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72. The growth of crisis phenomena in the Soviet economy
Over time, the word began to go into the pastreform", which has been replaced by concepts like improvement or perfection. In the role of the main tool for solving economic and social problems was increasing the role of the leadership of the Communist Party. They were authorized to control all spheres of production activity, research institutes and educational institutions, etc., but at the same time state bodies or heads of enterprises bore full responsibility for any violations.
The direction of realizing unprecedented results of production, delivering huge amounts of production indicators to the state began to spread everywhere. As a result, the areas of fertile lands were degraded, the areas intended for growing cotton were flooded, swamps were drained for arable land, which ultimately led to the shallowing of rivers, and the productivity became low on the new lands. Plots of land that supplied the population with vegetables, fruits and flowers began to be seized, greenhouses were destroyed.
As a result of these circumstances, began to develop shadow economy, which consisted of carrying out strictly prohibited activities, for example, engaging in handicraft production, retail trade, consumer services, etc.
The country continued to make the transition from domestic work methods to the use of machinery, while the industrialized countries were far ahead in the direction of scientific and technological progress.
The state economy experienced lack of human resources, since the birth rate was constantly declining, and, accordingly, the proportion of young people who were necessary for industrial development. There was a massive migration of the population from villages to cities, young people got jobs in hazardous conditions, whose work was cheaper for managers compared to the introduction of new technology.
During these years there was relocation of extraction of natural resources to the Northern regions and regions of Siberia, the cost of delivering the raw material base to the territory of their processing began to increase. Investment was made in the oil and gas producing regions of western Siberia, and a huge number of people were sent there to develop them. As a result of the existing 1970s commodity and energy crisis in the West, their prices increased sharply, and it was decided to supply these types of resources to Western markets. Thus, the share of exports of fuel and raw materials increased, while at the same time the share of exports of machinery and equipment decreased.
There were many contradictions in resolving the issue of nuclear energy; a plant for the production of nuclear reactors for nuclear power plants was built in the Rostov region.
Despite the development of certain sectors of the national economy, their share was below the level of the leading industrialized countries. Government in 1979 year made an attempt economic reform, by introducing indicator of standard-clean products, according to which enterprises had to keep records only of newly created value without costs for materials, etc. Such a new introduction implied incentives for the introduction of modern technology, an increase in the level of product quality, i.e. modernization, but did not assume a change in the command-administrative system.
Gradually, the average annual volume of output began to decline, there was a shortage of goods, the needs of the population were unsatisfied, there were no incentives for labor activity, which as a result led to the process of suspension of the socio-economic development of the country.
Authors: Zilbertova T.N., Takhtomysova D.A.
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