Changing economic priorities: industry - Khrushchev

Question 1

Khrushchev’s vision

Answer 1

He wanted the Soviet Union to reach communism by 1980.
He believed that under communism, housing, transport and food would all be available freely.

Question 2

Industrial problems
(3 major problems)

Answer 2

• Military spending: Cold War arms race - the Soviet Union was committed to Hugh levels of military spending - this limited funds available for industrial equipment.
• Command economy: Stalin’s command economy was good at producing large quantities of basic goods such as steel and concrete - it was not designed to create complex or sophisticated goods such as cars of radios.
• Inefficiency: the command economy was highly inefficient therefore it wasted resources which could have been used otherwise.

Question 3

The promotion of light industry

Answer 3

Khrushchev’s Seven-Year Plan launched in January 1959 increased investment in light industry.
It aimed to:
- Increase production of consumer goods
- Increase production of chemical fertilisers to support his agricultural policies such as the Corn Campaign - an initiative to plant more corn.

Question 4

Successes of the plan

Answer 4

The plan boosted production of consumer goods and chemical fertilisers however delivered lower growth than he expected.
- Production of consumer goods was 5% below target.
- Production of chemicals was around 20% below target.
Ownership of cars, radios, refrigerators, washing machines and television sets increased.
However, the Soviet Union was still far behind other European nations - Soviet Union had around 5 cars per 1000 people - the UK had around 200.

Question 5

Reasons for failure

Answer 5

• Khrushchev introduced contradictory reforms:
  In 1957 he decentralised economic planning however in 1958-1964 his reforms re-asserted central control.
• Khrushchev changed the targets of the plan in 1962, setting more ambitious goals.