BrezhnevÕs
dies 1982 , two short failed CPSU leaders, then Gorbachev elected new lead of CPSU in 1985, peasant
from StavropolÕ,
young, well educated
GorbachevÕs
Perestroika (rebuilding), inherited deeply entrenched, dysfunctional, totalitarian political system, stagnant state-run economy with serious
problems
foreign earnings from petro-exports,
OPEC greatly expanded oil production in 1980s resulting in $oil
dropping from $75 to less than $20/bbl (break-even point for Soviet
oil)
Hard currency from oil used to purchase foreign consumer
goods
poor quality (not accurate or honest domestic
statistics)
late 1980Õs
60% of industrial output was heavy machinery, engines, turbines, tractors, military; consumer goods <30% of production