Brezhnevs Economy (and Andropov)

Question 1

Issues with deciding on economic policy under Brezhnev

Answer 1

Politburo was divided:
- reformers (believed stimulation of innovation could save the economy)
- conservatives - Brezhnev (stuck to Stalins command economy)

Question 2

Removal of khruschevs reforms:

Answer 2

• 1965 - 105 regional economic councils abolished
• centralisation (greater influence from conservatives like Brezhnev)
• gosplan given greater plans of coordination

Question 3

Kosygin reforms

Answer 3

• 1965
• Alexi Kosygin (PM)
• reforms to increase innovation
• incentives for managers to be more efficient and waste less
• made central planning focus on profit and costs (rather than quantity targets)

however little achieved as those implementing them were unenthusiastic and hostile - Brezhnev sabotaged the reforms, watered down till inefficient

Question 4

Effects of Kosygin reforms

Answer 4

• bonuses for output were higher than that for innovation (managers didn’t branch out)
• bonuses for prosit encouraged less production and higher prices
• Kosygin sidelined in 1968 (foreign affairs)

Question 5

Brezhnev economic reforms:

Answer 5

• 1973 industrial complexes joined with science/research to apply tech to production - ‘alliance of the working class with science’
• targets further centralised in 1974, added more focus on cost and profit

Question 6

Effects of Brezhnev limited reforms in economic planning:

Answer 6

Didn’t do much to reform the system
- new tech implementation failed as managers didnt want to lose production when being installed (rusted)
- prices still set by the government so cost/profit targets weren’t useful

Question 7

Ninth 5YP under Brezhnev

Answer 7

1971-75
- consumer goods, placed higher than heavy industry
- goals not achieved but still successful!
- 1980:
- 85% had TVs
- 70% washing machines
- only 9% with a car by 1980 BUT huge improvement in public transporters

Question 8

The continued authority of the military industrial complex

Answer 8

• Brezhnev persuaded ‘metal eaters’ to divert funding and resources to agriculture and light industries
• MIC remained powerful however and decisions were made without informing members of the politburo

Question 9

Reversal of khruschevs agricultural reforms:

Answer 9

• VLS dropped
• decentralisation reversed
• Ministry of agriculture had returned power

Question 10

Investment in agriculture 1976

Answer 10

26%
- fertiliser HUGE focus
- also allowed for production on bigger scale on private plots

Question 11

Effects of Brezhnev agriculture:

Answer 11

• steady rise in overall production, high investment
• decline in productivity, inneficiency
• machinery broke down and roads impassable
• food rotted before reaching market, food failed to meet rising demand so shortages
• peasants sell surpluses at private markets (huge mark up from state shops) - 1% of land but 25% of produce

Question 12

Nove 1992

Answer 12

‘ the most gigantic agricultural subsidy in human history ‘
USA wheat continued to be imported

Question 13

How did Andropov go about economic reform?

Answer 13

• tough, discipline
• remove corruption
• decrease inneficiency

Question 14

How did Andropov improve labour discipline?

Answer 14

• widespread absenteeism and alcoholism
• spot checks for slackers (reflects KGB roots)
• also encouraged people to come forward with new ideas - people refrained