Industrial and Agricultural Changes - changes in Industry and Agriculture, 1953-85
investement in agriculture & virgin lands
attempts at reform after 1964
light industry, chemicals & consumer goods
light industry and chemicals
limited reform
central targets
success of Khrushchev's plan
productivity remained low
targets continues to come from the centre
meeting targets mattered more than meeting the needs of the country or its industrial sector
Khrushchev set up regional economic councils
also greater focus on light industry
there were 105 of them
the regional councils replaced the national ministries
their aim was to avoid the waste and over-regulation, in reality they created another layer of bureaucracy
chemicals
the focus on light industry was accompanied by more chemical production under the plan
chemical fertilisers could be used to support Khrushev's agriculture policies, such as the Corn Campaign
consumer goods and chemicals production increasdd
overall growth was lower than Khrushchev had hoped for
chemical production missed its target by 20%
Khrushchev introduced a Seven-Year Plan in 1959
consumer goods
better trousers
living conditions
Khrushchev famously said: ' It is no use everyone having the right ideology if they have to walk around without any trousers'.
he also joked that you 'cannot put theory in your soup or Marxism in your clothes'
Khrushchev introduced a minimum wage in 1956
average household income increased
diets became more varied - people were less reliant in bread and potatoes
overall standards of living increased marginally
Khrushchev made much more of an effort than Stalin to cater to the needs of the average consumer. This led to a certain amount of rebalancing of the economy.
agriculture under Khrushchev
comparison to Tsarist Russia
1953: grains stocks were lower than had been th case under the tsar - there were fewer animals in the USSR than under the tsar
high taxes on farmers meant there wan no incentive to improve productivity
Khrushchev's solutions
taxation was changed so that, for example, peasants who did not own livestock did not have to give meat as part of their taxes
the govt also increased fertiliser production
1952-1958:grain incomes doubled
the govt increased state procurement prices - by 25% from 1953 to 1956
the state also cut the running costs of the kholkhozy (collective farms) including for transport and equipment
virign land scheme
virgin land
failure of the scheme
the plan
he wanted to compete with the American plains
1954: the Central Committee approved the plan
Khrushchev proposed a plan to use lands which had not been farmed to improve grain production
the govt encouraged young Communist Party members to go east and enact the plan
the areas were turned into sovkhozes (state farms)
28 million hectares of previously idle land existed in Siberia and Kazakhstan
they were given a promise of guaranteed payment
each was between 20,000 and 40,000 hectares
the plan was too ambitious
too much enthusiasm led to poor plannning
the soil was often very arid, and this quickly created dust storms
droughts were common
there was not enough fertiliser
housing for volunteers was inadequate
the Ruddian steppe was not as fertile as the American plains
Brezhnev's policies
Andropov
failure of Seven-Year-Plan
Khrushcehvs economic planning had been too ambitious
the plan missed its targets
like k, he promised people a better standard of living
the govt subsidied prices so that consumer goods stayed low in price
B also allowed the 'Second Economy', or black market, to contuse
B abandoned Khrushchev's goal of achieving full communism by 1980 because this target was too ambitious
demand continued to be higher than supply
this helped citizens to access consumer goods
as part of 'Operation Trawl', he tried to improve productivity
the economy was stagnant by 1985
the KGB tried to stop drunkenness and people missing work
economic decline under Khrushchev and Brezhnev
slow growth
military spending
major economic reform stopped after 1964
economic growth slowed during the 1960s, 70s and 80s
long-term problems had led to an inefficient economy
productivity remained low
as B increased spending, resources could not be used to foster economic growth
these decisions led to stationary economy by 1985
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