brezhnev ECONOMY Flashcards
what did Brezhnev increase spending on?
military spending - 11% to 13%
why did Brezhnev increase military spending?
to achieve equality with the US in terms of their nuclear power - reached by 1970’s - maintaining caused other economic issues
what of Khrushchev policies did Brezhnev drop?
becoming a communist state by 1980 - replaced with ‘Developed Socialism’
how were low food prices achieved?
importing grain from the US
what did slower economic growth and increased military spending cause?
no possibility of transforming USSR into communist utopia - Brezhnev still pushed for an increase in living standards
what was the Black Market described as?
‘a necessary evil’
why did Brezhnev allow the Black Market?
increased access to consumer goods and food - eventually increased living standards
what was one the main features in the 70’s soviet economy?
the decline in growth and rise in standard of living - 1978 food prices in the black market double that in state shops
when were the 3 five year plans?
1965-70, 1971-75, 1976-80 - outlined at the 23rd party congress - improved standard of living by focusing on consumer goods
what dominated the economy model?
‘metal eaters’ - heavy industry - MIC took 20%-30% of GDP - due to arms race and space tace
what did the Kosygin reforms do?
1965
- designed to modernise the soviet economy
- improve planning process to encourage initiative from factory managers
- adhered to Khrushchev ideas by emphasising production of consumer goods
- the reforms were very watered down
what reform was there in 1973
industrial complexes were joined with scientific research centres (“an alliance of the working class and science”)
what happened to the system of targets?
1974 - were further centralised under Gosplan - to focus more on cost and profit
what was still under underproducing?
collective farms - food shortages in shops - private plots produce 25% of rural produce
how did Alex Nove describe collective farming?
“the most gigantic agricultural subsidy in human history”
