Why Perestroika Failed

This argues that Perestroika failed as the result of the lack of understanding of market and political processes with reform processes representing
Gorbachev's reforms brought hope in the West and empty shelves in the east. "Why Perestroika Failed" argues that perestroika (and hence Gorbachev) failed because it could not produce the structural changes necessary to revive the Soviet economy. A public choice critique of perestroika reveals that the reform efforts were really a continuation of the autocratic politics that had always dominated the Soviet system. They were thus never able to address the real problems resulting from the government management of economic decisions and the consequent dominance of politics over economics. The central arguments of "Why Perestroika Failed" have implications for the republics and their economic prospects. In particular Boettke argues throughout that one of the major factors undermining the reform effort was the failure of the government to establish a credible commitment to it. This is the immediate challange for all of Gorbachev's successors.