Perestroika - Why The Perestroika Failed.

Why The Perestroika Failed.

When terms come down to finding a reason for the failure the perestroika, it can easily be re-stated as a concern of why socialism failed – in accordance to the book Why Socialism Failed by Peter J. Boettke, a book titled properly due to its content. The overall synopsis of the book are the multiple latitudes of economic theories fired up by Gorbachev. Most of the cited works that went toward the writing of the book were the thoughts and ideas of principle Soviet architects of economic reform. Some of these architects include Leonid Abalkin, Abel Aganbegyan, Stanislav Shatalin and Grigory Yavlinsky.

It is believed that Gorbachev’s attempt at “renewing socialism”, were “doomed not only by tactical error but fundamental contradictions”, stated by Boettke himself – a favourite Marxist notion. But the framework of the actions that were executed prove that they were not only effective, but persuasive and appealing at the same time. These actions that could possibly make perestroika an event that economically and socially, brings the Soviet Union back to its former glory.

Gorbachev’s attempt to reform the economy based on the New Economic Policy of Lenin, an older central technique of central planning was one of the first flaws to the re-gaining of status. Another important factor were the markets, as they did not focus on the ideals of Gorbachev’s economic theories, rather, their emphasis was toward the reality of communism. Even during the central committee plenary meeting in the late 1980s, crucial questions regarding the details of the reform plan of the movement were discussed. Even at the time, Gorbachev’s economic theories were suffering from a downfall in strategy.

But at the same time, the Soviet Union economic failure as an overstatement isn’t something that is being overstated rarely. The most accurate reasoning leading the economic collapse of the Soviet Union’s was due to the “halting steps of perestroika”. Some of the results of an economic collapse were the long lines in combination with empty shops, industrial breakdown becoming active as the result of strikes and protests, and most importantly – the power of picking and choosing suppliers and customers was given to the managers. Gorbachev attempted at closing off and ending each one of these problems one after another, although it was argued that it was not at all possible. The Soviet Union at that point was easily comparable to what might nicely be described as “a well-developed third world country”, stated by Boettke. But it was also stated that the interesting differences between the two would be blurred out. For example comparisons in the Soviet military and KGB could not at all be compared, seeing as third-world countries would not be able to support such institutions: their economy would just not rise to the task. Health was also a factor that could not be sustained very well in third-world countries, while the Soviet Union was at very close ties with the U.S.A. in the late 1980’s.

An important point that could be made to counter many of Boettke’s arguments is “if Gorbachev’s economic ideologies were doomed from the start, how come they didn’t collapse as early as 1931, but instead as late as 1991?” It is well worth noting that this specific question was avoided and not addressed, the author did not have any strong argumentative points, which can lead to the assumption that the author did not entirely cover the topic.

The conclusion is that Boettke was not entirely correct or entirely wrong on his points regarding the failure of perestroika. But the fact remains, the Soviet Union was in peril during the Gorbachev era, and was in need of economic reconstruction to push toward any former glory that it has attained in the past before any collapses. "If it is understood that the ugliness that occurred was due to institutional failings, then institutions can be established to guard against it’s ever happening again,” Boettke writes.