Political Reforms of Mikhail Gorbachev:
1. Introduction of Glasnost: Gorbachev introduced the policy of Glasnost, which means "openness." This policy aimed to increase transparency and openness in government affairs by allowing freedom of speech, press, and expression. It provided an opportunity for citizens to criticize the government and discuss social and political issues openly.

2. Democratization: Gorbachev aimed to democratize the political system by reducing the power of the Communist Party and increasing political participation. He introduced competitive elections where multiple candidates could run for office, including non-Communist Party members. This move allowed for a more pluralistic political landscape and gave citizens a voice in the decision-making process.

3. Devolution of Power: Gorbachev initiated the process of devolving power from the central government to regional and local authorities. This decentralization aimed to give more autonomy and decision-making power to local governments and regions. It allowed for greater regional development and responsiveness to local needs and aspirations.

Economic Reforms of Mikhail Gorbachev:
1. Perestroika: Gorbachev implemented the policy of Perestroika, meaning "restructuring." It aimed to revitalize the Soviet economy by introducing market-oriented reforms and encouraging private enterprise. The state-controlled economy was gradually transformed into a mixed economy, allowing for limited private ownership and entrepreneurship.

2. Foreign Investment and Trade: Gorbachev sought to attract foreign investment and expand international trade. He introduced policies to encourage foreign businesses to invest in the Soviet Union and promoted trade relations with other countries. This increased economic integration and access to global markets.

3. Price Liberalization: To address the inefficiencies of the centrally planned economy, Gorbachev allowed for price liberalization. This meant that prices were determined by supply and demand rather than being centrally fixed. It aimed to promote competition, efficiency, and rational allocation of resources in the economy.

4. Decollectivization: Gorbachev initiated agricultural reforms by allowing individual farmers, known as "kulaks," to privately own and cultivate their land. This deviated from the collective farming system prevalent in the Soviet Union. The reforms aimed to increase agricultural productivity and address food shortages.

5. State-Owned Enterprise Reforms: Gorbachev introduced limited privatization by allowing state-owned enterprises to operate more autonomously and make their own decisions. This move aimed to increase efficiency, innovation, and competitiveness in the industrial sector.

Overall, Gorbachev's political and economic reforms were aimed at modernizing and revitalizing the Soviet Union. However, these reforms faced significant challenges and ultimately contributed to the dissolution of the Soviet Union and the end of the Cold War.