Khruschevs Economy Flashcards

1
Q

Main aims/features of Khrushchev economy

A
  • increase production of light industry and consumer goods
  • 5YPs and 7YPs
  • raise the status of agriculture in economy
  • Virgin lands scheme
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2
Q

Why did an increase in living standards need to happen?

A

Terror had been removed in destalinisation, people could express more freedom of thought.

To subdue the population.

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3
Q

what did the goth 5yp focus on?

A

56-60
- implementing the Virgin lands Scheme

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4
Q

When was the 7 YP and what was its main?

A

59-65
- promotion of light industry
- plans after this one also focused on light industry

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5
Q

What challenges did Stalins command economy present to Khrushchev?

A
  • beauracratic system of administrators stifled initiative - local innovations were rare (terror discouraged adaptation)
  • wasteful system - the system was planned ahead, inflexible when targets were exceeded or hugely under met
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6
Q

How did Khrushchev try to reform the command economy to make it more suitable?

A
  • 1957 - 105 Regional Economic Councils to supervise (SOVNARKHOZY) - local people knew what was best for local areas - blame for failure placed on locals
  • harsh labour laws removed - fines for absenteeism removed
  • incentives introduced, working hours reduced from 48 to 41 by 1960
  • managers in industry given influence, kept 40% of profits for reinvestment
  • specialist technical schools establised and vocational education emphasised
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7
Q

What did Khrushchev refer to industrial managers under Stalin as?

A

‘Robots of Moscow’

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8
Q

Who did Khrushchev take inspiration for economic reform from?

A
  • Evesi Lieberman (soviet economist)
  • Lieberman plan of 1962
  • promotes grater local autonomy
  • for the market demand to call for prices
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9
Q

Seven year plan:

A

1959-65
- new mineral resources discovered in Volga-Ural fields
- transform fuel and chemical industries - natural gas
- target for natural fibres to increase by 500,000 tonnes by 1965
- to support targets for footwear, fabrics and housing
- Volga-ural fields received 40% of income

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10
Q

Industries that exceeded targets for 7YP:

A

Industry - 1958 - Actual 1965 - Target
oil 113 249.2 240 million tonnes
Gas 235 507 500 Millard kWHs

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11
Q

What was a significant failure in terms of targets in the 7 YP

A
  • Housing, only increased by 8 million square meters
  • Target was to increase by almost 600 million square meters!
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12
Q

Successes of Khruschvevs economy

A
  • helped with Cold War sucesses (Sputnik 1957, Lycha, Yuri Gagarin 1961) - source of pride for Soviets
  • consumer goods abundant = higher standards of living
  • 7.1% economic growth average in 1950s vs only 2.9 in USA
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13
Q

Failures of the 7YP under Khrushchev

A
  • poor quality consumer goods - eg shoes with heels nailed to the ties
  • even though greater growth than USA, the starting point was so low to begin with
  • sovnarkhozy - inefficient and wasteful, local requirements hard to foresee
  • gosplan overwhelmed
  • division of party into industrial and agricultural branches in 1962 = confusing, more slow
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14
Q

Effects of Khruschves industry by 1964

A
  • growth had slowed
  • consumer goods spending lower
  • housing programme cut back
  • reforms resisted by party bureaucrats, aligned with Stalin and the military industrial complex, ignore him
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15
Q

Khrushchev and the peasants:

A
  • thought slow growth in food production was holding up industry
  • Khrushchev from a peasant background
  • thought he was agricultural expert
  • met with peasants to discuss ideas
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16
Q

Agricultural reforms under Khrushchev to win over the peasantry:

A
  • 1955 collectives can make own decisions
  • MTS abolished - peasants liked this, but collectives had to but their own machinery (didnt work)
  • collective size increased to agro-industrial villages = agrogoroda (food production linked to processing) - more mechanisation, fertiliser and irrigation, but peasants still didnt like it
  • higher prices for state procurements, state purchases planned ahead
  • allowed private plots and more autonomy - most eggs were from private plots!
17
Q

Virgin land scheme summary:

A
  • 1953
  • volunteers (Komsomol)
  • farmed new land in Siberia and Kazakhstan
  • 6 million acres
  • 120,000 tractors
18
Q

Suceses of Khrushchev agricultural reform:

A
  • raised status of agriculture, back in central planning eye (even while MIC remained strong
  • farmer income doubled between 52-58 (still below industrial workers)
  • 51% increase in food production from 53-58
19
Q

Failures of agricultural reforms under Khrushchev:

A
  • productivity still low
  • grain production for Kazakhstan failed to meet
  • land in VLS dry and unsuitable for crops, plants like maize dies without irrigation systems
  • plants like cotton removed for food crops - died in VLS
  • increase in investment could not undo years of underinvestment
  • poor roads, inadequate storage facilities
  • 1963 poor harvest
  • millions of animals slaughtered, couldn’t be fed!
  • shortages meant grain imports from America and Australia
20
Q

Why was agricultural failure personally detrimental to Khrushchev?

A
  • built his reputation on agriculture
  • failures = yet another hare brained scheme
  • lead to his dismissal