In the 1950s, Khrushchev made a comment that the USSR would 'bury' the USA economically. Eight years later (1967) it was predicated that Soviet industrial production would increase by 50%. Propoganda magazine Novosti depicted the Russia as an increasingly dominant economic superpower.
However, by the 1970s the USSR economy was stagnating. Why?
- Centralised economy
- Inadequate infrastructure/technology
- Empire as a drain on resources
- Moral bankruptcy
EG - annual growth rate for industrial production: 5.25% in 1967, 2% in 1980
Annual growth rate for agricultural production/output: 3.7% in 1970, 0.8% in 1980
Average annual increase in national income 1976-90 1.1%
USSR - oil is 54% of Soviet exports in 1984. Gas exports increased from 9.5 million cubic metres to 156 million cubic metres from 1970-1980. However, global crisis in real oil and gas prices ----
Had fallen 90% in 1981-82 and 50% in 1988
Embargo on technology imposed by the West in 1950 - hadn't been lifted during detente.
1974, US ban sales of advanced computers to the Soviet Union.
Features of Soviet system discouraged technological process - in order to retain absolute contro - the…