changes in economic policy under Brezhnev and Andropov

• Change in economic policy under Brezhnev and Andropov compared to Khrushchev

  • K's most contentious industrial policies abandoned, eg Regional Economic Councils (Sovnarkhozy) abolished and power placed back in the hands of the central planning apparatus/Gosplan
  • Balance of power lay, once more, with the conservatives such as Brezhnev who favoured a more Stalinist system
  • K's decentralising schemes for agriculture were reversed and power was returned to the Ministry of Agriculture
  • Move away from quick fix solutions to the problems of agriculture through K's pet schemes, eg the Virgin Lands Scheme was dropped
  • Andropv (1982-84) tried to improve economic performance by making the existing system work better through a tougher, more disciplined approach
  • He tried to reduce corruption, eg the falsifying of figures to make it look like targets had been met, and the stealing of resources from state enterprises
  • He tried to improve labour discipline by reducing the amount of absenteeism and alcoholism, eg government officials conducted spot checks for slackers
  • People were encouraged to come forward with new ideas to improve production
• On the whole, however, economic policy remained much the same
• Continuity in economic policy

  • Reformers in the politburo still had influence and continued to push for change; the conservatives continued to resist it
  • The military industrial complex remained powerful and stifled reform
  • The government realised the system needed reform and continued to make limited and not very successful attempts at it, eg the Kosygin reforms in the 1960s
  • In 1973 major industrial complexes were joined with scientific research institutions to try to ally technology and production
  • In 1974 a new system of targets attempted once again to move away from output to cost and profit
  • The push for more consumer goods continued eg 9th FYP placed emphasis on this
  • As under K, the Politburo accepted the need for heavy investment in agriculture, eg by 1976, 26% of all investment was in agriculture with particular emphasis on fertiliser
  • There were continued attempts to reform agriculture by opening it up to competition. Like K, B was prepared to allow a bigger role for production on private plots. He also introduced the brigade system whereby peasants were allowed to form brigades that could decide how profit was distributed
• Attempts to reform industry achieved little
• Reasons why economic reforms under Brezhnev and Andropov were unsuccessful


  • Although reformers had influence at the top of government, the reforms were implemented by often hostile officials
  • Central planners disliked the reforms which made them accountable for policies over which they had less control
  • Brezhnev sabotaged the reforms because his sympathies lay with the conservatives
  • Reforms watered down so much they were ineffective eg bonuses for output were higher than for innovation
  • The focus on profit led to fewer cheaper and more needed items
  • Attempts to adopt new technology were limited by the rigid nature of the command economy
  • Managers feared losing production while the new tech was installed so continued to use the old machinery
  • Use of cost and profit to judge performance was not very meaningful in a system where prices were set by the government, not by supply and demand
• Problems with agriculture under Brezhnev

  • Under B there was a steady rise in overall agricultural production but a decline in productivity
  • Many problems remained eg large and unskilled workforce, machinery often broke down, poor roads and food rotting before it reached market
  • Food production on state farms was not enough to meet rising demand. There were long queues at state shops and the gap was made up by produce from private plots sold in markets, but this food was more expensive (double the price of that in state shops)
  • By 1978 private plots made up only 1% of cultivated land but 25% of all produce
  • The brigade system was abandoned as officials feared a return to family farming
  • Grain had to be imported from the USA, even though the cultivated area was smaller
• Andropov's attempts to improve labour discipline largely failed - just created resentment. People were also reluctant to come forward with new ideas!