Eastern Europe suffered from many economic problems. Many countries owed debt to Western nations. Central planned economies were inefficient and slowed economic growth. New industries could not be formed due to lack of capital. Productivity halted under bureaucratic control. Many reformers wanted more competition between industries and incentives for workers. Gorbachev introduced his reform of perestroika, or economic liberalization, in 1985, but reformers still were not happy.
Citizens of Eastern Europe responded to economic and political problems by acting against the Communist dictatorships. In Poland, an independent trade union was formed, named Solidarity. Solidarity and its leader, Lech Walesa, demanded free elections and a role in government. In 1989, Solidarity won in an open election and Communist rule ended in Poland.