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How accurate is it to say that Khrushchev reformed the Soviet economy in…
How accurate is it to say that Khrushchev reformed the Soviet economy in the years 1956-64?
What is a reformed economy? -Modernised, more efficient, problems solved, successful: output.
He did
Introduced controversial reforms
Efficiency: managers could keep up to 40% of profits to invest- productivity
Decentralisation + interpreting MOA instructions
Modernisation: fertilisers inc. prod by 40%. 120,000 tractors provided for the VL scheme
However, these measures failed: VL scheme= fundamentally flawed, inefficient planning meant many collectives did not receive their fertilisers on time or the wrong ones
Split between agriculture + industry- agriculture prioritised for first time- new status. farming income inc by 250% because of state buying produce instead of taking quotas.
Push for light industry: light industry output overtook heavy industry
He didn't
Fundamental problems were not addressed
low labour productivity, waste + inefficiency. 50% worked on the land compared to America's 5% yet America produced double. Still labour intensive, not modernised
Agrogorodas= large collectives. Alec Nove: biggest state subsidy. Private plots produce more. Only made peasants more detached from the land.
All eggs came from private plots
Had to import grain from the West
Decentralisation: made Gosplan confused. 105 regional economic councils caused chaos
Reforms failed, caused chaos
Factories didn't want to modernise: didn't want to waste time putting in new machines.
Still a Command Economy: good for heavy industry, not for consumer goods, such as radios. Poor quality
Conclusion: inaccurate. He made reforms but mostly failed and did not address fundemental issues with the existing system, namely inefficiency + mod. output= poor