Question

A. The Soviet Union once claimed sizable economic growth. Describe a few methods used by the Soviet Union to create economic growth. What methods would have been used to demonstrate the Soviet Union’s economic growth?

B. During its later years, the Soviet Union had negative economic growth. Describe a few problems that created Soviet economic decline.

Answer 1

ANS

USSR or soviet union had a rapid growth from 1928 - 1970 ,the accumulation of capital was the major key behind the rapid growth of soviet union. The rate of investment increased to over 20% in the period of 1930s .In 1930s the five year plan increased the production of producer goods like machienery and construction and steel and aluminium which gave a major rise in the economy ,the tranform in the idea of agriculture sector which was due to emergence of cooperative farming also gave the rise to agriculture sector also the industries were converted into the trusts as to increase and to direct towards the profit earning also the budgets were set in such a way that in each five year plan a sector of economy could prosper also the firms were given output targets and were also assisted with bank credits that would help them. So the major methods which can be seen for the growth of soviet unions econoomy can be compiled as allocation of producer goods, collectivisation of agriculture and the setting of output targets.

ANS

The soviet union eventually collapsed at the end of the century ,the weakened economy of USSR from world war II saw the initial boost due to communist politics but later the decline of the economy began to fall one of the main reasons prevailing was that no economy can grow for the long period when moving with the socialists approach piecemeal reforms like those of the Sovnarkhoz implemented by Nikita Khrushchev had a great impact in decentralizing the economy control which increased the complexity of economic affairs in the soviet union ,these reforms intially broke and damaged the roots of economic growth and by the time they were called back the major damage was already done to the economy ,all the reforms like piecemeal that were made to bring the economy out of stagnat growth were declared as failure and due to which led to more radical set of reforms in the leadership of Mikhail Gorbachev, they initiated the restructuring of the economy and when it came to be a success investors gained the new positivity and and new investment opportunities but optimism soon faded ,the economy slowdown was in 1980s and 1990s and which came to an end of soviet union.