OCR Specification focus:
‘Economic and social problems in the USSR and Eastern Europe; western influence’
The late Cold War period saw severe economic stagnation, mounting social discontent, and increasing Western influence, all of which accelerated the decline of Soviet power across Eastern Europe.
Economic Problems in the USSR
By the 1980s, the Soviet economy was in crisis.
Stagnation in Growth: From the mid-1970s, the USSR’s centrally planned economy slowed drastically. Industrial output plateaued, agricultural production lagged, and innovation was limited.
Dependence on Oil and Gas: The USSR relied heavily on natural resource exports. When global oil prices collapsed in the mid-1980s, vital state revenue declined.
Inefficient Central Planning: The command economy suffered from waste, bureaucracy, and poor productivity. Factories often produced according to quotas, ignoring demand or quality.
Technological Gap: The West surged ahead in microelectronics and computing. Soviet industries struggled to compete, widening the technological divide.
The 1986 collapse in world oil prices exposed the Soviet Union’s overreliance on energy exports.

A long-run series of real crude oil prices highlights the steep decline in the mid-1980s. This fall sharply reduced Soviet export revenues, intensifying budget deficits and shortages. Source
Definition of Stagnation
Stagnation: A prolonged period of slow or negligible economic growth, often accompanied by inefficiency and declining living standards.
These economic difficulties eroded the USSR’s ability to sustain military spending and maintain influence over its satellite states.
Social Problems in the USSR
The economic malaise translated into deep social strains.
Declining Living Standards: Ordinary citizens faced shortages of consumer goods, poor-quality housing, and limited access to modern conveniences.
Rising Alcoholism and Health Issues: Alcohol abuse became endemic, reducing productivity and straining healthcare.
Ethnic and National Tensions: Minority groups, especially in the Baltic states and Caucasus, pressed for greater autonomy.
Disillusionment with the Regime: Citizens increasingly saw the system as corrupt and unresponsive, weakening ideological loyalty.
Queues for basic goods lengthened across major cities by 1990–1991, reinforcing disillusionment with the command economy.
Definition of Glasnost
Glasnost: A policy introduced by Mikhail Gorbachev meaning “openness,” designed to allow greater freedom of speech, transparency, and discussion of government problems.
Though glasnost was intended to revitalise Soviet society, it exposed deep grievances, intensifying demands for change.
Economic Problems in Eastern Europe
The USSR’s allies faced their own crises, often more acute.
Poland: Economic mismanagement and rising debt led to price rises and food shortages. Strikes by the Solidarity movement symbolised working-class resistance.
Hungary: Experiments with limited market reforms could not fully resolve inefficiency and debt.
Czechoslovakia and East Germany: These states saw relative industrial strength but lagged behind Western neighbours, especially the Federal Republic of Germany.
Romania: Nicolae Ceaușescu’s regime imposed austerity to repay foreign debt, creating severe shortages and widespread hardship.
The Soviet model failed to deliver prosperity, undermining the legitimacy of communist parties across the bloc.
Social Problems in Eastern Europe
Suppressed Dissent: Communist regimes used censorship and secret police to stifle opposition, but underground movements flourished.
Catholic Church in Poland: Provided a moral voice against the regime, with Pope John Paul II’s influence boosting morale for resistance.
Youth Disillusionment: Younger generations looked to the West for cultural models and opportunities, increasingly rejecting communist ideology.
Strikes and Protests: Industrial unrest highlighted the disconnect between workers and regimes that claimed to represent them.
Definition of Perestroika
Perestroika: A policy of “restructuring” introduced by Gorbachev, aimed at reforming the Soviet economy by decentralising control and allowing limited market mechanisms.
The combination of reform attempts and public pressure destabilised the old order across the Eastern bloc.
Western Influence in the USSR and Eastern Europe
The role of the West was crucial in deepening the crisis of communism.
Economic Influence
Marshall Aid Legacy: Western Europe’s post-war prosperity highlighted communist failure. Citizens of East Germany could directly compare their conditions with the wealth of West Germany.
Trade and Debt: Eastern European states relied on Western loans, leaving them vulnerable to external pressures.
Consumer Goods: Western products symbolised modernity and freedom. Smuggled jeans, records, and electronics fuelled demand for reform.
Cultural and Ideological Influence
Media and Broadcasting: Western radio (such as Radio Free Europe) spread information and countered propaganda.
Western radio — notably Radio Free Europe/Radio Liberty — penetrated the information monopoly and amplified dissident networks.

Curtain-antenna arrays at the Lampertheim shortwave transmitting station in Hesse, Germany, which relayed RFE/RL and Voice of America programming to the Eastern Bloc. Such infrastructure carried Western news, culture and ideas across borders, eroding authoritarian control of information. Source
Democratic Ideals: The appeal of political pluralism and human rights eroded communist credibility.
Church Support: Western churches, particularly through Pope John Paul II, gave moral backing to opposition movements.
Political and Strategic Influence
Reagan and Thatcher: Leaders of the United States and Britain adopted tough rhetoric, emphasising the superiority of liberal democracy.
Arms Race: Western investment in advanced military technology, such as the Strategic Defence Initiative (SDI), placed further strain on the Soviet economy.
Solidarity and Human Rights Support: The West actively supported dissident groups, granting them funding, publicity, and diplomatic recognition.
The Combined Effect
The interaction of economic stagnation, social unrest, and Western influence created a systemic crisis. The USSR’s inability to reform fast enough, combined with pressures from its own population and from abroad, left its leadership weakened. Eastern European states increasingly broke free from Moscow’s control, marking a decisive turning point in the Cold War.
FAQ
The Soviet black market grew rapidly as shortages made everyday goods hard to find in state shops. Citizens turned to informal networks for essentials, often paying inflated prices.
This undermined trust in the government’s ability to provide for its people, fuelled corruption among officials, and highlighted the failures of central planning.
Many Eastern Bloc countries, especially Poland and Hungary, borrowed heavily from Western banks in the 1970s.
By the 1980s, rising interest rates and declining export revenues made repayment difficult. Governments resorted to austerity measures, worsening shortages and sparking labour unrest.
Young people were particularly receptive to Western music, fashion, and films smuggled across the Iron Curtain.
Jeans and rock music symbolised personal freedom.
Access to Western television broadcasts in border areas highlighted lifestyle contrasts.
These cultural imports eroded communist ideology by offering attractive alternatives to the state’s rigid norms.
As the first Polish pope, John Paul II gave moral legitimacy to opposition groups like Solidarity.
His visits to Poland in 1979 and later drew vast crowds, demonstrating that communist authorities could not suppress national and religious identity. His message of human dignity and rights energised resistance.
SDI, proposed by the United States in 1983, aimed to create a missile defence system using advanced technology.
Although never fully realised, it forced the USSR to consider vast new military spending to compete. This was unsustainable given the existing economic stagnation, diverting resources from consumer needs and deepening the crisis.
Practice Questions
Question 1 (2 marks)
Name two economic problems faced by the USSR in the 1980s.
Mark Scheme
Award 1 mark for each correct point, up to a maximum of 2:
Declining oil revenues after the fall in world oil prices (1)
Inefficiency and waste in the centrally planned economy (1)
Technological backwardness compared to the West (1)
Falling industrial or agricultural productivity (1)
Any two of the above or similar valid points = 2 marks.
Question 2 (6 marks)
Explain how Western influence contributed to social unrest in Eastern Europe in the 1980s.
Mark Scheme
Level 1 (1–2 marks):
General statements with limited development, e.g. “The West influenced Eastern Europe through media.”
Little or no specific knowledge.
Level 2 (3–4 marks):
Some explanation with relevant detail.
May refer to Western broadcasting, culture, or the example of Western prosperity.
Limited analysis of how these influenced social unrest.
Level 3 (5–6 marks):
Developed explanation with detailed and accurate knowledge.
Clear examples, e.g. the role of Radio Free Europe/Radio Liberty, cultural imports such as Western music or consumer goods, or the influence of Pope John Paul II.
Shows how these factors undermined communist legitimacy and encouraged opposition, linking Western influence directly to unrest.
Maximum: 6 marks.