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USSR ESSAY PLAN ECONOMIC DECLINE: How far do you agree that the failure of leadership was the main reason for economic decline in the years 1964-82?$11.79
Unit 1E - Russia, 1917-91: from Lenin to Yeltsin (9HI0)
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How far do you agree that the failure of leadership was the main reason for
economic decline in the years 1964-82?
Introduction
The economy of the Soviet Union went into steady decline in the Brezhnev era as output stagnated, there were continued
shortages of consumer goods and chronic inefficiency was a constant obstacle to growth. There are many reasons that explain
this decline including the underlying problems with the Soviet system, the troublesome legacy that Stalin had created and the
growing burden of military spending and the Social Contract. However, it can be argued that the failure of leadership in this
period was indeed the main reason for economic decline in the years 1964 to 1982.
Problems with Command Economy & Legacy of Stalin
- Highly rigid and inflexible
- Central planning ≠ allow for changes in trends
- Legacy of fear of failure
- Heavy industry was prioritised
- Poor allocation of resources + huge waste
- No initiative / incentive
- Private plots produced 25% of all produce but was only 1% of land showing failure of incentives to improve
the command economy
- Produced ⅙ of US output despite 25% of workforce and 26% of investment in agr
- Quantity > quality
- Inefficient government micro-management
- This predated Br → but he didn’t address issues of command economy - ‘mature socialism’
Burden of Social Contract
- Linking to Stalin, due to absence of terror
- Contract between society + gvt - compliance of the population in exchange for gvt provision
- Necessary heavy investment in consumer goods - however because of Stalin’s terror/ focus on output + inefficient
command economy + military spending, there was lack of investment in modern technology + inefficiencies in
production that hampered quality of consumer goods - thus social contract exposed weaknesses of the inefficient
economy
- 9th five-year plan
- By 1980 85% families had a TV, 70% washing machine
- Guaranteed job, social security, access to consumer goods = lack of incentive for workers to work harder = lack of
productivity - linking to less productive agriculture
- “We pretend to work and they pretend to pay us”
- BUT although important factor - it was Brezhnev’s focus on stability + mature socialism that drove social contract -
therefore links back to failure of leadership - therefore not MIF
Cold War & Military Spending
- 18% of gov spending by 1980s, employed ⅕ of the working population
- Arms Race and Brezhnev Doctrine (aggressive foreign policy) increased spending
- E.g. war in Afghanistan. Meant to be a small-scale invasion but ended up lasting years. Nearly 1 million soviet
soldiers sent there
- Resulted in a lack of investment in other areas such as infrastructure (e.g. food storage facilities, rural roads) and new
technology
- Outdated technology was a growing problem by 1970s. Brezhnev’s attempt to join major industrial complexes with
scientific research institutions failed to ensure new technology was applied to industry. Nature of command economy
meant new equipment often left to rust in factories anyway, as managers feared losing production and not meeting
targets while it was being installed
Failure of Leadership
- Focus on stability → refusal to reform → stagnation
- Kosygin reforms
- Reforms watered down making ineffective → e.g bonuses for output were higher than bonuses for
innovation.
- Stability and trust in cadres
- Promotion based on how long you served in the party rather than achievements
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