1.2 Promotion of Light Industry, chemicals and consumer goods

Question 1

Light Industry (2)

Answer 1

• industries involved in manufacturing goods, such as household products (clothes, shoes, furniture)
• have a more direct impact on standard of living than heavy industry

Question 2

Death of Stalin (year)

Answer 2

1953

Question 3

What were Krushchev’s plans with economic policy? (2)

Answer 3

• krushchev wanted to move the focus of economic policy away from heavy industry towards light industry, chemicals and consumer goods
• this would broaden base of soviet economy and bring real benefits to the lives of people

Question 4

Challenges to Krushchev’s economic policy (3)

Answer 4

• bureaucratic system of administrators based in Moscow and Stalin’s terror repressed initiative
• the system was clumsy and wasteful
• it was difficult to deal with new trends and unforeseen events, as system was too inflexible to respond

Question 5

Krushchev’s reforms to deal with challenges to Economic policy (6)

Answer 5

• in 1957, he set up 105 regional economic councils (sovnarkhozy) to supervise enterprise
• sovnarkhozy was an attempt to move some decision making away from center to regional base
• stalin’s harsh labour laws were removed and work week was reduced from 48 to 41 hours
• incentive replaced stalin’s policy of coercion
• managers were given more influence in factories and to encourage initiative they were given 40% of profits made
• greater emphasis on vocational education

Question 6

Liberman plan (year)

Answer 6

1962

Question 7

The Liberman Plan (3)

Answer 7

• called for greater autonomy for local managers
• wanted the market to replace the state as the decider of prices
• the ideas were watered down by conservatives in the politburo

Question 8

Seven Year plan (timespan)

Answer 8

1959-65

Question 9

The Seven Year Plan (5)

Answer 9

• influence of Krushchev on economic policy could be clearly seen in this plan
• government pushed ahead with transforming fuel and chemical industries
• shift of emphasis from coal to oil and gas
• the focus on chemical industry was linked to increased targets for consumer goods
• promotion of regional development

Question 10

Results if Krushchev’s Reforms and 7 year plan (8)

Answer 10

• results of 7 year plan impressive even if not all goals were met
• consumer goods abundant, which raised standard of living for many
• but quality of goods very bad
• growth rate of soviet economy much higher than that of U.S., but economy still lagged behind because it had smaller base
• sovnarkhozy made national planning harder
• the division of party apparatus into industrial and agricultural branches added to confusion
• economic growth had slowed by 1964, spending on consumer goods reduced and housing Programme cut back
• Krushchev’s reforms found resistance due to party bureaucrats in favour of Stalin’s approach

Question 11

When was division of party apparatus into industrial and agricultural branches?

Answer 11

1962