Brezhnev Economy

Question 1

Strategy

Answer 1

Import grain from West - more cost effective than expanding VLS or collectives.
Focus on SOL & light industry.
Tolerated 2nd economy for access to consumer goods.
Stalin’s command economy.

Question 2

Reformation Under Brezhnev

Answer 2

Khrushchev discredited reformation, many of his reforms reversed by Brezhnev.
Party reunited.
Re-established Soviet ministries, abolishing Sovnarkhoz.
Scrapped 7YPlan for 5YPlan.
Kosygin Reforms (1966).

Question 3

Kosygin Reforms

Answer 3

1966, 8th 5YPlan by PM Kosygin.
Aimed to improve productivity + efficiency.
Built on Liberman’s idea.
Factory success judged by profits.
People who implemented it were not enthusiastic.
Sabotaged by Brezhnev.
Kosygin side-lined and power watered down.
Stopped in 1968.

Question 4

5YPlan

Answer 4

8th, 1966-70, aimed to increase car production by 53%, previously trucks/buses. Light industry.
9th, 1971-75, focus on consumer goods. 1980, 85% of families had tele, 70% had washing machines.

Question 5

Economic Performance

Answer 5

1970s, rise in SOL. Halted in early 1980s, stagnation.
Exploited high international oil prices to fund SOL + imports. Production increased from 243m (1965) to 603m (1980).
National income rose by 50%, consumption per capita by 70%. 3/4 of improvement in 1st half, massively slowed down in 2nd half.
After 1973, growth rates fell below W. Europe.

Question 6

Evidence of Economic Decline

Answer 6

1980s, economic growth almost halted.
Increase in volume of goods but many unusable/broke weeks after production.
Quantity > Quality.

Question 7

Reason for Economic Decline

Answer 7

Central planning system inflexible, focusing on growth & industrialisation.
Didn’t encourage initiative, incentives + creativity.
Entrenched bureaucracy resulted in shortages + inefficiencies.
Lack of investment, outdated machinery.
30% GDP spent on military. Absorbed 18% of resources + employed 30m people.
26% GDP spent on agriculture.

Question 8

Factors of Concern Over Economic Growth Figures

Answer 8

Stats
Nature of Economy
Lack of Reform
Cold War
Oil Buffer
SOL

Question 9

Concern Over Stats

Answer 9

Overstated.
50%-60% of increase revenue of goods (1976-80) was due to price inflation, not an increase in output.
1980, spent more on defence despite being 1/3 of the economy.

Question 10

Reason for Intensive > Extensive Growth

Answer 10

Command economy focus on extensive growth > intensive growth.
Kosygin predicted 85% increase in net material product by 9th 5YP if intensive growth prioritized.
Storming caused by incentives (bonuses) of fulfilling plan targets.
Rapidly aging economic infrastructure.

Question 11

Storming

Answer 11

Running equipment round-the-clock in run-up to the end of the planning period to ensure plan fulfillment.
Rise in costs, reducing quality, damaging equipment, = reduce efficiency.

Question 12

Extensive Growth

Answer 12

Building new FOP (factories, mines, workshops).
Factor mobilisation

Question 13

Intensive Growth

Answer 13

Improving efficiency of existing FOP.
Relied on good info which central planning agencies lacked.

Question 14

Rapidly Aging Economic Infrastructure.

Answer 14

1980s, much industrial capital out of date/worn.

Question 15

Proof for Lack of Reform

Answer 15

1964, reformation ceased (Kosygin reforms in 1968). LR low productivity + inefficiency not addressed.
1973, industrial complexes joined with research institutions - “alliance of the working class and science”, Brezhnev.
1974, focussed on cost + profit > output. Price set by gov disregarded supply/demand - ineffective.

Question 16

Cold War

Answer 16

Increase military investment, wanting to achieve nuclear missile parity (1970).
SOL and economy neglected.
Military spending increased from 11% (1964) to 13% (1970).

Question 17

Evidence of a Rise in SOL

Answer 17

1965-70, consumption of meat per capita rose 40.5%.
1965, 11% households had a fridge, rose to 86% in 1980.