WHAT EXPLAINS THE FALL OF THE USSR C1986 - 1991?

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WHAT EXPLAINS THE FALL OF THE USSR C1986 - 1991?

Causes

  • TWELFTH FIVE YEAR PLAN

Effects

  • Investment in the Soviet Union was heavily skewed towards construction projects
  • Investment projects led to significant overspending
  • Factories were using old equipment and therefore became increasingly unproductive
  • Soviet industry was slow to use new technology
  • Agricultural sector was swallowing large sums of investment with little improvements in productivity
  • Focus remained on quantity over quality

Overall summary

Gorbachev's policy of acceleration did little to address the fundamental weaknesses of the Soviet economy. Changes to investment was resisted by the military who wanted investment to go to them. 

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