Russia Theme 2 - Economy Flashcards
How did Brezhnev reject Khrushchev’s reforms?
-Agricultural/Industrial split in Party reversed. -7YPs abandoned for 5YPs.
How did military spending change 1964-70? Why did this occur?
11%-13% of GDP.
Achieved nuclear parity with USA.
What was ‘developed socialism’?
Brezhnev’s economic commitment: job security and low prices. Required food imports from West.
What was the ‘second economy’?
The black market that had grown under Brezhnev.
What was Andropov’s economic focus?
Improved labour discipline to increase productivity.
What were Andropov’s three economic ‘reforms’?
Anti-corruption campaign, November 1982.
Anti-alcohol campaign.
Operation Trawl (anti-drunkeness and absenteeism).
How successful were Andropov’s reforms?
Anti-corruption - Minister of the Interior sacked for corruption.
Consumption of ‘Andropovka’ increased.
What was the growth rate of economy in the 1970s and by 1980?
2% - reached 0.6% by 1980.
Explain the extensive vs intensive growth dilemma.
‘Extensive’ = building new factories and projects.
‘Intensive’ = improving efficiencies.
Soviets focussed on extensive growth.
How did oil production increase under Brezhnev?
243m tons to 603m, 1964-80.
How did oil mask economic issues?
Due to oil prices, Soviets could import grain and borrow money. Therefore standards of living rose, yet economy failed to grow.
How did Khrushchev incentivise agriculture?
What did this initially lead to?
Reduced quotas.
250% rise in farm incomes 1952-56.
What happened with tractors in 1955?
due to increased investments, there was a 30% in their production.
Outline the Virgin Lands Campaign’s initial success?
From 1954-58, 35.5% increase in agricultural production and a 400% rise in farmer incomes.
How had the Virgin Lands campaign failed by 1964?
Eventually only 15% growth - well below Khrushchev’s targets.
Central planning didn’t account for differing climates.
How did the Corn Campaign fail?
It only produced 50% of what the US produced. Yet the US had 1/10th of the proportion of population working on agriculture.
What were the reasons behind agricultural failure under Khrushchev?
Central planning ineffective due to climate; poor storage facilities; confusing reforms; 1954-59, investment in agriculture cut by 10% of GDP.
What were the impacts of the Seven Year Plan?
Why were these both successful and unsuccessful?
60% increase in production of consumer goods; Fertiliser +19 million tons.
These were massively below target.
Why was the issue over quality in industrial production under Khrushchev?
Soviet economy focused on targets, not quality.
As long as enough of a product was made, targets were fulfilled.
Outline the sovnarkhoz reforms.
In 1957, Khrushchev divided central planning across 105 regional sovnarkhoz.
By 1964, however, power had been largely diverted back to central agencies.
This caused lots of confusion.
When did Khrushchev divide the Party into agriculture and industry?
February 1962.
According to whom, which years were the “years of maximum danger”?
Gerard J. Degroot.
1958-62.
How did military spending change under Khrushchev?
1955-58, dropped by 3% of GDP.
By 1964, back to 11%.
What was Gosplan?
The central economic planning agency.
What was the Stakhanovite movement?
Stakhanov was an impossibly productive miner. He was rewarded. This encouraged greater worker productivity yet is a very capitalist model.
