Production must be sustained over a long enough period of time to allow the acquisition of these items by the average citizen. Cambridge Journals publishes over 250 peer-reviewed academic journals across a wide range of subject areas, in print and online. The First Deputy Minister of Trade of the R.S.F.S.R., D. D. Korolev, during a visit to Boston recently, stated, "A few years ago we discovered that we had produced too many radios and cameras. During 1957â58 Nikita Khrushchev's Virgin Lands Campaign focused attention on Tajikistan, where living conditions, education and industry lagged behind the other Soviet Republics. and modern washing machines were amazingly rare in the Soviet Union. There is little doubt about the capability of Russian heavy industry. Previously prepared airfields in the Soviet Union during the war provided the best accommodations. Annaâs account is not a detached political analysis of the situation in the former Soviet Union but rather a story of her personal experiences, which illustrate the deep contradictions that marked the society and the everyday lives of the people. Whatever is produced is sold. In October 1959, less than a year after the announcement of the Seven Year Plan goals, the Soviet Government called for a sharply increased expansion in the production of consumer goods. Pardons, reduced tensions and the ending of the Korean War followed. Poverty, far from being eradicated, is rampant. While heavy industrial production is still the major objective, it does seem fair to suggest that consumer goods in the Soviet Union today are more important than ever before. S. Khrushchev, "Target Figures for the Economic Development of the Soviet Union," Soviet Booklets, no. Moreover, Khrushchev's recent visit to the United States and the descriptive and visual coverage of the sights he saw--supermarkets, private homes, superhighways and farm houses with swimming pools--should only increase the Russian hunger for consumer goods. Cambridge University Press is committed by its charter to disseminate knowledge as widely as possible across the globe. This occurs primarily with the more expensive varieties of such goods as watches, bicycles, television sets, radios and cameras. As was pointed out earlier, the Russians now produce more of these than we do in the United States. Living Conditions, Lifestyles and Health in the Former Soviet Union by Christian Haerpfer, 9780415679442, available at Book Depository with free delivery worldwide. Since 1953, over 1,500 stores have been converted to self-service in the Russian Republic alone. Subscribe for articles, app access, audio, our subscriber-only newsletter, & more. Even though housing construction in the Seven Year Plan is to be 2.3 times greater than it was in the preceding seven years, a noted economist, V. Nemchinov, asserts that 55 percent of the housing to be completed under the plan will be needed just to maintain the present low housing standards. Not only has the power to make major decisions been transferred to local planning units, but the operating enterprises themselves have been given increased discretion over their own operations. Where the market is thinner, certain commodities (usually those with higher price tags) simply do not move. This would represent 35 percent of the almost 47,100,000 U.S. households possessing washing-machines in 1959. The questions to be considered now are the crucial ones--how fast will the Soviet Union grow, and will it overtake the standard of living enjoyed in the United States? Our mission. The Standard of Living in the Soviet Union, 1928-1940 ROBERT C. ALLEN New estimates of the growth in total and per capita consumption are developed for the Soviet Union during the first three Five-Year Plans. The journal has broad coverage, in terms of both methodology and geographic scope. anthropometric studies of children and adolescents conducted across the Soviet Union from the 1920s to the early 1990s. [vi] Joint Economic Committee of the United States, Comparisons of the United States and Soviet Economies, Washington, G.P.O., 1959, 1, p. 222. © 1998 Economic History Association What does all of this imply for the United States? The second development was the emergence in the Soviet Union of certain phenomena which usually indicate overproduction and lack of planning--traditionally stigmatized as distasteful features of capitalism. In the light of the new interest shown by the Soviet Government in consumer goods distribution and an improved standard of living we should survey the state of consumption in the Soviet Union before risking an evaluation of Russia's chances of "catching up.". The Soviet 1956 Statistical Handbook: A Commentary, Michigan State Press, East Lansing, 1957, p. 178. Economic welfare in the Soviet Union : poverty, living standards, and inequality. Click here to learn more. To access this article, please, Access everything in the JPASS collection, Download up to 10 article PDFs to save and keep, Download up to 120 article PDFs to save and keep. View 1 Edition The larger volume of retail sales made it necessary to improve the operation of the existing distribution network, resulting in a series of measures which increased marketing efficiency and did not seem ideologically objectionable. Teaching and learning in Soviet schools is planned with the intention of inculcating responsibility to the collective. Although the volume of trade turnover has shown an impressive increase, the trade network itself has been enlarged at a much slower rate. Retail trade increased in the second quarter of 1953 by 23 percent, and by 26 percent in the second half of the year. Due to demographic growth and normal housing depreciation, it is necessary to run just in order not to lose ground. 15% of the population lived in areas with pollution 10x normal levels. There was no place for homelessness in the land of widespread social equality - which is how propaganda presented the Soviet Union to the world. However, a personal visit into any Soviet apartment off the main street or a drive through any Russian village will answer the question whether the Russians will overtake the United States during the next few seven year plans. The Journal of Economic History is devoted to the multidisciplinary study of history and economics, and is of interest not only to economic historians but to social and demographic historians, as well as economists in general. To some extent, of course, this is a problem of numbers. But as D. G. Johnson and A. Kahan point out, the relation of Soviet production of meat and milk to American production of these goods has improved little if any over the pre-revolutionary era when Russia was a major livestock producing nation. Yet retail sales in 1960 are to increase by only 6.9 percent over 1959. Moreover, Iarmarki (wholesale trade shows and exhibitions) have been greatly increased in number and importance. Topics covered include money and banking, trade, manufacturing, technology, transportation, industrial organisation, labour, agriculture, servitude, demography, education, economic growth, and the role of government and regulation. This background warrants a certain amount of skepticism toward planned increases in the immediate future. Clearly, the Soviets have made vast improvements, at least over the dreadful days of the early 1930s. The gains were confined to the urban population and to those moving from the country to the city. This is to be expected regardless of any decision about total disarmament. These estimates show that consumption per head rose ⦠These phenomena, familiar to Western businessmen, are almost always associated with a buyer's market and overproduction. These data are supplemented by a study of trends in adult heights by year of birth which provides a window on living conditions in the early childhood years of each cohort. All were above the over-all average sales growth projections. Unlike the soldiers in the field, however, air force personnel experience better conditions, to a certain degree, especially when defending their homeland from foreign invaders. The phenomenon of advertising in a Communist economy warrants special attention. To say that the Soviet Union will produce 2,500,000 or 4,500,000 washing-machines in 1965 is meaningless unless there is some way of comparing their qualitative features with those of a washing-machine produced in another country. [vi] Still, this does represent a substantial improvement for the average Russian, although the targets for other fresh foods are less spectacular. In the continually neglected areas of domestic trade and the standard of living, however, it is estimated that by 1952 real wage income, although slightly higher than prewar, was still below that which existed in 1928, the year before collectivization. To sum up, there clearly have been major innovations in Soviet marketing since 1953. While it is clear that conditions improved from Malenkov on, the immediate increase in retail sales seems to suggest that consumer goods were used as a political tool--presumably to preserve stability. Because the estimate of Soviet stocks fails to take into consideration replacement of scrappage (important, considering the notoriously poor quality of Russian consumer goods), the comparisons tend to overstate the availability of Soviet durable consumer goods while the corresponding American figures are understated. This also means that comparative studies of relative standards of living, both with other countries and between different periods, are even more difficult than has already been suggested by various researchers. [iv], Unusual steps were taken to cope with this saturation of the market in certain models of four or five items. These data are supplemented by a study of trends in adult heights by year of birth which provides a window on living conditions in the early childhood years of each cohort. [viii] The past sales figures for 1950 to 1959 are found in Sovetskaia Torgovlia (Soviet Trade), Gosstatizdat, Moscow, 1958, p. 57, Sovetskaia Torgovlia, January 1959, p. 12 and Pravda, January 22, 1960. 47, London, 1959. Quantitative measurements are not the only criteria to be considered. The result is that they must fall back on the capitalistic expedients of advertising, consumer credit and middlemen. were considered luxuries by the average Soviet citizen. In fact, of all the areas of competition with the U.S.S.R., it seems safe to say that the Soviet Union lags farthest behind in its standard of living. Despite the imprivements, living conditions were poor. Read your article online and download the PDF from your email or your account. At the present time, almost all Soviet models are the wringer type with only a limited washing capacity. If anything, the estimates are purposely high. [ii] Although this is one way of holding down costs of distribution, the quality of service suffered. We produced more than we could sell under the existing conditions.". Whether or not such growth means that the Soviet Union will be able to overtake the United States will be considered later. The Link Between Foreign Languages and U.S. National Security, Aung San Suu Kyi’s Major Speech on Rakhine State, Creating a State Department Office for American State and Local Diplomacy, Paywall-free reading of new articles and a century of archives, Unlock access to iOS/Android apps to save editions for offline reading, Six issues a year in print, online, and audio editions. Everyone was living in poverty throughout Soviet history, not only during the period of perestroika. An exact estimate of comparable American data is not available. After theRussian Civil War, many apartments in the Union were left empty as the original owner either died, was repressed or took flight. From the point of view of the Soviet citizen, conditions are much better. Pamphlet published by the (anti-Soviet Union) National Union of Seamen on the case of David Scott, a ship's fireman. As long as the consumer is kept at a low consumption level, and is given more money than goods to buy with it, there is no difficulty. On the other hand, the original goals of the Seven Year Plan are not necessarily a lower limit. Our emphasis is on private homes while in the Soviet Union it is on semi-private apartments with jointly shared kitchens and toilets. Overall, in terms of Russiaâs urban transition, the Soviet system achieved a high rate of urbanization, which supported industrialisation, and ought to have supported continued economic growth. The latent demand and the financial resources for implementing these demands are in abundant evidence. To facilitate the flow of goods through an inadequate distribution network the Soviet authorities have introduced a series of "progressive" marketing methods. The larger, a projection of the revised goals for 1961, is certainly the upper limit. Physical Education in the Soviet Union is presented through radio, television, books, newspapers, magazines, movies, songs, celebrations, and the arts - opera, ballet, sculpture, paintings. Instead of the usual annual increase, sales may actually fall off. In this stage of the competition, the Soviet Union intends to surpass the United States economically."--N. Similar considerations hinder comparison of durable consumer goods. As the base broadens, a larger and larger absolute increment is needed to maintain a given percentage growth rate. While some Russian citizens simply did not understand what was being shown at the Fair, many left convinced that it was time their society began to provide some of the same living conveniences. The past record in this respect is not encouraging for the Russian citizen. Those with real apartments, which are typically small, spartan and overcrowded, are the lucky ones. It publishes over 2,500 books a year for distribution in more than 200 countries. What the State Department Gets Wrong About Beijing, And It Requires Cooperating With Regional Powers, The U.S. Military Needs a Plan to Compete Without the Advantages of the Past, Get in-depth analysis delivered right to your inbox, From the The Journal of Economic History Distribution and marketing must also be improved. By the mid-1970s, there were an estimated 10,000 political and religious prisoners across the Soviet Union, living in grievous conditions and suffering from malnutrition. ©2000-2020 ITHAKA. It seems fair to say that this sudden acceleration in goals is the fruit of the psychological seeds mentioned above, the most fertile of them undoubtedly being Khrushchev's visit to the United States. Please enable JavaScript for this site to function properly. Many qualitative differences also exist. A national mail order firm sends goods to provincial areas, thus reducing the need for retail outlets. Considering the levels of agricultural production during the collectivization famine of the 1930s, this is quite an accomplishment. Nemchinov, the Soviet economist mentioned earlier, says that the Soviet goal of 129 square feet per person will not be achieved until much after 1965. There seems to be little doubt that the Russian people welcomed the death of Stalin in more ways than one. option. First of all, it appears that the Soviets are determined to match not only the heavy industrial production of the United States, but also its standard of living. Yet all the discussions having to do with foods and soft goods tend to be polemical in nature. This item is part of JSTOR collection In addition to the First All Socialist Advertising Conference, held in Prague in 1957, and a nation-wide competition for the best window display in the Soviet Union, the formation of several Soviet Republic Advertising Agencies in late 1958 represents a significant alteration of policy. The Soviet working class was, according to MarxistâLeninist theory, supposed to be the Soviet Union's ruling class during its transition from the socialist stage of development to full communism.However, it's commonly argued [by whom?] Check out using a credit card or bank account with. On July 1, 1959, the prices of almost all the expensive models of these commodities were reduced 15-30 percent. For more information, visit http://journals.cambridge.org. By 1959, yearly retail sales were about double the sales of 1952, the last full year under Stalin. In order to be as conservative as possible, the counterpart American figures do not refer to stocks, but to the number of households possessing these goods. Life expectancy actually fell in the Soviet Union during the 1960s and 1970s. [iii] For a more detailed discussion of these as well as the preceding category of changes, see the author's "Marketing--A Lesson for Marx," Harvard Business Review, January-February 1960, p. 79. [iv] Tsentral'noe Statisticheskoe Upravlenie, Narodnoe Khoziaistvo SSSR v 1958, Gosstatizdat, Moscow, 1959, p. 704, indicates that radio, watch and bicycle sales in 1958 were lower than in 1957 and/or 1956. Many more comparisons are necessary (and not just of material goods) before one can make a final judgment. JSTOR is part of ITHAKA, a not-for-profit organization helping the academic community use digital technologies to preserve the scholarly record and to advance research and teaching in sustainable ways. Read more. Likely, most citizens lived in communal apartments till the 60s, with two or more families sharing the same kitc⦠KHRUSHCHEV, in outlining these goals of the First Seven Year Plan, did not mean to imply that success would be attained overnight. The issue of August 16, 1959, p. 4, outlines the procedure for installment sales. As might be expected, sales of Soviet consumer durables are to increase at more than the average rate of growth. The author personally has met members of the Soviet upper and middle income groups who have the necessary 25,000-40,000 rubles (two and a half to four times the average yearly wage) needed to purchase a Russian car, but who nevertheless have been on a waiting list for three years and expect to wait several more. While the Russians dream some day of duplicating many aspects of American life, they do not include automobile production in their aspirations for the time being. So goes the familiar and heretofore unending process. They have also discovered, however, that in trying to overtake the United States in the pleasures and joys it derives from a high annual sales rate, they also encounter many of our problems. Even if this were so, he should know that overtaking the United States in production of specific commodities is not enough. While the number is in no sense comparable to the number of foreigners visiting the Soviet Union, a strong impact is none the less made. Although the goals were projected only three years ahead, the average annual growth from 1959 to 1961 was raised to 12 percent, or by a total of 42 percent. Not only has there been increased emphasis on billboards and truck-side advertising, but radio and TV commercials are being used. How is one to describe in statistical language the relative standards of living when one of the countries has a large stock of consumer durables and the other does not? As many as ⦠The original 1965 figures are given in Vestnik Statistiki, no. across the Soviet Union from the 1920s to the early 1990s. It is with regard to consumer durables, however--on which Americans especially pride themselves--that the test must be made. It is one thing to show that you can produce certain things; it is another to provide them to your consumer in a fresh state and when he wants them. The Soviet Government has always regarded heavy industry as the most important economic sector and thinks of consumer goods as expendable. As yet there is no indication that the Russians plan to maintain this pace beyond 1961. Foreign Affairs, Published by the Council on Foreign Relations. sales.). The Russians are much further behind with respect to housing and automobile production. Moreover, Khrushchev apparently supposes that the great production increases are to be gained from increased efficiency and productivity and with little new capital investment. Become a subscriber for unrestricted access. DE9fCHOV OF THE CAHMD SUM 111MIN TUB WAOIN? (MATTHEWS) According to Soviet ideology, the socialist economic system should put an end to the alienation of labor and poor workin g conditions. If anything, the 6.9 percent rate of growth just meets the original Seven Year Plan goals of a 7 percent annual increase. First, what is the significance of the future Seven Year Plan goals? The estimates presented here are based on new information and on alternative approaches to valuation and index number problems. Economic Growth and Living Standards During the 1930s. The American exhibition also was an especially effective method of conveying a picture of a country with a much higher standard of living. It also seems clear that demands have been stimulated by the improved and more objective exposure to Western living conditions. Whereas formerly the average increase of sales had been almost 10 percent annually, the projected increase in sales volume from 667 billion rubles to 1,080 billion rubles in 1965 would mean an over-all increase of only 60 percent or about 7 percent annually. It includes a sworn declaration by Scott on his experiences whilst living in Novorrossisk, a port on the Black Sea, between December 1923-December 1925, and on his imprisonment between December 1925 and October 1926, after he had been observed talking with foreigners. While there may be many reasons for it, including the desire to improve the way of life of the Soviet consumer, increased sales volume was probably the most important cause. To say that by 1965 they will be producing 60 percent or 120 percent as many units as we did in 1959 under the circumstances may not have much meaning. This is the second of three articles by Anna Malyukova about her memories of the Soviet Union, where she grew up and lived before its collapse. While conditions slowly improved, the greatest transformation took place only after Stalin's death. The decision to adopt such measures must certainly have caused quite a disturbance among some Communist leaders, both above and below ground.[v]. Soviet managers were rewarded for meeting the plan, but for pleasing consumers. These apartments were taken up by the state and turned into communal homesâ with each bedroom reserved for a single family. As a result, there is a strong demand for an even more rapid improvement in the standard of living. Whereas by 1958 the absolute volume of trade had increased by somewhat less than 170 percent over that of 1940, the number of retail and restaurant outlets had increased by only 30 percent. The Soviet system sought to achieve universal, free access to basic health services, centrally planned according to strict norms with the goal of delivering services of uniform quality in all parts of the Soviet Union. 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