Theme 5 Seneca Flashcards
Economic Weaknesses in the USSR by 1985- centralised economy
The centralisation of the economy made it inefficient and this contributed to its weakness.
It was impossible to run the economy across the whole USSR from Moscow.
Bureaucrats sometimes failed to coordinate fertiliser shipments and they arrived at farms at the wrong time.
Incorrect steel and oil products were sent to factories.
Economic Weaknesses in the USSR by 1985- Lack of incentives
There were few incentives within the communist economy for working hard or innovating. This led to lower productivity levels. Industrial targets were always based on quantity, not quality. Goods produced were often useless.
Economic Weaknesses in the USSR by 1985- US rivals
American farms were six times more productive than Soviet farms but required far fewer workers.
Economic Weaknesses in the USSR by 1985- undeveloped aspects of the economy
Transport links remained undeveloped throughout the period.
Storage facilities remained undeveloped, so a lot of product was wasted.
Military Expenditure by 1985
Military expenditure was a significant portion of the USSR’s GNP. This took a toll on the stagnant economy.
Expenditure Between 1965 and 1985
Soviet military spending was incredibly high.
During the two decades after 1965, spending on defence went up from 12-17%.
In this phase of the Cold War, the US spent around 6% on defence.
Military expenditure: an economic burden?
By 1985, there was no growth any more in the Soviet economy. Inefficiencies and long-term problems were undermining the USSR.
Economic Reforms Between 1985 and 1990
Alongside long-term factors, Gorbachev’s failed economic reforms accelerated the fall of the USSR in the short term.
Result of economic reforms
Market reforms led to economic chaos. They fell through the gap between a socialist planned economy and a true free market alternative.
Shortages of essential goods became more and more severe.
Distribution of goods such as grain became ever more tricky.
GDP fell 4% from 1986-90.
Rationalisation 1985-1986
Uskorenie (acceleration) meant a programme of investment and modernisation.
It failed because borrowing money from Western governments led to a huge rise in the national debt.
This led to inflation.
Investment in energy did not have the desired effect.
Andropov’s anti-alcohol campaign continued.
But as the state cut alcohol production, people began buying alcohol illegally.
Alcohol revenues fell by 67 million roubles, and as such, the burden of the alcohol ban became too great.
500 Day Programme
Gorbachev and Yeltsin’s programme in 1990 was designed to transition the economy rapidly to a market model
Gorbachev ended up turning away from the programme after criticism from hard-line Communists.
January 1991: Supreme Soviet introduced private property.
Further reforms allowed ownership of stocks and shares.
The reforms continued to fail. Production of oil fell 9%, while steel production fell 12%.
The government was effectively bankrupt by 1991.
Gorbachev’s reforms came in three phases:
Rationalisation: Gorbachev tried to make improvements to the existing state-controlled command economy.
Reform: Gorbachev tried to introduce some free market measures into the existing economic structure. He wanted a hybrid of socialism and capitalism.
Transformation: Gorbachev abandoned the state-controlled command economy entirely.
Spinner’s view of the USSR’s economic weakness
Most symptoms of the crisis [of the Soviet Union] and the ultimate breakdown of the system can, in fact, be attributed to the impact of economic failure. Whereas economic modernisation was the motor of success in the earlier decades of the Soviet Union, the economy became the weakest link of the Soviet system.’
McCauley’s view of Gorbachev’s leadership
‘China and Vietnam have demonstrated that it is possible to move from a command to a market economy without undermining the power of the Communist Party. Hence the reasons for the failure of economic reform are political. Gorbachev removed the ideological and political pillars on which the Soviet Union was built.’
Historical views on the impact of Gorbachev’s economic reforms
Some have said that the policies failed because they did not fit with the existing institutions and approaches.
Gorbachev was constantly modifying his approach, so his policies had no time to mature.
Others have suggested that the system was too weak anyway for Gorbachev’s policies to succeed.
Oliver’s view of Gorbachev’s leadership
‘While the Soviet economic model suffered from inherent flaws, these were not the fundamental cause of collapse…By the early 1980s, woefully bad economic signs forced the Soviet leadership to embrace radical policies. Under Gorbachev’s over-confident leadership, the introduction of a heady mixture of political and economic reforms fatally undermined the Soviet system and ensured its ultimate collapse.’
McCauley’s view of the USSR’s economic weakness
The collapse was the result of unintended consequences of government policies. The economy played a key role here. In an attempt to stimulate a slowing economy, the leadership adopted policies which fatally weakened the political and ideological pillars which sustained the system. This brought down the whole edifice…The conclusion is that poor leadership provoked political and economic collapse.’
Historical views on Gorbachev’s role in the collapse of the USSR
Some say the economy would have collapsed regardless of Gorbachev’s interventions. His attempts may have simply hastened the process.
Others argue that Gorbachev’s economic reforms could have worked. The mistake he made was that he attempted both economic and political reform at the same time. In doing so, he allowed citizens to protest when the economy failed. This led to the fall of the regime.
Gorbachev’s Aims for Reforming the Communist Party- Aim of democracy
Gorbachev wanted to move the Leninist one-party dictatorship towards a democracy. After all, under the communist theory, the phase where the country was ruled by dictatorship should have been temporary.
Gorbachev presented the idea that Lenin had wanted to move towards democracy in the long-term.
Gorbachev wanted to use democracy as a way to purge corrupt officials from the Party.
Purging old members
Gorbachev purged Party leaders who had been closely allied with Brezhnev. New ministers joined the government, who favoured more reform.
Nikolai Ryzkhov became Prime Minister.
Viktor Chebrikov became KGB head.
Boris Yeltsin became head of the Communist Party in Moscow.
After Glasnost, Gorbachev’s later political reforms centred around moves towards democracy.
1988: The Party Conference allowed elections to Soviets involving several candidates.
Citizens could choose between different candidates from within the Communist Party.
The first election of this sort took place in 1989. 5 members of the Central Committee lost their seats, and more radical (reforming) Communists were more successful.
Radicals like Boris Yeltsin did well. He won 89% in Moscow.
1990 Republic elections
A further weakening of the Communist Party happened during the nationwide elections of 1990. ‘Democratic Russia’ secured 85% of the seats in Moscow.
It became increasingly clear that Gorbachev’s reforms were backfiring.
Impact of Gorb’s reforms- Internal conflict in the Communist Party
Reforms divided the Communist Party into the more traditional Communist hardliners, more moderate members and the most radical Communists who supported attempts to reform the system.