Gosplan

Definition

Gosplan was the State Planning Committee in the Soviet Union, responsible for formulating and implementing the country's economic plans. Established in 1921, it played a crucial role in the centralized planning of the Soviet economy, guiding production and investment decisions to align with the goals of socialist construction. This committee was integral to the formation of the Soviet Union's command economy, where state control replaced market mechanisms.

5 Must Know Facts For Your Next Test

1. Gosplan was established following the Russian Civil War as part of efforts to rebuild the economy through state planning.
2. The committee was tasked with creating detailed production quotas for various sectors, impacting everything from agriculture to heavy industry.
3. Gosplan's planning often led to over-reporting of production figures and inefficiencies due to its rigid adherence to targets rather than market demand.
4. During Stalin's regime, Gosplan became instrumental in implementing the ambitious Five-Year Plans that aimed to rapidly industrialize the Soviet economy.
5. The influence of Gosplan diminished in later years as economic reforms began to introduce elements of market mechanisms into the Soviet economy.

Review Questions

• How did Gosplan's establishment influence the economic direction of the Soviet Union during its early years?
  • Gosplan's establishment marked a significant shift toward centralized economic planning in the Soviet Union after the Civil War. It provided a structured approach for managing resources and directing industrial growth, which was crucial for rebuilding a war-torn economy. By setting specific targets for various industries, Gosplan facilitated a transition from a market-driven economy to one focused on socialist objectives, significantly shaping the trajectory of Soviet economic development.
• Evaluate the effectiveness of Gosplan in achieving its economic goals through the implementation of Five-Year Plans.
  • Gosplan's effectiveness in achieving its goals through Five-Year Plans is a subject of debate. While these plans initially succeeded in boosting industrial output and transforming the Soviet economy, they often prioritized quantity over quality. This led to issues such as resource misallocation and inflated reporting of achievements. Furthermore, the rigidity of Gosplan's targets sometimes resulted in significant shortages or surpluses in various sectors, highlighting both successes and shortcomings in centralized planning.
• Assess how the role of Gosplan evolved over time and its impact on the broader context of Soviet economic policy.
  • The role of Gosplan evolved significantly from its inception to the later years of the Soviet Union. Initially central to economic recovery and industrialization during Stalin’s regime, it became associated with rigid bureaucratic processes that stifled innovation. As reforms were introduced in subsequent decades, Gosplan’s authority waned, reflecting a shift towards incorporating some market mechanisms into an otherwise command economy. This evolution highlighted ongoing tensions within Soviet economic policy between state control and the need for flexibility in responding to economic challenges.

Related terms

Five-Year Plan:

A government plan for economic development over a five-year period, used by the Soviet Union to set ambitious production and industrial targets.

Collectivization: The policy of consolidating individual landholdings and labor into collective farms, aimed at increasing agricultural efficiency and output.

Command Economy: An economic system where the government makes all decisions regarding the production and distribution of goods and services, typical of socialist states.