khrushchev ECONOMY Flashcards
what was the Virgin Land scheme?
1953 - Khrushchev’s main policy were land that was not previously farmed would be - North Caucasus, Kazakhstan, West Siberia
how much of the soviet budget did the Virgin Land Scheme take?
(1954-59) grew by 3% a year until 12.8%
how did Khrushchev incentivise rural production?
paid farmers higher for their produce - boosted farm income by 250% (1952-56)
what were reasons for Khrushchev’s economic failure?
- Khrushchev’s failed reforms (Virgin Land Scheme 1953)
- all the USSR’s money being put into the space race and the defence budget
- changing targets to much more ambitious goals
how did Brezhnev promise better standards of living following Khrushchev?
- subsidising prices (government kept prices of consumer goods low)
- a second economy (Brezhnev tolerated the growth of the Black Market)
how did Khrushchev promote light industry?
- the 7 year plans (Jan 1959): increased production of consumer goods and increased production of chemical fertilisers to support the agricultural schemes
did the 7 year plan succeed?
the plan boosted production of consumer goods and chemical fertilisers (but lower growth than Khrushchev expected)
- consumer goods production was 5% below target
- chemical production was 20% below target
what were some Industrial problems?
- Military spending (limited funding to industry)
- Command economy (Stalin’s structure was not made for creating complex goods like radios)
- Inefficiency (the command economy wasted reasources)
what were some ongoing problems?
- central planning (farmers not using fertilisers efficiently)
- confusion (due to Khrushchev reforming the in charge of agriculture)
- inadequate storage on farms (wasted produce)
- inadequate pay for agricultural workers
when did agricultural growth slow?
1959-64 - farms production increased by 15% but was still under Khrushchev’s target
what is an example of the Soviets agricultural inefficiency?
(1950s-60s) 50% of soviet population worked in agriculture. 5% of US population worked in agriculture - US doubled production of the USSR
why were the Virgin Land schemes so expensive?
needed complex irrigation systems
we’re Khrushchev policies successful?
initially as production increased by 35.5% (1954-58)
how did Khrushchev try to make farming more efficient?
by 1955
- artificial fertilisers (boosted production by 40%)
- tractors (boosted production by 30%)
what did Khrushchev construct in order to boost agricultural production?
1954 - Khrushchev announced new fertiliser factories and new tractor factories