Lesson 7-How successful were Khrushchev's economic reforms?

Question 1

Define light industry.

Answer 1

Term used for industries that are involved in manufacturing goods, often household products such as clothes, shoes and furniture.

Question 2

Give some examples of heavy industries.

Answer 2

Coal
Steel
Oil

Question 3

Light industries have a more direct impact on the standard of living than heavy industries.
True or false?

Answer 3

True

Question 4

What was The Liberman Plan?

Answer 4

Plan which was drawn up to address the issues of underperformance in the Soviet economy.

Question 5

What did Liberman believe it was vital to do?

Answer 5

To encourage greater initiative in the command economy in order to improve productivity.

Question 6

Define military-industrial complex.

Answer 6

Term given to the powerful bloc (alliance) created by links between the armed forces and those sectors of the economy involved in the manufacture of military products.

Question 7

What did The Virgin Lands Scheme encourage?

Answer 7

The opening up of new areas to agricultural production.

Question 8

5 key problems with Stalin FYPs.

Answer 8

1. Focused on heavy industry at the expense of consumer goods.
2. Quantity over quality
3. A lot of money was diverted to the military
4. Agriculture was under funded and not mechanised
5. Were run under a command economy

Question 9

What did Stalin’s death mean for industry?

Answer 9

Focus moved away from heavy industry towards light industry, consumer goods, chemicals and agriculture at a realistic pace.

Question 10

What did Stalin’s death mean for economic policy?

Answer 10

Changed the pace and focus of it

Question 11

Why was the pace and focus of economic policy changed?

Answer 11

To broaden the base of the Soviet economy and to bring real benefits to the lives of the people.

Question 12

Why did Khrushchev’s economic policy face challenges?

Answer 12

Rigid command economy

Question 13

Why did the rigid command economy mean Khrushchev’s economic policy faced challenges?

Answer 13

-Vast bureaucratic system administrators stifled initiative
-System = clumsy & wasteful (administrators estimated demand and then set target-if demand increased then it could not be met)

Question 14

Summarise Khrushchev’s 4 key reforms.

Answer 14

1. 1957-105 regional council (Sovnarkhozy) were set up.
2. Harsh labour laws were removed.
3. Managers given more influence in their factories.
4. Greater emphasis on vocation education

Question 15

Why were Sovnarkhozys set up in 1957?

Answer 15

Was an attempt to de-centralise decision making to the regions

Question 16

How were harsh labour laws removed?

Answer 16

Working hours reduced from 48 to 41 hrs by 1960.
Incentives replaced coercion

Question 17

How were managers given more influence in their factories?

Answer 17

Allowed to keep 40% of their profits to invest how they liked in their enterprise.

Question 18

How did Khrushchev ensure there was a greater emphasis on vocational education?

Answer 18

Specialist technical schools were set up.

Question 19

When was The Liberman Plan?

Answer 19

1962

Question 20

What did The Liberman Plan call for?

Answer 20

Greater autonomy (freedom) for local managers and for the market to replace the state as the decider of prices.

Question 21

Who was Liberman?

Answer 21

A Soviet economist

Question 22

What did Liberman recommend?

Answer 22

Greater de-centralisation of decision-making and greater use of economies of supply and demand to set prices.

Question 23

Who were Liberman’s ideas resisted by?

Answer 23

conservatives within the Politburo and Party officials

Question 24

Why did the conservatives resist Liberman’s ideas?

Answer 24

Feared a loss of influence in economic planning.

Question 25

When was the Sixth Year Plan?

Answer 25

1956-60