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Economic Policy Post-Stalin…read more

Slide 2

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Khrushchev…read more

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Pricing ­ average procurement prices rose by around 25% between 1953 and 1956. Prices
of transport and equipment hire were cut. Peasant taxation was based on size of their plot
rather than livestock. Increased production of fertilisers and farm machinery.
Improved incentives ­ reduced the quota of what farms had to produce and increased
the prices for anything excess ­ 250% rise in farm incomes between 1952 and 1956.
Virgin Lands Scheme ­ Increase agricultural production by cultivating unfarmed land in
Siberia, Caucasus and Kazakhstan into new farms. (September 1953)
Corn Campaign ­Wheat would be grown on the new virgin lands farms and maize on
traditional farms in the Ukraine. The maize would feed livestock, increasing the amount of
meat available.…read more

Slide 4

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Virgin Lands Scheme ­ Success or Failure
Successes Failures
· Grain harvest, meat and milk production all rose · Expensive
significantly between 1953 and 1958.
· Overall agricultural production increased by around 35.5%. · During the 1950s and 1960s between 44 and 54% of the
soviet population worked on farms compared to 5% of the
US population which produced more than twice as much
· Greater production led to 400% increased in farmers · Irrigation systems on dry terrain were expensive to run and
income. maintain.
· Agricultural production was 15% higher in 1964 than it was · Harvests in 1959 and 1960 were lower than the harvest of
in 1958. 1958.
· 15% increased fell short of Khrushchev's target of 300%
· Farmers were less able to obtain modern farming
· Central initiatives don't take into account local conditions
ie Landscape inappropriate for maize growth.…read more

Slide 5

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Military Spending ­ Fell from 12.1% to 9.1% in 1958. Between 1958 and 1962 there were a
number of nuclear stand-offs between the USSR and the USA, so in 1962 increased military
spending and by 1964 military spending was up to 11%. Rise in military spending coincided
with a fall in economic growth.
Seven Year Plan (1958-1965) ­ planned to boost agricultural production and production of
consumer goods by investing in light industry, particularly chemical development. .…read more

Slide 6

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Seven Year Plan ­ Success or Failure
Success Failure
· 60% increase in the production of consumer goods · 5% below Khrushchev's target.
· Fertiliser production increased by 19 million tons · 3.5 million short of target
· Production of synthetic fibre increased by 241,000 tons · 200,000 tons below target
· Sovnarkhoz reforms (decentralisation) hampered
growth by destroying central co-ordination.
· Between 1958 and 1964 Khrushchev introduced
increased centralisation to solve the problems with
Sovnarkhoz. Confusion of the planning system.
· Division of agriculture and industry were unpopular
and reverted by Brezhnev.
· Economy was not designed for light industry after such
focus on heavy industry.…read more

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