Five Year Plans and industrial change (Stalin)

• • First Five Year Plan aimed to improve heavy industry.
  • Second Five Year Plan aimed to develop industry and some consumer goods.
  • Third Five Year Plan aimed to prepare Russia for war.
• • Under First 5YP there was 14% economic growth, iron production doubled, oil production increased by 9.7M.
  • Under Second 5YP, 30K railway tracks built, steel production tripled.
  • Under Third 5YP, military expenditure was 33% of budget by 1941, coal production increased to 166M in 1941.
• Problems with Stalin's 5 Year Plans

  • Low production quality
  • Plans did not specify what materials should be used for, therefore little coordination between different factories.
  • Stalin purged the economic planners and managers
  • Stalin attacked members of the Gosplan; purged members during 3rd 5 Year Plan.
  • Materials produced were often stored at a factory and left to decay, rather than being used.
  • 40% of what was produced was wasted.
  • Plans set targets for production, not quality.
  • Factory managers rewarded for producing large quantities, regardless of what was actually produced.
• Consumer Goods and the 5 Year Plans

  • Constant shortages of consumer goods like food shoes and clothing. The shortages were the result of the following:
  • Stalin’s priorities: Heavy industry and defence rather than consumer production.
  • Poor planning, planners did not anticipate the needs of general consumers.
  • Poor production techniques. By the mid 1930’s, the soviet economy was good at producing large quantities of raw materials such as iron and steel. But consumer goods required more complex techniques which the economy still didn’t have.
• Housing and living conditions under the 5 Year Plans

  • Significant issue from 1928-41. The plans required a huge increase in the urban workforce. However necessary housing never built.
  • Poor living conditions from 1928-1941
  • A better living standard was not a priority for Stalin.
  • Consumer goods rationing was a constant feature under Stalin’s economy.
  • Working conditions were very harsh.
  • Workers forced to work seven days a week.