All Russias Home Tsarist Russia Soviet Russia Russian Federation Learn Russian Images & Video
        A L L R U S S I A S . C O M
Russia from A to Z Russia on YouTube Best Student Essays Jokes about Rulers Russia with Laugh Useful Links

 
 

Political Jokes

Russian Music Samples

When Putin Retires...

 

The Cold War Legacy

 

For a number of historical, political, and ideological reasons, military production and the needs of the Soviet armed forces were for decades the chief concerns of the national economy. Direct and indirect defense expenditures accounted for no less than 50 percent of the countrys budget. Defense ministries oversaw the construction of railways and defense plants, airports, and secret spacecraft launching sites.

Dozens of secret closed towns were set up that specialized in designing and producing sophisticated weapons systems. Millions of qualified workers and engineering staff worked in the companies of the military-industrial complex. Most of the think tanks of the USSR Academy of Sciences conducted research for the interests of the defense industry. The standards and quality of production in the Soviet defense industry were comparable to those of the defense sector in the West. The problem, however, was that these high standards were achieved by crippling the civilian branches of the economy and diverting most of the resources into the military field.

Yegor Gaidars radical reformist approach ignored the huge gap, inherited from the Soviet Union, between the highly advanced space and military systems and the underdeveloped consumer industries and agricultural sector. The end of the cold war presented the reformers with a unique opportunity to implement a large-scale conversion of the defense sector and to transform Russias military potential into economic might. The implementation of a defense conversion program of such magnitude required a substantial degree of centralized planning, investment, and management. Shock therapy methods were hardly compatible with a conversion of this kind.

At the same time, the government, starved of cash, made drastic cuts in military procurement. The blow to the defense industry was shattering. As a result, the civilian branches of industry failed to benefit from the resources, the know-how, and the skilled labor force of the converted military-industrial sector. Many enterprises of the light and machine-building industries were unable to modernize production and compete successfully with Western companies.

 PREVIOUS  NEXT
 
Copyrighted material
We Are Partners
 
Bookmark This Site ││Site Map ││Send Feedback ││About This Site
Lecture Bullet Points
Copyright 2007-2017 Alex Chubarov All Rights Reserved

 
 

Deformed Capitalism

Learn Russian with Us

Russian Federation

The "Catching up" Cycles
"Non-organic" Reforms
Great Leap to Capitalism
Russia's Privatization
Deformed Capitalism
Coping with Transition
The Yeltsin Era
Yeltsin's Legacy
Putin's Plan
Russian Federalism
The Chechen Problem
"Deprivatizing" the State
First and Second Dumas
Third and Fourth Dumas
Civil Society
"Controlled" Democracy

Post-Soviet Geopolitics

Paradoxes of Russian Mentality
Economy under Putin
The Putinite Order
Putin's Choice
People Speak (Opinion Polls)
Tables and Statistics
Maps
Links

Russia from A to Z

Images & Video