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

29/9/23