corrupt society. Mikhail. S. Gorbachev had set a new path for the Soviet Union in doing so.
He created a dual program of Glasnost and Perestroika, also known as pening and restructuring to improve changes in economic practice, internal affairs and international relations. Perestroika and Glasnost were the embodiment of this change and the basis of Gorbachev's vision, which did little to succeed in the end. Within five years, Gorbachev's revolutionary program swept communist governments throughout Eastern Europe from power and brought an end to the Cold War. With much success also came failure. Gorbachev's actions also inadvertently set the stage for the 1991 collapse of the Soviet Union, which dissolved into 15 individual republics. It was Gorbachev's reforms that succeeded in the beginning, but ultimately failed in the end by initiating the collapse of the entire Soviet Union. Gorbachev believed little help was needed to make the economy stable and installed the reforms to accompany what he thought, rather than the reality of the situation.
Initially, Gorbachev believed that the basic economic structure of the Soviet Union was sound, and therefore only minor reforms were needed. Evaluating the situation so simply was a failure because the problem of the economy was more deeply rooted and required major reform. He thus pursued an economic policy that aimed to increase economic growth while increasing capital investment. The goal of this was to improve the technological basis of the Soviet economy, as well as promote certain structural economic changes. Pursuing an economic policy whilst recognizing the crumbling stance of the economy was a failure of the government and justification for the collapse shortly after. Gorbachev's goal was simple: to bring the Soviet Union up to par, economically, with the West. Gorbachev's aspirations were based around the West, the United States in particular, where his intentions were strong to modernize the Soviet Union. However, it lacked the current economic state. The Soviet Union was not fit for change with a falling economy, and any sudden change would worsen conditions with little time to attempt improving conditions. After two years, however, Gorbachev came to the conclusion that deeper structural changes were necessary.
In 1987 to 1988, he forced reforms that went less than halfway to the creation of a semi-free market system. The consequences of this semi-mixed economy with the contradictions of the reforms brought economic chaos to the country and great unpopularity to Gorbachev. Gorbachev realized later on of the mistakes he had made, but in an effort to resolve these issues, created chaos amongst civilians. In result, this drove his support away. The semi-mixed economy had more drawbacks than benefits, and was one of the most contributing factors to which economic difficulties were the main reason for the collapse of the Soviet Union. Stalin's command economy had never succeeded to a mixed economy, let alone the intended true market economy that Gorbachev wanted because of his aspirations for the West. The adoption of Gorbachev's policies of Perestroika and Glasnost essentially exposed the failure of the Communist economy. These policies were accepted by many Soviet citizens, in and out of the power structure, who believed the move to capitalism was essential. The move to a true market economy was the end goal, but the reality was that the economic difficulties within the Soviet Union would not be able to make that vision a reality. Gorbachev's reforms exposed the weaknesses of the economy while trying to improve them. The effect of stagnation throughout the 1970's impacted the economy greatly in terms of failure of recovery. Glasnost and Perestroika were Gorbachev's only two reforms which resulted in failure for political and economical reasons.
Perestroika did little to solidify the Communist Party's hold over the people. In terms of Glasnost, Gorbachev's overall aims and exact parameters were not articulated by himself or his government. Therefore, the failure to clearly state the purpose and meaning of his policy plagued his reforms till the fall of the Soviet Union. Gorbachev's entrance into power was weighed down by the status of the economy. His reforms had hope to succeed but with the given standing of the Soviet Union could do little to withstand the economic pressures.
The years of 1986 to 1990 were a time of industrial deterioration and social upheaval during which the Soviets increased their reliance on Western exports. With deterioration comes revolution, and with the lack of social freedom, the people once in favour of Gorbachev quickly turned away when food was becoming scarce and resources were running dangerously low. As the economic and political situation began to deteriorate, Gorbachev concentrated his energies on increasing his authority. He did not, however, develop the power to implement these decisions. Gorbachev became a constitutional dictator, but only on paper, seeing as his policies were not put into practice. Gorbachev's attempt to gain control failed after the situations in the Soviet Union were beginning to deteriorate. His failure to gain control and take action shows the lack of a sustainable government with an effective leader. If this sustainable government happened, it would drive the country forward, rather than into deterioration. Gorbachev's plan from the start was set for failure with hopes of a new economy, but the current economy was already in such poor condition that no reform could fix it. Both Glasnost and Perestroika were failed economic reforms that created many economic difficulties, And were one of the main reasons for the collapse of the Soviet Union.

Conclusion
The collapse of the Soviet Union can be derived from a number of factors, but economic difficulties within the Soviet Union from 1973-1988 were the main reasons it collapsed in 1991 because of the following ways. The era of stagnation, the Chernobyl accident of 1986, and Mikhail Gorbachev's reforms of Glasnost and Perestroika were the ways in which economic difficulties became the main reason for the collapse of the Soviet Union. After much research it is evident that each of these three events were determining factors in the outcome of the Soviet Union.
Stagnation was the long-term cause that crushed the economy slowly to the point where it could not recover. Agricultural areas suffered the worst and imports were raising the prices of food. With such high inflation, enormous famines broke out and killed millions of peasants due to starvation. Stagnation slowly ate away at the economy with minor boosts in the late seventies to early eighties. However, those boosts turned into challenges and resulted in being failures of the government who seemed to care more about their opinions than the stability of the country.
The Chernobyl accident was the spark that created the downward spiral and further devastated the economy with reparation and decontamination costs. Gorbachev's Glasnost newly established reform was quickly dissolved after the accident erupted and the Soviet Union's economy was in danger with no possible solution. The event at Chernobyl sparked an instant reaction of anger, as Gorbachev lost tremendous support while the money and resources of the civilians was being used rapidly. here was also no food safe enough to eat, if any at all. The incident decided the fate of the Soviet Union, as it was only a matter of time until Gorbachev resigned and new actions were able to be put in place.
Gorbachev's reforms were the final support of a union, resulting in limited Soviet rule when that support broke. He set the reforms in place to improve international relations and challenges in the economy. Although successful at first, other challenged proved to overcome the successes, leading to a weaker economy. Gorbachev also did not take into account the lack of stability in the economy and labelled it a minor problem. It was not until later that he concluded differently, but it was too late and too much damage had been done to attempt at restoring the economy.
In addition this essay fails to regard the political and socioeconomic difficulties in the Soviet Union throughout this time period. This may have had a profound impact on the use of perspective and could have shown sides that explain why the Soviet Union collapsed in greater detail. Nevertheless, with regards to the economic difficulties this essay was able to analyze economically why the Soviet Union could not sustain itself any longer as it had in the past. It is evident, through research, that this essay investigates some of the primary mechanisms that triggered the collapse of one of the most dominant political systems in the world.















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