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Economy in USSR - Coggle Diagram

- - - - Aim was to cut investment to the lest efficient collective farms and divert the money to light industry. The managers of the factories were also going to be given control over production
      - The managers of the factories were also going to be given control over production and judged on the profit produced and not the production levels
    - - Similar reforms introduced in Czechoslovakia that led to rebellion against the USSR meant Kosygin was discredited for his ideas and the reforms were halted
- - - - Factories were properly managed by well payed specialists
      - Co-ordinate economic production to meet the needs of new society
    - - Aim to win support and stimulate agriculture
      - Decree on Land 1917 large estates belonging to church or landowners were broke up and given to peasants
  - - - Food dictatorship
        
        Grain requisitioning
        
        Cheka allowed to seize food from the peasants
        
        Supposed to keep the army properly fed as well as the workers
        
        rationing
        
        food was rationed with the greatest rations going to soldiers and workers
      - Labour discipline
        
        working day was extended to eleven hours
        
        work made compulsory for everyone able between 26-50
      - Abolition of the market
        
        Money was abolished with workers being paid by rations
        
        private trade was made illegal
        
        Conscription to the factories and army
    - - The communists were able to win the war and many in the communist party believed that it was an ideological victory as it proved communism worked
      - Economic Collpase
        
        Agriculture
        
        Grain requisitioning meant there was a lack of an incentive so production decreased
        
        Industrial
        
        Few incentives so production fell a lot too
        
        Many feld the cities for jobs in farms out of hope of being fed
      - The Black Market
        
        The abolition of the market was not complelety effective
        
        The black market grew a lot with an estimated 60% of all food in Russians coming from the black market
      - Mass Poverty
        
        Shortages of all kinds and there were very poor harvests which created a famine of 6 million
      - Growing Resentment
        
        There were lots of resentment from peasants and soldiers which culminated in rebellions
        
        The rebellions
        
        Tambov - Peasants rebel against the Communist Government
        
        Kronstadt - Sailors who had supported the government turned against them demanding free trade and multi candidate elections
  - - - to stop rebellion and resistance against the Communist government
      - Revive the economy and stop the famine
      - Build Socialism in Russia without other countries
    - - Agricultural production was left free and peasants could buy and sell freely and requitsiong was ended
      - Small factories were denationalised
      - Money was reintroduced
      - Large factories were expected to make a profit but remained nationalised
    - - Agriculture
        
        Grain production increased massively going from 37.1 in 1921 to 76.80 in 1926
      - Industry
        
        there was a massive of electrification campaign which was successful
        
        Industry grew
        
        By 1926 all industrial production (other than pig iron and steel) had all recovered to 1913 levels
      - Scissor Crisis
        
        The recovery and growth in agriculture while industry grew much slower meant that there was a gap between farmers' income and industrial prices.
        
        Eventually the gap grew so large, there was no incentive for farmers to continue to produce lots of grain
        
        The government was forced to step in and subside the prices of industrial goods which meant less money to improve the economy.
      - Politics and the economy
        
        The economy stabilised and this meant that the party's position was much more stable
        
        However there was division created in the party about whether NEP should continue
        
        The Left led by Trotsky advocated for the dictorship of industry and collectivisation
        
        The Centre led by Stalin advocated a pragmatic view, arguing for whatever worked
        
        The Right led by Bukharin advocated for the continuation of the NEP
      - Inequality
        
        Nepmen
        
        These were traders who sold luxury goods from farms and factories to markets which made them very rich
        
        Looked on very poorly by the Communist Party and were occasionally arrested
        
        This created a great amount of inequality between the nepmen and the normal workers
        
        Gambling, sex work and drugs all took place under the NEP
        
        Social and economic problems also forced women into sex work
- - - - Catch Up to the west
      - Create a socialist system
      - Create a modern industry to produce weapons in case of a war against Germany
    - - The plans set targets that were to be met and so created a command economy. These were set by Gosplan
      - Achievements
        
        There was significant improvements in production for heavy industry
        
        new Industrial plants were created which helped to boost the economy
        
        Labour productivity increased as movements such as the Stakhanovite movement which increased workers motivation as well as giving incentives however there were still problems
        
        Transport also increased which was a major achievement and allowed the government to increase its reach
        
        the USSR was also able to rearm ready for WW2 which was crucial in defeating Germany and the Nazis
      - Problems
        
        Consumer goods were neglected which meant that they were rationed
        
        The targets
        
        the targets were massively inflated to levels that were unachievable by competition between Gosplan and Vesenkha
        
        There was very little detailed planning and just targets set which meant managers had to compete for materials and so bribery and corruption were rife
        
        Even after the first five year plan the system was plagued with problems
        
        The targets were about quantity not quality so poor waulity did nt matter
        
        There was a lack of raw materials in general
        
        There was both underproduction and overproduction which created large amounts of waste as many parts were unrequired and others did not fit the requirements like poor quality steel
        
        Housing needed for the urban population was never built and was incredibly poor and was a terrible failure
        
        Food was also rationed consistently throughout the plan
        
        The black market continued without workers stealing materials and making things to sell
    - - Industry was devastated by WW2 and was producing 2/3 less than it had in 1940
      - Reconstruction of Soviet Industry was planned with three more FYPs
      - The fourth FYP was incredibly successful and by 1950 it had reached and exceeded pre war levels
      - Wages were kept low
  - - - Causes
        
        Communist Ideology
        
        Communist believed that private property was a mistake
        
        Believed that larger farms would be more efficient
        
        Believed that by collectivising the peasants would support communists as they see the beneifts.
        
        The Grain procurement Crisis/Kulak Grain Strike
        
        As the grain production increased the price fell and so the farmers began refusing to grow as much to dive the price up
        
        Radical communists saw this as the opposition of a capitalist class to the advancement of socialism
        
        Political Power
        
        When Stalin defeated the radical left they were left with no leader so by moving towards radical policies would gain him support to eliminate Bukharin
      - The steps towards collectivisation
        
        The Uras-Siberian Method The return of Grain requisitioning 1928
        
        In order to break the Kulak grain Strike Stalin sent the Red Army to seize grain to feed workers and sell abroad
        
        Critically this signalled the end of the NEP
        
        The peasants responded with violence and began destroying grain. Stalin blamed the Kulaks
        
        He began Dekulakisation which meant any peasants that resisted were killed or deported.
        
        Around 1.5 million peasants died to Dekulakisation
        
        Collectivisation began in late 1929
        
        Farms were forced to collectivise and equipment was distributed
        
        There were two types of the farms
        
        Sovkhoz
        
        Owned by the State
        
        Workers provided with equipment and paid a regualr wage
        
        Kolkhoz
        
        Owned and operated by the people who were hired and worked on the farm
        
        Each household had their own private plot of land
        
        The Sovkhoz were the preferred method but the Kolkhoz were more efficient and so became more common
        
        Dizzy with Success
        
        Stalin announces how great collectivisation and that half of all peasants households had been collectivised. He also announces that collectivisation will be voluntary
        
        Many peasants leave
        
        After the harvest of 1930 Collectivisation becomes mandatory agains
      - benefits of Collectivisation
        
        Grain Procurement
        
        Collectivisation allowed the Soviet Government to take more grain for example in 1928 - 10.8 million, 1933 - 22.6 million tonnes
        
        Collectivisation allowed the Soviet Government control of grain production which they did not have under the NEP
        
        The Party now had control of agriculture which they didn't have previously
        
        They were also able to sell more grain which helped for industrialisation
      - Failure of Collectivisation
        
        Resistance
        
        There was significant resistance to collectivisation from the peasants
        
        This meant that millions of animals were slaughtered to prevent the state from taking them
        
        For example 17 million horses, 26 million cattle, 11 million pigs, 60 million sheep and goats
        
        This would take a very long time to recover from properly
        
        The famine in Ukraine
        
        Stalin created a famine in Ukraine to destroy resistance
        
        This created 5 million deaths and Stalin refused international aid for the farmers
        
        Grain production
        
        Grain production decreased significantly and would a only recover in 1935
        
        The collective farms were also less efficient than the private farms
    - - Agriculture suffered from devastation and recovered very slowly but production continued to increase from 1947 and by 1952 had recovered to pre war levels
- - - - Khrushchev cut the military budget in order to increase the money available for the living conditions of the people
      - Fell from 12.1% in 1955 to 9.1% by 1958 but rose after further tensions with the US to around 11% by 1964
    - - January 1959
      - The aim of the plan was to boost agricultural production and the prodcution fo consumer goods by investing into Light Industry.
      - An increase in the amount of chemical production would increase the amount of fertiliser available
      - Success
        
        Production of chemicals and consumer increased between 1959 and 1965
      - Failure
        
        it fells below the targets that Khrushchev had hoped for with chemicals 5% below and the production of fertiliser fell short by 3.5 million tons.
    - - Decentralisation
        
        Introduced the 105 sovnarkhoz that were regional planning agencies but destroyed the central planning of the plan FEB 1957
      - recentralised to remove the problems of the reforms of the sovnarkhoz but the responsibilities of Gosplan and the sovnarkhoz were unclear
      - The government was split into the agricultural and industrial wings in Feb 1962 which was widely unpopular and happened during the plan
      - The target were increased half way through the plan
    - - Success
        
        The plan was chaotic
      - Failure
        
        The economy was designed to meet the targets set often by weight or value so large sheets of metal were produced that were not useful and the expensive item produced
        
        Consumer goods increased but the nature of the economy was hampering in production
        
        Major shortages in key areas such as steel and housing
        
        Economic growth hit an all time low in 1963-64 since 1933
        
        Forced to import grain creating a rising government debt
    - - Decentralise
      - Focus of light engineering, chemicals and consumer goods
      - Reorganise the structure and management of the industry to address lack of initiative and flexibility
  - - - Sept 1953 - The aim was to make turn the Caucasus, Kazakhstan and Western Siberia into farmable land
      - Required significant investment so agriculture went from 3% to 12.8% of the Budgret between 1954 and 1959
      - Initial success :check:
        
        it initially was very successful with expansion in both the farmland and the goods being produced.
        
        From 1953 with 18.2 million hectares sowed to 1964 with 97.4
        
        Grain :corn:
        
        1953 82.5 million tons
        
        1959 134.7 million tons
        
        Meat :meat_on_bone:
        
        1953 5.8 million tons
        
        1958 7.7 million tons
        
        Milk :glass_of_milk:
        
        1953 36.5 million tons
        
        1958 58.9 million tons
        
        Impact :!:
        
        Better Standard of living for the people of the USSR
        
        400% increase in the wages of the farm labourers
        
        Khrushchev became far more confident and led to more ambitious plans and he promised to produce more food than the US by 1960
    - - The plan was to switch the farms in Ukraine to produce maize in an aim to feed more animals to increase meta production.
      - Wheat production would be moved to the Virgin Lands Scheme
      - The plan failed partially due to it being based off of the US which ad a different climate and overall high productivity in the country.
      - Impact :!:
        
        The amount of animal feed being produced in the USSR actually fell by 30% because less hay was being produced.
        
        Colossal failure and waste of manpower and resources as only a 1/6 actually ripened
    - - The amount of investment in farm equipment and fertilisers increased with new factories being built to produce both in 1954 leading to a 30% increase in tractors and 40% increase in fertiliser
      - Farms were given better incentives. The quotas for farms were reduced and the price of goods that were being bought was increased.
        
        Farm income increased by 250% between 1952 and 1956 we
    - - The Virgin Lands Scheme
        
        The Virgin lands scheme was extremely expensive. With the farms in Kazakhstan requiring expensive irrigation systems due to the dry climate.
        
        The harvests of the scheme were not increasing massively and only increased by 15% by 1964 than in 1958.
        
        Higher but not close to the targets presented
        
        The land was worked too hard which helped to destroy it
      - The farms were particularly labour intensive with 54-44% of the population working on the farms
        
        Compared with the 5% of the US farms that produced double so very inefficient.
      - Reasons
        
        Inadequate resources
        
        Less access to machinery with the abolition of the MTS
        
        The farms did not have the enough good enough storage so it often was wasted
        
        Central planning
        
        The campaigns were not adjusted for the local climates and farmers were unable to use their own expertise
        
        Fertiliser was often delivered tat the wrong time or to the wrong farms
        
        Restructuring
        
        The agricultural ministries were often reorganised causing administrative issues
        
        Khrushchev cut the agricultural budget in 1954 -1959 from 12.8% to 2% for 1960
      - Prices that were offered were mostly inadequate for the cost of production