Recovery

• WW2 left the Soviet Union economically destroyed.

  Germany had taken everything and destroyed the rest.

  Economic progress achieved in the 1930s had been wiped out.

  By 1945, 70% of Soviet industrial production had been lost, while some of the finest showpiece projects such as the Dnieper Dam, were in ruins.
• In 1945, Stalin called on the Soviet people to make one last effort: The Fourth five year plan was launched to rebuild the country.

  1. 88% of investment went into heavy industry and armaments production

  Stalin saw this as a matter of national security

  The rest of the money went into food production and consumer goods (just 12%) - just like in the 1930s, the needs of ordinary people were not considered a priority.
• The results of the fourth five year plan were positive.

  • The soviet union became one of the fastest growing unions in the world.
  • Mines, factories and vital road and rail links were quickly rebuilt.
  • In 1947, the Dnieper dam was again producing hydro-electric power
  • By the end of the plan: coal, oil and steel production had all gone above pre-war figures.

  However: As in previous plans, consumer goods such as clothes, shoes and furniture were not considered to be a priority and so failed to reach pre-war levels.