Significance of economic weaknesses and failure of reform

• • Significant amount of waste and inefficient bureaucracy within the Soviet economy. For instance, Gosplan demanded 400K tractors of which 20% went to waste. A further 12% of machinery went to waste in factories.
  • Fundamental long-term economic weaknesses saw economic incentive fall.
  • Arms race saw military spending reach 17% of GDP by 1985.
• Successes and failures of Anti-Alcohol campaign:

  • Generally, the policy failed.
  • Initially drop in alcohol consumption amongst moderate drinkers.
  • However consumption in 1987, consumption was still double that of 1960.
  • In 1987, citizens over 15 would consume between 15-16 litres of alcohol every year.
  • Still 4.5 million registered alcoholics.
  • Soviet citizens now drinking Samogon, an illegally produced alcohol.
  • However it meant that the Soviet government made less out of vodka sales.
  • Therefore revenue fell by 67 billion Roubles.
  • Economic conditions grew even worse.
  • Therefore abandoned by 1988.