UNIT 2: HOW FAR DID ECONOMIC POLICY CHANGE BETWEEN 1953 and 1985? Flashcards
How did Khrushchev’s de-Stalinisation effect economic policy?
There was a greater focus on the promotion of light industry, chemicals and consumer goods to broaden the base of the Soviet economy.
What were the challenges Khrushchev faced with the economy that developed under Stalin?
There was a lack of initiative because terror under Stalin discouraged it.
The system was wasteful and inflexible - couldn’t respond to trends and unforseen events.
How did Khrushchev deal with the challenges with the economy that developed under Stalin?
1957 set up Sovnarkhozy to supervise enterprises and shift decision-making to regional bases who would take local circumstances into consideration.
Managers given more influence in factories to encourage initiative and were allowed to keep 40% of profits made by their factory.
Greater emphasis on vocational educationto support industrial developments e.g. technical schools set up.
What were the features of the 7th Five year plan (1959-65)?
Focused on the promotion of light industry with a focal shift from coal to oil and gas which was little used.
Production of synthetic fibres was to increase from 166,000 tons in 1958 to a target of 666,000 tons by 1965.
What were the results of the 7th five year plan?
USSR sent the first dog into space in 1961 and made Yuri Gagarin the first man in space. - source of Soviet pride.
Consumer goods more abundent which improved living standards.
Poor quality of consumer goods to meet target - shoe factory had all of its heels nailed to the toe.
Annual growth rate in 1950s was 7.1% compared to the US 2.9% - but USSR had a smaller economic base.
Poor labour productivity, inefficiency and waste remained.
Overall, Stalin’s influence of the military-industrial complex was to strong for Khrushchev’s reforms.
What was the problem of food production when Khrushchev came to power?
It limited further growth in industry.
It kept living standards low.
Stalin sacrificed agriculture for the needs of industry.
What are the features of the measures introduced by Khrushchev to increase productivity?
1955, collectives given more power to make decisions at local level to increase flexibility over how directions were implemented.
MTS removed because of peasant resistance - peasants now expected to buy their own machinery.
Increased size of collectives to enable greater investment - led to rapid increase in mechanisation, fertilisers and irrigation.
Peasants could sell produce to private markets and compulsory seizure of food replaced with planned state purchases - encouraged greater productivity and ensured regular food supplies to the population.
Virgin Land Scheme 1954 - volunteers from Komsomol worked on land in Siberia and khazakhstan - 6 milll acres brought under cultivation with considerable investment.
What were the results of the measures introduced by Khrushchev to increase productivity?
Farmer’s wages doubled between 1952 and 1958 but still below industrial workers.
Food production increased by 51% between 1953 and 1958.
Productivity still low.
Virgin land scheme was failing because of the dry land. USSR had to import grain from north america and australia.
Khrushchev dismissed in 1964
Describe the Kosygin reforms.
1965
Reforms aimed to improve creativity in decision-making and improve productivity.
Attempted to make central planning focus on cost and profit rather than the stalinist approach of quantity as the indicator of success.
Bonus for output was higher than bonus for innovation so new methods were rarely tried and enterprises mass produced expensively priced items - shortages of much needed items.
Reforms unsuccessful because the officials implementing them were unenthusiastic about them, central planners disliked that they were accountable for policies they had little control over.
Kosygin sidelined in 1968
Describe the reforms under Brezhnev.
In 1973, major industrial complexes were joined with scientific research institutions to ensure the latest technology was applied to production. However, it was limited because they didn’t achieve a higher output than the old machines.
In 1974, the system of targets was centralised with a focus on cost and profit, but this was not helpful because it was not compatible with supply and demand.
Describe the 9th Five year plan.
1971-75
Greater emphasis on consumer goods.
Although growth rate in the production of consumer goods was higher that heavy industry, goals were not fulfilled.
Living standards rose - by 1980, 85% of families had a TV, 70% had a washing machine, 9% had a car.
Describe agriculture during the Brezhnev years.
Khrushchev’s decentralising schemes reversed and power returned to the ministry of agriculture. Virgin land scheme dropped.
By 1976, investment in agriculture increased to 26%.
Resulted in a steady rise in overall production but a decline in workers productivity as the workforce was unskilled, machinery prone to breaking down.
Food production failed to reach rising demand, it rotted before it reached the market - shortage of foodstuffs in state shops.
Private plots made up 1% of cultivated area but produced 25% of all produce.
Describe the attempted reforms of Andropov.
1982-84
Focused on removal of corruption in the system as production figures were often falsified and material would be stolen and diverted into private production for black market - e.g. dresses were made shorter to save fabric.
Focused on improving labour discipline by conducting spot checks as the workforce suffered fom absenteeism and alcoholism. But added to the resentment many felt towards the government.
By the 1980s, economic growth in the USSR was in a steady decline.
Give figures to show this.
The growth rates were
* 7% in the 1950s
* 5% in the 1960s
* 3% in the 1970s.
However, output was expressed in terms of value of goods produced based on prices decided by the government therefore, the situation was often worse than what the figures indicated.
Quality was often sacrifced for quantity
Give an example to show this.
Soviet tyres were made thin and therefore, were prone to bursting
The focus on quantity hid poor levels of productivity - Agriculture used
* 25% of the workforce
* 26% of investment
* a larger cultivated area than the USA
- yet produced around 17% of US output.
