4.1 Economic and agricultral Developments Flashcards
econ 1945-53
4th 5 year plan aims
- 1946-50
- to catch up w usa
- rebuild heavy industry + transport
- revive the Ukraine - 1/3 expenditure allocated here
econ 1945-53
4th 5 year plan detail
- use of extensive reparations from East germany
- maintences of wartime controls on labour force - long hours, low wages. high targets]
- canals and HEP plants
econ 1945-53
4th 5 year plan results
- USSR 2nd to us in industrial capital
- most heavy industry targets met
- production doubled
- uberan workforce increased 67-72 mil
- industrially stronger than pre-war
econ 1945-53
5th 5 year plan aims
- 1951-55
- dev heavy industry and transport
- consumer goods, housing + services recieve stronger investment
econ 1945-53
5th five year plan details
- continued 4th five year plan but resources diverted to rearmerment during Korean war (50-53)
- After stalins death, Malenkov reduced expenditure of military and heavy industry
econ 1945-53
5th five year plan results
- most growth target smet
- NI increased 71%
- Malenkov changes met opposition resulting in him loosing leadership
agriculture 45-53
4th 5 year plan details
- Massive state direction: high quotas for grain and livestock/low peasant wages
- Higher taxes on produce from privare plots and private land absorbed in the war returned to kolkhozes
- Tree plantations, canals and irrigation ditches to make more land usable
- Followed Ideas of scientist Trofim Lysenko
agriculture 45-53
4th 5 year plan aims
- force Kolkhozes to deliver agriculture products
- revive wheat fields of ukraine
- transform nature + revitalise barren land
agriculture 45-53
4th five year plan results
- State precured 70 per cent of 1946 harvest, leaving peasants with little
- Output of kolkhozes increased (and food rationing ended 1947) but not to 1930s levels
- Incentives remained lowr
- Almost a half of output carne from private plots
- Lagged behind industry
- Lysenko’ ideas perpetuated inaccurate theories which held farming back.
agriculture 45-53
5th five year plan aims
- Continuation of the Fourth Five Year Plan’s alms plus Khrushchev’s initiative to develop virgin lands
and build ‘agrocities’ from 1953
agriculture 45-53
5th five year plan details
- High procurement levels maintained
- Expansion of agriculture in formerly uncultivated areas
agriculture 45-53
5th five year plan results
Agricultural production still behind industry and not yet to level of 1940
Decentralization and Industrial Planning under Krushchev
Industrial Targets and Administration
- Moscow-based ministers set industrial targets for enterprises, often out of touch with local conditions.
- system became increasingly complex and inefficient as the number of enterprises grew.
- too few administrators to manage the system effectively.
- Enterprises judged on fulfilling output targets, given bonuses accordingly.
- Exceeding targets led to higher targets the next year, discouraging managers from innovation and improvement.
Decentralization and Industrial Planning under Krushchev
Disincentives and Inefficiencies
- Output targets usually assessed by weight, favoring heavy goods over lighter, possibly more desirable items.
- Inefficient resource use required increasing capital investment to maintain growth, leading to stagnation.
Decentralization and Industrial Planning under Krushchev
Sixth Five-Year Plan (1956)
- Launched with over-optimistic targets
- abandoned after two years.
- new 7 year plan announced 1959 w/ Supreme Economic Council supervising
Decentralization and Industrial Planning under Krushchev
Decentralization in 1957
- Sixty Moscow ministries abolished.
- USSR divided into 105 economic regions, each with its own local economic council (sovnarkhoz) to plan and supervise economic affairs.
- had political motive: removing Malenkov’s men from central ministries and expanding Khrushchev’s patronage network in localities.
- shifted industrial management to local Party officials, fostering greater decentralization.
industrial change under Krushchev
7 year plan 1959
- improved living standards
- 40h work wek
- 40% wage rise by 1965
- vast expansion of chemicals industry, fertilisers and artificial fibres
- housing factories to produce prefabricated sections for new flats
- increased production of consumer goods
- greater exploitation of USSR’s resources - natural gas, oil and coal - and building of power stations.
industrial change under Krushchev
Communications and Technology
- Impressive displays at the 1958 Brussels World Fair.
- Railways: Many lines electrified or converted to diesel; network expanded.
- Air Transport: Expanded with Aeroflot offering subsidized, cheap long-distance travel, often undercutting railways.
industrial change under Krushchev
space achievements
- 1957: USSR launched the first artificial satellite, Sputnik.
- 1957: Sputnik II took a dog, Laika, into orbit.
- 1959: Red flag placed on the moon; pictures of the dark side of the moon taken.
- 1959: Icebreaker Lenin launched, the world’s first civil nuclear-powered ship.
- 1961: Yuri Gagarin became the first human in space.
- 1963: Valentina Tereshkova became the first female cosmonaut.
Result of Industrial Change
Decentralization and Bureaucracy
- Khrushchev’s decentralization measures added another layer of bureaucracy.
- The system was abandoned in 1965, shortly after Khrushchev’s fall from power.
Result of Industrial Change
Standards of Living
Standards of living improved, but quality of life still had severe limitations.
Result of Industrial Change
Economic Distortion
- Heavy spending on armaments and the space race distorted the economy.
- USSR narrowed the economic growth gap with the USA but did not overtake it.
Result of Industrial Change
Industrial Growth
- Soviet industrial growth slowed significantly from 1958.
- Growth rate fell from over 10% per annum in the previous decade to 7.5% in 1964.
- Consumer industries experienced only a 2% growth in 1964.
Agriculture Under Khrushchev (1953-64)
Criticism and Initial Actions
- 1953, Khrushchev criticized Stalin’s agricultural policies and unreliable statistics.
- highlighted grain output and livestock numbers were lower than in the last years of tsarist Russia.
- Despite criticizing Stalin’s methods, he continued to support some scientifically dubious ideas, like those of Trofim Lysenko.