DataBank. The USSR never did really compete in the same league as the US, and the gap between the two didn't became narrower after the USSR began, even when taking into account that poorer countries tend to grow faster when they industrialise. The World Bank Economic Review, 9(3), 341-371. But when controlling for those variables, the predicted growth for the Soviet Union jumps to 4.7%. (1960-1986) Education of Higher & Secondary Education (1963-1987) Industrial Output of Electricity, Iron Ore, Mineral Fertilizers, etc. DataBank. That appears to be the story told by actual Russian GDP statistics: You can see that the Soviet Union was, in fact, pretty dysfunctional by the fact that when the oil boom ended it pretty much flatlined. Fair enough, we could then study those other indicators and examine quality of life in a different way. DataBank. Ukraine - Ukraine - Economy: Ukraine’s modern economy was developed as an integral part of the larger economy of the Soviet Union. The United States and Switzerland (Or any developed country) illustrate an effect that wasn't obvious from the previous charts: that it isn't fair to compare the rates of growth between these countries and the SU. That appears to be the story told by actual Russian GDP statistics : As the Gosplan, which had set up production chains to cross SSR lines, broke down, the inter-republic economic connections were also disrupted, leading to even more serious breakdown of the post-Soviet economies. […] definitiva, el crecimiento de la URSS no tuvo nada de excepcional ni comparado con las tendencias que ya se estaban experimentando internamente antes de la […]. Some data on soviet GDP growth. This is not necessarily bad: it means people can enjoy more things, but it means they will enjoy less things in the future than otherwise they would have. Outside estimates of Soviet military spending ranged between 10 and 20 percent of GDP, and, even within the Soviet Union itself, it was difficult to produce an exact accounting because the military budget involved a variety of government ministries, each with its own competing interests. I made a few more plots to complement the ones there, including some sensitivity analysis for […]. If the USSR had an impact in the world, it was due to its size, natural resources, population, and strong military, not because it was more productive than other countries. In 1964, new Soviet President Leonid Brezhnev allowed industries to emphasize profit over production. The Soviet Union was here the 61th out of 148 economies in growth. And in case you were wondering about Cuba, here's the data for Cuba and some countries in its surroundings. Because of World War I (1914–1918), the Russian Revolution of 1917 and the ensuing Russian Civil War(1917–1922), industrial production had only managed to barely recover its 1913 level by 1926. Was Stalin Necessary for Russia's Economic Development? (Second draft) Numa Mazat Numa Mazat** Franklin Serrano** Abstract: The purpose of this paper is to study the Soviet economic growth from 1950 to 1991, focusing on the questions … ", Harrison, Mark. negligible growth in con-sumption, and ~3! What if we consider the USSR starting with Stalin (1928). So it's dubious that such growth rates could have continued indefinitely. Yet another way of looking at this is expressing GDP per capita as a fraction of US GDP per capita. The Maddison Project has updated data, so I first attempt to replicate his Figure 1.1. Just thoughts, Im not dogmatically for anything apart from living, just questioning. Formerly known as Soviet Georgia or Georgian SSR, the region covers an area of 27,000 square miles. Because of World War I, the Russian Revolution and the ensuing Russian Civil Warindustrial production had only managed to barely recover its 1913 level by 1926. DataBank. CSV XML EXCEL. Selected Countries and … Also you have missed something out badly...............comparisons with how sharply technological advancement is now taking place. However, with French GDP included in the Axis tally, the ratio was 1.01. In 1979, however, costs of the Afghanistan War took the wind out of the Soviet economy’s sails. By the 1970s, on that measure, the Soviet Union became the world’s leading power. […] a previous post, I talked about Soviet GDP growth. produced, adjusted for quality) you could. When he became president of the Soviet Union in 1985, Gorbachev inherited both a moribund economy and a crumbling political system. Posted by u/[deleted] 1 year ago. The Soviet Union had over 15 different countries under its rule but communism had to reach the entire world so the USSR invaded Afghanistan in the hope of spreading the communist regime. Nominally a union of multiple national Soviet republics, it was a one-party state (until 1990) governed by the Communist Party, with Moscow as its capital in its largest republic, the Russian SFSR. The report is highly critical of the Soviet system in general, highlighting underfunde… Stopping our analysis when the planning system stopped working well seems to me like stopping an analysis of the Spanish economy just when the housing bubble was about to pop. In the 1950s, however, Easterly & Fischer do find that the Soviet system performed well in terms of growth. Both the Russian Soviet Federative Socialist Republic and later the Soviet Union were countries in the process of industrialization. No wonder the world is growing stronger and stronger when the rate of technological advancement has entered a logarithmic curve. Allen uses Maddison (1995) data for his charts. Note also that the Soviet Union spent a sizable share of its economy (15-17%) on military spending (vs 5% in the US in the 80s) and on investment (rather than consumption), so GDP growth does not translate into population welfare equally in every country. But Easterly & Fischer (1995) run a regression for the 1960-1989 period, controlling for variables such as initial GDP, share of investment, and secondary school enrollment. The USSR did grow quite fast under Stalin. It would need more attention to dates and details to verify this but my explanation for the different rates of GDP growth is that starting from Khrushchev onwards the USSR's economy was "liberated" as in less centralized and more opened to the market. You can see them here. The capital was … The Soviet Union, officially the Union of Soviet Socialist Republics (USSR), was a federal socialist state in Northern Eurasia that existed from 1922 to 1991. (1941-1989) Annual Per Capita Consumption of Sugar, Bakery Products, Meat, etc. Allied GDP was superior to that of Germany/Austria. Post-Soviet Union countries also knows as post-Soviet states. Selected Countries and … However, the Soviet Union, officially Union of Soviet Socialist Republics, is now a defunct government that split into the Russian Federation and several other small countries. For both, this development occurred slowly and from a low initial starting point.  The government provides the required economic production that must be attained within the different sectors of a nation’s economic faculties such as a… Easterly, W., & Fischer, S. (1995). raw production (cars, potatoes, sewing machines, etc. This could be read to mean that the USSR would have done even better had it spent less on the military. Adding the 1940 GDP of the USSR to that of the UK shifted the Allies to Axis great power GDP ratio to 1.31, giving the Allies the economic advantage lost with the entry of Italy in 1940. political repression and the famine mortality following the collectivization of agriculture,~2! Thematic data tables from WDI. Soviet Union GDP in 1989: $2.6 trillion, USA $5.6 trillion. I've seen a lot of pro-communist sources make claims for COMECON growth (especially compared to Western growth) that don't seem to match up with GDP numbers; I'm guessing they were using NMP instead (at least for the Eastern Bloc; I wouldn't be too surprised if at least a few of them were still using GDP numbers for the West). But for the bulk of the Brezhnev era, the economy seems to have been in okay shape. […] – where state planners didn’t massively push students towards STEM fields – was much more prosperous when the Soviet Empire crumbled. http://www.ggdc.net/maddison./ARTICLES/USSR,RIW,1998.pdf GDP, PPP (constant 2017 international $) GDP (current LCU) GDP, PPP (current international $) GDP per capita growth (annual %) Download. List of former Soviet Republics by GDP (PPP) per capita Template:Rank order This is a list of former Soviet Republics by GDP per capita at Purchasing Power Parity . GDP, PPP (constant 2017 international $) GDP (current LCU) GDP, PPP (current international $) GDP per capita growth (annual %) Download. [Part of the Soviet Union series]. Russia's economic output plummeted 45% in the decade after the Soviet Union broke up. For both, this development occurred slowly and from a low initial starting-point. In 1952, the Soviet Union was only behind Ireland and Western Europe as a whole. And even compared to the Third World, its performance was remarkable. Beginning in 1928, the course of the economy of the Soviet Union was guided by a series of five-year plans. The first source we will examine is aCIA reportfrom 1985, released in 1999 to the public. Surely this hardly counts as the last word on the matter, for it is plausible to suppose that the CIA is not the most ubiased source regarding Soviet matters. Selected Countries and … However, if we consider the Soviet Union starting with Stalin and ending in 1989, its performance was not as good. Still in the upper 50%! Outside estimates of Soviet military spending ranged between 10 and 20 percent of GDP, and, even within the Soviet Union itself, it was difficult to produce an exact accounting because the military budget involved a variety of government ministries, each with its own competing interests. Even though we do not consider the human tragedy of famine, repression and terror, and focus on economic outcomes alone, and even when we make assumptions that are biased in Stalin’s favour, his economic policies underperform the counterfactual. Relations between the Soviet Union and the United States were driven by a complex interplay of ideological, political, and economic factors, which led to shifts between cautious cooperation and often bitter superpower rivalry over the years. Introduction The Soviet Union is no more, but the comparative level and structure of its GDP retain historical interest. The Nazi-Soviet Pact certainly neutralized the economic weight of the USSR and it may have been interpreted as a German/Austrian alliance with the Soviet Union. 55. The dissolution of the Soviet Union took place as a result and against the backdrop of general economic stagnation, even regression. At some point you run out of people to put to work. Doing that we get this chart: I included countries already chosen in previous charts, plus averages for Africa, Latin America and Western Europe. Many scholars of the Soviet Union would disagree in judging Soviet economic performance a ‘success’ for three reasons: ~1! Annual Growth Rates of Gross Social Product, Labour Productivity, Industrial Output, etc. Not the same as pre-war since there is no impending war in sight but still a steady pace. Online Version: Soviet History Archive (marxists.org) 2000 In Soviet statistics, 100% is the base, so if that is listed it means unchanged. National Accounts Estimates of Main Aggregates Source: United Nations Statistics Division. There's data for that. ️See new videos early, participate in exclusive Q&As, and more! But then, at some point, one has to enjoy the fruits of that hard labor and long term investment. Russia and Soviet Union are two sovereign states that stretch across two continents: Asia and Europe. I see the Brezhnevian stagnation (Under Brezhnev, Andropov, Chernenko and Gorbachev, as the Perestroika did little to change the trend) as a followup from previous policies to Stalin-Khrushchev. Then we find that from 1928-1970, the USSR was the fastest growing economy except for Japan! After all, the Soviet Union, like today’s Russia, was a major oil and gas producer and tended (like today’s Russia) to do well whenever oil was expensive. Markup: Brian Baggins Online Version: Soviet History Archive (marxists.org) 2000 In Soviet statistics, 100% is the base, so if that is listed it means unchanged. Me gustaría saber como hiciste el grafico del crecimiento del pib per capita relativo a 1950 donde aparece la Urss con España y Portugal. Therefore our answer to the ‘Was Stalin Necessary?’ question is a definite ‘no’. Archived. However, on the eve of war, Nazi Germany announced a treaty with the USSR. - Economía y Libertad. But the picture doesn't change much. Each of them have their own culture, traditions, languages as well as customs, however they all share the history with Russia. I guess it would be of interest for me to write another post (I keep wanting to finish writing about the USSR but I keep being drawn in :p) about the micro-causes of the stagnation and ultimate demise of the USSR, but first I want to blog about different things. The boom which might have made the USSR the #1 economy today had it kept going at its pre-Khrushchev's pace. Post-Stalin USSR dedicated more resources to consumption and less to capital goods. Could you explain me how did you estimate the hypothetical trajectories of economic growth for each government showed in the last chart? The Soviet labour 'market' was a peculiar one. (2002, March). Life is reliable, stable and relatively comfortable; but not so comfortable that you start to live for comfort. Stalin's massive investment in heavy industry ended up setting the base for the consumption industries. Selected Countries and … post-fall economic trends. title: a comparison of soviet and us gross national products, 1960-83 (sov 84-10114) keywords: soviet analysis, soviet economic analysis created date Bonus link: USA vs USSR industrial capacity. A command economy is defined as an economy in which production, investment, prices, and incomes are determined centrally by a government. 1 An analysis of the Soviet economic growth from the 1950’s to the collapse of USSR*. […] The Soviet Union: GDP growth (Nintil) […]. The little red star is the USSR, of course. That aside, this is an informative article. What about Robert Allen's From Farm to Factory? (1940-1985) Also it would be interesting to see PPP graphs included in the article. If you consider that period of history which we Leninists label the non-revisionist period of the USSR, there is no greater economic boom in modern history (despite the 3 wars). They ultimately explain this by what the dub the _extensive growth hypothesis: _Growth fueled by increasing the amount of available factors (Labour and Capital) rather than increasing productivity. Yet its economy produced less than half of the real GDP of the US, despite a population of similar size, spread across a much larger territory. I have a post about Cuba here, in Spanish. He is the savior of the country because he beat the Germans, not because he grew the economy. Oh and one last thing. The Rea… For both, this development occurred slowly and from a low initial starting point. By this time abou… Especially one where the economy is more in the hands of the executive rather than less. Against these charts, it could be argued that these measures of GDP don't really capture the welfare of the inhabitants of these countries. In your last paragraph you mention the counterfactual of pre vs post revolutionary Russia. Would Russia be a poor agrarian country without his policies? Title: THE ECONOMIC IMPACT OF SOVIET MILITARY SPENDING (ER IR 75-3) Keywords: SOVIET ECONOMIC ANALYSIS, tgdnotsu Created Date: 8/31/2010 1:49:19 AM - № 6", "Agricultural Surplus Models and Peasant Behavior: Soviet Agriculture in the 1920s", "Putting Agricultural History to Work: Global Action Today from a Communal Past", "The Soviet Union, the United States, and Industrial Agriculture", "Soviet Agriculture with and without Collectivization, 1928-1940", "A Comparison of the US and Soviet Economies: Evaluating the Performance of the Soviet System", Manufactured goods sector was worth 118 billion rubles in 1972, "The Economic Impact of Soviet Military Spending", The Myth of the Plan: Lessons of Soviet Planning Experience, "What Went Wrong in the 'Socialist' East? His initial goal as general secretary was to revive the Soviet economy, and he realized that doing so would require reforming underlying political and social structures. Princeton University Press. But it has to be granted that by this measure, the best (argueably) centrally planned economy did not outperform the best free market economies. It is almost as if STEM shortages are mostly made up to keep wages […], […] a previous entry in The Soviet Series, I made some remarks regarding GDP growth. CIA (1977) Estimated Soviet Defense Spending in Rubles Daggett, S., & Belasco, A. The Maddison-Project, http://www.ggdc.net/maddison/maddison-project/home.htm, 2013 version. Economy. Defense Budget for FY2003: Data Summary. It supposedly shows that the soviet economy worked relatively well, and that industrialisation and growth were due precisely to central planning, when the Soviet Union was formed, in 1922, after the revolution in 1917. By this time abou… Because of World War I, the Russian Revolution and the ensuing Russian Civil Warindustrial production had only managed to barely recover its 1913 level by 1926. So in a planned economy, which it was under Stalin, there is no reason to expect industrialization to end unless it's specifically decided by the people (or Stalin if you believe he decided everything), and why would they? Farm to factory: a reinterpretation of the Soviet industrial revolution. ", Lenin All-Union Academy of Agricultural Sciences, Eastern European anti-Communist insurgencies, Predictions of the dissolution of the Soviet Union, Removal of Hungary's border fence with Austria, Economy of the People's Republic of Poland, Collectivization in the People's Republic of Poland, Five-year plans for the national economy of the Soviet Union, New Economic Policy (Soviet Union, 1920s), Wage reform in the Soviet Union, 1956–1962, Economic System of Socialism (GDR, 1970s), https://en.wikipedia.org/w/index.php?title=Economy_of_the_Soviet_Union&oldid=992940921, Articles lacking in-text citations from February 2019, Short description is different from Wikidata, Articles with failed verification from November 2020, Articles with unsourced statements from October 2020, Articles with unsourced statements from January 2020, Articles with unsourced statements from October 2015, All articles with broken links to citations, Articles lacking reliable references from April 2017, Articles with unsourced statements from July 2020, Creative Commons Attribution-ShareAlike License, 80% in industry and other non-agricultural sectors; 20% in agriculture (1989 est. Spain doesn't appear in the 1928-1989 chart because of the 1936-39 civil war. An analysis of Allen's book can be found here. The analysis above may need some further reconsideration. CSV XML EXCEL. From what I recall, didn't the Eastern Bloc use net material product (NMP; basically GDP minus "non-productive" services) instead of GDP to estimate national income? Allen stops at 1970 because until then 'the planning system was working well'. If you wanted to compare using, e.g. All figures are in 2012 International Dollars according to The World Factbook . Dobson, A. P. (2005). Humans barely scratch whats knowable or possible in the universe currently, […] paper first analyses growth (something I also did here, updated with their conclusions), and find it wanting once usual suspects (initial GDP, population […]. It supposedly shows that the soviet economy worked relatively well, and that industrialisation and growth were due precisely to central planning, when the Soviet Union was formed, in 1922, after the revolution in 1917. Facts, Descriptions, and Statistics; 1917-1928. NEP was the most successful period for the Soviet economy Average annual rates of economic growth in the USSR, % 16.2-6.9-4.3 14.6 11.3 9.4 6.3 7.8 5.6 4.3 3.6 17.7-15.3 3.4-0.6 9.3 4.4 4.1 3.2 1 0.6-20-15-10-5 0 5 10 15 20 1913 1917 1921 1928 1932 1937 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 Official Statistics Alternative Estimate Gradually but surely. GNP: approximately $2,660 billion, per capita $9,130; real growth rate - 2.4% to - 5.0% (1990 est. By this time, about 18% of the population lived in non-rural areas, although only about 7.5% were employed in th… Rather than the prevalence of unemployment, as we are used to, the Soviet Union not only achieved full employment, but also got to a situation where there were_shortages of labour,_even though a significant share of the population was working. If one accepts that the slowdown in the USSR was due to decreasing returns to capital, or decreased productivity, etc, one can still ask why that happened, and indeed it could be that it was the decentralisation under Khruschev and Gorbachev.  During the communist/socialist era in the USSR (1917-1991), a command economy, with contributions from the theories of a planned economy was employed to increase production of industry and agriculture. Top 15 Former Soviet Union Countries by GDP Per Capita Ranking History [1995-2017] ... poland can into soviet union? Since I know a bit of the USSR's history I have a different approach to your conclusion that the growth was a one-off event. The USSR doesn't do particularly well in this metric. Their accurate measurement is also basic to a proper understanding of the latest, i.e. The charts presented until now are controlling just for initial GDP. The Soviet Union is no more, but the comparative level and structure of its GDP retain historical interest. Online tool for visualization and analysis. Life is still good but growth is not so high as to necessitate pointless waste, nor to run headlong into some sort of horrible resource cap or environmental cliff. SHOW ALL. Let us now consider one final chart: 1950-1989. Soviet Union - Soviet Union - Economic policy: The economic stagnation of the late Brezhnev era was the result of various factors: the exhaustion of easily available resources, especially raw materials, and the growing structural imbalance of the economy due to the distorting effects of the incentive system, which paralyzed initiative and dissuaded people from doing an honest day’s work. CRS Report for Congress, March. But it is hard to view the economics of a state in a vacuum affected only be economic policies of that state. The Soviet Union: GDP growth | Nintil 2016-05-26T15:11:19Z […] to grow an economy oriented to produce T-72s and MiG-29s than consumer goods. and I have a post up on that https://nintil.com/2017/02/04/the-soviet-series-from-farm-to-factory-stalins-industrial-revolution/ . Allen, R. C. (2003). CSV XML EXCEL. Both the Russian Soviet Federative Socialist Republic and later, the Union of Soviet Socialist Republics of the Soviet Union, were countries in the process of industrialization. Cheremukhin, A., Golosov, M., Guriev, S., & Tsyvinski, A. In academic work, please cite this essay as: Ricón, José Luis, “The Soviet Union: GDP growth”, Nintil (2016-03-26), available at https://nintil.com/the-soviet-union-gdp-growth/. Russia - Russia - Post-Soviet Russia: The U.S.S.R. legally ceased to exist on December 31, 1991. The Soviet Union represented 20% of the world's economy in 1966 (highest point) and at the … Soviet-type economic planning (STP) is the specific model of centralized planning employed by Marxist–Leninist socialist states modeled on the economy of the Soviet Union. South Korea Price controls had an important impact on life in the USSR. The new state, called the Russian Federation, set off on the road to democracy and a market economy without any clear conception of how to complete such a transformation in the world’s largest country. find that it wasn't because of Stalin, while Allen finds the opposite (I'll write a followup post explaining that). WDI Tables. Their accurate measurement is also basic to a proper understanding of the latest, i.e. Hitler said of the war with the Soviet Union that "the world will hold its breath." Richer countries grow at a slower pace. The economy of the Soviet Union was based on state ownership of the means of production, collective farming, and industrial manufacturing.The highly centralized Soviet-type economic planning was managed by the administrative-command system.The Soviet economy was characterized by state control of investment, a dependence on natural resources, shortages, public ownership of industrial … In this post, I will discuss the healthcare system in the Soviet […]. Online tool for visualization and analysis. Source: Slavic Research Center Library (citing Narkhoz.) "The Soviet Union after 1945: Economic Recovery and Political Repression,", Ofer, Gur. Busch, A. E. (1997). Per capita GDP: Per capita GDP of the Eastern Bloc countries, comprising of the former ... 27 times more than Soviet Union SOURCES: Madison 2006, p. 185; United Nations Statistics Division. The Economic Collapse of the Soviet Union: In the 1970's and 1980's the Soviet Union seemed to be one of the most stable political units in the world. Next, I consider the period 1928-1989 and 1928-1991. So Allen's chart is correct. Therefore, it is important to have a look at the difference between Russia and Soviet Union. While Stalin's industrialization was terribly cruel and not very efficient it was above all fast. The Soviet Union officially fell on December, 26 1991 when the USSR was dissolved and the communist-era policies of the region ceased. By the end of 1991 (just before the fall), it had about the same GDP per capita as Mexico. Flickr / Janette Asche From 1989 to 1998, Russian output dropped 45% , as the economic … National Bureau of Economic Research. "Technological Modernisation in the Soviet Union and Post-Soviet Russia: Practices and Continuities. This resulted in an economic crisis around the time of Gorbachev that fuelled the dissolution of the USSR. It was, for example, securing political client states in Africa. Some people go as far as saying that this slowdown caused the collapse of the USSR, but I would disagree with that, as I see the collapse as an evitable event, a result of Gorbachev's mishandling of the late USSR internal political crisis.