Khrushchev - Economy

Question 1

what were Khrushchev’s aims within the economy?

Answer 1

• he made reorganizing the economy a priority
• tried to appeal to supporters with a focus on consumer goods - with a continuing focus on heavy industry as well
• he put great importance on reforming agriculture.

Question 2

what general reforms did Khrushchev make in terms of agriculture?

Answer 2

• reduced prices for farmers produce
• reduced taxes and increased private land plots
• promised more consumer goods as incentive to farmers
• wanted to replace collective farms with state farms

Question 3

what results did Khrushchev’s general agricultural reforms have?

Answer 3

• incomes of farms increased by 250%
• 40% more fertiliser available to farmers
• 30% increase in number of tractors

Question 4

what was the virgin lands scheme?

Answer 4

• introduced in 1954
• scheme wanted to turn unused soil in southeast Asia, European Russia and Siberia into the main bread basket of the country.

Question 5

how successful was the Virgin lands scheme?

Answer 5

• agricultural investment increases to 12.5% along with the amount of farmed land and labour force
• until 1958 it seems to work - there is a 35% increase in agricultural production and a 400% increase in farm income.
• however it was inefficient, 54% of Russians worked on farms vs. 4% of Americans.
• agricultural production only 15% higher than 1958 levels
• when Khrushchev leaves power agricultural yields are below 1958 levels.

Question 6

what was the corn scheme?

Answer 6

• introduced in 1958 as an extension to virgin lands.
• involved the mass planting of Maize in the Ukraine
• he believed maize would help provide food and feed healthier cattle.
• it faced the same failures as the virgin lands scheme.

Question 7

what were the reasons for Khrushchev’s agricultural failures?

Answer 7

• soil exhaustion
• unsuitability of local climates
• waning public support
• tractor stations abolished
• lack of local planning
• confusing ministry reforms
• poor pay and cuts

Question 8

what issues did Khrushchev face surrounding military spending?

Answer 8

• high levels of military spending hampered the government.
• 11% of GDP went on military
• had to spend money on weapons due to the developing cold war - Khrushchev wanted to achieve parity with the USA.
• first man in space 1961 (spending also hampered by the space race)

Question 9

how did Khrushchev reform industry?

Answer 9

• Jan 1959 - 7 year plan introduced as part of the sovnarkhoz reforms.
• designed to boost agricultural, chemical and consumer goods production
• it produced a 60% increase in consumer goods but still below target.

Question 10

what were the Sovnarkhoz reforms?

Answer 10

introduced in 1957 he replaced central planning agencies with regional sovnarkhoz. it did not eliminate central planning but was designed to make the economy more responsive

Question 11

what was the outcome of the sovnarkhoz reforms?

Answer 11

coordination did not improve as it proved impossible to have central planning and regional freedoms - beaurocracy simply increased so more centralisation was introduced to solve the problem. in 1962 the party was split in half, confusing the whole system.

Question 12

what happened in the production of consumer goods?

Answer 12

living standards did increase but factory quotas were based on the value of the goods produced so a small number of expensive goods were produced rather than a large number of inexpensive goods as the economy needed.