If you want to get an A* in Edexcel History then these summarised revision notes are your step to success. This document contains detailed notes on the fall of the USSR and why this happened. All notes are summarised and will save you hours of time which can be used revising these notes.
Notes inc...
1. Centralization: inefficient (gov administers couldn’t coordinate economy)
- Fertilisers arrived at the wrong time, hampering crop growth
- Factories received wrong grade of products (steel)
2. Problems in industry
- No incentives for hard work, workers were less productive than Western
workers.
- Gosplan set targets for production quantity, not quality -> Soviet economy
produced useless goods
3. Problems in soviet infrastructure (inadequate)
- Transport system never been fully modernised -> transporting food difficult
- Lack of modern storage facilities -> wasted (grain rotted)
4. Military expenditure
- Economic modernisation halted by Soviet military spending.
- 1965-85: GDP spent on defence increased from 12%-17%.
- Impact:could not invest in modern infrastructure/ farming
Significance:
- 1985: Soviet economy stopped growing.
- However, some historians argue no real crisis. Soviet economy functioned
inefficiently for decades
- Not the primary cause of collapse.
, Failure of economic reform
Why did they fail?
1. Undermined the existing system
2. Constantly changed his approach
3. Inherent weakness
Gorbachev’s policy: designed to address problems with Soviet economy
1. Rationalization: 1985-86
Aim: improve command economy
Policy Consequence
Continued Andropov's FAILED:
anti-alcohol campaign, Citizen’s bough alcohol illegally
cut state production of Gov made less money in vodka sales
alcohol by 50% Revenue dropped by 9% GDP
ABANDONED IN 1988
Introduced uskorenie/ Funded by borrowing money from Western
acceleration: programme governments. Debt rose from $18.1 billion in
of investment designed 1981 to $27.2 billion 1988 -> inflation
to modernise the Gorbachev invested in energy production,
economy ignored advice to invest high-tech machines -> no
growth
2. Reform 1987-90
Aim: introduce market measures into command economy
- Nov 1986: Law on Individual Economic Activity: legal to make money doing small-scale jobs
(repairs)
- June 1987: Law on State Enterprises: allowed factory managers to set prices for goods they
produced
- May 1988: Law on co-operatives legal to set up large co-operatives/ private companies.
1990: 20,000 co-operatives
Consequence:
- Failed to create effective market alternative, undermined central planning system
- Ineffective distribution system -> shortage of goods
Political Consequences
- 1986-90: GDP shrunk by 4% + prices rose
- Senior party members seized economic assets -> rich -> strikes increased
3. Transformation 1990-91
- August 1990 (500 Day Program): Shatalin/ Tavlinksy commissioned to devise plan for
economic transformation, promised complete marketisation in 2 years
- Jan 1991: Supreme Soviet introduced private property (people could own land)
- Impact: economy declined (oil production fell by 9%)
- 1991: Gov bankrupt
- Oct 1991: Yeltsin announces full marketisation
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller naomilines101. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £7.99. You're not tied to anything after your purchase.
