Definition: Literally ‘reconstruction’. Policy of the Soviet Union introduced by Gorbachev during the 1980s which called for the economic and political reform of the USSR. Despite glowing propaganda the Soviet economy of the early 1980s was collapsing, with poor management, low growth, bad quality products and huge amounts of resources spent on the Cold War arms race. Gorbachev recognised that changes were needed, but believed the nation could remain a socialist economy, as opposed to a market economy, if key changes were made, including the closure of the Cold War and an end to the expensive arms race, political reform allowing for democratic elections at the lower levels of government, better use of technology, more accountability from managers and more initiative from workers and the promotion within the ruling Communist party of people based on merit, not loyalty.

The policy made little immediate difference. There was opposition who felt Gorbachev had gone too far, and from those who felt he had not gone far enough, and Communist hardliners staged a coup against him, ultimately leading to Boris Yeltsin becoming Russian President and greater reforms, including the breakup of the USSR and the end of Communist government, a situation not originally envisaged by Gorbachev.

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Gorbachev rose to power in 1985, with policies of Glasnost and Perestroika, and decided to end the cold war.