1.5a How important were economic weaknesses in bringing about the collapse of the USSR? Flashcards
What did the ending of the Brezhnev doctrine do?
Ended Russian control in Eastern Europe
What long-term impact did ending the Brezhnev Doctrine have on Russia?
Allowed them to voice their discontent and eventually split from the USSR
Give the 5 fundamental economic weaknesses of the Russian economy
- lack of incentives
- waste
- failure to modernise the economy
- the arms race
- centralisation
1970
Richest 10% of US people _x wealthier than the bottom 10%
Richest 10% of USSR people _x wealthier than the bottom 10%
1970
Richest 10% of US people 7x wealthier than the bottom 10%
Richest 10% of USSR people 3x wealthier than the bottom 10%
Define egalitarian
believing in the principle that all people are equal and deserve equal rights and opportunities
Why was there such a lack of incentives in Russia other than the lack of consumer goods?
The difference between rich and poor was so small
In 1986, Gosplan estimated that what percentage of machinery was never actually used?
12%
By the 1980s, how many tractors had been built and how many of these were not used?
400,000 built
20% not used
What was Gosplan?
The department that measured and rewarded based on production
US farms were how many times more productive than USSR farms?
6 times
Why did the USSR fail to modernise?
They lacked the funding and subsequently the modern technology
What did the lack of modern storage facilities cause in the USSR?
Much food went off through rotting
What other part of the USSR infrastructure was severely lacking, causing low productivity and high waste?
Transport system
- people late for work
- food went off in transport
In 1960, what % of workers were employed on farms?
25.4%
In 1960, what % of US workers were employed on farms?
4.6%
How did centralisation cause agricultural issues?
The government set the timetable for planting and harvesting so farmers could not use their expertise
What happened as a result of central planners setting schedules for the delivery of fertilizers?
They often arrived at the wrong time which ruined the whole harvest
Why did the arms race contribute to the fundamental economic weaknesses of Russia?
It starved other areas that needed funding
Between 1965 and 1985, the proportion of Soviet GDP spent on defence rose from __% to __%
12% to 17%
From what year onwards did Russia produce ever more expensive missiles?
1945 onwards
In what year was the Novosibirsk report?
1983
What did the Novosibirsk report draw attention to?
The crisis caused by state inefficiency and inflexibility
What was Gorbachov’s very first economic reform?
Discipline & Acceleration
What was the focus of Gorbachov’s ‘Discipline & Acceleration’ reform?
To stop alcoholism and improve health
How did Gorbachov ensure his ‘Discipline & Acceleration’ reforms would be carried out?
Placed like-minded reformers into power
Which 2 reformers did Gorbachov bring in under the ‘Discipline & Acceleration’ reforms?
Yegor Ligachev and Nikolai Ryzhkiv
In the mid-1980s, what percentage of USSR household spending did alcohol make up?
15%
What 3 things did Gorbachov do to curb drinking?
- raised legal drinking age to 21
- reduced the number of places to buy alcohol
- burned down vineyards and closed distilleries
By how much did the price of vodka increase after Gorbachov’s ‘Discipline & Acceleration’ reforms?
Tripled
Give the 2 detrimental consequences of Gorbachov’s ‘Discipline & Acceleration’ reforms
- Moonshine produced
- Reduced tax revenue and left a budget deficit
What was the focus of the 12th FYP?
Science and research with particular focus on engineering
Why was investment into construction projects under the 12th FYP an issue?
Had a habit of leading to extra spending which was not originally planned
Why was the 12th FYP so unproductive in their output?
Productivity was low because of out-of-date technology that was prone to breaking down
Why did the government stop additional agricultural spending during the 12th FYP?
Agriculture was swallowing up vast amounts of money with no change in output
Why was there no increase in consumer good production under the 12th FYP?
Focus still on quantity rather than quality
What was the main issue with the 12th FYP?
There was much party opposition to change
What were ‘superministries’? (12th FYP)
An organisation who tried to increase coordination and reduce waste
What was the problem with superministries? (12th FYP)
They were run by those in the positions the reforms were trying to get rid of
What other group opposed the changes made by the 12th FYP?
The military
Why did defence spending have to be increased under the 12th FYP?
Because of the Afghanistan war and the USA’s ‘Strategic Defence Initiative’
Between 1982 and 1985, under the 12th FYP, the deficit of the Soviet economy rose from __% to __%
2.4% to 6.2%
In what year was Perestroika introduced?
1987
What did Perestroika do?
Introduced market mechanisms and allowed private enterprise
Give the 3 main reforms under Perestroika
- Encouragement of joint-ventures
- Law on State Enterprises
- Co-Operatives legalised
How were joint ventures designed to help the economy?
Allowed foreign firms to establish business in the USSR and open the USSR up to modern technology
In what year did Moscow open up its first McDonald’s?
1990
What 3 things did the law on State Enterprises do?
- Loosened state control over wages and the price of goods
- Allowed elections in factory management
- Factories given the right to produce what they wanted
What was the aim of legalising Cooperatives?
Allowed small-scale enterprise
What flourished after the legalisation of cooperatives?
Cafes, restaurants and small shops
In what years did food production show a small increase in growth through Perestroika?
1986-1987
What proportion of Soviet food was imported under Perestroika?
1/5
Why were State Enterprises not majorly effective?
They were still subject to state allocation of materials
Why did inflation occur so severely under Perestroika?
Foodstuffs were often diverted to cooperatives over state shops who charged a much higher price
Who in particular did inflation from Perestroika have an impact on?
People like pensioners with a fixed income
What did the success of cooperatives attract?
Government corruption who demanded bribes
Why did much of the populus hoard food?
Due to uncertainty of there being food in state shops or not
In 1988, food was rationed in __/55 regions in Russia
26/55
Under Perestroika, urban wages grew by _% in 1988 and __% in 1989
1988 - 9%
1989 - 13%
By the end of 1990, how many joint ventures were there?
3,000
Why were the joint ventures under Perestroika not very effective
They were very small scale and had little impact on the economy
Give an example of government officials sabotaging Perestroika
In leningrad, the city admin withdrew all sausages and buried them
What made the economy even worse under Perestroika?
Reduction in oil prices
Oil exports made up what percentage of Soviet exports by 1984?
54%
What did the government do in 1989 in an attempt to stop protests and strikes & why didn’t it work?
Increased wages
There was nothing to buy
What is the final economic reform of this section?
The 500 Days Programme
Why did the ‘500 Days Programme’ cause chaos?
It was rejected by the Soviet Government but accepted by the Russian Parliament
What was the economic result of the ‘500 Days Programme’?
The economy collapsed
What did the ‘500 Days Programme’ do?
Moved to a market led economy quickly
Soviet output declined by what fraction between 1990 and 1991?
1/5
What Russian word was Perestroika described as?
Catastroika - economic catastrophe
