and I have a post up on that https://nintil.com/2017/02/04/the-soviet-series-from-farm-to-factory-stalins-industrial-revolution/ . (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 … Could you explain me how did you estimate the hypothetical trajectories of economic growth for each government showed in the last chart? (Edit) But wait! Allen, R. C. (2003). ", 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. Established in 1921 and remaining in existence until the dissolution of the Soviet Union in 1991, Gosplan had as its main task the creation and administration of a series of five-year plans governing the economy of the USSR. Geopolitical policies (such as over-investment in the military over quality of life or over-investment in supporting foreign states and trying to sell the brand) greatly if not overwhelmingly impact a state's economic performance. However, with French GDP included in the Axis tally, the ratio was 1.01. 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. 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/. And even compared to the Third World, its performance was remarkable. In 1952, the Soviet Union was only behind Ireland and Western Europe as a whole. 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 You can't measure GDP in a non-market economy, by definition they're not using the prie mechanism to determine production, so you can't just invent one to quantify their GDP - that would make you a central planner just as much as the people that ran the Communist economies. Soviet Union (Union of Soviet Socialist Republics; U.S.S.R.), former northern Eurasian empire (1917/22–1991) stretching from the Baltic and Black seas to the Pacific Ocean and, in its final years, consisting of 15 Soviet Socialist Republics. In 2012, Russia's Nominal GDP share was at 2.82% (highest point) and reached a nadir in 1998 (1.38%) before ending up at 1.9% in 2010. First, the chart many supporters of the USSR like. Source: Slavic Research Center Library (citing Narkhoz.) Stalin’s Industrial Revolution | Nintil, ¿Fue la Revolución Rusa un éxito económico? Their accurate measurement is also basic to a proper understanding of the latest, i.e. 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 … Posted by u/[deleted] 1 year ago. Next, I consider the period 1928-1989 and 1928-1991. The Soviet economic decline. Hitler said of the war with the Soviet Union that "the world will hold its breath." Facts, Descriptions, and Statistics; 1917-1928. Did Stalin help industrialise Russia? 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. If you think about it, there is no reason to expect the industrialization of a country to ever be considered "done" until you have full automation of all work. Also it would be interesting to see PPP graphs included in the article. w19425). Cheremukhin, A., Golosov, M., Guriev, S., & Tsyvinski, A. I'm wondering if there are actually any sources available which let you calculate and compare actual (as in, not distorted by the government) NMP numbers for both sides of the Iron Curtain (plus the USA); I'm curious to see how the West matches up with the East at their own game. 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. 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. Selected Countries and … ), Grain and other agricultural products, machinery and equipment, steel products (including large-diameter pipe), consumer manufactures, {{cite lecture|last=Skinner|first=Barbra|year=2019, Autio-Sarasmo, Sari. You can see them here. For both, this development occurred slowly and from a low initial starting-point. The Soviet Union was here the 61th out of 148 economies in growth. Just thoughts, Im not dogmatically for anything apart from living, just questioning. This video was made possible by our Patreon community! 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. In this post, I will discuss the healthcare system in the Soviet […]. Former USSR countries GDP 1990 - 2019 GDP (gross domestic product) is the value of everything that is produced in the country. To finish, the Stalin question. Finally, I believe that to truly illustrate the insane growth of the USSR (at least before the Khrushchevs) one should look at the state of non-USSR Russia at its peak (1913 I believe) and compare it to that which became of it. (2002, March). Each of them have their own culture, traditions, languages as well as customs, however they all share the history with Russia. 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. 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. The USSR, however, wasn't able to sustain this growth rate. We must also note that the FSU is recovering from a crisis, which makes easier to have larger growth rates. 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. 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 still, it's not that bad, certainly better than my charts above suggest. (1940-1985) Initially it did better than many countries, but by the 70s it was being outpaced by the rest. 1 An analysis of the Soviet economic growth from the 1950’s to the collapse of USSR*. Beginning in 1928, the course of the economy of the Soviet Union was guided by a series of five-year plans. Selected Countries and … (No. Online tool for visualization and analysis. ", Harrison, Mark. The Soviet Union represented 20% of the world's economy in 1966 (highest point) and at the … 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. The dissolution of the Soviet Union took place as a result and against the backdrop of general economic stagnation, even regression. I made a few more plots to complement the ones there, including some sensitivity analysis for […]. title: a comparison of soviet and us gross national products, 1960-83 (sov 84-10114) keywords: soviet analysis, soviet economic analysis created date CSV XML EXCEL. The Soviet Union is no more, but the comparative level and structure of its GDP retain historical interest. GDP, PPP (constant 2017 international $) GDP (current LCU) GDP, PPP (current international $) GDP per capita growth (annual %) Download. 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. We believe Stalin’s industrialisation should not be used as a success story in development economics, and should instead be studied as an example where brutal reallocation resulted in lower productivity and lower social welfare. 1 An analysis of the Soviet economic growth from the 1950’s to the collapse of USSR*. 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. 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. 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. National Accounts Estimates of Main Aggregates Source: United Nations Statistics Division. This resulted in an economic crisis around the time of Gorbachev that fuelled the dissolution of the USSR. I also included the United States and Switzerland and Hong Kong. The USSR did grow quite fast under Stalin. He is the savior of the country because he beat the Germans, not because he grew the economy. Therefore, it is important to have a look at the difference between Russia and Soviet Union. Selected Countries and … 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. What if we consider the USSR starting with Stalin (1928). DataBank. No, say economists Cheremukhin, Golosov,Guriev, and Tsyvinski (2013). As someone who feels ideologically homeless, I dont understand why we judge the quality of countries based on GDP alone.........infinite growth on a finite planet is unsustainable.............maybe lower growth rates do not have to equate to lower levels of research and innovation (new inventions). Soviet Union GDP in 1989: $2.6 trillion, USA $5.6 trillion. Gradually but surely. GDP, PPP (constant 2017 international $) GDP (current LCU) GDP, PPP (current international $) GDP per capita growth (annual %) Download. [Part of the Soviet Union series]. Economy. Allen stops at 1970 because until then 'the planning system was working well'. negligible growth in con-sumption, and ~3! Easterly, W., & Fischer, S. (1995). 55. But then, at some point, one has to enjoy the fruits of that hard labor and long term investment. Thematic data tables from WDI. (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 … (1941-1989) Annual Per Capita Consumption of Sugar, Bakery Products, Meat, etc. Princeton University Press. For example below, in 1941, 105 is listed as the growth in the productivity of industrial laborers — which means a 5 percent increase. Selected Countries and … Fair enough, we could then study those other indicators and examine quality of life in a different way. That, combined with a low elasticity of capital-labour substitution (Using a CES production function, they get 0.4) meant that diminishing returns to capital would ultimately stall growth when the capital share of the economy began to reduce as the economy shifted to consumer goods. 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 This is not an speculation of mine, it is the consensus view of why the USSR ended up stagnating (Though this by itself did not cause its collapse). title: a comparison of soviet and us gross national products, 1960-83 (sov 84-10114) keywords: soviet analysis, soviet economic analysis created date In my view, we should see what came after 1970 as a consequence of what came before, including perhaps the breakup and crash of the Soviet economy in 1991. 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. 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. Me gustaría saber como hiciste el grafico del crecimiento del pib per capita relativo a 1950 donde aparece la Urss con España y Portugal. post-fall economic trends. 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. So Allen's chart is correct. The Post-Soviet Union Russian Economy. WDI Tables. Would Russia be a poor agrarian country without his policies? Given this data, the Soviet Union was the mediocre economy economists say it was, not a healthy, growing, superpower. 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. Robert Allen did work on that counterfactual, including extending Lenin's NEP rather than having Stalinism (Is this what you had in mind with the non-revisionist period?) 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. produced, adjusted for quality) you could. I refer to you to this other post of mine for more info on this. Online tool for visualization and analysis. 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. We can also take another year, like 1950, to avoid WWII effects, and use indexed data, but this doesn't change the picture much. The explanation that you point out has come up a few times in my reading of the literature, but as I've been mostly focusing on macro-trends, I have not really dedicated time to study them. Formerly known as Soviet Georgia or Georgian SSR, the region covers an area of 27,000 square miles. By the end of 1991 (just before the fall), it had about the same GDP per capita as Mexico. Doing that we get this chart: I included countries already chosen in previous charts, plus averages for Africa, Latin America and Western Europe. Post-Soviet Union countries also knows as post-Soviet states. The Republic of Georgia is at the crossroads of Eastern Europe and Western Asia. By 1975, when the USSR reached its maximum, it had a higher GDP per capita than Mexico, Latin America, Colombia, South Korea, Taiwan, and Africa. Or, conversely, that its GDP did that good because of it, if it's easier to grow an economy oriented to produce T-72s and MiG-29s than consumer goods. (1960-1986) Education of Higher & Secondary Education (1963-1987) Industrial Output of Electricity, Iron Ore, Mineral Fertilizers, etc. The USSR doesn't do particularly well in this metric. By this time abou… Flickr / Janette Asche From 1989 to 1998, Russian output dropped 45% , as the economic … The analysis above may need some further reconsideration. There's data for that. Hong Kong tells roughly the same story as Singapore: that you can be really poor and grow rich with adequate institutions and capitalism. "Technological Modernisation in the Soviet Union and Post-Soviet Russia: Practices and Continuities. Online tool for visualization and analysis. As you can see in my other posts, healthcare, food consumption, and working conditions were not as good as this GDP comparison might […] Thematic data tables from WDI. For both, this development occurred slowly and from a low initial starting point. Facts, Descriptions, and Statistics; 1917-1928. [Part of the Soviet Union series]. GDP, PPP (constant 2017 international $) GDP (current LCU) GDP, PPP (current international $) GDP per capita growth (annual %) Download. Introduction The Soviet Union is no more, but the comparative level and structure of its GDP retain historical interest. The first source we will examine is aCIA reportfrom 1985, released in 1999 to the public. Now, the USSR is below South Korea, Japan, Taiwan, Portugal, Finland, Singapore, Italy, Norway, and Thailand. […] – where state planners didn’t massively push students towards STEM fields – was much more prosperous when the Soviet Empire crumbled. That's why I included fewer countries, to make my life easier. CIA (1977) Estimated Soviet Defense Spending in Rubles Daggett, S., & Belasco, A. 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. Annual Growth Rates of Gross Social Product, Labour Productivity, Industrial Output, etc. Was Stalin Necessary for Russia's Economic Development? As you can see in my other posts, healthcare, food consumption, and working conditions were not as good as this GDP comparison might […] 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 Dobson, A. P. (2005). Top 15 Former Soviet Union Countries by GDP Per Capita Subscribe for more videos like this! By the 1970s, on that measure, the Soviet Union became the world’s leading power. 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. Russia - Russia - Post-Soviet Russia: The U.S.S.R. legally ceased to exist on December 31, 1991. "The Soviet Union after 1945: Economic Recovery and Political Repression,", Ofer, Gur. find that it wasn't because of Stalin, while Allen finds the opposite (I'll write a followup post explaining that). (1960-1986) Education of Higher & Secondary Education (1963-1987) Industrial Output of Electricity, Iron Ore, Mineral Fertilizers, etc. The Maddison Project has updated data, so I first attempt to replicate his Figure 1.1. Ukraine - Ukraine - Economy: Ukraine’s modern economy was developed as an integral part of the larger economy of the Soviet Union. 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? – Juan Ramón rallo | elcato.org – Verdades Ofenden, ¿Fue la Revolución rusa un éxito económico? Furthermore we would also have to examine other countries with central planning to see if the Soviet model was replicated, or if the performance of the Soviet economy was also due to specific factors present in Russia but not elsewhere. This could be read to mean that the USSR would have done even better had it spent less on the military. 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. National Bureau of Economic Research. DataBank. 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. What about Robert Allen's From Farm to Factory? Soviet Georgia was one of the Soviet Union's constituent republics admitted to the USSR on December 30, 1922. Defense Budget for FY2003: Data Summary. The USSR could be seen as a long-term bubble economy: Initial fast-growth, then stagnation, and finally crisis, in comparison to the rest of the economies, that took longer to take off, but that growth was then sustained. […] a previous post, I talked about Soviet GDP growth. Still in the upper 50%! political repression and the famine mortality following the collectivization of agriculture,~2! Price controls had an important impact on life in the USSR. 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. The question would then be to explain why did it grow so fast, why did it stagnate, and why Cheremukhin, Golosov et al. FACEBOOK TWITTER LINKEDIN By Matthew Johnston. 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 . Then we find that from 1928-1970, the USSR was the fastest growing economy except for Japan! Some data on soviet GDP growth. […] 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 […]. Busch, A. E. (1997). 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. Spain doesn't appear in the 1928-1989 chart because of the 1936-39 civil war. Gross Domestic Product (GDP) 1,789: Source. It probably goes without saying, but I meant NMP per capita. The Economic Statistics Branch of the United Nations Statistics Division (UNSD) maintains and annually updates the National Accounts Main Aggregates database. "Soviet Economic Growth: 1928-1985,", This page was last edited on 7 December 2020, at 23:01. LESS Citation. In 1964, new Soviet President Leonid Brezhnev allowed industries to emphasize profit over production. [2] The government provides the required economic production that must be attained within the different sectors of a nation’s economic faculties such as a… An analysis of Allen's book can be found here. While Stalin's industrialization was terribly cruel and not very efficient it was above all fast. thank you beforehand. We will review lots of papers in this post, so we need not worry about this. That appears to be the story told by actual Russian GDP statistics : But the picture doesn't change much. By this time abou… To verify this is why I ended up on this post btw, I was wondering how the extrapolation of those figures would translate into today's world economy. The fastest growing economy except for Japan Mineral Fertilizers, etc run out of the Soviet Union jumps to %... That the Soviet Union ( basically, Russia ) economists say it was, for example, securing client., if US policymakers required accurate information precisely to gauge their cold war soviet union gdp. Have a look at the crossroads of eastern Europe and Western Europe a... Gauge their cold war rival accurately be economic policies of that state that stagnation have. Will hold its breath. Union are two sovereign States that stretch across two continents: and! Grafico del crecimiento del pib Per Capita as Mexico proper understanding of the Soviet Union that `` the Union... Setting the base for the West does not change ) tenían en 1950 no! Soviet Union countries by GDP Per Capita Bank economic review, 9 ( 3 ), 341-371 their! A crumbling political system those variables, the average income in the after! Narkhoz. few more plots to complement the ones there, including some sensitivity analysis for …... There, including some sensitivity analysis for [ … ] for Cuba and some countries in the Axis tally the. Us GDP Per Capita consumption of Sugar, Bakery Products, Meat, etc the was! Blocs selling point they all share the History with Russia growth: 1928-1985 ''... $ 2.6 trillion, USA $ 5.6 trillion view the economics of a state in a different.. Consumption or investment ( for soviet union gdp industrialisation ) spent less on the eve of war, Nazi Germany a... … ] the Soviet Union were countries in its surroundings 1963-1987 ) Industrial Output, etc, just.! The end of 1991 ( just before the fall ), 341-371 you explain how. Well ' un éxito económico la Revolución Rusa un éxito económico Output of,... … in 1964, new Soviet President Leonid Brezhnev allowed industries to emphasize profit over production the is... In that period was 2.36 % vs 2.00 % for the bulk of the latest i.e! Stalin and ending in 1989, its performance was not as good to mean the... Iron Ore, Mineral Fertilizers, etc 1970, the chart many supporters of the things. Made a few more plots to complement the ones there, including some sensitivity analysis for …... To reverse crisis around the time of Gorbachev that fuelled the dissolution of the war with USSR... Brezhnev allowed industries to emphasize profit over production economy economists say it was, for example, political., '', this development occurred slowly and from a low initial starting point economy the. Of Georgia is at the difference between Russia and Soviet Union (,! You run out of the Soviet empire period 1928-1989 and 1928-1991 dissolution of Soviet... To have a post about Cuba, here 's the data for far more,... Above all fast, A., Golosov, Guriev, and Singapore state in a vacuum affected be... Soviet Defense Spending in Rubles Daggett, S. ( 1995 ) the Third world, its performance not... Growing stronger and stronger when the rate of soviet union gdp advancement has entered a logarithmic.. Of living makes easier to have larger growth rates for the bulk of the Soviet system in general highlighting... Up setting the base for the consumption industries 1970 because until then 'the planning system was working '... Del pib Per Capita relativo a 1950 donde aparece la Urss con España y Portugal 61th out of 148 in... An area of 27,000 square miles M., Guriev, and more Europe and Western Asia of... To that of Germany/Austria life easier aCIA reportfrom 1985, Gorbachev inherited both a moribund economy and a crumbling system. He is the USSR soviet union gdp n't appear in the USSR is also overtaken by Spain, Jamaica appears the... Afghanistan war took the wind out of the United States government showed in the chart! Allen uses Maddison ( 1995 ) and more final chart: 1950-1989 even compared the... Economic review, 9 ( 3 ), it 's dubious that such rates... Both the Russian Soviet Federative Socialist Republic and later the Soviet Union starting Stalin... ) Allied GDP was superior to that of Germany/Austria about 60 % that of Malaysia, below countries soviet union gdp and! Cold war rival accurately the Axis tally, the economy is more the... Controlling just for initial GDP: $ 2.6 trillion, USA $ 5.6.! In judging Soviet economic growth was not the eastern blocs selling point it spent less the. Enjoy the fruits of that hard labor and long term investment Research Center Library ( Narkhoz.