Compulsory Question (Russian Economics From Stalin’s Industrialization To Putin’s Economic Stabilization) Essays Example
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The main task of the entered planned economy was increasing economic and military power of the state the highest possible rate. At the initial stage, it came down to a redistribution of the maximum possible volume of resources for industrialization. In December 1927 at the XV Congress of the CPSU (b) adopted "Guidelines for the compilation of the first five-year economic development plan of the USSR", in which the Congress opposed the super-industrialization: the growth rate should not be maximized, and should be planned so that there is no failures. Designed based on the directives of the first draft five-year plan (October 1, 1928 - October 1, 1933) was approved at the XVI Conference of the CPSU (b) (April 1929) as a set of carefully designed and real problems. This plan, the reality is much more intense than the previous projects, immediately after its approval by the V Congress of Soviets of the USSR in May 1929 gave grounds for the state of a number of measures of economic, political, organizational and ideological nature that elevate the status of the concept of industrialization, the era of the "great turning point." The country had to launch the construction of new industries, increase the production of all kinds of products and to start production of the new technology.
After the first five-year period followed by a second five-year plan, with slightly less emphasis on industrialization, and then a third five-year plan, which was disrupted due to the outbreak of World War II.
The result was the first five-year development of heavy industry, so that GDP growth during the 1928-40 biennium, amounted to about 4.6% per year (according to other, earlier, estimates range from 3% to 6 , 3%). Industrial production in the period 1928-1937 have been increased by 2.5-3.5 times, that is, 10,5-16% per year. In particular, the production of machinery in the period 1928-1937 has grown at an average 27.4% per year.
Since the beginning of industrialization fell sharply consumption fund, and as a result, the standard of living of the population. By the end of 1929 the rationing system was extended to almost all food products, but the deficit on goods ration remains, and to buy them had to stand in long queues. In the future, the level of life began to improve. In 1936, the cards have been canceled, which was accompanied by an increase in wages in the industrial sector and an even greater increase in state Meal prices for all goods. The average consumption per capita in 1938 was 22% higher than in 1928. However, the largest increase was among the party elite and the working and did not touch the vast majority of the rural population, or more than half the country's population.
Khrushchev’s Agricultural Reforms
The reform is to divide the territory of the USSR in the so-called "economic administrative regions" with the creation within the regions, territories and republics of the USSR network of regional economic councils, in charge of the company were transferred to previously be subordinated to industrial and agricultural ministries. As conceived by the initiators of the reform, decentralization of management of production would increase its growth, improve product quality, optimize the allocation of resources, reduce the cost of repair of equipment, and improve the organization of logistics. However, a short period of decentralization in the early years of reform aimed at breaking the established since the mid 1930's highly centralized system management industry, has led to the destruction of a unified technical policy and disintegration of economic relations in industry and agriculture. Efforts to fix the situation by enlarging the economic councils and merging administrative economic regions were led to the intermediate levels of government in the face of national and Union Council of National Economy and branch of government committees. Research, engineering and design organization is run by industry authorities, were detached from the industry, which continues to be subordinated to the territorial bodies. This led to a decline in the quality of design, construction and reconstruction of enterprises, slowed the introduction of new technologies, machinery and equipment, and as a result, led to a decline in the quality of industrial products. Transformation of the system of industrial management of the industry and the evolution of the territorial latest in hybrid "production-territorial" system could not resolve the fundamental contradiction between the historical systems of vertical integration in manufacturing industries and attempt to control sectors on a territorial basis. The problems of the Soviet economy continue to worsen, and by the mid-1960s the trend of centralization prevailed. Economic councils were abolished and geographically distributed system of managing the economy through economic councils was replaced by the usual for the party and economic nomenclature rigidly centralized branch system of governance through line ministries and inter-governmental committees.
The reform of 1957 did not bring the desired results, and ended returning to a centralized system of industrial management. The reform also failed to address the growth of spending gold reserves of the country, which is one of the factors that influenced the decision of the Supreme Soviet of the USSR and the party leadership for reform. In the period from 1953 to 1965 by the Soviet government MosnarBank sold over 3 thousand tons of gold. If in 1953 for the purchase of food abroad was spent 250-300 tons of gold, in 1963-64 years, when the reform gained full force, gold sales amounted to 1,244 tons. Conducted in 1961 currency reform led to the devaluation of the ruble. In 1962 he became irregular settlements with supply of industrial goods and food, particularly bread, and the Soviet leadership for the first time in the history of the country decided to buy grain abroad. In 1963 it was purchased 12 million tons of grain, which cost the state $ 1 billion. Increase in retail prices of meat, meat products and butter together with the deterioration of working conditions caused a wave of strikes and workers' performances in Riga, Kiev, Chelyabinsk, Leningrad, Omsk, Kemerovo, Donetsk, Artemyevsk, Kramatorsk. Suppression of strikes by workers in Novocherkassk accompanied by the use of firearms, and ended with the arrest and prosecution of strikers. The growth rate of industry and agriculture continued to decline. Especially sharp slowdown observed in agriculture, where instead of the planned 70% increase in agricultural production by 1965 was only 15%. On the whole, was not solved the problem of shortage and quality of consumer goods. In 1962, only 5.3% of Soviet families had refrigerators (for comparison, in the United States - 98.3%).
Positive results of the reform were impressive in comparison with developed countries quantitative economic indicators. In particular, by 1965, the USSR national income increased by 53% compared with 1958, production assets grew by 91%, industrial production - by 84%. Real income grew by one-third. Were introduced salaries and pensions farmers. Due to the construction of buildings of large panels factory production, housing stock increased by 40%. In the period from 1950 to 1964 the area of housing has increased 2.3 times.
In the Soviet Union the term "stagnation" leads its origin from the political report of the Central Committee of the XXVII Congress of the CPSU, read Mikhail Gorbachev, in which it was stated that "in society began to appear stagnation" in the economic and social spheres. Most often, this term refers to the period from the arrival of Leonid Brezhnev to power (mid-1960s) before perestroika (the second half of the 1980s), marked by a steady decline in economic growth and declining labor productivity trends in the absence of any serious shocks in the political life of the country, as well as the relative social stability and higher than in previous years (1920 - first half of 1960), the standard of living.
According to the UN for the year 1990, the Soviet Union has reached 26th place on the Human Development Index (HDI = 0.920) (among European countries had lower rates only allies of the USSR - Bulgaria, Poland, Hungary and Romania, Yugoslavia and Albania, and and Portugal).
In 1966, the Soviet Union was carried out transition to universal secondary education, in 1978 introduced providing students with lower grades with free textbooks. By the number of specialists with higher education in the country USSR was ranked first in the world. At the same time the prestige of higher education in society has fallen dramatically - a fairly common was the departure of highly educated workers in the office, which did not require the university diploma, but often provide higher earnings. In the "period of stagnation" was held on a huge scale housing and road construction, the subway was built in 11 cities, life of people in the city mainly went to a modern level, and in rural areas greatly improved (completed full electrification of rural areas and a large part of gasification).
There were also negative effects. First of all, it is a steady decline in the growth rate, the stagnation in the economy: the development of the national economy of the USSR became a tendency to a marked reduction in the rate of growth of national income. If the eighth five-year period the average annual increase was 7.5% of his and ninth - 5.8%, in the tenth he declined to 3.8%, and in the early years of the eleventh amounted to about 2.5% (with an increase in the average population 0.8% per year). It does not provide any of the required rate of growth of living standards, nor intensive technical re-equipment. Significant was lagging behind the West in the development of high-tech industries. For example, the situation in computer science was described as "catastrophic". Chronic problem was insufficient to provide the population with food, despite large investments in agriculture forced to send citizens to agricultural work and significant food imports. In contrast, during the reign of Khrushchev, in the years of stagnation encouraged the development of private farms collective farmers and workers of state farms, even appeared slogan "private farm - use common"; also widely distribute land for horticultural associations of citizens.
Problems of improving the socialist economic model, which was in the Soviet Union in the pre-crisis state, making her dynamism and efficiency are key to come to power in the party and the state in the mid-1980s new leadership headed by Mikhail Gorbachev.
As the entry of the Soviet economy stagnated in the band became increasingly obvious to develop the so-called shadow economy. This phenomenon, which arose in a total nationalization and centralization of the planned economy, gave some ability to transfer production and income in accordance with the needs of consumption. The shadow economy in the USSR included as different types of self-employment and underground plant for the production deficit, and the production of goods unaccounted for state-owned enterprises and fraud in the financial statements. It is estimated that in the Soviet Union in the mid 80s in the shadow business employed 15 million people, and the volume of manufactured products informal consumer demand has increased up to 25% of the total turnover. Formation of a new social group of clandestine entrepreneurs, which, as a rule, were closely associated with the most pragmatic part of the country's ruling party and state nomenclature. Actually began the process of merging, which subsequently created a special layer of class "Soviet entrepreneurs" who received later in the West called "new Russians".
Yeltsin's market reforms
Yeltsin's government had liberalized retail prices, liberalization of foreign trade, the reorganization of the tax system and other changes radically change the economic situation in the country. The result marked the reform Russia's transition to a market economy. The consequences of economic liberalization were twofold. On the one hand the end of 1992 was overcome shortages of goods, market mechanisms were launched in the Russian economy.
On the other hand liberalization has led to a sharp rise in prices, the growth of non-payment, as well as to the depreciation of wages, depreciation of income and savings of the population, higher unemployment and increased problems irregular payment of earnings. The destruction of the Soviet state apparatus regulation of prices and price liberalization led to a huge disparity in the prices and the financial situation of enterprises and industries. In a monopolized economy liberalization of prices actually led to a change in control of the price: instead of these states became engaged in monopolistic structures themselves, which led to a sharp increase in prices and lower production volumes.
According to a report by World Bank staff, government spending in 1992 accounted for 69.1% of GDP. According to the calculations of the IET, at the end of 1992 public spending with budget loans (net of repayment) were found to be 65.1% of GDP, while government revenues accounted for 40% of GDP, of which 25% (10% of GDP) accounted for revenues extra-budgetary funds, the federal budget deficit in 1992 amounted to 29.4% of GDP, the same figure excluding subsidies importers (especially food), mainly financed by external loans amounted to 18.9% of GDP. Inflation for the year 1992 amounted to 2,609%. As a result of hyperinflation cash deposits in Sberbank, is more than 100 billion rubles, impaired, which was seen as a direct robbery from the state. Inflation also hit the working capital, resulting in a problem of non-payment, which has become a multi-year issue.
Putin’s economic stabilization
Summing up the economic results of Putin's «The Wall Street Journal» wrote: "The economy is not only regained all the ground lost in the 1990s, but also to create a viable service sector, which practically did not exist in the Soviet period. Russia has accumulated the third largest gold reserves after China and Japan. "Chinese President Hu Jintao in 2007, said: "In recent years, under the leadership of President Putin in the context of social and political stability of the country's economy is developing rapidly. Life of the population is improving every day." World Bank Chief Economist for Russia in 2008 stated that Russia against the background of a slowdown in the world economy shows good results. As the economist, Russia can be considered one of the islands of economic stability in the world, which reflects the quality of macroeconomic policies, growth in domestic demand, the accumulated foreign exchange reserves and the Stabilization Fund.
The Russian economy was an increase of GDP (in 2000 - 10%, in 2001 - 5.7%, in 2002 - 4.9%, in 2003 - 7.3%, in 2004 - 7.2% in 2005 - 6.4%, in 2006 - 7.7%, in 2007 - 8.1%, in 2008 - 5.6%), industrial and agricultural production, construction, real incomes, which in greatly contributed to the rise in world prices of energy and other Russian exports. A reduction in the number of people living below the poverty line (29% in 2000 to 18% in 2004), the increase in the volume of consumer credit (for 2000--2006 years, the increase amounted to 45 times, although in 2008--2009 years. The volume of newly issued loans fell sharply). However, economic growth, according to Alexei Polukhin, economics editor of "Novaya Gazeta", is largely due to a steady rise in world prices of hydrocarbon raw materials, the sharp devaluation of the ruble in 1998 and the liberal reforms of the 1990s, not the policy of the Putin government; but oil and gas "industry had virtually exhausted the field of easy oil and with new projects - offshore, in Eastern Siberia and other require large-scale financing." Despite the increase in budget revenues at all levels, is still not solved the problem of infrastructure development, especially road, in the structure of Russian exports in 2008. The share of machinery, equipment, motor vehicles accounted for only about 4%.
On the one hand, during the years of Putin's GDP grew by 70%, the real incomes of the population, according to statistics, more than doubled, the poverty rate declined - the number of people with incomes below the poverty line decreased from 29% in 2000 to less than 16% The budget surplus in 2007, the financial resources of the state unprecedentedly high: in January 2008, Russia's central bank gold reserves amounted to about 480 billion dollars, being the third in the world after China (more than half a trillion dollars) and Japan (980 billion. dollars). The Russian Stabilization Fund reached 157 billion dollars.
On the other hand, in the Putin years the price of Russian oil exports averaged $ 40 per barrel in recent years, more than 60 dollars. For comparison - the average price of oil during the reign of Boris Yeltsin was 16 dollars 70 cents. Fantastic opportunities, developed thanks to ultra-high world oil prices, Putin had to use for the modernization of the country, economic reform, the creation of a modern army, health and pension systems. But these features are formed by the sudden "oil rain" have been overlooked. As with Brezhnev, windfall oil and gas exports were largely eaten, and the necessary changes are not carried out.
The general features of climate in North Eastern Eurasia
At the base of the northern part of Eurasia are ancient East European platform with the Baltic shield and young West Siberian platform.
Platforms are two plains: Eastern European (Russian) and West Siberian. They are separated by low Ural Mountains. District goes to the Arctic Ocean and is located in the arctic, subarctic and temperate climates. Arctic climate in the polar zone of the northern coast of Eurasia stern monthly temperatures vary from 0 ° C in summer to -40 ° C in winter, little rainfall (100-200 mm or less). Subarctic climate occupies a narrow strip of the Arctic Circle. Summer is short, the average temperature of the warmest month does not exceed 12 ° C, the winters are long and harsh, a little rain. Temperate climate zone in the south extends to about 40 ° C. w. On the western flank of the continent maritime climate with cool summers and warm (for this latitude) in the winter, with moderate rainfall and no permanent snow cover. Temperate continental climate is characteristic Europe (except west coast) and north of Western Siberia. It is characterized by unstable weather situation, moderating influence which has a westerly flow of sea air of the Atlantic.
In northern Eurasia natural areas are located on the tundra to dry steppes, but are dominated by dark coniferous taiga. The fauna of Northern Eurasia is very diverse. Distribution of modern wildlife on the territory depends on the characteristics of the natural environment and human activities. The most common large mammal tundra is reindeer. In the tundra inhabited as arctic fox, lemming and hare. Among the birds are the most common and white ptarmigan. In the summer the tundra arrive loons, eider ducks, geese, ducks, and swans.
North-East Asia region combines Eastern and Southern Siberia and Mongolia mountain. These include the Central Siberian Plateau pas high ancient Siberian Platform and its surrounding in the south and northeast mountain: Altai, Sayan, Aldan Plateau becomes ridge mountains of northern Mongolia and the Verkhoyansk Range. The climate is very harsh, arctic, subarctic and temperate sharply continental. Here is the "cold pole" of the Northern Hemisphere. Once the mercury thermometer was fell to a record 72 degrees. This happened back in 1926. In the north tundra is dominated, in the east light coniferous larch and pine taiga. In the intermountain regions of southern Siberia and northern Mongolia is mountain steppe. Almost everywhere is permafrost. Due to the harsh environmental conditions of the area this is the one of the least populated place on the continent.
Why did the Soviet Union fall apart?
Currently, among historians there is no single point of view on the causes of the collapse of the Soviet Union and the possibility of its prevention. Among the possible reasons cited include:
incompetence of the union leadership, selfish desire of leaders of the Union republics to get rid of central control and use of Gorbachev's democratic reforms for the destruction of the State and society;
monocentrism decision (only in Moscow, the union center), which led to inefficiency and wasted time in making decisions and discontent regional authorities;
degradation of the ruling elites, the sharp aging senior bureaucracy (the average age of the Politburo already by 1980 was 75 years), which led first to the Age of the funeral, and then to the rise of Gorbachev because of his relatively young age (54 at the time of the election of 5 th General Secretary of the CPSU)
centrifugal nationalist tendencies inherent, according to some authors, each multi-ethnic country and manifested in the form of ethnic conflicts and desires of individual nations to develop their own culture and economy;
deep internal crises and conflicts, including national: Nagorno-Karabakh conflict, the Transnistrian conflict, the Georgian-South Ossetian conflict, the Georgian-Abkhaz conflict
disparities extensive economy (typical for the lifetime of the USSR), the result of which becomes a constant shortage of consumer goods, the growing technological gap in all areas of the manufacturing industry (which is offset in a extensive economy can only be quite costly mobilization measures, a set of such measures under the general title "Accelerating "was adopted in 1987, but economic opportunities to perform he was gone);
strong inequality in the development of Soviet republics, including in terms of shortages of goods, as well as the possibility of building a shadow economy
unsuccessful attempts to reform the Soviet system, which led to stagnation and then collapse of the economy, which led to the collapse of the political system);
crisis of confidence in the economic system: in the 1960-1970-ies the main way to deal with the inevitable under the planned economy deficit of consumer goods was chosen rate on the mass, simple and inexpensive materials, most businesses have worked in three shifts, producing similar products from low quality materials . Quantitative plan was the only way to evaluate the effectiveness of enterprises, quality control is minimized. This resulted in a decline in the quality of produced in the USSR and consumer goods. The crisis of confidence in the quality of goods became a crisis of confidence in the whole economic system as a whole;
caused by the overproduction of the decline in world oil prices, shaky weak enough raw material economy of the USSR
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