differences between stalin and khrushchevs economic policies

• Khrushchev's economic policies


  Differed from Stalin's policies
• Types of industry under Khrushchev


  • Less emphasis on heavy industry, aim was to create a broader industrial base
  • Greater focus on consumer goods - synthetic fibres, natural fibres, footwear and housing
  • Promotion of light industry such as chemicals, eg synthetic fibres
  • Shift from coal energy to oil and gas
  • Regional development promoted, eg areas east of the Ural mountains
• Aims of Khrushchev's economic policy

  Bring real benefits to the people and promote social stability, as well as promoting economic growth
• Decision making under Khrushchev

  1. 105 Regional Economic Councils (Sovnarkhozy) set up in 1957 to shift some economic decision making from the centre out to the regions

  2. The 1962 Liberman Plan called for greater autonomy for local managers and even proposed that the market to replace the state as the decider of prices
• Motivators under Khrushchev


  • Emphasis on incentives rather than coercion, harsh labour laws removed, working week reduced, managers of industrial enterprises allowed to keep 40% of the profits to reinvest in their factories in order to encourage initiative
• Supporting educational policies under Khrushchev


  • Greater emphasis on technical and vocational education e.g. specialist technical schools set up
• Khrushchev's approach to agriculture and the peasants

  • Met peasants on collectives, listened to their views, and was genuinely committed to raising the status of agriculture in the Soviet economy
  • Tried to reform agriculture by incentivising the peasants, rather than using coercion as Stalin had done
  • Individual collectives were given greater decision making powers and the unpopular MTS were abolished
  • Prices for state procurement were increased and the compulsory seizure of food was replaced by a system of planned purchases
  • Greater concessions were made to peasants concerning their private plots, eg they were now allowed to sell their produce at private markets
  • The Virgin Lands Scheme (1954) aimed to open up new areas such as Siberia to agricultural production
  • Introduced larger collectives called agrogoroda which combined food production and processing
• There were similarities between Khrushchev's and Stalin's economic policies