Question

The five-year plan had been the main economic plan of (LO7,8) a) the United States c) Nazi Germany b) Sweden d) the Soviet Union

Short answer

The correct answer is d) the Soviet Union. The five-year plan was their main economic plan, aimed at rapid industrialization and modernization through a series of planned economic development initiatives from 1928 until the Soviet Union's disintegration in 1991.

Step-by-step solution

Correct Answer

The correct answer is d) the Soviet Union.

Explanation

The five-year plan was the main economic plan of the Soviet Union. It was a series of planned economic development initiatives, designed to rapidly industrialize and modernize the country. The first five-year plan was initiated in 1928 under Joseph Stalin, and it continued until the disintegration of the Soviet Union in 1991.

Key concepts

Economic Planning

Economic planning refers to a strategy for the allocation of resources within an economy, primarily one in which the government takes an active role in deciding what and how much should be produced. In the context of the Soviet Union, economic planning was a fundamental aspect of the political and economic system. The central government, through the State Planning Committee, or Gosplan, created detailed blueprints that outlined all aspects of the economy – from production targets for individual factories to national infrastructure projects.

The five-year plans became a hallmark of Soviet economic planning, setting ambitious goals for increases in production and development across various sectors. These plans were designed to transform the Soviet Union from a rural agrarian society into an industrial powerhouse. They were characterized by the central allocation of resources, and the substitution of market mechanisms with a command-based economic structure. The government mobilized resources on an unparalleled scale, reshaping the economic landscape according to political priorities rather than to market forces.

Soviet Economic History

The Soviet economic history is marked by the implementation of the five-year plans, which were a series of nation-wide centralized economic goals designed to push for rapid industrialization and economic transformation. Starting in 1928 under Joseph Stalin, the first five-year plan shifted the emphasis from the earlier New Economic Policy to a planned economy. The emphasis was on heavy industry and collectivization of agriculture.

Over the following decades, each plan shaped the Soviet economy and society, often prioritizing heavy industry and military capabilities over consumer goods and services. This strategy led to significant shifts in employment and urbanization as millions moved from rural to urban areas to work in new industrial centers. However, these plans were not without their flaws, as they often led to shortages, poor quality products, and inefficiencies due to their rigid, top-down approach.

Industrialization

Industrialization is a process that transforms agrarian and handcraft-centered economies into economies distinguished by industry and machine manufacture. With respect to the Soviet Union, the five-year plans placed a great emphasis on rapid industrialization, aimed at making the nation self-sufficient and elevating its status as a global superpower.

During the industrialization drive, new industries were developed, particularly in heavy industry sectors such as steel, coal, and machinery manufacturing. New industrial cities sprang up, and existing ones expanded exponentially. Grand projects, including monumental hydroelectric dams and sprawling factory complexes, symbolized the success and ambition of the plans. Nevertheless, the focus on heavy industry often occurred at the expense of consumer goods and agriculture, creating imbalances in the economy and society. While achieving significant growth, the relentless drive for industrialization also brought with it environmental degradation and was frequently achieved at significant human cost, particularly during the periods of forced labor and political repression.