Khrushchev's Industrial Policy (Improved conditions for the workers ,…
Khrushchev's Industrial Policy
Sixth five year plan was abandoned in 1955 because it was over ambitious
Seventh five year plan – focused on consumer goods, chemicals and plastics
Hoped to improve the standard of living for the Soviet people.
Greater propaganda against the U.S as well as greater support at home.
One of Khrushchev’s criticisms of Stalin’s system was that there were too many ministries in Moscow.
He believed that they were too centralised.
Therefore they were out of touch with the different regions of USSR.
They did not have enough new ideas
In 1957 – the central ministries were broken up into 105 regional economic councils
Closing the ministries in Moscow made Khrushchev new enemies.
Regional areas were not coordinated.
E.g. industry in the area only met local needs not national needs.
Improved conditions for the workers
Tuition fees at Schools ended
Introduced minimum wage
There were lower taxes on the poorer paid
Some manufactured goods were cheaper
Shorter working week
Improved pensions and disability benefits
Modernise Industry to bring back initiative and innovation taken away under Stalin.
Russia Became the first country able to send a man into space.
To keep up with the USA in the Cold War.
Controls on workers were relaxed.
They worked a seven hour working day.
Performance related pay was introduced.
Workers were now allowed to change jobs
Increased production of consumer goods
7 year plan (1958-65) that aimed to expand chemical, oil, natural gas and hydrocarbon production
Regional Councils didn’t work because managers did not believe they had real authority.
Everyone was so used to doing as they were told, Russia’s problems became worse as no one know what to do.
Production rose slightly
7 year plans did not meet target.
Reduce central control
Allows local leaders to decide industrial policy without having to ask for the consent leaders.
Space race spectacular but did not benefit ordinary people.
1958 Khrushchev set up 100 Regional Economic Council (Sovnarkhozys).
These councils controlled areas of the country and were encouraged to be independent and make decisions for themselves.
They could decide what goods they were going to produce.
Consumer and luxury goods and luxury goods began to be made.
From 1956 Khrushchev wasted a lot money on the Space and Arms Race with USA.
This included the development of missiles.
Consumer goods therefore suffered.