The End Of Bipolarity

c. People enjoyed economic freedom

The people in the soviet economy did not enjoy economic freedom. Every economic policy was framed by the state. There was no institution of private property and the society was based upon principles of economic equality.

Option A is correct because the Soviet economy was based upon the idea of communism and socialism intending to provide equal stature and benefits to all its citizens under a social and economic structure all of whose aspects were governed and managed by the state.

Option B is correct as the state exercised its control over every economic activity. Right from production to the sale of goods, everything was controlled and owned by the state. All the land, labour and capital were owned by the state.

Option D is correct because the Soviet propagated the ideology of communism under which every aspect of economy was owned by the state and distributed among its citizens equally.

The chronological order is:

Russian revolution- 1917

Soviet invasion of Afghanistan- 1979

Fall of Berlin wall- 1989

Disintegration of Soviet Union- 1991

Option d. crises in the Middle East.

The crisis in the Middle East was due to religious and sectarian conflicts among the countries of the Middle East, not because of the disintegration of the USSR.

I) Mikhail Gorbachev - C) Introduced reforms

Mikhail Gorbachev was the General Secretary of the Communist Party of the Soviet Union in 1985. He was the one who sought to initiate reforms in the Soviet Union system and considered them necessary to keep the Soviet Union at par with the West.

II. Shock therapy - D) Economic model

Shock Therapy was a process of transition from an authoritarian socialist system to a democratic capitalist system. This transition influenced by the World Bank and the IMF came to be known as Shock Therapy.

III. Russia - A) successor of USSR

After the disintegration of the Soviet Union, Russia was internationally recognised as its successor out of all the member countries. It inherited soviet’s seat in the UN Security Council and accepted all its international treaties and agreements.

IV. Boris Yeltsin - E) President of Russia

Boris Yeltsin was the first elected President of Russia. (1991-1999)

V. Warsaw - B) Military pact

The east European countries liberated by USSR after the Second World War came under the influence of UUSR and were politically and economically under the USSR. This group was called the Socialist bloc and was held together by a military pact called the Warsaw pact.

A) Communist

Explanation: The Soviet Union was based upon the idea of communism and it abhorred capitalism. It promoted equality of people and discouraged accumulation of private property.

B) Warsaw Pact

Explanation: Warsaw Pact was a military alliance between the countries of the socialist bloc or the USSR that held the member countries together.

C) Communist Party

Explanation: The Communist Party of the Soviet Union had tight control over all institutions and dominated the political system.

D) Mikhail Gorbachev

Explanation: Mikhail Gorbachev, who became the General Secretary of the Communist Party of the Soviet Union in 1985, initiated the reforms in the USSR in 1985.

E) Soviet union (USSR)

Explanation: As the states forming the Soviet Union disintegrated, the ideology of communism also fell flat in front of the ideology of capitalism. The difference between these ideologies and their followers was the cause of the Cold War.

The Soviet economy is different from that of the capitalist countries in various aspects like-

I) The Soviet union was a socialist state where the major means of production and property were owned by the state while in capitalist countries like U.S. property can be private and businesses can be individual.

II) The soviet economy focused upon equity of wealth and its balanced distribution among the people. However, the capitalist economy like that of the U.S. doesn't concern about equitable distribution of resources and considers inequality as a major driving force for people to do better.

III) Economies like that of the Soviet created and ensured employment for the people. On the other hand, Capitalist economies like the economy of the U.S. Were not responsible for unemployment of people and did not guarantee employment.

Factors that forced Gorbachev to initiate reforms were:

• The west i.e. the US had succeeded in modernizing and scientific did not match the level of scientific technology of the US. Therefore, it became important for USSR too to introduce reforms and development in its technology to be at par with its rival U.S.

• The U.S. had a developed economy by then, a complex communication network, transportation network, vast energy resources etc and was efficiently connected with even its remotest areas. However, the USSR just managed to provide its citizens a minimum standard of living and government subsidized basic necessities. Gorbachev understood this and initiated reforms so as to be at par with the U.S. and also for the welfare of its people.

• The Soviet state had become bureaucratic and authoritarian in nature with time, making life difficult for its people. Lack of democracy and absence of freedom of speech frustrated the citizens. Whereas the citizens of the West enjoyed freedom of expression and other basic rights. Therefore, reforms were considered necessary to fulfil the aspirations of the people of the USSR.

• The single party system represented by the communist party of the Soviet Union had tight control over all institutions and was unaccountable to people. However, democracy in the Western countries like U.S had begun to attract the attention of people. Therefore, reforms catering to people were necessary.

• In the USSR, though wages continued to grow, productivity and technology fell considerably behind that of west. The economy had become stagnant. This was a sign of danger for its economy. Gorbachev sensed the danger and initiated reforms in the USSR.

The major consequences of the disintegration of the USSR upon countries like India were:

• In the economic area, financial aid from Soviet to India almost dried due to the disintegration of the USSR. This was also one of the reasons for balance of payments crisis of India in 1991.

• Bilateral trade between USSR and India largely deteriorated after the disintegration. However, now it is in a better position.

• Multipolar system was preferred over a bipolar system, after the Second World War, where no single power could prevail and dominate over another. In such a situation, NAM countries (countries that accepted and were a part of the Non Aligned movement) could play an important role in world politics, of which India was also a part.

• Although India had always been a non aligned state, it was more inclined towards USSR and had friendly relations with it. India and USSR had a healthy trade of economic and military goods. USSR was like a ‘parent state’ to India. Therefore, in cold war when USSR was defeated, not only did it weaken the soviet but also cast its weakening effect upon India and its security and strategic interests were badly impacted.

Shock therapy was a process of transition from an authoritative socialist system to a democratic capitalist system after the collapse of communism. The model of transition in Russia, central Asia and East Europe came to be known as shock therapy.

However, shock therapy wasn’t the best way to transition from communism to capitalism because:

• It was a sudden and immediate change that uprooted the entire existing system and wrecked havoc over the economy of the state.

• In Russia the huge industries controlled by the state almost collapsed and 90 percent of them were put up for sale to private individuals and companies. This was called as ‘the largest garage sale’ in history as the industries were undervalued and sold away at throw away prices.

• The value of Ruble, the Russian currency went down dramatically. Inflation grew uncontrollably leaving the Russian economy in a battered state.

• The collective farming system disintegrated leaving people without food and security.

• The already miserable state of economy was further worsened by privatisation which widened the gap between poor and rich even more.

• The old system of social welfare was destroyed with the defeat of socialism and the withdrawal of government subsidies pushed a lot of people into poverty.

India has always been a neutral country. Therefore, it would be wrong to say that India should favour US over Russia.

1. Ever since India gained independence it has been a non aligned nation. India was born in a world that was bipolar and witnessing a cold war between two superpowers.
2. In such a situation it was imperative for India as an infant nation to maintain its neutrality in order to preserve its sovereignty and independence. Had India aligned with any one of the superpowers, it would’ve been ordered upon by it for its economic, social and political policies which were against India’s sovereignty.
3. The first Prime Minister of India Dr. Jawaharlal Nehru rightly implemented the idea of Non Aligned movement and prevented India from losing its sovereignty.
4. Moreover, Russia is and always has been a friendly nation for India. Right from technology to nuclear and energy resources, there are a lot of benefits that Russia offers to India.

Therefore, it wouldn’t be wise for India’s foreign policy to neglect Russia and favour the US. For that matter, India should not incline more towards any of the two powers, just like it has been doing since independence. Therefore, India must pursue a diplomatic approach and not abandon its traditional friends like Russia.