Section 2 (6): Economic and Social policies and Problems Under Brezhnev Flashcards
(38 cards)
What did Kosygin argue was necessary for the economy?
More indépendance to factories and other enterprises would free the Economy from problems caused by central planning.
Who was against Kosygins ideas?
A faction of bureaucracy as they did not want to lose control over enterprises and their workers.
Where did arguments over factions appear and what did they claim?
- May 1965; Communist newspapers
- Izvestia for Kosygin faction - Soviet economy should operate under economic laws so factories could make profits
- Pravda for bureaucracy - argued profit incentives would promote selfishness which was not socialist and would promote capitalism.
What did Brezhnev think of Kosygin’s ideas?
Didn’t agree and sided with the party however neither faction was strong enough to outdo the other, so reforms were still introduced.
What did Kosygin’s reforms consist of?
- number of targets for enterprises reduces, some targets set for products sold rather than produced to promote efficiency
- individual managers could make some decisions over what they could produce, and keep some profits to re-invest
- workers could also share some of the access of the business, and managers could sack unproductive workers.
Why were kosygins reforms limited by Brezhnev?
The removal of the sovnarkhozy meant that although Kosygin did de-centralise some of the economy, most of it went back to the centre (ministries).
What were the results of Kosygin’s reforms?
- by end of 1967 - 15% of enterprises of 17 branches of the new industry had new conditions, representing a third of all industrial output
- labour productivity increases but didn’t meet reform targets
- managers start using new freedoms between 1965 and 1971, which evoked fear in bureaucrats
- the soviet system which made unemployment unknown now had it as a new fear
- ministries took back control on enterprises - targets increased and investments were controleed
- backlash against the reforms which made them shelved. Not enough to have him fully replaced by Brezhnev.
Tenth Five Year Plan covered which years?
1976-1980.
What did the Tenth Five Plan aim to do?
- Lowered targets
- aimed for “effectiveness and quality” (Brezhnev) - due to slowdown in technological progress, this aimed to modernise, improve technology.
By how much did the economy slowdown a year in 1970s?
2%.
Why did the economy slowdown?
- agriculture remained in crisis
- military spending too high
- bottlenecks in production
- lack of consumer goods
- natural resources were running out and Siberian production was too slow to develop
- workers and managers lost incentives
- population growing more slowly.
By how much did investment in agriculture increase to?
from 16% to 27%.
How did prices for agricultural goods change?
increased to provide higher incomes for farmers.
What was the problem with increased investment to agriculture?
- inefficient farming practices continued to be subsidised.
- prices needed to stay low so unrest couldn’t occur, meaning the extra cost was a burden to the economy
- 1977, subsidy to agriculture cost 19 million roubles
- removed incentives to improve production - worker productivity was extremely low. they would prefer to work in their private plots to make income for their families.
By how much fold did Brezhnev increase military spending over his course?
8-fold - 15% of GDP.
What did Brezhnev admit about military spending and when?
1971 - admitted economy would’ve developed more quickly id defence spending wasn’t required.
What did Brezhnev address to the party plenum in 1965?
stressed the need for the soviet people to know how much the party and government cared about increasing their material and cultural well-being.
How did Brezhnev deliver on his promise to the party plenum?
- people virtually enjoyed full employment
- job security
- high-quality education and healthcare
- consumer goods became more accessible
How do soviets vote Brezhnevs era?
‘golden age’ for material satisfaction and international prestige.
What did social comfortably mean for the party and peoples reactions?
People did not challenge the party politically, allowing the party to roll as it was - stagnation.
How did Brezhnev make a social contract with the people?
He forged the coercion by Stalin and the campaigning by Khrushchev through raising living standards with a a sort of consumerism.
What type of lifestyle did the the elites enjoy in the most important cities?
- chauffeured cars
- big flats
- country dachas (country cottage)
- special shops with luxurious goods.
How did elites children have special privileges regarding their education?
Went to schools which were connected to the most successful careers.
Where did elites have their holidays?
Black Sea, the warm south of the USSR.