QUOTE(Aquilla @ Jun 18 2004, 06:59 AM)
However, it is an undeniable fact that Reagan was the first American President to stand before that wall and call for it's removal. It is also an undeniable fact that wall came down not too long after. Deny cause all you wish, explain away with charts and graphs all you want. Those two facts are undeniable, even by you.
Indeed, they are undeniable, I cannot deny them. They are also irrelevant.
Was Reagan the first person ever to speak out against the USSR? No. Did the people of the USSR have a habit of responding to odd phrases thrown about by American presidents? No. Did everything Reagan said or call for come true? No. Is there any causal link, evidence of or even suggestion of evidence, between his speech and the walls coming down? No.
Yes he made the comment, and yes the walls eventually came down. Those facts are undeniable. Yet to try and credit him for ending the cold war because of them, when even you have been totally unable to supply ANY evidence linking the two in any tangible way, is pretty weak.
Hey, you know what 'facts' are equally undeniable? At the end of the Movie 'Red Dawn' (1984) they predicted the fall of the Soviet Empire eventually. This was a major movie, and they said that the Soviet Empire would collapse. Thus by that 'fact' Patrick Swayze is responsible for the end of the Cold war.
He narrated that the Soviet Empire would fall, and 5 years later it did. Those two facts are undeniable, even by you.

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Now, we come to 1973 and the world oil prices rocket, nearly quadrupling by 1981, and this should have been a boom time for a nation like the Soviet Union that was so rich in oil. Yet, when the prices dropped to just above their pre-1973 level, the Soviet Union went bankrupt according to you. If you are claiming that the Soviets were dependant on their oil and the high world prices for it, then how did they manage to survive for the 25 years before 1973? What happened?
This, my friend, is basic history 101. You are exactly correct in your assessment of what happened, if you actually want to learn a few things about the history of the USSR (as this is basic history, explained in pretty much ever basic textbook on the subject) I will provide some titles at the end of the message.
Yes, you have it spot on.
In the 1960s the USSR was just coming out of the latest five year plan focussing on industrial production, which had been the measure of a nation's success only a decade earlier. Though it was rivalling, and threatening to surpass US production levels of minerals and basic machined good, the world economy was changing to one of technology and electronics: while increasing in basic industry, the USSR was getting left behind in technology. Though it could stay competitive, and even ahead in specific focussed areas of technology due to government intervention and funding, general technological levels were falling behind. Remember that in the West, most technology comes from private inventors, not the government. By focussing on a specific discipline, the Soviet government could ensure technological growth and innovation, but all other fields were left behind. That’s why the USSR could put a man in space first, yet failed to invent the microwave or the cellular phone.
In short, the USSR was building a powerful economy that was becoming less and less relevant to the world. In order to 'catch up' or even 'keep up' a new focus of the economy would be required, which would need massive investment.
"To make up for a growing deficiency of technology, a number of major contracts were signed (beginning in the late 1960s) with Western firms to build factories and other installations in the USSR. With the exception of a bad harvest in 1972, agricultural production increased dramatically. The dramatic world oil price rises in 1973–74 and 1979 buoyed the economy, and the construction of a natural gas pipeline to Germany promised further economic expansion."
(The Columbia Encyclopaedia, Sixth Edition)
This technological catch-up was only possible because of the massive influx of oil revenue.
"The Soviet Union benefited from inflation because it was a major producer of commodities that rose sharply in price during the 1970s. The most important of these was petroleum, of which the Soviet Union was the world's largest producer in 1980. That year, it produced 11.7 million barrels of crude oil per day, compared with Saudi Arabia's 9.9 million.
Much of the Soviet Union's oil production was exported for hard currency. According to the CIA, its hard currency earnings from oil exports rose from just $387 million in 1970 to more than $12 billion by 1980. Much of this increase in export earnings came from the steep rise in oil prices resulting from the two OPEC oil embargoes of the 1970s. A barrel of oil that sold for $4.15 in 1973 rose to more than $35 by 1981.
Another commodity whose price rise benefited the Soviet Union was gold, which rose from $35 per ounce in 1971 to $875 on January 21, 1980. In 1980, the Soviet Union was the world's second largest gold producer, producing 9.4 million ounces per year. Gold sales provided $1.6 billion in hard currency that year."
(National centre for Policy Analysis, Nov. 1999)
The USSR did not simply benefit secondarily from the increased price of oil, they exploited it. Massive new drilling and exploration followed to use this new cash cow, and as a direct result, between 1974 and 1978 Soviet Oil Production DOUBLED, and by 1977 the USSR was the largest oil producer in the world, which it remained until 1991.
The USSR, which was always a resource economy, found a way to
remain a resource economy by capitalising on the vast increase in prices. Many of the USSRs major technological developments came about in the late 1970s and early 1980s, funded entirely by this new revenue. I don't know why it is so hard for Aquilla to admit the basic truth that the USSR DID have a technological lead in many areas during the last decade of the cold war (and were far behind in others), and this lead was funded on the back of oil and commodity revenues.
In addition, the USSR maintained a policy of selling oil to the republics and Warsaw pact at considerably below market value, thus maintaining a stranglehold on their energy. The threat to "Turn off the taps" was often just as effective as a threat to invade.
The Soviet economy became so dependent on Oil that, according to a 1986 CIA report:
"Oil and gas provide almost 60 per cent of the country's total energy requirements; they account for more than 50 per cent of the value of total exports and about three-quarters of all hard-currency exports; and they take roughly one-quarter of the country's total industrial investment."
When the prices collapsed again, not only did it wipe out the surpluses and revenues gained through sale of oil, but the economy was now more resource driven than ever, and transition so quickly would have been impossible. The USSR was forced to stop selling oil to the republics at below market value which seriously hurt THEIR economies, but also forced them to look elsewhere for fuel, reducing their dependency significantly. Worse still, the massive increase in oil production 10 years earlier had been done without proper reservoir management, so cheaper wells were beginning to run dry, and new drilling was expensive.
In the 1950s the US turned from a resource based economy into what became known as an ideas based economy. Tons of raw steel and tons of coal extracted, which was once the primary basis of measuring a nation’s power, became secondary, if not almost irrelevant. The USSR SHOULD have made the same transition, but it did not, it remained a resource economy, something that was only possible because of the Oil crisis and the surge in prices of a few other commodities. When the bottom fell out of those commodities, the USSR found itself not only bereft of revenues, but with an economic structure 30 years out of date.
Lastly, the propaganda value alone of Oil was enormous: in the 1970s, the US was in a panic regarding oil, they had just retreated in disarray from Vietnam, inflation was enormous, racial violence in the US was surging, and the USSR could actually present itself to the world as a potential winner of the cold war. The 1980s oil price collapse ended that 'run' as quickly as it started.
If you want to learn anything about Soviet History, allow me to recommend some of the following: They may be a bit out of date; they come from my MA reading list and my own library...
The Soviet Colossus: The Rise & Fall of the USSR (Michel Kort)
The Rise and Fall of the The Soviet Economy (Philip Hanson)
Age of Delirium (David Satter)
The Rise and Fall of the Soviet Empire (Brian Crozier)
Siberian Curse: How Communist Planners Left Russia Out in the Cold (Fiona Hill)
At Cold War's End (Benjamin Fischer)
Just a few for you...
As a final note, though oil is the critical element, obviously it is not the ONLY one. A more efficient economy could have coped with the change in revenue sources. A tighter reign of terror would have kept the nation together regardless; Gorbachev did away with that thus sowing the seeds of his own destruction. US pressure and the high military budget did give the Soviets less wiggle room to manage their own economy, and so on. But on the list of reasons why the USSR fell, in order of significance, I would say Oil is by far number one, Gorbachev and his reforms is an easy number two, the nature of the central planned economy is an easy number three. US pressure and the pressures of the cold war would be in the top 5, but even considering that, Reagan himself is pretty far down the list... is Reagan asking them to bring down the wall is not on the list at all.