Sovient Union

COLLAPSE OF SOVIET UNION

The Union of Soviet Socialist Republics (USSR) was existed in Eurasia from 1922 to 1991. It was a constitutionally socialist state. In the West, Russia or Soviet Russia was the major dominance to The Russian Soviet Republic in USSR. The Soviet Union emerged when the Russian Empire collapsed during the Russian Revolution in World War 1. The collapse of the Soviet Union at the end of the year 1980’s was a great blow to the hopes of revolutionaries. The primary causes of their collapse were social and economics factors.

1. The Soviet economy was increasingly sluggish when it came to responding to change, adapting cost-saving technologies, and providing incentives at all level to improve growth, productivity, and efficiency. Most information in the Soviet economy flowed from the top down and economic planning was often done on the basis of faulty or outdated information, particularly in sectors with large numbers of consumers.

2. As a result, some goods tended to be under-produced, leading to shortages, while other goods were overproduced and accumulated in storage. Some factories developed a system of barter and either exchanged or shared raw materials and parts, while consumers developed a black market for goods that were particularly sought after but constantly under-produced.

3. Communist planned economy showed to be extremely inefficient when many economical projects were held back due to lack in funding, thus resulting to the crumbling of infrastructures, utilities, factories, and public services.

Since the dissolution of the Soviet Union in 1991, almost all of the former Soviet republics have dismantled their Soviet-style economies.