Why Agriculture Was Considered An Inefficient Sector Of...

The Soviet economy heavily depended on its agricultural sector. From 1929 onwards Stalin began the enforced system of state and collective farms, known as sovkhozy and kolkhozy respectively. These collectivized farms ‘soon proved both impracticable and too costly’ (Davies 1980). A number of factors contributed to the level of inefficiency of the Soviet collectivized system throughout its history, and this essay will discuss these factors and ultimately comment on the key factors responsible for these inefficiencies. Primarily, this essay will concentrate on, the poor treatment of peasants who worked on the collective farms, and the impacts this treatment had on their incentives to produce. Throughout this essay there will be a strong focus on the labour market as the main cause of inefficiencies, along with the inability of the Soviet Union to correctly manage the sizeable farms. I will show that these two factors working in union strongly support the argument of why agr iculture was considered to be such an inefficient sector of the Soviet Economy. There are other factors which also contribute to these inefficiency problems, they will be touched upon, but only briefly. Despite the pressures put on the agricultural industry to thrive and the movement toward a more machine based production process, it became evident that large deficiencies existed within the industry. 1929 marked the beginning of the drive for collectivised and state controlled agriculture in the Soviet Union.Show MoreRelatedWhy Nations Fail - Chapter 5 Review5470 Words   |  22 PagesLevisalles Amaury Georg-August-Università ¤t Sommer Semester 2012 Gà ¶ttingen WHY NATIONS FAIL D. ACEMOGLU J.A. 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