perestroika

/ˈpɛrəˌstrɔɪkə/

Other forms: perestroikas

Perestroika was a 1980s plan to reform and revitalize the Soviet Union's economy. Eventually, perestroika became one of the factors that led to the country's collapse.

In Russian, perestroika means "reconstruction," and when Soviet leader Mikhail Gorbachev introduced the policy in 1985, he intended to rebuild and strengthen the Soviet Union's economy. Changes under perestroika included loosening government control of businesses and encouraging self-financing of economic enterprises. Perestroika lasted until 1991, when the Soviet Union dissolved into 15 independent countries.

Definitions of perestroika

1. noun

   an economic policy adopted in the former Soviet Union; intended to increase automation and labor efficiency but it led eventually to the end of central planning in the Russian economy
   type of:

   economic policy

   a government policy for maintaining economic growth and tax revenues