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Economy of the Soviet Union
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Economy of the Soviet Union : ウィキペディア英語版
Economy of the Soviet Union

The economy of the Soviet Union was based on a system of state ownership of the means of production, collective farming, industrial manufacturing and centralized administrative planning. The economy was characterised by state control of investment, public ownership of industrial assets, macroeconomic stability, negligible unemployment and high job security.〔Hanson, Philip (2003). ''The Rise and Fall of the Soviet Economy'' (Routledge). pp. 1–8.〕
Beginning in 1928, the entire course of the economy was guided by a series of Five-Year Plans. By the 1950s, the Soviet Union had, during the preceding few decades, evolved from a mainly agrarian society into a major industrial power. Its transformative capacity—what the US National Security Council described as a "proven ability to carry backward countries speedily through the crisis of modernization and industrialization"—meant communism consistently appealed to the intellectuals of developing countries in Asia.〔.
One notable person in this regard was Nehru, "who visited the Soviet Union in the late 1920s and was deeply impressed by Soviet industrial progress." See .〕 Impressive growth rates during the first three Five-Year Plans (1928–40) are particularly notable given that this period is nearly congruent with the Great Depression. Nevertheless, the impoverished base upon which the Five-Year Plans sought to build meant that, at the commencement of Operation Barbarossa, the country was still poor. While legitimate strictly in terms of growth and industrialisation, the death toll attributable to Stalinist economic development has been estimated at 10 million, much of which comprises famine victims.
The major strength of the Soviet economy was its enormous supply of oil and gas, which became much more valuable as exports after the world price of oil skyrocketed in the 1970s. As Daniel Yergin notes, the Soviet economy in its final decades was "heavily dependent on vast natural resources–oil and gas in particular." However, Yergin goes on, world oil prices collapsed in 1986, putting very heavy pressure on the economy.〔Daniel Yergin, ''The Quest: Energy, Security, and the Remaking of the Modern World'' (2011); quotes on pp 23, 24.〕 After Mikhail Gorbachev came to power in 1985, he began a process of economic liberalisation that moved the economy towards a market-oriented socialist economy. At its dissolution at the end of 1991, the Soviet Union begat a Russian Federation with a growing pile of $66 billion in external debt, and with barely a few billion dollars in net gold and foreign exchange reserves.〔.〕
The complex demands of the modern economy and inflexible administration overwhelmed and constrained the central planners. Corruption and data fiddling became common practice among the bureaucracy by reporting fulfilled targets and quotas, thus entrenching the crisis. From the Stalin-era to the early Brezhnev-era, the Soviet economy grew much slower than Japan and slightly faster than the United States. GDP levels in 1950 (in billion 1990 dollars) were 510 (100%) in the USSR, 161 (100%) in Japan and 1456 (100%) in the US. By 1965 the corresponding values were 1011 (198%), 587 (365%), and 2607 (179%).〔Angus Maddison, ''The World Economy: A Millennial Perspective'' (2001) pp 274, 275, 298〕 The Soviet Union maintained itself as the second largest economy in both nominal and purchasing power parity values for much of the Cold War until 1988, when Japan's economy exceeded $3 trillion in nominal value.〔(Japan's IMF nominal GDP Data 1987 to 1989 (October 2014) )〕
The USSR's relatively small consumer sector accounted for just under 60% of the country's GDP in 1990, while the industrial and agricultural sectors contributed 22% and 20% respectively in 1991. Agriculture was the predominant occupation in the USSR before the massive industrialization under Joseph Stalin. The service sector was of low importance in the USSR, with the majority of the labor force employed in the industrial sector. The labor force totaled 152.3 million people. Major industrial products included petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, lumber, mining, and defense industry.
Though, the GDP of the USSR crossed $1 trillion in the 1970s and $2 trillion in the 1980s, the effects of central planning were progressively distorted due to the rapid growth of the second economy in the Soviet Union.〔Vladimir G. Treml and Michael V. Alexeev, ("THE SECOND ECONOMY AND THE DESTABILIZING EFFECT OF ITS GROWTH ON THE STATE ECONOMY IN THE SOVIET UNION : 1965-1989" ), BERKELEY-DUKE OCCASIONAL PAPERS ON THE SECOND ECONOMY IN THE USSR, Paper No. 36, December 1993〕
==Planning==

Based on a system of state ownership, the Soviet economy was managed through ''Gosplan'' (the State Planning Commission), ''Gosbank'' (the State Bank) and the Gossnab (State Commission for Materials and Equipment Supply). Beginning in 1928, the economy was directed by a series of five-year plans, with a brief attempt at seven-year planning. For every enterprise, planning ministries (also known as the "fund holders" or ''fondoderzhateli'') defined the mix of economic inputs (e.g., labor and raw materials), a schedule for completion, all wholesale prices and almost all retail prices. The planning process was based around material balances—balancing economic inputs with planned output targets for the planning period. From 1930 until the late 1950s, the range of mathematics used to assist economic decision-making was, for ideological reasons, extremely restricted.〔: "The mathematical sophistication of the tools actually employed was limited to those that had been used in ''Das Kapital'': the four arithmetical operations, percentages, and arithmetic (but not geometric) mean."〕
Industry was long concentrated after 1928 on the production of capital goods through metallurgy, machine manufacture, and chemical industry. In Soviet terminology, the capital goods were known as ''group A goods'', or ''means of production''. This emphasis was based on the perceived necessity for a very fast industrialization and modernization of the Soviet Union. After the death of Stalin in 1953, consumer goods (''group B goods'') received somewhat more emphasis due to efforts of Malenkov. However, when Khrushchev consolidated his power by sacking Malenkov, one of the accusations against Malenkov was that he permitted "theoretically incorrect and politically harmful opposition to the rate of development of heavy industry in favor of the rate of development of light and food industry".〔("Георгий Маленков. 50 лет со дня отставки" ), ''Radio Liberty''〕 Therefore, since 1955 the priorities again were given to capital goods, which was expressed in the decisions of the 20th Congress of the CPSU (1956).〔Пыжиков А. В. ''Хрущевская "Оттепель" : 1953—1964,'' Olma-Press, 2002 ISBN 978-5224033560〕 ''For further details see consumer goods in the Soviet Union.''
Most information in the Soviet economy flowed from the top down. There were several mechanisms in place for producers and consumers to provide input and information that would help in the drafting of economic plans (as detailed below), but the political climate was such that few people ever provided negative input or criticism of the plan. Thus, Soviet planners had very little reliable feedback that they could use to determine the success of their plans. This meant that economic planning was often done based on faulty or outdated information, particularly in sectors with large numbers of consumers. As a result, some goods tended to be underproduced, leading to shortages, while other goods were overproduced and accumulated in storage. Low-level managers often did not report such problems to their superiors, relying instead on each other for support. Some factories developed a system of barter and either exchanged or shared raw materials and parts without the knowledge of the authorities and outside the parameters of the economic plan.
Heavy industry was always the focus of the Soviet economy, even in its later years. The fact that it received special attention from the planners, combined with the fact that industrial production was relatively easy to plan even without minute feedback, led to significant growth in that sector. The Soviet Union became one of the leading industrial nations of the world. Industrial production was disproportionately high in the Soviet Union compared to Western economies. However, the production of consumer goods was disproportionately low. Economic planners made little effort to determine the wishes of household consumers, resulting in severe shortages of many consumer goods. Whenever these consumer goods would become available on the market, consumers routinely had to stand in long lines (queues) to buy them. A black market developed for goods, such as cigarettes, that were particularly sought after but constantly underproduced.

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