He spoke a day after demonstrators took over Kiev and seized President Viktor Yanukovych's office as parliament voted to remove him and hold new elections.
Protesters first took to the streets of Kiev late last year after Yanukovych abandoned an agreement that would have strengthen his country's ties with the European Union in favour of seeking closer cooperation with Moscow.
"Ultimately this is the result of the failure of the government to act democratically" and to engage in dialogue and fight corruption, Gorbachev said during an address at the International Government Communication Forum in the city of Sharjah in the United Arab Emirates.
Gorbachev also criticised the disparities that have resulted from globalisation, which he described as a "blind process" that has led to uneven development and created more losers than winners in the developing world.
The 82-year-old Gorbachev was the last leader of the Soviet Union, and the reforms he put in place helped lead to the fall of Communism.
After becoming the Soviet leader in March 1985, he pursued the policies of using "glasnost" or openness, and "perestroika" or restructuring. While his intent had been only reform, the policies brought about democratic changes that eventually led to the collapse of the Soviet Union in 1991.