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Brezhnev's economic problems and policies in industry and agriculture…
Brezhnev's economic problems and policies in industry and agriculture 1964-82
industry
Problems
production of steel, coal and iron and cement were the only stable product in the economy
Industrial growth declined
Poor government planning
Poor efficiency and reduced productivity within the economy
Poor working conditions
More power to factory managers meant less power for the GOSPLAN since it decreased the authority of many economic ministries --> more opposition
failed to take advantage of 1973-1975 world oil crisis
labour shortages that resulted in many workers having more than one job
Policies
industrial reform
Aleksei Kosygin was the man responsible for everything
Attempts to make the economy more efficient and dynamic --> increased production of consumer goods
more autonomy for factory managers over some decision
numerous 5-year plans
tenth one lead to a economic slowdown
Agriculture
Problems
Bad harvests lead to the Soviet Union buying grain from the United States and Canada in 1979
kolkhozes were operating at a loss since the prices of machinery and fuel increased
Policies
agricultural output increased in 1960 to 1970 annually by 3%
bigger allocation of resources for agriculture --> more chemical fertilizers and mechanical equipment
they formed bigger kolkhozes in order to raise productivity
Brezhnev raised prices paid to the peasant working
In 1977 and in 1981 Brezhnev let peasants have bigger private plots (half a hectare) --> a lot of peasants worked in these rather than collective land
low (subsidized) prices for food kept industrial workers happy