Stagnation Period

review
What do you remember about soviet union history in 1970es?
Who was Brezhnev?

What is it?
Stagnation
A period of conservated economical and social life
USSR in the world – Sino-Soviet split, Prague spring of 1968
Growth of oil prices was steady throughout ‘70es

Developed socialism
Disagreements inside communist camp led for USSR to choose a road to conserve current ideology
No critics of current regime were allowed
No developments inside country were taken
USSR reached a goal of developing fully into Socialism

Compare and contrast
USSR
PRC
Ideology
____
Economical condition
_______
Social life
_________
Ideology
____
Economical condition
______
Social life
_________

USSR economy in ’70es
MIR space station
Baikal Amur Mainlane
Moon rocket
BURAN space –shuttle
TU 144 supersonic jet
Weak light industry
Consummer deficit
Agricultural decline

Whom economy serve
WHILE 8TH AND 9TH 5-YEAR PLAN FOCUSED ON IMPROVING EVERYDAY LIFE OF SIMPLE CITIZEN BY FOCUSING ON GROUP И PRODUCTION, 10TH PLAN (1975-1980) CHANGED DIRECTION TO SUPERIORITY OF HEAVY INDUSTRY AND OIL AND GAS PRODUCTION
SIMPLE PEOPLE
Light industry
Consumer goods
Housing
COUNTRY’S IMAGE
Military production (better subs, missiles, arms)
Oil (to sell abroad)
Help to other countries of socialist block

Black Market
During 1970es wages and salaries were growing steadily
This born a demand for consumer goods, one that was hard to solve only through official channels
“Everything’s common – everything’s mine” in order to get what they want people started to sell the surplus of their enterprises unofficialy ? black market
Simple citizens wanted to share luxury lifestyle they saw in rare western movies or during abroad trips to western bloc countries

Agriculture
The bigger the better – Brezhnev continued Khrushchev's policy on enlargement of collective farms ? lack of involvement on average level
Private plots (dachas) were increased to ½ hectar (6sotok)
HOWEVER gross agriculture product grew by 21% in 1970es, USSR even imported cereals to other country like Argentina
YET attempts to reform kolkhozes failed. Biggest problem – lack of small machinery for small farms, lack of good roads, inadequate purchase prices for crops and diary

Social stagnation
Despite economical stagnation standards of living improved throughout 1970es
As there were no unemployment many unskilled workers were treated almost same way as brilliant one ? no benefit system
Work-shy atmosphere
The higher the rank the more perks you got
Inability to gain fair promotion

Social life
Domestic income grew 150% in 15year
People were able to buy cars, dachas, fridges, washers etc
Rapid growth of residential housing (1.6 bln m2 for 15 years)

Country of developed socialism
Wealth of soviet family grew
Refrigerators - 32 % in the early 1970s - 86 % by late 1980s
Color TVs- 51 %in the early 1970s to 74 % in the 1980s
BUT
Poor health system
Uneven salary matrix (worker got more then servicemen or teachers)

Reasons for success
Arab-Israeli conflicts caused a tremendous growth of oil prices (1973-1977) (below$20 in 1971 to over $100 in 1980)[2008 $ rate]
In 1974 oil prices grew 400% in 3 month

TNSTAAFL
Soviet economy jumped onto oil needle reluctantly
Surplus was used to improve country image and to fasten arm race
Agriculture was weak and USSR became big importer of grain

STOP RIGHT THERE!!!!
Surplus money weren’t used for economy recovery and growth, rather for keeping status quo
No development in culture
Different- thinking not allowed

GDP Growth of the USSR