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World, and a firm Soviet policy based on Russian reciprocity and restraint. In March 1983 President Reagan announced Strategic Defense Initiative (SDI), also known as “Star Wars”. The US shifted the focus from offense to defense. The new strategy suggested a profound shift in US nuclear strategy away from reliance on offensive missiles to deter an attack - that is, from dependence on MAD, which Reagan deemed “morally unacceptable.” The new strategy led to a major increase in defense spending. Real spending in fiscal year 1985 was over 50 per cent greater than in fiscal year 1980. Reagan administration also focused its atention on regional problems. In 1983, a new joint service command - CENTCOM - was established to deal specifically with contingents in Southwest Asia. By early 1986, a new element of strategy informally known as the “Reagan Doctrine” had appeared. This policy sought to roll back Soviet and Cuban gains in the Third World by active support of liberation movements in areas such as Nicaragua, Angola, and Afghanistan. During this period the relations between the superpowers were highly escalated. But situation changed when Gorbachev came to power in the SU in 1985.

Ending the Cold War, 1987-1990.

Gorbachevs Novoye Myshlenniye or New Thinking in international affairs was first spelt out at the Geneva summit with President Reagan in October 1985, when they agreed in principle to work towards a Strategic Arms Reduction Treaty to cut their nuclear arsenals in half. Probably the most radical summit was the Reykjavik summit in October 1986. Despite that fact that no agreement was signed, “it succeeded beyond the limited horizons of diplomats and arms controllers in that it shocked the US-Soviet negotiations into a wholly new dimension. The old ground rules of superpower poker, of incremental gains and minimal concessions, had been ripped up.” In fact, both Reagan and Gorbachev recognized the posibility of nuclear free world. More, they both made it their major mutual goal. The real agreement was reached at the Washington summit in December 1987. The US and the SU signed the Intermediate Nuclear Forces (INF) Treaty and formalized their commitment to a 50 per cent reduction in strategic offensive arms. “The signing of the INF Treaty signalled an end to the New Cold War.” Following a meeting between Secretary of State James Baker and Soviet Foreign Minister Schevardnadze in Wyoming in September, Secretary Baker suggested that the “era of containment” had perhaps come to an end. Then followed the Malta summit in December 1989, where President Bush and Gorbachev recognized common interests in maintaining stability in the midst of revolutionary political changes and were even explicit about accepting each others legitimate security interests and role in preserving European security. The end of the Cold War solved one great problem for the US - the nuclear threat from the Soviet side was eliminated. But it caused a series of other problems. “The Cold War ended wih the US and Britain in recession, the Japanese stock market tumbling by 40 per cent, with the wealth of Germany devoted to the rescue of its reunited compatriots, and the world poised for war in the Persian Gulf.

The Post-Cold War Era, 1991 onwards.

With the collapse of the Warsaw Treaty Organisation (WTO) and the dissolution of the SU after the failed coup, August 1991, the US faced the another problem - the lack
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