COLLAPSE OF THE SOVIET UNION: REASONS AND

IMPLICATIONS

BY-DIWAKAR CHIRANIA
 TABLE OF CONTENT

1. Introduction
1.1.Literature Review
1.2.Scope and Objectives
1.3.Research Questions
1.4.Research Methodology
2. Factors which led to the disintegration of Soviet Union
2.1. Gorbachev Reforms
2.2. Role of United States of America
2.3. Ethnic Problems
3. Implications of the collapse of Soviet Union
4. Conclusion
5. Bibliography

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 CHAPTER 1

INTRODUCTION

In December of 1991, as the world watched in amazement, the Soviet Union disintegrated
into fifteen separate countries.1

The collapse of Soviet Union was hailed by the west as a victory for freedom, a triumph of
democracy over totalitarianism, and evidence of the superiority of capitalism over socialism.
The United States rejoiced as its formidable enemy was brought to its knees, thereby ending
the Cold War which had hovered over these two superpowers since the end of World War II.
Indeed, the breakup of the Soviet Union transformed the entire world political situation, leading
to a complete reformulation of political, economic and military alliances all over the globe.

What led to this monumental historical event? In fact, the answer is a very complex one, and
can only be arrived at with an understanding of the peculiar composition and history of the
Soviet Union. The Soviet Union was built on approximately the same territory as the Russian
Empire which it succeeded. After the Bolshevik Revolution of 1917, the newly-formed
government developed a philosophy of socialism with the eventual and gradual transition to
Communism. The state which the Bolsheviks created was intended to overcome national
differences, and rather to create one monolithic state based on a centralized economical and
political system. This state, which was built on a Communist ideology, was eventually
transformed into a totalitarian state, in which the Communist leadership had complete control
over the country.

However, this project of creating a unified, centralized socialist state proved problematic for
several reasons. First, the Soviets underestimated the degree to which the non-Russian ethnic
groups in the country (which comprised more than fifty percent of the total population of the
Soviet Union) would resist assimilation into a Russianized State. Second, their economic
planning failed to meet the needs of the State, which was caught up in a vicious arms race with
the United States. This led to gradual economic decline, eventually necessitating the need for
reform. Finally, the ideology of Communism, which the Soviet Government worked to install
in the hearts and minds of its population, never took firm root, and eventually lost whatever
influence it had originally carried.

1
http://www.coldwar.org/articles/90s/fall_of_the_soviet_union.asp

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By the time of the 1985 rise to power of Mikhail Gorbachev, the Soviet Unions last leader,
the country was in a situation of severe stagnation, with deep economic and political problems
which sorely needed to be addressed and overcome. The disintegration of the Soviet Union
began on the peripheries, in the non-Russian areas. The first region to produce mass, organized
dissent was the Baltic region, where, in 1987, the government of Estonia demanded autonomy.
This move was later followed by similar moves in Lithuania and Latvia, the other two Baltic
republics. The nationalist movements in the Baltics constituted a strong challenge to
Gorbachevs policy of glasnost.

Once this Pandoras box had been opened, nationalist movements emerged in Georgia,
Ukraine, Moldova, Byelorussia, and the Central Asian republics. The power of the Central
Government was considerably weakened by these movements; they could no longer rely on
the cooperation of Government figures in the republics.2

Finally, the situation came to a head in August of 1991. In a last-ditch effort to save the Soviet
Union, which was floundering under the impact of the political movements which had emerged
since the implementation of Gorbachevs glasnost, a group of hard-line Communists
organized a coup dtat. They kidnapped Gorbachev, and then, on August 19 of 1991, they
announced on state television that Gorbachev was very ill and would no longer be able to
govern. The country went into an uproar. Massive protests were staged in Moscow, Leningrad,
and many of the other major cities of the Soviet Union. When the coup organizers tried to bring
in the military to quell the protestors, the soldiers themselves rebelled, saying that they could
not fire on their fellow countrymen. After three days of massive protest, the coup organizers
surrendered, realizing that without the cooperation of the military, they did not have the power
to overcome the power of the entire population of the country.

After the failed coup attempt, it was only a few months until the Soviet Union completely
collapsed. Both the government and the people realized that there was no way to turn back the
clock; the massive demonstrations of the August days had demonstrated that the population
would accept nothing less than democracy. Gorbachev conceded power, realizing that he could
no longer contain the power of the population. On December 25, 1991, he resigned. By January
of 1992, by popular demand, the Soviet Union ceased to exist. In its place, a new entity was
formed. It was called the Commonwealth of Independent Republics, and was composed of
most of the independent countries of the former Soviet Union.3

2
Hudelson, R. H., (1993) The Rise and Fall of Communism. U. S. A: Westview Press.
3
Khan, S.A. (2008) The fall of the Soviet Union: The fall of a state or the fall of an ideology Journal of
Political Studies, Vol. 5, Issue: 2

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1.1.Literature Review

1. The Cold War: The Non-War That Changed World History by Jelle Peters
This book by Jelle Peters is a short and interesting description of the history of the
global, ideological rivalry between the United States and the Soviet Union that divided
the world, brought us to the moon and the brink of nuclear war. It also gives an insight
on why communism failed in the erstwhile country.

2. The Last Empire: The Final Days of the Soviet Union by Serhii Plokhy
The author in this book narrates a clear view of the complex events and numerous
parties involved in the Soviet Unions demise as well as the reasons that the Soviet
Government could not ultimately rein in Ukrainian and Russian national movements.

3. Why did the Soviet Union Collapse? Understanding Historical Change by Robert
Strayer
This book provides a detailed study about the most cataclysmic event of the recent past.
It also provides us with the historical analysis, interpretation and explanation of the
events that followed the collapse of the Soviet Union.

1.2.Scope and Objectives

The scope of the research is limited as it focuses only on the collapse of Soviet Union.

The objectives of this research are-

1. To study in detail, the collapse of Soviet Union.

2. To list the specific reasons which led to the disintegration of the superpower.
3. To find out the implications and aftermath of the event that surprised the world.

1.3.Research Questions
1. What was the role of nationalism in breaking up of Soviet Union?
2. What were the consequences of disintegration of USSR?
3. How did the events of December 1991 affect the balance of power?

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1.4.Research Methodology

The methodology used for this research is doctrinal as sources collected were library based.
Being doctrinal in nature, a hypothesis was not formulated. Secondary data in the form of
articles, web excerpts, and available books were heavily relied upon in an attempt to arrive
at plausible, explanatory answers. Primary data was not collected. This paper can be used
as a future reference and is binding and complete in that regard.

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 CHAPTER 2

FACTORS WHICH LED TO THE DISINTEGRATION OF SOVIET UNION

In the late 1980s, the Soviet Union appeared stronger than ever. They showed signs of recovery
from their invasion of Afghanistan, the economy seemed poised to come out of the stagnation
of the previous decade, and the Politburo appeared as powerful as it did in the 1950s.4
Underneath all of the outward signs of strength, the Soviet Union was coming apart at the
seams. Decades of poor decisions and corruption created an unsustainable system that would
eventually lead to the collapse of the nation. Though there are dozens of factors that played a
role, directly and indirectly, in the fall of the Soviet Union, three systemic problems provided
a shaky foundation on which the country could no longer rest.

2.1 Gorbachev Reforms

Mikhail Gorbachev, the last leader of the Soviet Union, came to power in 1985 with a vision
of reform. His plan for the future was led by two ideas: perestroika and glasnost.
Under Gorbachevs plan for perestroika, the Soviet Union would begin to move towards a
hybrid Communist-Capitalist system, much like modern China. The Politburo and the Central
Planning Committee would still exert influence over the direction of the economy; however,
the government would allow market forces to dictate some production and development
decisions. The changes to the economy were coupled with a reorganization of the Party elite
that would bring younger voices to the forefront. Eventually, Gorbachev envisioned a
democratically elected Communist Party for the Soviet Union.
The second part of Gorbachevs plan, glasnost, addressed the personal restrictions of the Soviet
people. For decades, citizens lived without freedom of speech, the press or religion, and the
State arrested millions of potential dissidents. Gorbachevs glasnost plan gave the Soviet
people a voice they were free to express.
Gorbachevs reforms did more to hasten the fall of the Soviet Union than they did to save it.
By loosening controls over the people and making reforms to the political and economic elites,
the Soviet government appeared weak and vulnerable to the Soviet people. They used their
newfound powers to organize and critique the government, and in 1991, they successfully
ended Soviet rule.
2.2 Role of United States of America
Beginning with Jimmy Carter in 1979, the United States ramped up Cold War tensions to their
highest levels since the 1960s. Ronald Reagan entered the White House in 1981 as a vocal
opponent of the Soviet Union, calling them the evil empire, and making his intentions
towards the Soviet Union clear.5
The Soviet Union certainly collapsed of its own weight, but Reagan helped speed up the
process.- Harry Papasotiriou

4
Sakwa, R. (1999) The Rise and Fall of the Soviet Union Taylor & Francis
5
http://cddrl.fsi.stanford.edu/sites/default/files/No_108_Stoner-
Weiss_domestic_and_international_influences_on_collapse_of_USSR.pdf

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Reagans leadership led to a massive increase in American military spending, as well as
research into new and better weapons. Reagan supported the Strategic Defence Initiative (SDI),
which nullified the Soviet nuclear arsenal by destroying missiles as they fell and made a nuclear
war theoretically winnable for the United States.
Reagan did not just attack the Soviets with military spending; he also attacked their economy.
The United States isolated the Soviets from the rest of the world economy, and helped drive
oil prices to their lowest levels in decades. Without oil revenue to keep their economy solvent,
the Soviet Union began to crumble.
Particularly effective, though with unintended long-term side effects, was the Reagan
administrations support for the mujahideen that were fighting against the Soviet forces in
Afghanistan. Reagan was determined to make Afghanistan the Soviet Vietnam. Therefore, in
1986 he decided to provide the mujahideen with portable surface-to-air Stinger missiles, which
proved devastatingly effective in increasing Soviet air losses (particularly helicopters). The war
in Afghanistan cost the United States about $1 billion per annum in aid to the mujahideen; it
cost the Soviet Union eight times as much, helping bankrupt its economy.
2.3 Ethnic Problems
The fall of the Soviet Union can also be linked to the structure of the nation itself. The Soviet
Union was a nation composed of 15 radically different republics. Across the nation there were
dozens of ethnicities, languages, and cultures, many of which were incompatible with each
other. Bullying of ethnic minorities by the Russian majority created tensions along the outlying
provinces, especially those in continental Europe. This, combined with the fact that most
positions of power were held by Russians, led to resentment among people of other republics.6
In 1989, nationalist movements in Eastern Europe brought regime change in Poland, and the
movement soon spread to Czechoslovakia, Yugoslavia, and the Soviet satellites in Eastern
Europe. Many of these former Soviet allies began to split along ethnic lines, which only fueled
separatist movements in Ukraine, Belarus and the Baltic States. As these Soviet republics
exerted their independence and pulled away from the Soviet Union, the power of the central
state was fatally weakened, and by 1991, the Soviet Union was no more.
While many factors led to the fall of the Soviet Union, the aforementioned ideological changes,
foreign pressures, and economic decisions hastened the demise of this once powerful socialist
state. Historians continue to analyse the internal and external factors at play during this rich
portion of world history and use this knowledge for economic and political decisions in nations
around the world.

6
Eaton, K.B. (2004) Daily Life in the Soviet Union Greenwood Press

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 CHAPTER 3
IMPLICATIONS OF THE COLLAPSE OF USSR

Collapse of the USSR has had major economic, political, and social implications for its former
members and the rest of the world. Collapse of the Soviet Union has been widely interpreted
as the victory of capitalism over communism, in the battle between the two contrasting
economic and ideological viewpoints in academic and practical levels.

However, recent global economic and financial crisis of 2007 2009 has cast significant level
of doubt on the levels of effectiveness of capitalism market economy on its pure form as well.
In other words, one of the key reasons of the recent global economic recession has been
specified as lack or absence of government intervention in economic processes in the US that
enabled the pursuit of profit maximization by financial institutions in the US in irresponsible
manners. The crisis has shed a light on substantial disadvantages of capitalism, and this fact
has direct implications on still continuing communism versus capitalism debate.

Moreover, economic implications of the collapse of the Soviet Union in the global scale relates
to creation of new markets for developed countries. After the collapse of the USSR all former
members of the blog have decided change their economic system to the market economy of
supply and demand, although there were substantial differences amongst newly independent
states in terms of the manner in which market economy needed to be implemented.

For example, top economists in Russia had chosen the strategy of shock therapy transfer to
the market economy that involved extensive privatization of public goods and transfer to the
market economy during the shortest period of time. Other former members of USSR such as
Kazakhstan, Turkmenistan and Uzbekistan, on the other hand, selected the route of gradual
transfer to the market economy and the transition period was intended to last for several years.7

Regardless of the choice of route to the market economy in former USSR countries, the collapse
of Soviet Union had created possibilities for major businesses in developed countries to engage
in revenue maximization through entering the markets of newly independent states. Major US
and European companies were provided with opportunities of entering new markets through
exporting, formation of joint-ventures, initiating wholly-owned subsidiaries, franchising,
licensing and other new market entry strategies.

Political implications of the collapse of the Soviet Union relates to strengthening the role of
the United States in global affairs. Due to the collapse of USSR, the USA lost a strong
competitor in global affairs and this fact has had immense positive implications on the level of
hegemony of the US. Furthermore, it can be convincingly argued that regardless of motives,
US military interventions in Afghanistan, Iraq and a range of other countries during the last
two decades might have been prevented if not for the collapse of the Soviet Union.

It is important to note that under the rule of present president of Russia, Vladimir Putin since
2000 Russia has been able restore its influence and position in dealing with global affairs to a
certain extent. However, drawing parallels between current position of Russia and the influence
of USSR is not fully appropriate due to substantial changes in geo-political landscape that took
place during the last two decades caused by intensifying forces of globalization, increasing role
of information technology and internet, unprecedented level of threat of international terrorism
and a range of other reasons.

7
Cassis, Y. (2011) Crises and Opportunities: The Shaping of Modern Finance Oxford University Press

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 CONCLUSION

In this research paper an attempt has been made to reflect on the main points related to reasons
and implications associated with the event. Factors that have fueled the collapse of USSR
include but not limited to substantial disadvantages associated with centrally-planned
economic system such as inefficiencies associated with resource distribution, lack of economic
stability and lack of motivation for quality improvement due to the absence of competition.

Moreover, high levels of corruption at various levels in USSR member countries and vast and
fundamental cultural differences between certain members of the Soviet Union coupled with
dramatic reforms initiated by Gorbachev that the country was not ready for can be highlighted
as main reasons behind the collapse of the USSR.

Implications associated with the collapse of USSR have been found to relate to both levels
economic and political. Specifically, in economic level the collapse of the Soviet Union has
created new markets for businesses headquartered in the USA, Europe and elsewhere to benefit
from through exporting, formation of joint-ventures, initiating wholly-owned subsidiaries,
franchising, licensing and other new market entry strategies. On political level, on the other
hand, with the collapse of the Soviet Union no country was left in the world map that could
possibly challenge hegemonic ambitions of the United States.

To summarize discussions, it can be stated that assessment of implications of the collapse of

Soviet Union provided above are based on the realities of current geo-political
environment. Accordingly, as many other events in history assessment of the role and
implications of Soviet Union may be perceived differently in the future than it is perceived
today due to other major geopolitical events that yet to take place.

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 BIBLIOGRAPHY

Books-

International Relations by Peu Ghosh

The Cold War: The Non-War That Changed World History by Jelle Peters
The Last Empire: The Final Days of the Soviet Union by Serhii Plokhy

Web Sources-

https://www.rand.org/content/dam/rand/pubs/occasional_papers-soviet/.../OPS002.pdf
https://www.belfercenter.org/sites/default/files/legacy/files/disc_paper_95_09.pdf
http://cddrl.fsi.stanford.edu/sites/default/files/No_108_Stoner-
Weiss_domestic_and_international_influences_on_collapse_of_USSR.pdf
https://consultingstudent.files.wordpress.com/2012/06/the-impact-of-the-collapse-of-
the-ussr.pdf

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