agriculture and industry Flashcards
1
Q
what was the state of the economy in 1917?
A
the economy was devastated by WW1 and the revolution
2
Q
what were Lenin’s goals for the economy?
A
to replace the capitalist system with communism. He wanted to give the workers power while also preserving Bolshevik power.
3
Q
what was state capitalism?
A
the name of the transitional phase between the old economy and a new more communist one
4
Q
what were the key features of state capitalism?
A
- the land decree
- the decree on worker’s control
- the decree of the veshenka
- the creation of the state bank
- cancelling all debts owed to other countries
5
Q
what was the decree on land?
A
the 1917 act which abolished private ownership of land, giving peasants conrol over farmland
6
Q
what was the decree on worker’s control?
A
the November 1917 act gave workers control over factories, allowing them to set their own wages and hours
7
Q
what was the Veshenka?
A
created in Dec 1917, it was a government department tasked with the overall management of the Russian economy.
8
Q
what happened to the banks in Dec 1917?
A
the army took control of all private banks and nationalised them. along with the state bank they were amalgamated into the People’s Bank of the Russian Republic
9
Q
when were foreign debts cancelled?
A
on the 21st of january 1918
10
Q
what were the successes of State Capitalism
A
it gave considerable control to the workers and peasants
11
Q
what were the economic failures of state capitalism?
A
- production slumped as workers reduced their hours and gave themselves huge pay rises.
- there was a sense of conflict between the workers in control of individual businesses and the government.
- the demands of the civil war on the workers were high
12
Q
what policy was pursued after state capitalism?
A
from June 1918 Lenin pursued a policy of war communism
13
Q
why was war communism introduced?
A
in order to produce enough food and ammunition to win the Russian civil war, the failure of state capitalism, and the ideological desire to create a more communist system
14
Q
what were the key features of war communism?
A
- the decree on nationalism
- control over industry was moved to the veshenka to direct industry towards winning the civil war
- introducing harsh discipline into factories, for example striking was punishable by death
- banned private trade
- the Grain Monopoly
- food rationing
- the declining use of money, with workers mainly being paid in goods.
15
Q
what was the decree on nationalism?
A
it gave the government the right to take control of any business with more than 10 workers. by 1920 around 37,000 businesses were nationalised
16
Q
what was the Grain Monopoly?
A
grain surpluses became property of the government and were seized by force. this was known as grain requisitioning. those who resisted were often shot.
17
Q
what were the successes of war communism?
A
it ensured the red army had the resources needed to win the civil war
18
Q
what were the failures of war communism?
A
war commusim left the economy in a state of collapse and led to huge suffering amongst the people. Historians question the extent to which it is considered to be a success.
19
Q
how much coal was produced in 1913 vs 1921?
A
1913- 29 million tonnes
1921 - 9 million tonnes
20
Q
how much oil was produced in 1913 vs 1921?
A
1913 - 9 million tonnes
1921 - 4 million tonnes
21
Q
how much electricity was produced in 1913 vs 1921?
A
1913 - 2039 million kWh
1921 - 520 million kWh
22
Q
how much steel was produced in 1913 vs 1921?
A
1913 - 4.3 million tonnes
1921 - 0.2 million tonnes
23
Q
what evidence is there that war communism was a success?
A
- it theoretically led to full employment
- production was directed towards making sufficient weapons and ammunition for the Red Army
- ‘from war commusim we hope to arrive at genuine communism’ - Leon Trotsky
- the crisis that it created was seen by some leaders to create the sense of suffering needed for communism to fully be embraced
- there was enough grain to feed the red army
- led to virtual abolition of money and led to government control of agriculture, ideological success
24
Q
what evidence is there that war communism was a failure to do with unrest?
A
suffering caused by war communism led to political unrest amongst the armed forces. in march 1921, sailors at Kronstadt mutinied, demanding a retur to free trade. militar action was needed to restore order
the Cheka responded to 118 peasant uprisings in Feb 1921 alone
25
what economic evidence is there that war communism was a failure?
- industrial production levels fell significantly as workers had no incentives to work hard. by 1920 industrial output had fallen by 70% from 1913 levels
- between 1917-22 the industrial workforce more than halved, leading to shortages of essential goods. between 1918-20, petrograd lost 72% of its population
- grain requisitioning led to a fall in agriculteral output as farmers had no insentives to produce more grain than was needed to survive. by 1920 agricultural production was 40% lower than 1913.
26
what social problems were caused by war communism?
- working conditions deteriorated significantly. the death penalty was imposed for striking, working days were 11 hours long, harsh punishments were used for lateness
- those who refused to give up their grain were shot. they were called Kulaks by the government.
- fall in agricultural production led to a famine that killed 6 million people.
27
what military evidence is there that war communism was a failure?
- Lenin sent an army of 80,000 criminals and unemployed men to collect grain which was supposedly being hoarded by peasants. these were known as 'food brigades'. many tortured and murdered peasants, and took seed grain, preventing the growth of new grain.
- suffering led to political unrest in the countryside. over 70,000 peasants involved , taking 100,000 Red Army soldiers using air crafts dropping poison gas to finally eradicate the rebels
28
what ideological reasons were there for war communism being a failure?
it was estimated that 60% of food consumed during the Russian Civil War was acquired via the black market. much of this was purchased using goods stolen from factories.
29
what was introduced to replace war commism?
the New Economic Policy, NEP
30
what were the 4 key features of the NEP?
- it ended the seizure of crops. this was replaced by a smaller tax which could be payed in grain.
- peasants could sell surplus crops on the open market
- a new currency was introduced to stop inflation
- people were allowed to establish small businesses to buy and sell goods. this increased the availability of goods and stimulated the economy.
31
what were some limits to the NEP?
the Bolsheviks maintained control over banking, heavy industry, transportation and foreign trade. increased economic freedom was accompanied by a tightening of the Bolshevik's political authority.
32
when was the NEP announced?
the tenth party congress in march 1921
33
what economic reasons were there for launching the NEP?
industrial production was at 20% of what it had been in 1913. there were also shortages of essential goods. unemployment rose and inflation was out of control.
34
what were the reasons to do with infrastructure for launching the NEP?
infrastructure had collapsed. railways were blocked by abandoned trains, supplies of water were rarely available in towns and cities. This caused unhappiness amongst the people and limited industrial production.
35
what reasons were there to launch the NEP to do with rebellion?
- Kronstadt Rebellion in 1921 demanded limits on bolshevik power
- peasant uprisings due to the seizure of crops were common. the Tambov uprising had to be put down by the Red Army.
36
what social reasons were there for the launch of the NEP?
- industrial workers began to turn against the Bolsheviks due to poor working and living conditions
- the mensheviks had won support with local soviets and a group called the workers opposition movement was set up by former bolshevik leaders
- a population crisis was emerging in Russia. 10 million had died in the civil war, 1 million died of disease, 5 million were killed by famine in the volga region. 2 million middle class people fled with their vital expertise.
37
in what ways was the NEP an economic success?
- it gave peasants the incentive to produce more crops, leading to a massive increase in food production. between 1921 - 24 grain production increased by 14 million tonnes per year.
- increased industrial production. coal and textile production doubled 1921-4. the average worker's wages more than doubled.
- created economic freedom, giving ordinary people the chance to set up their own businesses and keep their products.
38
in what non-economic ways was the NEP a success?
- led to the development of a more vibrant culture in cities. people opened shops and restaurants
- Lenin argued it was an ideological success because it brought the political and economic stability needed to industrialise
- by allowing peasants to set up businesses and sell their goods it made a wider range of goods available for peasants
- increased food production reduced the number of strikes and caused peasant uprisings to drop. this brought more political stability.
- imporved infrastructure, by 1926 the supplies of water and electricity were ,ore reliable than pre ww1
39
what economic evidence is there that the NEP failed?
- agriculteral supply outweighed demand, causing prices to fall, meaning peasants continued to live in poverty
- the price of manufactured goods increased, meaning peasats had to pay more while earning less. this increased the gap between the rich and the poor and became known as the 'scissors crisis'
- industrial production was not increased enough to make goods affordable.
40
in what non-economic ways could the NEP be considered a failure?
- created divisions within the party. Trotsky and his followers saw it as anti-communist. Bukharin and his supporters liked the plan because it brought political stability.
- betrayed many of the communist ideals e.g. state intervention and equal sharing of goods
- the possibility of earning extra led to an increase in prostitution, gambling, and drug dealing.
- there was a tightening of Bolshevik political authority. by 1924 they had taken control of all soviets and trade unions. the entire country was run by the politburo
41
what is the marxist view on the role of government?
the government should plan and control the economy to create a more stable, fair, and efficient system
42
how did stalin attempt to return russia to marxism?
by taking control of agriculture through collectivisation
43
what was collectivisation?
the merging of many small farms into large collective farms which would be supplied with fertilizers and equipment. this would increase efficiency, meaning more peasants would be able to move to the cities to work in industry.
44
what was the first stage of collectivisation?
known as the Grain Procurement Crisis, from 1927-29, bad harvests and inflation led to kulaks (wealthier peasants) witholding grain to drive up the price. stalin saw this as a justification to bring about collectivisation
45
what was the second stage of collectivisation?
the introduction of emergecy powers from 1928-9. this gave the government increased control ocer the economy through the introduction of rationing, grain requisition, and the outlawing of grain hoarding. this caused resentment, especially among the kulaks.
46
what was the third stage of collectivisation?
the liquidation of the kulaks and dekulakization. their land, livestock and equipment were confiscated in order to be shared,
47
how did kulaks react to rekulakisation?
many chose to destroy their resources rather than share them
48
how did stalin respond to peasant resistance to collectivisation?
he sent 25,000 industrial workers to the countryside, supposedly to offer advice about how to collectivise. in reality they searched for and confiscated hidden resources, rounded up the kulaks and either shot them or exiled them to siberian labour camps. the ramaining peasants were forced to collectivise with the threat of violence.
49
what were the workers that Stalin sent to the country to deal with collectivisation called?
the twenty-five-thousanders.
50
what were the economic reasons for stalin to introduce collectivisation?
- agriculture was inefficient, not helped by the fences and hedgerows that divided small strips of land
- there was a lack of mahinery and modern fertilisers
- no surplus grain to export to other countries
- labour intensive farming techniques made people unable to go to the cities and work in industry
- collectivisation was meant to increase efficiency.
51
what political reasons did stalin have for launching collectivisation?
- lenin had not clearly identified a successor, so to gain power stalin had to outmaneuver opponents
- he had already defeated trotsky but not bukharin. he hoped introducing collectivisation would attract trotsyks followers and give him the powerbase needed to remove bukharin.
- lenin was held in high regard. stalin wanted to prove he could be a successful leader in his own right
52
what ideological reasons did stalin have for introducing collectivisation?
- communist ideology states that private ownership of land will lead to a wealthier property-owning class and a poor working class
- they believed the government should take control of resources to ensure they are shared and hard work is rewarded
- a wealthy class of peasants had emerged during the NEP.
- collectivisation would make all peasanst employees of the government
53
what military reasons did stalin have for launching collectivisation?
- he wanted government reform to ensure that should the USSR enter a war with germany it would be able to compete
- hitler publically hated communism and wanted to expand germany to the east.
- stalin would need a huge industrial infrastructure to supply weapons and tanks and a surplus of food to feed an army. collectivisation was supposed to produce more food and free people up to become industrial workers.
54
what were the successes of collectivisation?
- speed of implimentation, by 1930 25% of households were collectivised. by 1941 all households were collectivised
- closer to communist ideology
- increased grain exports - in 1930 about 5.8 million tons of grain were able to be exported from russia.
- in 1928 about 18% of russians worked in industry. by 1939 50% worked in industry.
55
in what ways was collectivisation a failure?
lower levels of food production, immense human suffering, innefficient implimentation of policy
56
how was collectivisation a failure in terms of low levels of food production?
- from 1928-32 the amount of meat consumed by urban worked dropped by 2/3
- the harvest of 1933 produced 9 million fewer tons of grain than the harvest of 1926
- the number of pigs fell by 65%
- the needs of the army and the population could not be met during WWII. bread rations fell by 40% and potato rations fell by 80%
57
how was collectivisation a failure in terms of human suffering?
- between 1932-33 in Ukrain 5 million people starved to death
- 9.5-10 million peasants were exhiled due to de-kulakisation
- stalin refused to believe there was a famine in Ukraine so sealed the boarders. peasants were denied internal passports. this stopped people from escaping the suffering.
- peasants were set huge production targets and were punished when they were not met.
58
how was collectivisation a failure in terms of implementation of the policy?
- approx 7% of farms remained independent of collectivisation?
- few farms were able to get machinery. only half of farms were actually included in the scheme to get machinery
- exiling wealthy peasants often meant that those with the most experience and equipment were lost
- caused so much initial chaos that the policy was suspended in 1930
- peasants killed livestock in protest. between 1928-34 killed 17 million horses, 26 million cattle, 11 million pigs and 60 million sheep.
59
what was the first five year plan?
an industrial policy designed to increase production levels in heavy industry. it was introduced in october 1928 and ended in december 1932
60
what happened during the First Five Year Plan?
the government took control of industry and set production targets for all factories involved in heavy industry. a government department called Gosplan was set up. factory managers had to report to gosplan if yhey had achieved their targets. all goods produced became government property.
61
what was the purpose of the First Five Year Plan?
to rapidly develop heavy industry as it was thought to be the foundation of industrial growth.
62
what could the period of the FFYP be seen as?
a 'command economy' rather than a 'planned economy' as it was based on orders given with no practical assistance
63
what ideological reasons did Stalin have for launching the FFYP?
- central government control is a key feature of communism
- more control over workers
- the NEP had moved Russia away from communism
64
what were the economic reasons for the launch of the FFYP?
- collectivisation had damaged the economy
| - if the plan succeeded in making russia more wealthy it would make communism look good
65
what were the policitcal reasons for the FFYP?
- create a clear contrast to lenin to step out of his shadow
- can present himself as an intellectual and strengthen his position
- he could control every worker in Russia and influence them with propaganda
66
what economic evidence is there that the FFYP was a success?
- production levels increased significantly. iron production almost doubled from 1928-32. in the same period oil production increased by 9.7 million tonnes
- it was more successful than any other plan in modernising the economy
- the economy grew at about 14% per year while the rest of the world suffered the effects of the wall street crash
67
in what non-economic ways was the FFYP a success?
- the industrial workforce grew from 3.21 million in 1928to 6.01 million in 1932
- ideological success - brought industry under government control
- many existing members of the working class were promoted to managers, engineers or administrators
68
how was the FFYP unsuccessful in terms of production targets?
- many factory managers lied about how much was being produced. this made it impossible to run the economy
- even though stalin declared it was a huge success almost none of the targets were actually met
- while production did increase it was not enough to satisfy production targets
69
in what other ways was the FFYP a faulure?
- poor planning - actual plan wasnt even published until April 1929
- consumer good production was too low. in the early 1930s a queue of nearly 1000 people waited for shoes in Moscow
- led to a thriving black market as a result of the destruction of the free market
- human suffering, 10,000 workers were killed in the White Sea Canal project of 1931-2. many were forced to work without food
- many goods produced were never used, being left to decay in storage. in some industries 40% of what was made was wasted.
- poor living conditions, no bathouses for the 650,000 people living in Moscow
- quantity was favoured over quality. many goods produced were effectively useless. the average tractor from the Moscow Tractor factory lasted 3 days
70
when was the Second Five Year Plan?
jan 1933-dec 1937
71
what were the objectives of the second five year plan?
- to continue to increase production levels in heavy industry
- develop industrial infrastructure e.g. trains, canals etc
- increase production of consumer goods
- improve living and working conditions
72
in what ways was the Second Five Year Plan a success?
- improve transport e.g. Moscow Metro opened in 1935 and Moscow Volga Canal opened in 1937
- heavy industry production levels continued to increase
- some improvements in living conditions e.g. bread rationing was ended and wages rose
- defense spending rose from 4% to 17% of government expenditure between 1933-37
73
what were the failures of the Second Five Year Plan?
- frequent shortages of vital resources e.g. coal, steel, and machine parts. they were often hoarded by factory managers which made shortages worse
- fear of punishment made factory managers lie about levels of production, leading to disorganization and chaos
- living and working conditions still poor, most people only had 2-3 sets of clothes
- shortages of essential consumer goods were common
- low quality of goods e.g. goverment rationed shoes often broke the day they were bought
- party elite had secret shops, country houses and limosines, showing social inequalities.
74
What were the objectives of the Third Five Year Plan? 1938-41
To continue increasing levels of heavy industry production
| Rearmament
75
What were the successes of the Third Five Year Plan?
Significant increase in military spending - in 1940 33% of govt expenditure went towards rearmament
Production successfully geared towards rearmament - in 1939 Gosplan ordered the building of 9 new aircraft factories
Production levels in heavy industry increased - from 1937-40 coal production rose from 128 million tonnes to 166 million tonnes
76
What were the failures of the Third Five Year Plan?
It was disorganised and chaotic due to purges of factory managers and senior figures within Gosplan
Increased military spending came at the expense of consumer goods
Living and working conditions continued to be poor
77
What were the objectives of the Fourth Five Year Plan? 1946-50
To continue increasing levels of production in heavy industry
To increase production levels of consumer goods
To continue increasing levels of military spending - cold war
78
What were the successes of the Fourth Five Year Plan?
Production levels in heavy industry grew significantly - industrial output increased by 80%
Military spending remained high - by 1952 around ¼ of government expenditure went towards the military
Production of consumer goods increased - doubled between 1946-52
Between 1945-50 the Russian economy was the fastest growing in the world
79
What were the failures of the Fourth Five Year Plan?
There were still shortages of consumer goods - only 12% of expenditure went towards food and consumer goods
Wages for industrial workers were kept intentionally low
Living and working conditions still poor
Plan was implemented in a chaotic way
80
Overall, in what ways were Stalin’s Five Year Plans successes or failures?
Successes - size of workforce, heavy industry, economic growth
Failure - consumer goods, chaos and disorganisation
81
How did the size of the workforce benefit during the 5YPs?
- Between 1928-55 the number of women in the industrial workforce role from 24% to 46%
- Under the FFYP the size of Russia’s workforce increased from 3.21mil in 1928 to 6.01 mil in 1932
- Between 1926-32 the urban population rose by 12.7 million people
- In contrast, under Lenin 80% of the labour force worked in industry
82
How did the heavy industry benefit during the 5YPs?
- During the First Five Year Plan oil production rose by 9.7 million tonnes and iron production almost doubled
- During the Second Five Year Plan Steel production trebled
- During the Third Five Year Plan coal production increased by 128 million tonnes
- During the Fourth Five Year Plan industrial output rose by 80%
However - during the Second Five Year Plan there were frequent shortages of vital resources such as steel, coal, and machine parts. Factory owners hoarded resources which exacerbated the problem.
83
How did economic growth occur during the Five Year Plans?
Between 1928-53 Russia’s economy on average grew at 7.1% per annum
During the FFYP it grew at around 14% per year
It had the fastest growing economy in the world during much of the 1930s, while the rest of the world suffered from the great depression
In the 1950s Japan was the only country with a faster growing economy
84
How were there continual shortages of consumer goods during the 5YPs?
Levels of production of consumer goods increased, but not enough to prevent shortages. Only 12% of govt expenditure went towards food production and consumer goods during the Third Five Year Plan
In 1934 a queue of 6000 people waited for shoes in Leningrad
In Moscow 1000 people waited for shoes.
85
How was there disorganisation and chaos during the 5YPs?
- The First Five Year Plan was launched in 1928 but the details of it were not published until April 1929
- The targets of the FFYP were unrealistic and frequently revised - ‘it was as if mathematics had ceased to function’
- The FFYP was extremely disorganised. Function outstripped demand and up to 40% of goods were wasted.
86
What agricultural and industrial problems did Khruschev face when he came into power in 1953?
Low levels of agricultural production, slow economic growth, poor living conditions for workers, and shortages of consumer goods
87
How did Khruschev try to deal with low levels of agricultural production?
He increased government investment in agriculture so that more money was available for tractors and fertilisers
The Seven Year Plan launched in 1959 had as one of its aims to boost agricultural production
Established the Virgin Land Scheme in sep 1953. Aimed to make use of land that had previously not been used e.g. the Caucasus and Kazakhstan.
Launched the corn campaign in sep 1958. Introduced corn as the primary crop grown in Ukraine to use as a cheap animal feed.
88
How did Khrushchev try to deal with slow economic growth?
- The Seven Year Plan which was launched in 1959
- In 1957 he set up 105 Regional Economic Councils. These were local organisations which had decision-making power over industry in their area, with the idea that they could take account of local circumstances to make industry more efficient
- Factory managers were allowed to keep up to 40% of their profits as an incentive to increase productivity
89
How did Khruschev try to improve living standards for workers?
- He reduced the quota of food taken from farms, leaving more for farmers
- He relaxed workplace discipline. Harsh punishments were removed for lateness and the working hours of industrial workers were reduced from 48 to 41 hours per week by 1960
- One of the aims of the Seven Year Plan was to raise living standards
- Military spending was cut by 3% in 1955 to increase the amount of money available to raise living standards
- The amount of money given to farmers in collectivised living increased
90
How did Khrushchev try to reduce shortages in consumer goods?
It was one of the aims of the Seven Year Plan
| Giving up to 40% of profits to factory managers acted as in incentive to increase productivity
91
In what ways were Khruschev’s agricultural policies successful?
- The total area of farmed land in Russia increased from 18.2million hectares in 1953 to 97.4 million hectares in 1964 due to the virgin land scheme
- Fertiliser production went up by 19 million tonnes from 1959 to 1965 due to investments in agriculture
- The was a 40% increase in the quantity of fertilisers produced in Russia by 1955
- There was a 30% increase in the number of tractors available to farmers by 1955
- Between 1954-59 agricultural investment increased by 9.8%
- The virgin land scheme led to agricultural production increasing by 35.3% between 1954-58.
- The size of the grain harvest went from 82.5 million tonnes in 1953 to 134.7 million tonnes by 1958
92
In what ways were Khruschev’s agricultural policies failures?
- The virgin land scheme only brought about temporary rather than sustained growth. The harvests of 1959 and 1960 were below that of 1958
- Russian agriculture was extremely inefficient. 50% of the population worked in agriculture compared to 5% of the american population, but America produced twice the food.
- The quality of russian fertilisers and tractors was poor
- Agricultural production did not meet the ambitious targets that had been set for 1964
- Much of what was produced was wasted
- The amount of animal feed produced in Russia decreased by 30% between 1958-64 due to the corn campaign
- Russian farmers operating under the corn campaign produced only 50% of the corn cultivated by american farmers at the time
- The virgin land scheme ended up being very expensive as much of the land was unsuitable for farming and required the construction of expensive irrigation systems
93
In what ways were Khrushchev’s policies surrounding consumer goods successes?
- Production levels of consumer goods went up by 60% from 1959-65. Shoe production had increased by 148 million pairs
- The production of TVs went from 4 per 1000 people in 1955 to 82 per 1000 people in 1966. In these years the production of refrigerators also went from 4 per 1000 people to 40 per 1000 people
94
In what ways were khruschev’s policies surrounding consumer goods failures?
- The targets set for factories producing consumer goods were measured by the value of goods produced, leading to factories producing a small number of high value items to reach targets
- By 1964 production of consumer goods was 5% lower than the intended levels
- By 1965 the target for shoe production had been missed by 29 million pairs
95
In what ways were Khruschev’s heavy industry policies successes?
- Between 1958-65 the production of steel went up by 26 million tonnes per year and the production of oil increased by 85 million tonnes per year.
- Major developments were made to Russia’s industrial infrastructure. The Kuybyshev Hydroelectric Station was opened in 1957, comprising a 2,800m long dam
96
In what ways were Khruschev’s heavy industry policies failures?
By 1965 the targets for the production of synthetic fibres, gas, coal and housing were all missed
97
In what ways were Khruschev’s policies surrounding increasing quality of living for the people a success?
- There was a 250% increase in farm incomes from 1952-56 as a result of decreasing the amount taken and increasing the payment given for what was taken
- There was a 400% rise in the income of farm workers between 1953-58
98
In what ways were Khruschev’s policies failures in terms of creating chaos and disruption?
He split the Communist Party in two halves in 1962. One half dealt with agriculture and the other with industry. This led to a lack of coordination.
He constantly changed his policies regarding industry. For example in 1957 he decentralised by replacing Gosplan with 105 regional planning agencies, but then reversed this policy in 1958
99
In what ways were Khruschev’s policies reversed by Breznev?
- The division of the Party into agriculture and industry was reversed in 1965
- The 105 Regional Economic Councils were abolished and replaced with Gosplan
- From 1966 the idea of managing the economy using seven year plans was scrapped, in favour of a return to 5 year plans
100
What were the advantages and disadvantages of reversing the kosygin reforms?
Advantages - it was supported by the largely conservative officials in the Party and increased Brezhnev’s power.
Disadvantages - discouraged innovation and increased corruption and inefficiency.
101
Who was Kosygin?
He was the Prime Minister who initially shared power with Brezhnev. He launched a series of reforms aiming to increase productivity and creativity in economic planning
102
What were the ‘Kosygin Reforms’?
- He cut funding to the most inefficient collectivised farms, diverting the money to light industry to increase the production of consumer goods
- The performance of factory managers was judged on the profit generated from the goods they produced, rather than the quantity. This encouraged factories to produce more consumer goods with greater efficiency.
- Devolved some responsibility for industrial planning to factory managers. The most efficient were rewarded with financial incentives. Allowed industry to be more flexible and based on the needs of the local area.
103
Why were the ‘Kosygin Reforms’ unpopular?
- The largely conservative Communist Party were uncomfortable with the reduction of power of the central government
- The reforms provoked an attempted revolution against the USSR in Czechoslovakia
- Brezhnev ended up demoting Kosygin and abandoning his reforms in August 1965.
104
What were the reforms that Breznev made?
- He abandoned the Virgin Land Scheme and Corn Campaign
- Increased spending on agriculture. By 1976, 26% of government investment went to farming.
- A brigade system was introduced to farming, where small groups of peasants were given a small share of the profits from their work to provide a financial motive to increase productivity.
- Military investment was increased with the goal of matching the USA’s nuclear fire power. By 1970 military spending rose by 3%, putting the USSR in a greater position in terms of foreign policy.
- The ninth 5 Year Plan was introduced in 1971.
- The 5 Year Plan led to an increase in the production of consumer goods, leading to improved living standards. By 1980, 80% of families had TVs and 70% had washing machines.
105
In what ways were Breznev’s reforms either limited or actually bad?
- The brigade system was abandoned with fears it would undermine collectivisation
- There was an increase in food production, but this was achieved at a huge cost to the government and the old problems of inefficiency still persisted. Agriculture used 25% of the workforce, 26% of government spending and cultivated an area of land greater than the entire USA, yet produced only 1/6th of the output of american farms.
- Much of the food produced was grown in peasants private gardens and was sold for double the price at private markets. This highlighted government inefficiency and undermined collective farming.
- Increasing military spending was a drain on economic resources
106
What reforms did Andropov make?
- He launched an anti-corruption campaign in November 1982. Senior officials and factory managers suspected of diverting government resources to make a profit were investigated and put on trial.
- The Minister of the Interior Nikolai Schelokov was dismissed from his position and committed suicide before his trial
- Andropov launched an anti-alcohol campaign. Workers were subjected to spot checks for drunkenness and could be fined or sacked.
- Operation Trawl was launched to reduce worker absenteeism. The KGB were sent to parks and train stations to search for and arrest workers that were drunk or absent from work
107
Were Andropov’s reforms a success?
- He believed to fix economic problems he needed to improve the efficiency of the existing system, rather than implementing fundamental change
- There was a slight reduction in consumption of traditional vodka and absenteeism, but the campaigns were poorly enforced and did not combat the roots of economic problems
108
Why did the Russian economy decline between 1964-85?
Long term failure of agricultural policy, stagnation of government under Brezhnev, inherent problems of the command economy, chaos and disorganization, and excessive military spending
109
In what ways did the long term failure of agricultural policy cause the economy to decline?
- Grain requisitioning under War Communism led to lower rates of agricultural production as workers had no incentive to work as they were not being paid. By 1920, agricultural production was 40% lower than it had been in 1913.
- Collectivisation caused food production to fall dramatically. The harvest of 1933 was 9,000,000 tonnes less than that of 1926.
- The Corn Campaign was a disaster. Between 1958-64 the amount of animal feed in Russia decreased by 30%
- The trend of agricultural inefficiency continued under Brezhnev. Agriculture used 25% of the workforce, 26% of government spending and cultivated an area of land greater than the entire USA, yet produced only 1/6th of the output of american farms.
- Devastating famines reduced the size of the workforce.
110
How did stagnation of government under Brezhnev lead to the decline of the economy?
- Brezhnev governed according to a policy of ‘trust in cadres’. This allowed Party members to get on with their jobs without supervision. -This led to laziness and corruption as there were no consequences to bad work.
- His government neither had the will, nor the skills to instigate the fundamental changes needed to rescue the economy. They exacerbated the problems by discouraging innovation.
- Very few officials were ever replaced. At Stalin’s last Party Congress only 56% of the Central Committee was retained. In 1976 79% were retained. Any of those not kept had died of old age. Between 1964-71, only 2 people were promoted to the Politburo
- The way in which promotions were given was changed. Previously promotions required people to move to different regions of the USSR, spreading new ideas. Brezhnev promoted people within their region.
111
In what ways did the inherent problems of the command economy lead to economic decline?
- Decisions about the goods produced were made by the central government, rather than response to consumer demand. This meant many goods produced were unsuitable and were wasted.
- During the FFYP 40% of goods produced were wasted.
- Historians can argue that a command economy leads to a lack of productivity as workers have no financial incentives to work harder. This is demonstrated by how the economy often improved when incentives were given. For example the NEP led to an increase in food production as peasants could sell their excess grain. Between 1921-24 grain production increased by 14 million tonnes per year.
- Historian Milton Friedman argued that command economies always fall victim to the self interests of those who run them
- The USSR is too large to be centrally run
112
In what ways did chaos and disorganisation contribute to the economic decline?
- The FFYP was chaotic. The actual plan wasn't even published until months after it was announced.
- Khruschev constantly changed his policies, for example he decentralised by replacing Gosplan with 105 Regional Planning Agencies, but then began to reverse this policy from 1958.
- Bad planning of collectivisation meant that very few farms were able to acquire new machinery. Half of Russian farms were not even included in MTS, the scheme set up to distribute new machines.
- Lenin fundamentally changes the Russian economic system three times in four years.
- The size of the USSR makes centrally planning it inherently chaotic
- Factory managers were so afraid of failing to meet their deadlines under the Five Year Plans that they frequently fabricated the data about how much they were producing.
113
How did excessive military spending cause economic decline?
- Between 1933-37 defence spending rose from 4% to 17% of government expenditure.
- It remained high during the Fourth Five Year Plan due to the arms race with the USA. by 1952, total military expenditure was around one quarter of government spending.
- Excessive military spending meant that there was insufficient investment in systems of industrial agriculture, such as roads and electricity supplies, and a lack of funding for consumer goods.
