RR - Unit 2 - Industrial and Agricultural Change Flashcards

1
Q

What is a Command Economy?

A

Controlled and directed by the state in the interests of the people

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2
Q

Economic Problems in 1917 - 4 Points

A
  • Capitalists treated workers poorly
  • Economy was backwards and unsophisticated - Russia was far behind in industrialisation
  • Lenin was unsure about what a socialist economy entailed
  • People did not have food or materials
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3
Q

State Capitalism in the Early Years - 4 Points

A
  • March 1918 - introduced a transitional phase between capitalism and socialism
  • Lenin knew the economy was not ready for full blown socialism
  • Based on nationalisation of large-scale industry - ownership was passed to the State
  • Small businesses not yet nationalised
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4
Q

Vesenkha - 7 Points

A
  • Set up in December 1917
  • Known as the Supreme Council of the National Economy
  • Controlled the nationalised industries
  • Centralised control - Lenin thought this would lead to greater efficiency as specialists were employed to run the economy
  • Re-establish worker discipline - offer higher pay for productive workers
  • Ensure proper management of factories
  • Co-ordinate economic production to meet demands of society
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5
Q

Lenin’s Early Economic Measures and Aims - 5 Points

A
  • High levels of production of war goods and increase in food production to feed soldiers
  • Efficient allocation of workers
  • June 1918 - nationalisation of all industries with 10 or more workers
  • Had long term aim to abolish all private enterprises, which led to radical policies
  • Greater government intervention in the economy, which led to war communism
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6
Q

War Communism - 11 Points

A
  • Conscription, created a food dictatorship, introduced rationing, abolition of trade, and improved labour disciplines
  • Workers assigned to factories or to fight in the army
  • Grain requisitioning had Cheka squads authorised to seize grain and other forms of food from peasants without payment, which was then used to feed the workers and soldiers
  • 150,000 Bolshevik volunteers use to seize the grain
  • Largest rations went to soldiers/workers and smallest went to bourgeoise
  • 1918 - working day extended to 11 hours, when it was originally 8
  • 1919 - work compulsory for all able-bodied people aged 16 - 50
  • Harsh punishments for being late or slacking
  • Private trade made illegal
  • Government delivery caused hyperinflation so money became worthless
  • Workers were paid in rations and public transport services were made free
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7
Q

Consequences of War Communism - 7 Points

A
  • Economic collapse, growth of the black market, mass poverty, and political crises
  • Industrial production declined significantly as many left to work on farms - 1917 production was at 3 million tonnes, but 1922 it was at 1.2 million
  • Agricultural production as there was no incentive - food was being taken with no payment and they had little to eat
  • 1921 - harvest was 46% of the 1913 harvest, with 6 million dead from famine
  • 60% of food in cities was from the black market
  • August 1920 - June 1921 - Tambov uprising, where peasants rebelled against the government
  • March 1921 - Kronstadt mutiny, where sailors mutinied and government responded with military action
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8
Q

NEP - 4 Points

A
  • New Economic Policy 1921
  • Created a mixed economy with a price and public sector
  • Operated on market forces
  • Temporary fix to keep the Bolsheviks in power and to make a more socialist economy
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9
Q

Reasons for the NEP - 5 Points

A
  • Industry had fallen to 20% of its 1913 levels
  • Food production had fallen to 48% of its 1913 levels
  • War communism created resentment towards the government and those that benefitted
  • Civil war had ended, which meant a new situation, and a new response was needed
  • Uprising demanded change - particularly Kronstadt Mutiny, as they had been involved in the revolution
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10
Q

Key Aspects of the NEP - 7 Points

A
  • Food requisitioning was replaced by a system of taxation, which allowed the peasants to sell any remaining food for profit
  • No forced programme of collectivisation
  • Small scale industry was returned to private hands
  • State kept control of heavy industry
  • In state-owned factories, bonuses were used to try and raise production
  • Introduction of legislation of private trading to stop the growth of black marketing
  • Introduction of currency for paying wages
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11
Q

Reactions to the NEP - 4 Points

A
  • Some saw it as a betrayal to the revolution, as it had capitalist aspects
  • Unrest reduced and the economy improved
  • Promoted a new middle class of ‘nepmen’, who benefitted greatly and were previously bourgeoise
  • Wealthier peasants created called ‘kulaks’
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12
Q

Consequences of the NEP - 6 Points

A
  • Industrial growth - market production increased and the government invested money from taxes in the reopening of factories
  • Ending grain requisitioning provided some political stability as peasants did not like it
  • Growth in grain production from 37.61 million tons in 1921 to 56.5 million tons in 1923 - still below 1913 levels
  • Created inequality - nepmen arrested by the Cheka for profiteering and getting rich, while others were poor
  • Corruption - gambling, drug dealing, and prostitution took place
  • Scissor’s Crisis
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13
Q

Scissor’s Crisis - 4 Points

A
  • NEP caused uneven economic growth
  • Food production increases greatly but industrial growth occurred slowly
  • By 1923, the gap between farmer’s income and industrial crisis had to be subsided by the government
  • Meant less money to improve the economy
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14
Q

Nature of Stalin’s Five Year Plans - 4 Points

A
  • Stalin’s radical economic policies is known as the Great Turn/Second Revolution
  • Government initiative to increase production
  • Gosplan
  • All targets were backed by propaganda celebrating the successes of the plans
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15
Q

Overall Aims of the FYPs - 5 Points

A
  • Breakaway from the NEP and make the USSR self-sufficient
  • Bring about rapid industrialisation to modernise the economy
  • Remove nepmen
  • Use the most advanced technology
  • Mass mobilise the Soviet people and resources
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16
Q

What Happened to the Bourgeoise Experts Who Retained Their Positions to Provide Expertise to Keep the Industry Running Smoothly? - 3 Points

A
  • Campaign against the bourgeoise experts
  • 1928 - series of show trials against them, and they were accused of ‘deliberate sabotage’
  • Loss of this group hindered the process made under the five year plans
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17
Q

First FYP - 3 Points

A
  • 1928 - 1932
  • Focused on rapid growth in heavy industries, such as coal, iron and steel
  • Neglected consumer industries and production of household goods to allow the industrial sectors to flourish
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18
Q

Second FYP - 3 Points

A
  • 1933 - 1937
  • Initially set higher targets to produce consumer goods
  • Rise of Hitler in the 1930s redirected focus onto the needs of defence, and heavy industry received the priority
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19
Q

Third FYP - 2 Points

A
  • 1938 - 1941
  • Geared towards arms production
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20
Q

Results of the First FYP - 9 Points

A
  • Large industrial centres, such as Magnitogorsk, were built and became large cities with a population of 250,000
  • Facilities at these centres were primitive and workers were housed in tents and temporary huts
  • By 1933, 17% of the workforce in Moscow as skilled
  • Government relied on the use of shock-brigades made up of the best workers to set an example
  • Rewards for model workers, such as new flats or bigger rations
  • Government used slave labour from the gulags to complete large building projects in remote and cold regions like Siberia, which had a large human cost
  • White Sea Canal project employed 180,000 prisoners, but during the winter of 1931 - 1932, 10,000 prisoners died on this project
  • Factory managers were faced with unrealistic targets, so used a wide range of enterprising methods, such as ambushing resources for other factories and bribery
  • Quality was often sacrificed in the rush to fulfil targets
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21
Q

Results of the Second and Third FYPs - 6 Points

A
  • Coal production rose during the second plan
  • Chemical industry made process, but oil industry did not
  • Much of the new industry in remote areas, such as Kazakhstan, acted as a form of regional development to promote even more distribution of industrialisation throughout the USSR
  • Rapid growth in engineering industry and transportation
  • Consumer industries suffered as the collectivisation of agriculture had destroyed a lot of industry in rural areas
  • New bakeries and meat packing factories were established in many towns, but this did not solve the problems of shortages in important consumer goods
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22
Q

Factors That Limited the Achievements of Stalin’s Economic Policy - 3 Points

A
  • Poor planning and implementation
  • Adoption of the command economy led to failures because planners in Moscow had little understating of local conditions in certain parts of the USSR
  • Removal of managers and technical experts through the purges in 1937 slowed down economic progress
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23
Q

Reasons for Collectivisation in Terms of Links With Industry - 4 Points

A
  • Fear of invasion by foreign powers
  • Modern economic base was seen as essential if the Soviet Union was to defend itself against an attack by capitalist powers
  • Industrialisation would lead to an increase in the population of towns and cities that would need to be fed by an increase in food surplus
  • New industries need technology from abroad and this was paid for by expiration of food surpluses
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24
Q

Economic Reasons for Collectivisation - 4 Points

A
  • Formation of collective farms where peasants would be grouped together on larger farms
  • Resulted in larger units that made the use of machinery more viable and cost effective
  • Use of machinery would enable increased food production and the reduction of labour requirements for agricultural production
  • Would release workers for the growing industrial plants
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25
Q

Political Reasons for Collectivisation - 5 Points

A
  • Help extend socialism in the countryside and ensure the survival of the revolution
  • Control of the Party in the countryside was weak and its support had declined since the Tambov Uprising in 1921
  • Land Decree in 1917 resulted in land being the personal property of individual presence, which was not what the Bolsheviks wanted
  • Would provide opportunity to get rid of the kulaks, who were seen to be hoarding food for their own consumption
  • Led to pressure on leadership to rid the country of these capitalist classes because they prevented progress towards socialism
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26
Q

Ural Siberian

A

Government carried out forced requisitioning of grain as a temporary measure to cope with food shortages in 1928, even though the 15th Party Congress decided on a programme of voluntary collectivistaion

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27
Q

How Did Stalin Limit the Exploitative Tendencies of the Kulaks? - 2 Points

A
  • Local Party officials went into villages to announce the organisation of a collective farm, Kolkhoz, and persuaded peasants to become members
  • Peasants that refused to join the collective farms were labelled as class enemies and deported to Siberia
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28
Q

Violent Opposition From Peasants as a Result of the Implementation of Collectivisation? - 2 Points

A
  • Rather than hand over their property to the state, many kulaks set fire to their farms and slaughtered their animals
  • Party officials were sometimes murdered on arrival in villages
29
Q

How Was Opposition Against Collectivisation Dealt With? - 2 Points

A
  • De-kulakisation squads were sent from cities to help forcibly organise collectives
  • OGPU were used to round up the kulaks and other peasants who refused to cooperate and deport them to remote regions of the USSR
30
Q

How Many Peasant Households Had Been Collectivised by 1937?

A

93%

31
Q

What was Light Industry?

A

Goods such as clothes, shoes and furniture

32
Q

Seventh FYP 1959 - 1965

A

Focused on the production of light industry

33
Q

Results of the Seventh FYP 1959 - 1965 - 6 Points

A
  • First space satellite, Sputnik, was launched in 1957
  • In 1961, Yuri Gagarin became the first man to visit space
  • Consumer goods were more abundant, which raised living standards for many
  • Annual growth in 1950s was 7.1%, compared to the US growth rate of 2.9%, but still lagged because of a smaller economic base
  • Poor quality products were produced because of the rush to meet targets
  • By 1964, economic growth slowed, and spending on consumer goods was reduced and the housing programme was cut back
34
Q

Virgin Land Scheme - 4 Points

A
  • Aimed to transformed unarmed land into new farms
  • Launched in 1953
  • Required significant investment - budget went from less than 3% to 12.8%, meaning other areas were sacrificed
  • Areas of farmed land increased went from around 18 million hectares won in 1953 to around 97 million hectares in 1964
35
Q

Kosygin Reforms 1965 - 4 Points

A
  • Implemented to take more notice to cost and profit rather than using quantity produced as the main indicator of economic success
  • Central planners disliked the reforms that made them accountable for policies they had less control over
  • Focus on bonus for profit caused some enterprises to make fewer expensively priced items, rather than mass produced cheap items that were much more needed
  • Reforms sabotaged by Brezhnev
36
Q

Ninth Five Year Plan 1971 - 1975 - 4 Points

A
  • Pushed for greater consumer goods
  • Goals not achieved
  • Growth was still impressive and living standards rose
  • E.g. 85% of families had televisions
37
Q

Andropov’s Attempted Reforms - 4 Points

A
  • Believed the current system could work with a more disciplined approach
  • Focused on removal of corruption from within the system, whereby production figures were falsified and material would be stolen and diverted into private production for black market
  • Focused on improving labour discipline by conducting spot checks
  • Added to the resentment many felt towards the government
38
Q

Figures to Show that Economic Growth was in a Steady Decline - 4 Points

A
  • 1950s - 7%
  • 1960s - 5%
  • 1970s - 3%
  • Output expressed in terms of value of goods produced was based on prices decided by the government
39
Q

What was Soviet Production Compared to the USA?

A

Output was 1/6th of USA’s output

40
Q

Why Can it Be Argued that the Leadership Under Brezhnev was Responsible For the Economic Decline? - 3 Points

A
  • Cautious and his age rendered him immobile
  • Leadership preferred to keep party officials happy, rather than encourage growth,
  • Use of government set prices when planning and measuring economic performance did not help solve or identify issues of inefficiency
41
Q

Why Can it Be Argued that the Leadership Under Stalin was Responsible For the Economic Decline? - 2 Points

A
  • Focused on rapid growth in industrial output to bring about rapid industrialisation
  • Move towards efficiency and quality was difficult to achieve in the highly centralised system
42
Q

Why Was Central Planning Bad for a Complex Economy?

A

Production was decided by central planners who could not cope with the changes in circumstances or trends in fashion

43
Q

Weaknesses of Stalin’s Five Year Plans - 2 Points

A
  • No attempt to ensure factories were fully equipped
  • Resulted in a command economy, rather than a planned economy, which may have been more efficient
44
Q

Successes of Stalin’s Five Year Plans - 6 Points

A
  • Heavy industry was most successful and increased rapidly - 165.9 million tons of coal produced
  • New factories built, such as in Lipetsk
  • By 1940, 1/3 of government spending was on rearmament
  • Moscow’s first train line was opened in 1935
  • Moscow-Volga canal was constructed from 1932 to 1937, using 200,000 gulag prisoners
  • Higher payments for workers made them more productive
45
Q

Limitations of Stalin’s Five Year Plans - 3 Points

A
  • Lack of consumer goods and light industry had not been developed
  • Production quality was often low, and around 40% of what was produced was wasted
  • Housing for the increased workforce was not built
46
Q

Basis for Collectivisation - 2 Points

A
  • Small farms were merged into large farms of 20 to 150 families
  • Large farms owned by the state - they had control and ownership of resources and peasants could no longer sell leftovers for income
47
Q

Processes of Collectivisation - 8 Points

A
  • July 1928 - Stalin ordered the Cheka and the Red Army to requisition grain from peasants, which was used to feed workers and feel abroad to raise money for industrialisation (end of the NEP)
  • July 1928 - dekulakisation, peasants withheld grain, and Stalin began liquidation of the kulak class
  • Around 1.5 million kulaks were put in labour camps
  • 1929 - collectivisation announced
  • Farms forcefully merged and equipment taken from richer peasants to give to the poorer ones
  • Machine tractor stations created (MTS)
  • March 1930 - ‘dizzy with success’ introduced to slow down collectivisation due to oppositions
  • 1941 - almost all households had a radio
48
Q

Political Successes of Collectivisation - 2 Points

A
  • Moving towards communism - economy no longer dominated by a private market
  • The Party gained control of the villages - had control of the countryside and made agriculture serve industry
49
Q

Economic Successes of Collectivisation - 4 Points

A
  • State procurement increased - nearly 100% by 1941, meaning more food to feed the workers
  • 5 million out of 22.6 million tons of grain was exported in 1933
  • Fall in demand for animal fodder meant more food for peasants
  • Dispossessed peasants moved to towns, providing more labour for the factories
50
Q

Economic Failures of Collectivisation - 4 Points

A
  • Grain harvest and production fell from 73.3 million in 1928 to 67.7 million in 1934
  • 1932 - 1933 - widespread famine occurred, particularly affecting Ukraine
  • Livestock numbers halve between 1928 - 1933, and did not recover until 1953
  • Grain could not be sold abroad once the Great Depression hit
51
Q

Human Cost of Collectivisation - 4 Points

A
  • Kulaks executed or deported
  • Famine
  • Resulted in more deaths than Hitler - some peasants cheered invading forces in 1941
  • Estimated 10 million peasants disposed between 1928 - 1932, of which at least 3 million died
52
Q

Economy During the War - 3 Points

A
  • Most able-bodied men recruited to fight, which reduced the workforce
  • Factories converted to produce war materials, which caused a fall in production of other products
  • Steel production fell by 6 million tons between 1940 - 1945
53
Q

Economy in 1945 - 4 Points

A
  • 25 million homeless
  • Industry production 1/3 of 1940 rates
  • Agriculture production 1/2 of 1940 rates
  • Oil production 1/3 of 1940 rates
54
Q

Improving the Economy After the War - 11 Points

A
  • 90% of investments are on developing industry
  • Factories need to be reconverted to produce their normal materials
  • Large industrial plants needed to be rebuilt
  • Able to exploit East Germany by taking large amounts of machinery from them
  • By 1950, Soviet industry was producing more coal, oil, and electricity than in 1940, following the Fourth FYP
  • Failure to adopt new technologies and neglect of consumer goods industry
  • After 1948, living standards in towns began to recover, prices were reduced, and wages increased
  • Prestige projects, such as the Volga-Don canal, were useful as propaganda for the regime
  • Agriculture progressed in a more communist direction, as the war had stoped this - increase in taxes on private plots and abolition of the link system, meaning they could not sell surplus grain
  • Agricultural production remained low as most able-bodied men went to towns to work and there was a shortage of livestock
  • Drought in 1946 and famine in 1947
55
Q

Results of the Fourth FYP 1945 - 1950 - 2 Points

A
  • Industrial production, particularly metal and heavy engineering, recovery quickly by using slave labour from the Gulags
  • String central planning - retraining programmes ensured workers had required skills for the jobs that needed to be filled
56
Q

Results of the Fifth FYP 1951 - 1955 - 2 Points

A
  • Increased arms expenditure
  • Resources that could have been used to build housing was used to build grand projects and large government buildings
57
Q

Agricultural Economic Policies 1953 - 1964 - 6 Points

A
  • Aimed to increase farming by investing in it
  • Production increased and there was a 250% rise in farm incomes between 1952 - 1956
  • Limited as this was not communist, and the government lost money
  • Virgin Land Scheme
  • Increased investment in farm equipment and fertiliser - by 1953, there was a 30% increase in availability of tractors and 40% increase in amount of fertiliser
  • Corn Campaign
58
Q

Corn Campaign - 4 Points

A
  • 1950s - 1960s
  • Encouraged farms in Ukraine to grow more maize to feed animals, in order to produce more meat
  • Failed as it was based off USA successes and did not consider the different climates
  • Resulted in less hay being produce, which was used to feed animals
59
Q

Reasons for the Failures of Khrushchev’s Agricultural Economic Policies - 7 Points

A
  • Worker pay increased but remained inadequate
  • Continually reformed ministries dealing with agriculture, which caused administrative confusion
  • Some farms did not have suitable means for food storage, causing food to be wasted
  • Soviet planers did not always provide the correct fertiliser
  • Abolishment of MTS meant farmers could not access farming equipment
  • Khrushchev reduced investment in agriculture from 12.8% in 1954 - 1959, to 2% in 1960
  • Failed to make farming efficient as long-term problems of inefficiency and waster continued
60
Q

Problems in Soviet Industry - 2 points

A
  • Stalin’s use of terror and harsh labour laws discouraged innovation, meaning there were no advancements
  • System was wasteful and was inflexible to change
61
Q

Industrial Economic Policies 1953 - 1964 - 6 Points

A
  • Khrushchev wanted to move focus from heavy industry to light industry
  • Harsh labour laws and working hours reduced
  • 105 regional councils introduced to supervise enterprises and managers were given more incline
  • 40% of profits could be reinvested in equipment
  • 1962 - Liberman plan provided greater autonomy for local managers and replaced the state as deciders of prices
  • 7 Year Plan aimed to boost production and discovery of new minerals was encouraged
62
Q

Results of Industrial Economic Policies 1953 - 1964 - 9 Points

A
  • Most of targets not met, but considerable increase did occur
  • 60% increase in consumer goods - 5% below target
  • Synthetic fibre production increased by 19 million tons - 3.5 million tons below target
  • Plans caused problems as they were always being undermined by continued economic reform, such as the division of the party
  • Some factories produced high quality products, but people could not afford them
  • Problems of productivity, inefficiency and waste remained
  • Targets of plans changed in 1962 and became more successful - actually met targets
  • Annual growth in 1959 was 7.1%, compared to 2.9% in the USA - still lagged behind due to smaller base
  • By 1964, economic growth and spending on consumer goods had slowed
63
Q

Removal of Khrushchev’s Changes Under Brezhnev - 4 Points

A
  • Party was reunited
  • Seven Year Plans abandoned, and from 1966 the economy followed Five Year Plans
  • Changed the commitment to Khrushchev’s ‘building socialism’ to ‘developed socialism’ - an economy with job security and low prices
  • Low prices achieved by importing grain from the West, rather than continuing the Virgin Land Scheme
64
Q

Kosygin Reforms Under Brezhnev - 5 Points

A
  • Aimed to stimulate light industry
  • Cut investment in inefficient collective farms and diverted the money to light industry
  • Proposed giving power over production to managers and judging success by profit not production to force factories to produce goods consumers wanted
  • Introduced in January 1968 but ended in August as similar reforms were introduced in Czechoslovakia, which resulted in rebellion
  • Ending of reform returned authority of production to central planners
65
Q

Military Investment Under Brezhnev - 3 Points

A
  • Increased investment in an attempt to achieve nuclear parity with the US in terms of nuclear fire power, so they would not have to back down like in the Cuban Missile Crisis
  • Military spending increased from 11% of the GDP in 1964 to 13% in 1970
  • Policy was unsuccessful and nuclear parity was achieved but it drained the economy and caused problems
66
Q

Second Economy Under Brezhnev - 2 Points

A
  • Black market grew so large it became a second economy
  • Accepted as a necessary evil is it increased access to consumer goods and food - aided Brezhnev’s goal of raising living standards
67
Q

Economic Successes Under Brezhnev - 5 Points

A
  • Increased oil prices, which meant greater income and raised living standards
  • Oil exports went 243 million tons to 603 million tons in 1980
  • Increased production of consumer goods
  • Second economy helped to improve living standards
  • USSR produced extensive growth
68
Q

Economic Failures Under Brezhnev - 4 Points

A
  • Increased military investment was not sustainable
  • Kosygin reforms were ineffective
  • Andropov’s reforms did not prevent economic decline or improve labour discipline, as they were poorly enforced
  • Unable to produce intensive growth