1. Structural Economic Exhaustion
Long before Gorbachev arrived on the scene, the Soviet economy had become increasingly dysfunctional. Central planning worked tolerably in mobilising resources for specific industrial goals, but it was poorly suited to managing a complex modern economy requiring flexibility and innovation. Military commitments absorbed enormous resources, the agricultural sector underperformed chronically, and the collapse in oil revenues during the mid-1980s removed a financial cushion that had masked deeper problems. By the time any leadership was ready to act, the margin for manoeuvre was already narrow.
Why it matters: Economic weakness was not a background condition; it was an active engine of collapse. It created pressure for reform while simultaneously limiting what reform could achieve, trapping the leadership in a deteriorating position from which there was no comfortable exit.