The End of Cold War Notes

Prepared by: Mr Qin Yixuan 1 Humanities: History Unit 3: Bi-Polarity & the Cold War Chapter 4: The End of the Cold War Chapter Outline: 4.1 Why did the Cold War end? 1. US economic might a. Economic boom in the USA and Western European countries b. Renewal of arms race i. ‘Star Wars’ programme ii. Escalation of US-Soviet tensions 2. Weaknesses of the Soviet economy a. Inefficiencies of the Command Economy b. Low standards of living c. External economic burdens of the Soviet Union i. Eastern Europe ii. War in Afghanistan d. Increasing resistance within the communist bloc 3. Impact of glasnost and perestroika on the USSR and Eastern Europe a. Glasnost b. Perestroika c. Gorbachev’s UN speech 4. End of Soviet control over the communist bloc a. Eastern Europe b. Fall of the Berlin Wall c. Dissolution of the Soviet Union 5. Conclusion 4.1 Why did the Cold War end? 1. US economic might Economic boom in the USA and Western European countries  The Vietnam War and global oil crises affected the US economy adversely in the 1970s.  To counter the negative impacts of the oil crises, President Reagan began a policy of economic liberalisation to stimulate the US economy. Western European countries like Britain also adopted Reagan’s economic policies.  Individual enterprise was encouraged to reduce the people’s reliance on the government for goods and services.  National budgets were cut and national assets such as phone companies, oil companies and airlines were privatised.  Reagan’s economic policies worked. A period of economic prosperity followed in the USA and Western Europe. US economic partners, such as West Germany and Japan also contributed to the USA’s economic prosperity in the 1980s.

Prepared by: Mr Qin Yixuan 2 Renewal of the arms race  The growth of the American economy allowed the USA to renew the arms race, putting pressure on the Soviet Union to keep up with military spending and production.  ‘Star Wars’ programme: o To intensify the pressure on the Soviet Union, Reagan proposed the Strategic Defence Initiative (SDI) programme or ‘Star Wars’ programme, as it was popularly called. o This expensive programme aimed to use new space-based technologies to detect and destroy any potential nuclear attacks on the USA via intercontinental missiles. o The Soviet Union did not have the financial or scientific resources to match the USA in this spaced-based military technology.  ‘Able Archer 83’ o Tensions between the Soviet Union and the USA intensified when NATO, led by the USA, placed more than 100 mobile Pershing II Nuclear Missiles in West Germany. These mobile missiles were aimed at targets in the western parts of the Soviet Union. o In November 1983, the USA and its NATO allies held a joint 10-day military exercise codenamed ‘Able Archer 83’. o The exercise was so realistic that the Soviet Union was convinced that it was disguised as an actual nuclear ‘first strike’ against the Soviet Union. Hence, the Soviet Union prepared their nuclear forces and put their air force units in East Germany and Poland on alert. o Once again, the two superpowers came very close to the possibility of a nuclear war. o This near breakout of a nuclear war made Reagan re- evaluate his aggressive foreign policies towards USSR. He realised that the Soviet Union was just as concerned as the USA about maintaining peace and averting wars. o Reagan became more open to negotiations and nuclear disarmament talks with the Soviet Union from 1985 onwards. 2. Weaknesses of the Soviet economy Inefficiencies of the Command Economy  In contrast to the economic growth in the USA and the West, the Soviet Union’s economy started stagnating from the 1970s.  The characteristics of the command economy included: o Founded on the communist ideology. o The government controlled and owned all aspects of production to ensure a classless society. o Private enterprises were forbidden.  The command economy failed for the following reasons: o Lack of full and accurate information to policymakers to make decisions on the allocation of resources in the economy, leading to resources not always distributed efficiently. o Widespread corruption and inefficiency caused by poor quality control. o Lack of motivation as hard work and innovation was not rewarded.

Prepared by: Mr Qin Yixuan 3 o Focus on quantity instead of quality of produce, leading to poor quality products. o Harsh control in society which prevented criticism and feedback. Low standards of living  Stalin’s economic Five-Year Plans emphasised industrial production such as factory machinery and industrial goods, at the expense of consumer goods such as clothes and foodstuff.  During the Cold War, the Soviet Union diverted many resources towards the military sector to keep up with the arms race.  Ordinary Soviet citizens was not able to enjoy the access to quality and quantity of consumer goods that the people in the capitalist West enjoyed.  The large disparity between the shortages of the communist countries and the excesses of the capitalist countries led to much discontent among the Soviet citizens.  The Soviet government worsened the resentment felt by its citizens by opening specialty luxury goods stores only high-ranking party officials had access to. External economic burdens of the Soviet Union  Reagan’s renewal of the arms race forced the Soviet Union to spend more on defence than it could afford. The high military expenditure could not be sustained in the long run, given its weak economy.  Eastern Europe: o The command economy model was applied to all of the Soviet Union’s communist satellite states in Eastern Europe, through economic bartering (exchange of goods and services instead of money). o The Soviet Union’s annual subsidy to its Warsaw Pact allies through discounting of oil prices amounted to about US$3 billion, a sum that the Soviet Union cannot afford given its weakening economy. o Eastern European countries also borrowed heavily from Western banks in the 1970s.  War in Afghanistan: o The long-drawn war in Afghanistan drained the Soviet Union of its military, financial and human resources. o While the USA enjoyed the support of its economically stronger allies, the Soviet Union found its allies to be an economic burden. Increasing resistance within the communist bloc  The growing pressures from the people of the communist bloc for political and economic reforms also weakened the Soviet Union.  In the past, the Soviet Union sustained the communist political system in Europe through the use of force. Attempts at dissent were met with the threat of direct Soviet intervention. o Hungarian Revolution (1956): A popular uprising led to the removal of the communist regime of Rakosi and the installation of Nagy as Prime Minister. When Nagy announced that Hungary would withdraw from the Warsaw

Prepared by: Mr Qin Yixuan 4 Pact and introduce multi-party social democracy, Soviet forces invaded Hungary and overthrew Nagy’s government. o Prague Spring (Czechoslovakia, 1968): Its communist leader Dubcek attempted to introduce democratic and human rights reforms. However the Warsaw Pact countries and Soviet Union invaded Czechoslovakia and replaced Dubcek with a more compliant leader. o Nevertheless, Soviet dissidents continued to speak out against the repressive regimes of the communist blocs. Many of these dissidents were arrested, persecuted or even executed.  The poor treatment of dissidents led USA to emphasise on human rights in Cold War relations.  This increased the pressure from the Soviet Union for political reforms instead of dealing with opposition harshly. 3. Impact of glasnost and perestroika on the USSR and Eastern Europe  Mikhail Gorbachev came to power in March 1985. He believed that there was a need to reform