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This was not a case of economic and political crisis producing liberalisation and democratisation. Rather, it was liberalisation and democratisation that brought the regime to crisis point.
Gorbachev implemented a domestic economic reforms that he hoped would improve living standards and worker productivity as part of his perestroika (reconstruction) program. The Law on Cooperatives, enacted in May 1987, was perhaps the most radical of the economic reforms during the early part of the Gorbachev era. For the first time since Vladimir Lenin's New Economic Policy, the law permitted private ownership of businesses in the services, manufacturing, and foreign-trade sectors...
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