key idea
The Soviet Union lacked the industrial strength of the Western powers. Joseph Stalin recognized this (just like Peter the Great and other Czars before him) and implemented extensive economic reforms to industrialize the Soviet Union in order to defend itself from Western intrusion. Stalin's plan called for a collective economy, a system in which the government made all economic decisions. Under this system, political leaders identify the countries economic needs and determine how to fulfill them
The Soviet Union lacked the industrial strength of the Western powers. Joseph Stalin recognized this (just like Peter the Great and other Czars before him) and implemented extensive economic reforms to industrialize the Soviet Union in order to defend itself from Western intrusion. Stalin's plan called for a collective economy, a system in which the government made all economic decisions. Under this system, political leaders identify the countries economic needs and determine how to fulfill them
The 5 Year Plans
Impossibly High QuotasIn order to catch up to the West, Stalin set really high numerical goals (or quotas) for steel, coal, oil and electricity production over the course of 5 years. To reach these targets the government limited the production of consumer/luxury goods.
While these quotas led to a dramatic increase in steel, coal, and petroleum production, it led to shortages in food, clothing, and other commonly used goods. The propaganda poster above asks Russians to "Help us fulfill the Great Five Year Plan!" |
Success of the Five Year PlanIn terms of the production of heavy industry, the Five Year Plans were wildly successful. Steel production increased by 25% and coal production quadrupled.
The Five Year Plans made Russia an economic power that rivaled the United States and other Western nations. The Five Year Plans were so successful that Time Magazine named Stalin "Man of the Year" in 1943. See below |