Beginning:
- USSR's economy - the second largest in the world
- machinery production, fast transport systems, complex communication networks, energy resources - oil, iron, steel
- domestic consumer industry produced everything (although not as good in quality as western products)
- Citizens were ensured a basic standard of living
- No unemployment
- Basic necessities subsidised
- the dominant form of ownership - state ownership
- final power rested with the state
Change in condition:
- Became authoritarian and bureaucratic
- lack of democracy
- an absence of freedom of speech
- One-party system - the Communist Party of the Soviet Union - did not allow for the opposition, not answerable to the people, did not listen to the growing need for countries to handle their own affairs, and had tight control over industries
- Russia - in theory: one of the 15 states - in reality: dominant - other states felt neglected
- US and USSR started an arms race
- USSR lagged behind in - technology, and infrastructure, and failed to meet the aspirations of people
- 1979: Invaded Afghanistan - weakened system further, food imports increased, shortages in all consumer goods
- late 1970s - Soviet economy faltered and became stagnant