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Command economy: A communist economic policy that restricts private ownership of property
Nikita Khrushchev: Party secretary and leader of the U.S.S.R.
DeStalinization: A process that led to reforms, such as loosening government censorship of the
press, decentralizing economic decision making, and restructuring the collective farms.
Mikhail Gorbachev: Soviet leader who acted more western and was open to western style
reforms.
Glasnost: The term translates from Russian as Openness, and it allowed more open discussion
of political, social, and economic issues as well as open criticism of the government.
Democratization: Gorbachev wanted to keep the communist party but introduce a little
democracy. He created the Congress of peoples Deputies with directly elected representatives
and a new position of president.
Perestroika: Gorbachevs most radical reform also his least successful. He tried to modernize
within and keep soviet structure. It transferred economic powers held by the central government
to private hands and the market economy.
Boris Yeltsin: He was elected president of the Russian Republic and was a former Politburo
member who had been removed a few years earlier because his radical views fended
conservatives.
Vladimir Putin: The newly elected president set out to redefine Russias place in the world, a
task that required a new interpretation of the countrys relationship with the west.
Integration: A process that encourages states to pool their sovereignty in order to gain political,
economic, and social clout.
Globalization: An integration of social, environmental, economic, and cultural activities of
nations that has resulted from increasing international contacts.
Fragmentation: Tendency for people to base their loyalty on ethnicity, language, religion, or
cultural identity.
World Trade Organization: Established in 1995, the WTO is an organization of member states
that have agreed to rules of world trade among nations. It is responsible for implementing new
trade agreements.
World Bank: Loans money to low and middle income countries at modest interest rates. The
banks goals is to eliminate poverty and to support economic development through investment in
projects that build business, create jobs, eliminate corruption, and improve transportationcommunication.
European Union: regional organization that promises to redefine the meaning of sovereignty.
North American Free Trade Agreement: Its goal was to closely integrate the countries
economies by eliminating tariffs and reducing restrictions so that companies may expand into all
countries freely.
More developed countries: Countries that have experienced industrialization.
Less developed countries: Countries that have not become industrialized.
Compressed Modernity: A rapid economic and political change that transformed the country
into a stable nation with democratizing political institutions, a growing economy.
Modernization model: Westernization model, first country to develop its industry.
Dependency theory: Puts primary responsibility for global poverty on rich nations.