Russia 1.5 Flashcards
(146 cards)
What were growth rates by 1980?
0.6%
In 1970, the richest 10% of Americans were __ wealthier than the bottom 10% compared to just __ in Russia. What did this mean for the USSR?
7x, 3x.
As a result, coupled with a shortage of several consumer goods and a large social benefit programme, there was less incentive for workers to improve on the social mobility ladder —> low productivity.
By the early 1980s, how many tractors did Gosplan demand to be produced, and how many were not used?
In 1986, what percentage of machinery did Gosplan estimate was never used?
By the early 1980s Gosplan demanded the production of 400,000 tractors every year but at least 20% were never used due to the shortage of tractor drivers.
In 1986, Gosplan estimated that 12% of machinery was never used.
What was military spending by 1985 in the USSR, compared to the USA?
17% by 1985.
Just 6% in the US.
By the early 1980s, how many PCs did the USA have comapred to the USSR?
USA - 3 million
USSR - 50,000
How much was given to Cuba and Vietnam in aid and oil subsidies between 1981 and 1985?
How much in oil subsidies did the Warsaw Pact receive annually?
$4 bn.
$6 bn.
$3 bn.
Who wrote the Novosibirsk Report and what did it draw attention to?
Leading economic sociologist, Tatyana Zaslavskaya - drew attention to the growing crisis in agriculture caused by state inefficiency and inflexibility. Of the ageing Politburo members, Gorbachev was the only one not to ignore it.
What were the three stages of Gorbachev’s economic reforms according to Richard Sakwa?
Rationalisation, 1985-86 - period of uskorenie (acceleration), initial economic reforms. Designed to stimulate higher growth rates and higher levels of production.
Reform, 1987 - Mar 1990 - Reforms to introduce market forces into the Soviet economy. Initiated political reforms at the same time in order to build support for greater economic change.
Transformation, Mar 1990 - Aug 1991 - Gorbachev began to abandon fundamental aspects of the system such as single-party rule and the command economy. The Party lost control of the process.
By the mid 1980s, alcohol accounted for what percentage of all household spending?
15%
What did Gorbachev say in April 1985 about alcohol.
‘We can’t build Communism on vodka’.
How did Gorbachev try to reduce alcoholism in the USSR?
In May 1985 Gorbachev reduced alcohol production at state-run factories by 50% and assigned 55,000 Party members to a new task force to stop the illegal production of alcohol. The cost of vodka tripled in shops.
Why did the policy fail?
Soviet citizens began drinking samogon, illegal moonshine liquor. The government made less tax revenue from vodka sales - dropped by 67 billion roubles (9% of GDP). Campaign was abandoned in 1988.
What was the aim of uskorenie?
Uskorenie was designed to end economic stagnation through the traditional Soviet method of increasing investment with a focus in science and engineering. This approach was to be implemented in the Twelfth Five-Year Plan.
How much of an increase in industrial production over the next 15 years did Gorbachev predict?
20%
Why did Uskorenie and the Twelfth Five-Year Plan fail?
A major reason was the fall in oil price from $70 a barrel in 1981 to $20 a barrel in 1985. Soviet oil revenues fell by ⅔. In 1985, fuel accounted for 55% of exports.
Soviet industry became notorious for using equipment that was out of date and prone to breaking down.
Money was often needed to import food and the amount of money the government had fell significantly (Oil and Alcohol) and so the importing of new technology was slow and minimal.
Gorbachev’s failure to boost the economy worsened this and the War in Afghanistan and the USA’s SDI ensured that military spending remained high during this period.
Rather than leading to economic growth, acceleration created an economic crisis.
How did Gorbachev finance uskorenie and why did this become an issue?
Gorbachev financed uskorenie from borrowing from Western countries. The deficit increased from 2.4% of GDP to 6.2% (1985-86).
How did Gosplan fail uskorenie?
Part of the problem was the level of opposition to any real change and much of this came from the Gosplan. In June 1986, Gorbachev admitted, ‘Take Gosplan … What they want, they do.’
Changes to reductions in investment in military technology often led to resistance, the same occurred in Industry.
Did productivity improve during the Twelfth Five-Year Plan?
No improvements in productivity. Reached a point where additional investment in agriculture had no effect.
Focus remained on quantity rather than quality.
In 1987 what did Gorbachev admit?
He admitted that the first two years had been wasted.
When was the encouragement of joint ventures and what did it do?
Jan 1987 - the government allowed foreign firms to establish businesses in the Soviet Union, usually in joint enterprises with the state. Moscow got its first McDonald’s in 1990. Hoped this would increase access to foreign technology.
When was The Law on State Enterprises and what did it do?
June 1987 - allowed a loosening of state controls over wages and prices - weakened the authority of Gosplan. Also allowed an element of election in the choice of managers. Factories could produce what they liked once targets had been met. This instead meant that the government had to pay higher prices for goods, further increasing their debt.
When was the Law on Co-operatives and what did it do?
1988 - allowed small-scale private enterprises to be established.
By 1990 how many co-operatives had been set up?
200,000
In the first year alone, by how much did the turnover of the co-operatives increase to?
29.2 million roubles to 1.04 billion roubles.