The Fall of the Soviet Union. History ’ s Important?. Russian Revolution in 1917 Established a communist state; became totalitarian Tried to create unified, central state where national and ethic differences were eliminated. Historical Problems in Russia.
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Russia built up a military arsenal surpassing that of the United States
enormous military expenses, in combination with collectivized agriculture and inefficient manufacturing were a heavy burden on the economy
Reagan Administration persuaded Saudi Arabia to increase oil production
resulted in a three times drop of oil prices in 1985; oil was the main source of Soviet export revenues
transformed the entire world political situation
reformulation of political, economic and military alliances
America sole military and world hegemonic power
End of Cold War and MAD threat