The Soviet economy 1964-1985 - Brezhnev

Question 1

Economic decline

Answer 1

Growth rates still remained slowed under Brezhnev.
Economic decline came about for two main reasons:
- Refusal to change - after 1964 major economic reforms stopped - therefore problems such as inefficiency and low productivity were never addressed.
- Brezhnev increased military investment, diverting resources away from economic growth.

Question 2

The Soviet economy

Answer 2

Brezhnev abandoned Khrushchev’s commitment to building Communism by 1980.
He continued to promise a better standard of living.
This was achieved in two ways.

Question 3

Subsidising prices
(way 1)

Answer 3

The government kept the prices of consumer goods low - this led to shortages as demand for goods was higher than supply.

Question 4

A second economy
(way 2)

Answer 4

Brezhnev tolerated the growth of the black market or ‘second economy’ - this allowed Soviet citizens to buy consumer goods illegally.