The limited attempts at reform after 1964

What economic measures did the new leadership abolish after Khrushchev’s dismissal?

• The Regional Economic Councils were abolished

• More power was placed back into the centre of the planning apparatus

• Gosplan was given greater powers of co-ordination

What leader did this new economic system echo?

Stalin

What were the ‘Kosygin Reforms’? (3)

Launched in 1964 by Alexei Kosygin (the Prime Minister)

• Aimed to unleash creativity within the decision making process and improve productivity

• Gave incentives to enterprise managers to use their resources more productively

• Attempted to make central planning take more notice of cost and profit rather than using quantity produced as the main indicator of economic success

How did Brezhnev feel about Kosygin’s reforms? What did he do?

Brezhnev sympathised with the conservatives in the Party and sabotaged the reforms: They were watered down to the point where they were ineffective

What were the results of the ‘Kosygin Reforms’? (3)

Little was achieved

• Central planners disliked reforms that made them accountable for policies they had no control over

• Bonuses for output were higher than bonuses for ‘innovation’ so managers preferred to stay with safe methods

• The focus on bonuses for profit encouraged some enterprises to make fewer more expensively priced items rather than mass produce cheaper and often much more needed items

What reforms were put into place under Brezhnev?

• 1973→ Major industrial complexes were joined with scientific research institutions in an attempt to ensure that the latest technology was applied to production- an ‘alliance of the working-class with science’

• Targets were further centralised in 1974. They attempted to move away from using merely output figures to focus more on cost and profit

What were the results of the reforms under Brezhnev? (3)

• New technology was limited by the rigid nature of the command economy

• Managers feared losing production while new machinery was installed in factories so new equipment was often left to rust

• Cost and profit indicators to judge performance were not helpful as they didn’t reference supply and demand

What was the emphasis of the Ninth Five-Year Plan under Brezhnev? When did the plan start and finish?

1971-75→ There was a particular emphasis on producing more consumer goods

What were the results of the Ninth Five-Year Plan?

• Goals were not fulfilled but growth was still impressive and living standards rose

• 1980→ 85% of families had TVs and 70% had washing machines but only 9% had a car

• High investment in public transport

What scheme of Khrushchevs did Brezhnev reverse?

Khrushchev’s de-centralising schemes for agriculture were reversed

Power was returned to the Ministry of Agriculture

What was there a movement away from?

Trying to find quick solutions using pet schemes e.g. The Virgin Lands scheme was dropped

How much did Brezhnev invest in agriculture?

By 1976, 26% of all investment was in agriculture

What system did Brezhnev introduce as an incentive?

A ‘brigade’ system was introduced allowing peasants on collectives to form work brigades that could decide how profit was used and distributed

What were the results of the brigade system?

Party officials worried that the success of this system would mean a return to family farming and as a result the experiment was abandoned.

What were the results of Brezhnev’s agricultural policies? Why was this?

A steady rise in overall production accompanied by a steady decline in workers’ productivity. The agricultural workforce was large and unskilled, equipment and machinery was prone to breaking down, roads were often impassable and much of the food produced rotted before it reached the market.

How did they solve the problem of food production failing to meet rising demand?

There was a shortage of foodstuffs available in state shops. This gap was made up by private production where peasants sold their garden produce at private markets for considerably higher prices.

Private plots made up one percent of the cultivate area but were producing 25% of all the produce.

Andropov 1982-84

How did Andropov believes he could make the economic system better?

By taking a tougher and more disciplined approach.

Andropov 1982-84

What was the focus of Andropov’s economic policy? (2)

The removal of corruption from with in the system whereby production figures were falsified in order to give the impression of targets being fulfilled.

The improvement of labour discipline as the Soviet workforce suffered from widespread absenteeism and alcoholism. Government officials conducted spot checks from slackers

Andropov 1982-84

What were the results of Andropov’s economic policies?

It made Andropov very unpopular and added to the resentment that many felt towards the government.