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Gorbachev reacts to SDI
Reagan increased US defence spending by $32.6 billion to pursue research into a satellite/laser system capable of intercepting nuclear missiles in space. USSR was concerned about the potential nuclear advantage the US would be given. It confirmed for Gorbachev that the USSR lacked automated equipment and funds for armaments, causing tension in future summits. -
Geneva Summit
Little outcomes occurred at this summit, bar a media success from a joint statement stressing the avoidance of a nuclear war. Gorbachev tried persuading Reagan to abandon SDI, reduce nuclear weapons by 50% and ban chemical weapons. Peace. -
Gorbachev launches economic plan
Perestroika (restructuring) of the economy, setting a target of 25% industrial production growth. Employees were now able to negotiate with moderate decentralisation, and an investment into Western automated machinery was made. Greater self-management in industries was achieved by ending price controls, opening the USSR up to foreign investment and establishing a new industry for agriculture and food processing. -
Reykjavik Summit
Discussions around limiting continental weapons and eliminating them within 10 years. Gorbachev proposed eliminating all balistic nuclear missiles if Reagan abandoned SDI, but this did not occur and thus another summit with no concrete outcomes. -
Geneva Accords
Accords consisting of several instruments were signed between Afghanistan and Pakistan, with the US and USSR serving as guarantors. The accords contained provisions for the phased withdrawals of Soviet troops, which concluded by 15 February 1989. Civil War in Afghanistan continued after the Soviets withdrew, with the Mujahideen eventually overrunning the government by 1992. -
Final Soviet troops leave Afghanistan
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Legislative election to the Congress of People's Deputies in USSR
Gorbachev's reforms had met mixed results by this point. The Nomenklatura rebelled against giving up their privileges, and by 1988 the Soviet budget deficit was 12% of GNP - USA's at 3.5%. The vodka black market was costing the government 100 million rubles in lost taxes. State bureaucracy became less corrupt though, with electives now held to account, as symbolised by these elections. Despite worker's strikes in 88', trade agreements were made with the EEC and 61 joint-venture programmes w/West -
Soviet industrial production drops by 18%
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President Bush signs START I treaty
Bilateral treaty that limited strategic offensive missiles by a third, to ease Soviet fear over US deployment of cruise missiles in Western Europe. Bush had visited Poland and Hungary in 1989, symbolically showing his comittment to democratisation in the Eastern bloc. From September 1991, Bush established principles of self-determination, recognised borders and democracy, the rule of law and human rights within states. Russia was given successor status of the USSR's Security Council seat.