Twelfth Five-Year Plan Flashcards
Key issue remained after discipline attempt— how to improve the level of GROWTH in the economy.
The government approach?
The traditional Soviet method:
Increasing investment controlled by central planning to push the economy to greater production
In order to accelerate growth in the economy
Focus of Twelfth Five-Year Plan investment?
Science and research, especially in engineering
12 WEAKNESS
Investment in the Soviet Union was heavily skewed towards construction BUT
these had a habit of leading to EXTRA SPENDING needed to equip the factories constructed
LEAD TO OVERSPENDS AND SUCKED IN FAR MORE INVESTMENT THAN ORIGINALLY INTENDED
12 WEAKNESS
Equipment
Soviet industry notorious for using equipment that was
Out of date
Prone to breaking down
Old factories that relied on old equipment became increasingly unproductive
12 PROBLEM
Soviet industry was slow to…
Use new technology
Imports of foreign technology were a drain on valuable foreign exchange, which was often used to import food
12 PROBLEM
the agricultural sector
Swallowing vast sums of investment that were not leading to improvements in productivity
Gov realised there was little to be gained in terms of production growth from diverting additional sums to agriculture
12 PROBLEM
focus remained on
Quantity rather than quality
Traditional soviet emphasis on numerical targets meant quality often poor, sometimes unusable
Gorbachevs policy of acceleration did little to
Address the fundamental weaknesses of the Soviet economy
Part of the reason why Gorbachev’s acceleration failed?
The level of opposition to any tea change
Much of this opposition came from the party and the state planning apparatus
June 1986, Gorbachev:
“Take Gosplan… What they want, they do”
12th plan— Gorbachev tried to _____ the state apparatus
In an attempt to
Streamline
Avoid waste through duplication
Cut rivalry by competing interests for available resources
Rather than decentralise economic decision making, why were set up to achieve better coordination of economic activity and reduce waste?
Superministries
BUT these were unable to bring about these changes
What was the chief obstacle to the 12th 5yp reforms?
They were to be implemented by the people whose privileged positions the reforms were trying to reduce
Changes to investment priorities under the 12th 5yp came up against resistance from
This meant that
The military— powerful in pushing for new investment in military technology
Industrial/military investment could only be increased if other sectors suffered so threat to consumer goods
SO WENT INTO DEFICIT— short term remedy couldn’t be sustained
Bc of industry/military investment only being able to increase if other sectors, like consumer goods, suffered, the government
Had to go into deficit
A short term remedy that could not be sustained
