CH-2 The end of Bipolarity

Notes:
Soviet System

 The Union of Soviet Socialist Republics (USSR) came into being after
the Socialist Revolution in Russia in 1917. The revolution was
inspired by the ideals of socialism and the need for an egalitarian
society as opposed to capitalism.
 After the Second World War, the East European countries that the
Soviet army had liberated from the fascist forces came under the
control of the USSR.
 There was change in the economic and political system of the USSR.
Then the Soviet economy became more developed than the rest of
the world except the US.
 However, the Soviet system became very bureaucratic and
authoritarian. It made life very difficult for its citizens.
 In the arms race, the Soviet Union managed to match the US from
time to time, but at great cost.

Gorbachev and the Disintegration of the USSR

 Mikhail Gorbachev, who had become General Secretary of the

Communist Party of the Soviet Union in 1985, sought to reform the
system. He introduced economic and political reform policies of
perestroika (restructuring) and glasnost (openness). But later his
policies were criticised.
 A coup took place in 1991 that was encouraged by Communist Party
hardliners. The people did not want the old-style rule of the
Communist Party and wanted freedom.
 Russia, Ukraine and Belarus, the three major republics of the USSR,
declared in December 1991 that the Soviet Union was disintegrated.;
 Capitalism and democracy were adopted as the basis for the post
Soviet republics.

Reasons for the Soviet Union Disintegration

There are several reasons which led to the collapse of the Soviet Union.
These were

 Internal weaknesses of Soviet political and economic institutions

failed to meet the aspirations of the people.
 The economy of the Soviet Union became stagnant. The Soviet
economy used much of its resources in maintaining a nuclear and
military arsenal.
The Soviet Union too became stagnant due to rampant corruption,
 the unwillingness to allow more openness in government, and the
centralisation of authority in a vast land.
 A section of the society was not happy with the reforms of
Gorbachev. It was believed that the reforms introduced by Gorbachev
were at a very slow pace.
 Another reason for the collapse of USSR was the rise of nationalism
and the desire for sovereignty within various republics including
Russia and the Baltic republics.

Consequences of Disintegration
There are many consequences of the disintegration of USSR. They are as
follows:

 It led to the end of Cold War confrontations. There was no dispute of

Socialist ideology and Capitalist ideology.
 Power relations in world politics changed and thus it led to change in
the relative influence of ideas and institutions.
 The US became the sole superpower which also backed the capitalist
economy making it the dominant economic system internationally.
 The end of the Soviet bloc paved way for the emergence of many
new countries. All these countries had their own independent
aspirations and choices.
 The international system saw many new players’ emerge, each with
its own identity, interests and economic and political difficulties.

Shock Therapy in Post-Communist Regimes

 The model of transition in Russia, Central Asia and East Europe from
an authoritarian socialist system to a democratic capitalist system
which was influenced by the World Bank and the IMF came to be
known as ‘Shock Therapy’.
 This process of transition was due to the Collapse of Communism.
 There was a need to make a total shift to a capitalist economy which
meant rooting out completely any structures evolved during the Soviet
period.
 Shock therapy also involved a drastic change in the external
orientation of these economics.
 It also involved a break up of the existing .
trade alliances among the countries of the Soviet bloc.

Consequences of Shock Therapy

 The shock therapy brought ruin to the economies and disaster upon
the people of the entire region.
 The value of the Russian currency ‘Ruble’ declined dramatically.
People lost all their savings due to high rate of inflation.
  The government withdrew subsidies which pushed large sections of
the people into poverty. The middle classes were pushed to the
periphery of society.
 The construction of democratic institutions was not given the same
attention and priority as the demands of economic transformation.
 Most of these economies, especially Russia, started reviving in 2000,
10 years after their independence. The reason for the revival was the
export of natural resources like oil, natural gas and minerals.

Tensions and Conflicts in Former Soviet Republics

 There were tensions and conflicts in most of the former Soviet

republics and many have had civil wars and insurgencies.
 In Russia, two republics, Chechnya and Dagestan have had violent
secessionist movements.
 Tajikistan witnessed a civil war for almost 10 years till 2001. The
region had many sectarian conflicts.
 Central Asia too become a zone of competition between outside
powers and oil companies.
 Czechoslovakia was divided into two, the Czechs and the Slovaks
thus forming independent countries.
 Yugoslavia broke apart with several provinces like Croatia, Slovenia
and Bosnia and Herzegovina declaring independence.

India and Post-Communist Countries

 India maintained a cordial relationship with all the post-communist

countries. The strongest relation of India is still with Russia.
 Indo-Russian relation is an important aspect of India’s foreign policy.
Both the countries share a vision of a multipolar world order.
 India got benefits from Russia over issues like Kashmir, energy
supplies, access to Central Asia, balancing its relations with China.
 Russia stands to benefit from this relationship because India is the
second largest arms market for Russia. Both the countries have
collaborated over many scientific projects.
FACTS THAT MATTER

1. The Socialist Revolution in Russia in 1917 gave birth to USSR with

inspiration of socialism, ensure a minimum standard of living for all its
citizens and also the government subsidised basic necessities and
productive assets were owned and controlled by the state.

2. Russia was the only republic among fifteen republics who dominates
everything and people in the region.

3. Soviet Union lagged behind the west in technology, infrastructure and

could not fulfil political aspirations of people. Soviet invasion of Afghanistan
in 1979 also weakened the system furthermore.

4. Mikhail Gorbachev, General Secretary of Communist Party of Soviet

Union in 1985 initiated the policies of economic and political reforms to
democratise the system which were opposed by leaders within communist
party and contradictory view of people.

5. The people of republic had been fed up with old style rule of Soviet bloc
and in Dec 1991, under the leadership of Boris Yeltsin (an elected leader),
Russia, Ukraine and Baltics declared themselves independent.

6. The formation of Commonwealth of Independent States (CIS) came as a

surprise and the exclusion of these states was resolved by making them
founder members of the CIS.

7. Russia was accepted as successor state of Soviet Union by inheriting a

Soviet seat in UN Security Council, who accepted all international treaties
and commitments of Soviet Union and carried out some nuclear
disarmament measures with the US.

8. Now Soviet Union had been disintegrated on the grounds to maintain

nuclear and military arsenals, awareness of people of their backwardness
than western capitalism as well as alienation of ordinary people who were
exempted from any kind of privileges.

9. The rise of nationalism and the desire for sovereignty within republics
like Russia, the Baltic Republics (Estonia, Latvia, Lithuania), Ukraine,
Georgia and others proved to be the most immediate cause for
disintegration of USSR.
10. Disintegration of USSR resulted into the end of Cold War
confrontations, created dominant capitalist system, emerged many new
states and the advantage was taken by Central Asian countries of their
geographical locations by maintaining relations with Russia, the West, the
US, China and others.

11. The process of transition from an authoritarian socialist system to a

democratic capitalist system in Russia, Central Asia and East Europe was
influenced by World Bank and IMF came to be known as Shock Therapy.

12. Shock Therapy involved privatisation of property, private firms

emergence, complete switch over to free trade and Foreign Direct
Investment, Financial opening up, Currency convertibility as well as break
up of existing trade alliances among the countries of Soviet Bloc to
maintain relations directly with the West.

13. Shock Therapy resulted in the largest garage sale in history, declined
value of Russian Currency ‘Ruble’, due to inflation, food was imported,
destroyed Old Social Welfare System, Migration of educated and
intellectual manpower and disparities due to privatisation between rich and
poor regions of Russia.

14. The constitution of newly democratic institutions was drafted in a hurry

where strong executives appointed themselves as presidents due to weak
Parliament and lack of independent judiciary as in Russia, Turkmenistan
and Uzbekistan.

15. Russia revived in 2000 due to export of natural resources like oil,
natural gas and minerals which were available in abundance in Azerbaijan,
Kazakhstan, Russia, Turkmenistan and Uzbekistan. And from where these
pipelines crossed, were paid on rent.

16. Most of the former Soviet Republics had civil wars and insurgencies as
in Russia, two republics Chechnya and Dagestan had violent secessionist
movements, in Central Asia. Civil War took place in Azerbaijan and
Georgia. Czechoslovakia was also split into two. Even countries and
provinces like Ukraine, Kyrgyzstan, and Georgia are fighting over river
water leading to instability and making life difficult for ordinary people.

17. The Central Asian Republics were rich in hydrocarbon resources for
economic benefit as Oil Companies and outside powers had a competition
to exploit these natural resources. Also, the US approached them to hire
bases and territories during wars in Iraq and Afghanistan.
18. Russia and India share a vision of multipolar world order, collective
security, greater regionalism, negotiated settlements of international
conflicts, on independent foreign policy and decision making through UN.

19. India is benefitted from Russia on issues of Kashmir, energy supplies,

sharing information on international terrorism, access to Central Asia and
balancing its relations with China. In return, Russia has also been
benefitted from India on the ground of second largest arms market for
Russia.

WORDS THAT MATTER

1. Soviet System: Soviet system was introduced after Russian

Revolution in 1917 based on the principles of egalitarian society and
planned economy controlled by the state.
2. Socialist Bloc: The east European countries were known as
Socialist Bloc because these countries were liberated from the fascist
forces and their political and economic systems were based on this
bloc only.
3. Capitalist Economy: In this economy, land and productive assets
are owned and controlled by the Capitalists.
4. Unipolar System: Affairs at international level are dominated by only
one superpower.
5. Multipolar System: Affairs at international level can not be
dominated by one superpower only, instead group of countries play
an important role.
6. Egalitarian Society: It believes that all people are equally important
and should have the same rights and opportunities in life.
7. Largest Garage Sale: It was resulted due to Shock Therapy to
undervalue the valuable industries of USSR to sell them at throwaway
prices.
8. Shock Therapy: The model of transition from authoritarian socialist
system to a democratic capitalist system in Russia, Central Asia and
East Europe under the influence of the World Bank and IMF.

TIMELINE

 March 1985  Mikhail Gorbachev electced as the General Secretary of

the Communist Party of the Soviet Union; appoints Boris Yeltsin as
the head of the Communist Party in Moscow; initiates a series of
reforms in the Soviet Union.
 1988  Independence movement begins in Lithuania; later spreads to
Estonia and Latvia.
 October 1989  Soviet Union declares that the Warsaw Pact members
are free to decide their own future; Berlin Wall falls in November.
  February 1990  Gorbachev strips the Soviet Communist Party of its
72-year long monopoly on power by calling on the Soviet Parliament
(Duma) to permit multiparty politics.
 March 1990  Lithuania becomes the first of the 15 Soviet republics to
declare its independence.
 June 1990  Russian parliament declares its dependence from the
Soviet Union.
 June 1991  Yeltsin, no longer in the Communist Party, becomes the
President of Russia.
 August 1991  The Communist Party hardliners stage an abortive
coup against Gorbachev.
 September 1991 Three Baltic republics of Estonia, Latvia and
Lithuania becomes UN members (Later join NATO in March 2004).
 December 991 Russia, Belarus and Ukraine decided to annul the
1992 Treaty on the creation of the USSR and establish the
Commonwealth of Independent States (CIS); Armenia, Azerbaijan,
Moldova, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and
Uzbekistan joined the CIS (Georgia joined later in 1993); Russia took
ones the USSR seat in the United Nations.
 25 December 1991 Gorbachev resigns as the President of the Soviet
Union; the end of the Soviet Union.

1. Which among the following statements that describe the nature of

Soviet economy is wrong?
(a) Socialism was the dominant ideology.
(b) State ownership/control existed over the factors of production.
(c) People enjoyed economic freedom.
(d) Every aspect of the economy was planned and contained by the
state.
Answer: (c) People enjoyed economic freedom.

2. Arrange the following in chronological order:

(a) Soviet invasion of Afghanistan
(b) Fall of the Berlin Wall
(c) Disintegration of Soviet Union
(d) Russian Revolution
Answer:  I. (d) Russian Revolution (1917)
II. (a) Soviet invasion of Afghanistan (1979)
III. (b) Fall of the Berlin Wall (Nov 1989)
IV. (c) Disintegration of Soviet Union

3. Which among the following is NOT an outcome of the disintegration

of the USSR?
(a) End of the ideological war between the US and USSR
(b) Birth of CIS
(c) Change in the balance of power in the world order
(d) Crises in the Middle East
Answer:  (d) Crises in the Middle East

4. Match the following:

Answer:  (i)-(c); (ii)-(d); (iti)-(a); (iv)-(e); (v)-(b)

5. Fill in the blanks:

(a) The Soviet Political System was
based on ideology.
(b) was the military alliance
started by the USSR.
(c) party dominated the
Soviet Union’s political system.
(d) initiated the reforms
in the USSR in 1985.
(e) The fall of the symbolised
the end of the Cold War.
Answer: (a) socialist (b) Warsaw Pact
(c) Communist (d) Gorbachev
(e) Berlin wall

6. Mention any three features that distinguish the Soviet economy

from that of a capitalist country like the US.
Answer:  The three features that distinguish the Soviet economy from that
of a capitalist country like the US, can be summed up as follows:
1. Soviet economy experienced a complex communication network, vast
energy resources and an efficient transport sector to connect its remotest
areas.
2. Soviet Union industries produced every domestic product from pin to
cars, whose quality might not match with that of the west technology.
3. Soviet Union ensured a minimum standard of living for all its citizens.
Consequently Government subsidised basic necessities including health,
education, children and other welfare schemes.
4. There was an absence of unemployment in Soviet Union.
5. Land and productive assets were owned by the state only.
7. What were the factors that forced Gorbachev to initiate the reforms
in the USSR?
Answer:  Mikhail Gorbachev was the General Secretary of Communist
Party of Soviet Union in 1985. He was forced to initiate the reforms in the
USSR due to following reasons:
1. To keep the USSR abreast of information and technological revolutions
at par the West.
2. To normalise the relations with that of the West.
3. To democratise the Soviet System.
4. To loosen the administrative system which exempted ordinary people
from the privileges.

8. What were the major consequences of the disintegration of the

Soviet Union for countries like India?
Answer: The major consequences of the disintegration of the Soviet Union
for countries like India can be analysed as follows:
1. Disintegration of Soviet Union gave an end to Cold War confrontations
and to ideological disputes between two superpowers.
2. Military alliances had been abolished and demand arose for world peace
and security.
3. Multipolar system was surpassed to exist where no single power could
dominate and a group of countries could play a crucial role in world politics
like NAM Countries.
4. The US became the sole superpower and capitalist economy became
dominant at international level. World Bank and IMF became powerful
advisors due to their economic support to these countries during
transitional period.
5. The motion of liberal democracy emerged as a way to organise political
life.
6. Due to disintegration of Soviet Union many new countries emerged with
the independent aspirations and choices.
7. The Baltic and East European states wanted to join European Union and
became the part of NATO. The Central Asian countries took the advantage
of their geographical location and continued close ties with Russia, West,
China and others.

9. What was Shock Therapy? Was this the best way to make a
transition from communism to capitalism?
Answer:  Shock Therapy was a painful process of transition from an
authoritarian socialist system to a democratic capitalist system. This
transformation system was influenced by the world bank and the IMF in
Russia, Central Asia and East Europe. Though it varies in intensity and
speed amongst the former second world countries but its direction and
features were quite similar.
This was not the best way to make a transition from communism to
capitalism due to following drawbacks:
1. Russia, the large state controlled industrial complex lost about 90 per
cent of its industries through sales to private individuals and companies
2. It created “the largest garage sale in history” which led virtual
disappearance of entire industries for the restructuring was carried out by
market forces in place of government owned policies.
Hence, industries were undervalued and sold at throwaway prices.
3. It systematically destroyed old system of social welfare.
4. The value of ‘ruble’, the Russian currency, declined dramatically due to
high rate of inflation and real GDP of Russia also declined between 1989 to
1999.
5. The withdrawal of government subsidies pushed large sections of
society into poverty and it emerged mafia to start controlling many
economic activities.
6. Privatisation led to new disparities which divided Russia between rich
and poor people creating economic inequality.
7. Hence, Shock Therapy brought ruin to economies and disaster upon the
people of entire region.

10. Write an essay for or against the following proposition. “With the
disintegration of the second world, India should change its foreign
policy and focus more on friendship with the US rather than with
traditional friends like Russia”.
Answer:  India should not change its foreign policy and focus more on
friendship with US, but India is required to maintain healthy relations with
Russia because India has experienced a long band of mutual trust,
interests and popular perceptions with Russia in the following manner:

1. Russia and India share a vision of multipolar world order i.e. co¬existence of several world powers
internationally, collective security, greater regionalism, democratisation with the decision-making
through bodies like the UN.
2. More than 80 bilateral agreements have been experienced between India and Russia as a part of
the Indo- Russia Strategic Agreement of 2001.
3. India has been benefitted from its relationship on the issues like Kashmir, energy supplies, sharing
information on international terrorism, access to Central Asia and balancing its relation with China.
4. Russia is also important for India’s nuclear energy plane and assisting India’s space industry by
giving cryogenic rocket to India whenever needed.
5. Co-operation with Russia and its republics like Kazakhstan, Turkmenistan in the form of
partnership and investment in oil fields has also benefitted India.
6. Russia is also benefitted from India on ground of the second largest arms market for Russia. Indian
military gets most of its hardware from Russia.
7. Russia and India have collaborated on various scientific projects also.