the fall of the USSR

In what ways did the legitimacy of the Soviet government depend on economic success?

it justified its rule by demonstratings its ability to meet the material needs of the people which became more important afte the reduction of Terror after starlin

What causes of the USSR's economic decline were identified by the 1983 Novosibirsk Report?

ot drew attention to the frowing crisis in agriculture caused by state inefficiency and inflexiblity.

Why was the Novosibirsk report not acted on until Gorbachev came to power?

ageing mambers of the politburo did not understand the conclusions it came to or just chose to ignore it.

What measures did Gorbachev take to reduce the consumption of alcohol in the USSR and why were they needed?

the legal drinking age was raised to 21 and the nuber of retail outlets where alcohol could be bought were reduced and vinyard were destroyed and the cost of vodka tripled in price

it was needed because by the mid 1980s, spending on acohol accounted for 15% household spending.

How effective were the measures taken to reduce consuption of alcohol

tax revenues the government got from alcohol fell and cuased a shortfall in budget

drinking levels started to rise again after then creation of illegal moonshine liqur was produced in large quantities

aims of the twelfth 5 year plan

Gorbachev aimed to increase rates of economic growth in the USSR. Initially he relied on traditional methods to try to achieve this. The Twelfth Five Year Plan aimed to boost the ailing economy by the old method of boosting state investment, controlled by central planning, in order to accelerate growth. The focus of investment would be in science, research and engineering.

Make a list of reasons why the Twelfth Five Year Plan did not solve the USSR's underlying economic problems

invenstment often scewed toward construction projects which often resulted in overspending

soviet industry was notorious for using out of date and prone to breaking equipment which was unproductive

soviet industry was slow to use new tech and imports of foreign tech were a drain on valuable foreign exchange which was often used to import food

agriculture was swallowing vast sums of investment that were not leading to icreased productivity. the gov reached a point where they realised that there was little to be gained from more investment to agriculture

focus remained on quantity rather than quality

Which bodies in the USSR opposed real change and why?

the party and state economic planning apparatus ie gosplan

What were the superministries and why did Gorbachev introduce them?

they wereset up to achieve better coodination of economic activity and reduce waste and rivalry for rescources

but these failed to reduce waste and duplications as they were to be implemented by the people whose privileged positions the reforms were trying to reduce

Why did the military threaten the government’s ability to maintain a supply of consumer goods for the public?

they wanted investment in military technology but these sectors would only improve if others sufferef eg consumer goods

Why was going into deficit not a realistic solution for solving the economic problems of the USSR?

it would only be temporary and would fail to sort out any underlying problems that gorbachev failed to sort out

the economic deficit rose from 2.4% of GDP in 1985 to 6.2% in 1986

a deficit iswhen the state spends more than they have in hopes that the economy will improve later

ow did the international situation add to the economic problems of the USSR? Eg the Cold War

the ongoing war in afganistan meant an icrease in defence spending in light of the USA plan to launch SDI

overview of perestroika

By 1987 Gorbachev realised that more fundamental reform was needed. The whole Soviet economy would need to be restructured and some degree of market forces harnessed.

At the January 1987 Plenum of the Central Committee he launched his proposals for perestroika (economic restructuring). This involved introducing market mechanisms into the state-controlled economy, allowing an element of private enterprise which would act as an incentive to encourage greater production and flexibility. Gorbachev was not trying to destroy the communist system, but to reform it by creating a mixed economy.

What were the key reforms of the policy of perestroika?

the encouragement of joint ventures in jan 1987 where the gov allowed foreign firms to establish buisinesses in the soviet union, unsually joint with the state eg moscow had its first mcdonalds in 1990

the law on state enterprises in june 1987 which was a loosening of state controls over wages and prices and as a consequence, weakened the authority of gosplan. it allowed an element of choice of managers and factories could produce what they wanted after they had compleated targets

co-operatives legalised in 1988 which allowed small buisinesses to be established which lead to an increase in cafes, restaurants and small shops.

in jan 1987 Gorbachev wanted to introduce market mechanisms which were usuing practices of a capiltalist economy and supply and demand

Make a list of the impacts of the policy on the Soviet economy.

food production had small growth but still had to rely on imports for 1/5

buisinesses were still subject to interfearence as they had materials allocated to them but the freedom of managers depended on the attitudes of state bureaucrats who wanted to keep tight control

products eg food were diverted from state shops to co-operatives becuase it was more profitable which led to inflation which affected pensions and those on fixed income

co-operatives could shop around for the best buyer resulting in deals with wealthier city authorities leaving poorer areas with little food

co-operatives proved more productive so corrupt officials demanded bribes for permission to continue to operate and criminal gangs saw an oportunity to make profits though extortion rackets

uncertanty over supplies led to hoarding of food so food rationing was introduced

foreign companies wanting to invest in the USSR were put off by the endless beuocrary which made progress slow

reforms undermined and sabotaged by eg in leningrad all sausages were take and then buried