Perestroika

Real World Example

Perestroika, introduced by Soviet leader Mikhail Gorbachev in the 1980s, aimed to reform the Soviet economy by introducing more market-like reforms and reducing government control. This was a pivotal moment in the Cold War as it represented a shift from strict communist policies and indirectly contributed to the end of the Cold War by weakening the Soviet Union's grip on Eastern Europe. It highlighted the tension between centralized control and free market practices, a debate that continues in many countries today as they balance government regulation with economic freedom. For example, when people discuss healthcare or education reforms, similar debates over government roles versus private sector involvement arise. Understanding perestroika helps people see how economic systems can evolve, impacting job opportunities, prices of goods, and even international relations in their daily lives.