2C: Changing Economic Priorities, 1953-85.

Question 1

What were the aims and impacts of Khrushchev’s economic reforms?

Answer 1

• Increase productivity and quality of life in the agricultural sector.
• Invest in farming by offering higher prices for produce, providing access to new equipment and fertilisers, and reducing the quota taken by the state.
• Virgin Land’s Scheme designed to utilise un-farmed lands in Kazakhstan; put in place from Sept 1953 and saw agricultural investment rise from 3% to 12.8% between 1954-9. However, failed as it did not account for local labour force, conditions, poor co-ordination and storage facilities,
• Corn campaign: initiative designed to encourage outlying regions like Ukraine to grow maize to feed livestock. Failed due to lack of materials and interest.

Question 2

How did Khrushchev look to modernise industry?

Answer 2

• greater focus on light industry; high-tech or consumer goods.
• introduce cuts in military spending, which dropped from 12.1% to 9.1% between 1955-8.
• 7 Year Plan, introduced Jan 1959: focus on chemical production as a means of improving fertilisers - also symbolised idea that heavy industrial production was over. Synthetic fibres, consumer goods and fertilisers grew but failed to reach target, possibly because of Khrushchev’s capricious nature and inability of factories to produce goods to the correct standards.

Question 3

In what ways did the Russian economy decline after 1964?

Answer 3

• Restoration: following the failure of Khrushchev’s reforms, Brezhnev was content to follow the ineffective system set up by Stalin.
• Brezhnev, despite wanting to provide more consumer goods, did not share Khrushchev’s ambition.
• Kosygin reforms: introduced Jan 1968, proposed cutting funds from inefficient collective farms and judging businesses on profit.
• Brezhnev returned to an excessive level of military investment and accepted the second economy.
• Andropov initiated an Anti-Corruption campaign in Nov 1982 and an Anti-Alcohol campaign as a means of promoting labour discipline but was unable to stamp out traditional practices.
• better at establishing extensive than intensive growth.
• trade of oil prevented the economic struggles from becoming a crisis.