Changing Economic Priorities: Industry

Question 1

What did Khruschev want to do to Soviet industry?

What impact did this have?

Answer 1

Modernise it:

• proposed investing in LIGHT INDUSTRY to produce more consumer goods

His reforms led to
✅ some economic modernisation BUT
❌ long term: soviet economy went into decline

Question 2

What was Khruschev’s vision?

Answer 2

He wanted the Soviet Union to reach communism by 1980

— he believed, under communism, that housing, transport and food would all be available freely

Question 3

What were the industrial problems facing the Soviet Union after Stalin’s death?

Answer 3

Three major ones. Hampered economic modernisation.

• MILITARY SPENDING: Cold War arms race— high levels of spending— limited funds available for industrial investment
• COMMAND ECONOMY: good at producing large quantities of basic goods (steel, concrete) BUT not designed to create complex/sophisticated goods (cars, radios)
• INEFFICIENCY: command economy highly inefficient; wasted resources which could have been used to modernise the economy

Question 4

Explain Khrushchev’s promotion of light industry

Answer 4

Seven-Year Plan (jan 1959)— increased investment in light industry:
Aimed to:

— increase production of CONSUMER GOODS
— increase production of CHEMICAL FERTILISERS to support his agricultural policies (like the corn campaign)

Question 5

What was the success of the Khrushchev’s Seven-Year Plan like?

Answer 5

Boosted production of consumer goods and fertilisers ✅
BUT delivered lower growth than he expected ❌
• consumer goods production: 5% below target
• chemicals production: around 20% below target

✅ ownership of cars, radios, fridges, washing machines and TV sets increased
❌ by 1966 the SU still lagged behind other European nations:
Ie. Car ownership (West Germany-207/1,000 Soviet Union- 5/1,000)

Question 6

What were the reasons for Khruschev’s Seven-Year Plan failing?

Answer 6

It under-performed for two main reasons:

• K introduced CONTRADICTORY REFORMS: 1957– decentralised economic planning
1958-1964- reforms re-asserted central control

• K changed the targets of the plan in 1962: setting more ambitious goals.

Question 7

What and why was their economic decline in the Soviet Union?

Answer 7

Khrushchev- growth rates slowed
Brezhnev- this trend continued
By 1980- economic growth had almost stopped:

• REFUSAL to CHANGE: major economic reforms stopped after 1964— long-term problems such as inefficiency and low productivity were never addressed
• Brezhnev increased MILITARY investment, diverting resources AWAY from economic growth

Question 8

What was the soviet economy like, 1964-85?

Industry focused

Answer 8

Brezhnev abandoned Khruschev’s commitment to building communism by 1980 BUT continued to promise a better standard of living— achieved by:

• SUBSIDISING PRICES: prices of consumer goods kept low. BUT led to shortages— demand higher than supply
• A SECOND ECONOMY: Brezhnev tolerated the growth of the black market/‘Second economy’— citizens allowed to buy consumer goods illegally

Question 9

What were Andropov’s reforms of industry?

Answer 9

He attempted to address long-term problems in the Soviet economy through ‘Operation Trawl’: KGB officials cracked down on
• drunkenness
• absenteeism
To try and boost productivity.

The campaign was short-lived. It didn’t solve the underlying problems of the soviet economy.

Question 10

What was soviet economy like by 1985?

Answer 10

Stagnant.

Successive leaders had failed to solve the problems of the command economy.