Cold War

Running head : Cold War

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Cold war

This was a period characterized by competition , tension and conflict between US and Soviet Union (USSR , with support from their respective allies from 1940 to 1990s . These two superpowers exercised rivalry through propaganda , military coalitions , weapons deployment , espionage competitive technology and industrial advances . This competition made these countries to incur high costs in defense , massive and conventional nuclear arms race and engagement of sophisticated proxy wars

The war drove both economies to deep rooted stagnations

. In the Soviet Union , Moscow built up a large military such that the cost incurred consumed twenty five percent of the country 's Gross National Product , a scenario that declined investments and the expenditure on consumer goods . The expenditure on arms race caused and exacerbated deep rooted structural complications within the system of Soviet , resulting to decades of severe economic stagnation . This massive expenditure made Soviet Union the most powerful in the world in terms of number , types of weapon , ranks of the troops and sheer size of military industrial base As a result , this economy remained stagnant and encountered stiff falls in foreign currency generations because of weak oil prices during the war (Sammy , 1995 ,

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To make a healing attempt , the country adopted the economic restructuring agenda which led to relaxation of quota production system permitted operation of private businesses and allowed foreign investments . These measures were made to redirect the nation from military expenditure to civilian expenditure . Transparency and freedom...