Changing economic priorities: industry Flashcards
What did Khrushchev want to do to Soviet industry?
Modernise it
What did Khrushchev propose investing in to produce more consumer goods?
Light industry
Khrushchev’s reforms led to some economic modernisation.
True or false?
True
In the long term, Khrushchev’s reforms were still successful.
True or false?
False.
In the long term, the Soviet economy went into decline
What was Khrushchev’s vision with Communism?
Wanted the Soviet Union to reach Communism by 1980.
Under Communism, he believed that housing, transport and food would all be available freely.
What were the Soviet Union’s 3 major industrial problems which hampered economic modernisation?
- Military spending
- Command economy
- Inefficiency
Why did military spending cause industrial problems?
In the context of the Cold War arms race the Soviet Union was committed to high levels of military spending.
Consequently, this limited the funds available for industrial investment.
What is an arms race?
Competition to develop and produce increasingly deadly weapons.
During the Cold War the arms race focused on nuclear missiles.
How did Stalin’s command economy cause industrial problems?
Was good at producing large quantities of basic goods such as steel and concrete.
However, it was not designed to create complex or sophisticated goods such as cars or radios
How did inefficiency create industrial problems?
The command economy was highly inefficient; therefore it wasted resources which could otherwise have been used to modernise the economy
When was Khrushchev’s Seven-Year Plan launched?
January 1959
What did Khrushchev’s Seven-Year Plan increase the investment in?
Light industry
What were Khrushchev’s Seven-Year Plan aims?
Increase production of consumer goods
Increase production of chemical fertilisers to support Khrushchev’s agricultural policies, such as Corn Campaign, an initiative to plant more corn
How was the Seven-Year Plan successful?
Boosted production of consumer goods and chemical fertilisers
How was the Seven-Year Plan a failure?
Delivered lower growth than Khrushchev had expected