POLI 419 Lecture Notes - Lecture 4: Baltic States, Planned Economy, Autarchism
26 Sep 2017
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Document Summary
Economy was the weak point of the system, yet there are other reasons that explain it"s collapse. Draw parallel to venezuela today, a country that is doing very poorly economically but the regime is still in place. Political action contributes to economic problems: such as the increasing military expenditure (tanks, airplanes, warships, etc), the anti-vodka campaign which resulted in more in ation because there was less on the market, a high de cit. The economy was in very bad shape. Strikes in 89 and 90 occurred in protest against monopoly of the communist party. Collapse of the economic cooperation area with central/eastern europe (council for mutual. The council existed from 49" to 91" and had 10 members + associate members, affecting approx. June 1988 cmea members can negotiate direct trade agreements with eec. January 1991 trade from transferable rubles to a hard currency. Contraction of gdp, 2% in 90", 15% in 91".
