Restoration and development of industry in 1946-1959...

Restoration and development of industry in 1946-1959

The economic damage from the war was enormous. True, the volume of industrial production fell slightly - only 9%. It should be taken into account that the bulk of the production was military. Peace industries greatly reduced the output of products: by the end of the war, consumer goods were produced half as much as before the war. Even before the end of the war, the demobilization of industry began, i. enterprises transferred to military production were returning to the release of peaceful products. This process was inevitably accompanied by a general reduction in production: first the production of military products was discontinued, a partial change of equipment was carried out, and then the production of new products was established. Therefore, in 1946 production was lower than the pre-war by 23%. Unlike the process of reconstruction after the Civil War, it was not necessary to restore the entire industry. The value of the fixed assets of industry in 1946 was equal to the pre-war: in the east of the country, the same amount of construction was built for the war as it was destroyed in the west. Therefore, the restoration now consisted of three processes: the restoration of the part of industry destroyed in the occupied areas, the demobilization of part of industry and the return of some of the evacuated enterprises to their former places. However, many enterprises, organized in new places, remained and remained.

According to official data, the prewar level of industrial production was restored in 1948, and in 1950 the industry produced 70% more than in 1940. According to some modern researchers, the pre-war level of national income was restored only in 1950, and official figures of the dynamics of industrial production for this time need to be specified.

The recovery was accompanied by a certain increase in the material standard of living of people. In 1947, cards for food were canceled, and then for several years the prices for some products were lowered. The average price level in 1947 compared with 1940 was three times higher. Due to lower prices, it declined by 2.2 times, but still remained above the pre-war level. However, mandatory state loans were introduced - the population was obliged to subscribe to bonds of a 3% winning domestic loan. Thus, the material standard of living of people in 1946-1950. slightly increased, but only approached the level of 1940.

Sometimes the 1950's. call the golden age administrative system. By this time, using the accumulated experience, the country's economic leaders have achieved a certain balance between the money supply in circulation and the mass of goods. Enterprises in inertia increased production. The national income increased by an average of 9% per year. Labor productivity in industry in the 1950s. grew by 62%, and the return on capital - by 17%. Obviously, one of the reasons for this was the relative renewal of fixed assets during the postwar reconstruction. At this time, wholesale prices stabilized and retail prices fell. However, it was at this time, the time of relative well-being, that the first attempts were made to "fix" economic mechanism, overcome the shortcomings of the administrative system. Since economic science still firmly stood on the same principles developed to justify the administrative system, the task of transition to economic methods of management was not set. Obviously, it is impossible to manage economic processes from the center through administrative methods, it is necessary to provide economic independence to local leaders. It was decided to transfer the main management functions from the center to the field. In 1957, the country was divided into economic administrative regions, headed by councils of the national economy (Sovnarkhoz), which became the main governing bodies. They were given the functions of industrial ministries, and the ministries themselves were liquidated. Thus, the question was solved simply: since the central organs were the bearers of the main shortcomings of the administrative system, they were mechanically eliminated. The Sovnarkhozes fulfilled the role of planning bodies: each Sovnarkhoz planned the development of its economic region. The reform was unsuccessful. She did not change management methods, replacing the central authorities with local ones, but also with administrative ones. The single economy of the country was shattered. The leaders of each economic council created a closed economy of the economic region, trying to organize in its framework the production of everything that was required for the district. It turned out something like feudal fragmentation. Such disunity hindered the planning of production on a national scale, the regulation of its structure, prevented the specialization of enterprises. In an effort to produce everything needed on the ground, the heads of the economic councils loaded specialized enterprises with the production of additional products. All this hampered the technical progress, because the scientific and technical institutions of each economic council acted inconsistently, and in the different economic regions the same products were constructed, but with their own brand. As a result, during the economic reform in 1965 the economic councils liquidated and restored industrial ministries.

thematic pictures

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)