Revolutions of 1989 needed Western technology and credits to make up for its increasing backwardness. The costs of maintaining its military, the KGB, subsidies to foreign client states etc., further strained the moribund Soviet economy. The first signs of major reform came in 1986 when Gorbachev launched a policy of "glasnost" (openness) in the Soviet Union, and emphasized the need for "perestroika" (economic restructuring). By the spring of 1989, the Soviet Union had not only experienced lively media debate, but had also held its first multi-candidate elections in the newly established Congress of People's Deputies. While glasnost ostensibly advocated openness and political criticism,
Foreign trade of the Soviet Union from these countries was resold to the West for hard currency. In the late 1980s, the Soviet Union attempted to increase its exports of nonmilitary goods to these countries. In May 1986, the Soviet Union and Iraq agreed to increase Soviet nonmilitary equipment sales, and in August 1986 an attempt was made to revive Iraqi gas sales. When Mikhail Gorbachev delivered his report on the CPSU's economic policy on June 12, 1985, he noted that growth in exports, particularly machinery and equipment, was slow because the poor quality of Soviet goods prohibited them from being competitive on the world market.