Perestroika

Definition

Perestroika was another policy introduced by Mikhail Gorbachev that aimed at restructuring the economic system of the Soviet Union. It involved reforms to allow more private ownership and capitalist business practices within the communist system.

Related terms

Capitalism: An economic system where trade and industry are controlled by private owners for profit rather than by state.

Communism: A political theory advocating class war leading to a society where property is publicly owned and each person works according to their abilities but receives according to their needs.

Economic Liberalization: The lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities.