Cold War: Social & Economic Impacts (The Soviet Union)

Social Impacts (During)

Economic Ramifications of Military Wars

Economic Impact

1945-1991

Eastern European Revolts

Production of Nuclear Arms

• Soviet Union's funds were used in funding proxy wars, such as the Vietnam War, where the USSR sent artillery to the Viet Minh, as a means of spreading communist ideology and gaining strategic advantages, however, this caused extra government spending, which lowered the country's GDP and contributed to the country's economic troubles.
• This military spending was done to maintain the military, which was seen as necessary to protect the country from perceived threats from the West and to project its power on the global stage.
• All but Soviet leaders Khrushchev and Gorbachev believed that military development was more important than investment in the civilian economy, hence they prioritized funding the military over other sectors which led to a neglect of other areas of the economy and contributed to the country's economic troubles.
• The heavy investment in military spending and proxy wars, coupled with other factors such as inefficiency in the agricultural sector and a lack of diversification in the economy, led to a decline in living standards for many Soviet citizens and ultimately contributed to the collapse of the Soviet Union.

• Arsenals of atomic weapons and ballistic missiles were developed and amassed by nations during the Cold War as a means of deterring aggression and ensuring national security, but also served as a constant reminder of the potential for devastating destruction.
• The competition between the United States and Soviet Union to build larger and more advanced nuclear weapons and missile systems was known as the "Arms Race" and was a significant driving factor in the escalation of tensions during the Cold War.
• The consistent threat of mutual destruction, with both the U.S. and Soviet Union possessing the capability to launch devastating nuclear attacks on one another, served as a constant reminder of the gravity of the situation and the need for diplomatic efforts to prevent conflict.
• Despite the potential for catastrophic war, both the U.S. and Soviet Union maintained a continued, wary demeanor in their interactions, as any misstep or miscalculation could have led to disastrous consequences.

• The unraveling of the Warsaw Pact, a military alliance of communist states in Eastern Europe, was a result of a combination of internal pressures for greater freedom and external pressures from the West, ultimately leading to the collapse of Soviet-controlled governments in the region.
• These pressures led to a relinquishing of the political monopoly by communist parties and the emergence of non-communist governments, democratic reforms, and the establishment of independent states, such as the Baltic republic of Lithuania.
• The fall of the Iron Curtain and the end of the Cold War had a significant impact on the region, leading to the reunification of Germany, the withdrawal of Soviet troops, and the establishment of new independent states, such as the Baltic republics, Czechoslovakia, and Yugoslavia.
• The end of the Cold War and the dissolution of the Soviet Union had a profound impact on the entire world, leading to a shift in the global balance of power and the emergence of a new world order characterized by increased cooperation and interdependence among nations.

Negative Impact (Economic)

Living Conditions in the Soviet Union

Gross National Product (GNP: metric for measuring a nation's economic output)

• Solid education and health systems were implemented in many socialist and communist countries as a means of ensuring equal access to opportunities and services, however, the quality and accessibility of these systems varied widely depending on the country and government in charge.
• Limited income and control of the means of production by the state were key components of socialist and communist economic systems, with the goal of redistributing wealth and eliminating social inequality, but often resulted in shortages and lack of incentives for innovation and productivity.
• Overall disregard for personal feelings, interests, and property, often seen as a necessary sacrifice in the pursuit of a collective good, was a characteristic feature of many socialist and communist societies, leading to restrictions on individual freedoms and human rights abuses.
• Despite the theoretical goal of creating a more equitable society, the reality of socialist and communist systems often fell far short, characterized by lack of economic growth, political repression, and poor living conditions for the majority of citizens.

Before the Cold War

- 6% per year

(1966-1970)

- 5.3% per year

(1971-1975)

- 3.7% per year

POST Cold War 1975

- 2.6% per year

Causes:

1) Military expenditures

2) Draining resources

The centralized economic system of the Soviet Union was well-suited for organizing a strong military, but it struggled to effectively manage the distribution of goods and services in a consumer-oriented society.

Manufactured Products

• During the Cold War, the military was the biggest consumer of goods and services, resulting in a significant boost to the economy, particularly in the defense and aerospace industries, which experienced significant growth and expansion.
• This economic sector was the one that benefited the most, as the high demand for military goods and services led to increased production, employment, and profits, and also stimulated research and development in areas such as weapons and space technology.
• The need for skilled workers to produce and maintain advanced military equipment and systems also led to an increase in job availabilities and opportunities for education and training in technical fields, boosting employment and wages.
• However, this heavy reliance on military spending also led to economic imbalances.

Military and Space Races

POST CW Social Impacts

POST CW Social Impacts

Farming Industry

• The inefficient functioning of collective farms and state-run agricultural systems in many socialist and communist countries during the Cold War, was characterized by poor work habits, lack of incentives, and inadequate resources, resulting in low productivity and yields.
• Moreover, problems with distribution and transportation, often due to lack of infrastructure and coordination, resulted in harvests rotting on the way to the market and a significant loss of food, with estimates ranging from 40 to 50% of the total crop being wasted.
• This was a major problem for many socialist and communist countries, as agricultural production was a key component of their economies and food shortages were a constant issue.
• Despite the lack of personal incentives, the government would often force farmers to meet specific quotas which resulted in poor farming practices, poor crop yields and poor food quality, which contributed to a poor standard of living for the population.

• The Soviet Union faced harsh economic times prior to and following the signing of the Nuclear Non-Proliferation Treaty (NPT), as funds that were previously invested in nuclear development and military continuity were seen as wasted resources post NPT, as the country struggled to keep up with the United States in terms of nuclear capabilities.
• Additionally, the ongoing proxy wars that the Soviet Union was involved in, cost the nation a significant amount of money, leaving a deficit in government funds and putting further strain on the country's economy.
• These economic troubles, coupled with other factors such as inefficiency in the agricultural sector and a lack of diversification in the economy, led to a decline in living standards for many Soviet citizens and ultimately contributed to the collapse of the Soviet Union.
• Gorbachev attempted to balance military successes with improvements in the civilian economy, by implementing policies such as Perestroika (economic restructuring) and Glasnost (greater political openness), however, these efforts ultimately proved unsuccessful, as the Soviet economy continued to decline and the country's military expenses remained high.
• By 1989, the Soviet economy was only about half the size of the American economy, and the country was facing significant economic challenges, including high inflation, low productivity, and a lack of consumer goods. This was an indication of the long term economic troubles of the Soviet Union, which would ultimately lead to the collapse of the Soviet Union in 1991.

Collapse of the Soviet Union

Gorbachev

• The informal competition between nations during the Cold War to make the furthest advancements in space exploration and military technology was driven by a desire to demonstrate superior technological and scientific capabilities, and to gain strategic advantages over rival nations.
• This competition was characterized by a relentless pursuit of innovation, with both the United States and Soviet Union investing heavily in research and development to create new technologies and weapons systems.
• Advancements in areas such as rocket propulsion, satellite technology, and intercontinental ballistic missiles were deemed necessary to achieve objectives, and both nations spent vast amounts of money to achieve these goals.
• The Cold War space race and arms race had a significant impact on global politics and international relations, leading to a shift in the balance of power and the development of new technologies and industries that continue to shape the world today.

Soviet Union under Brezhnev

Mikhail Gorbachev was the last leader of the Soviet Union and played a significant role in ending the Cold War. He introduced a number of policies aimed at reforming Soviet society, including glasnost (openness) and perestroika (restructuring). These policies led to a loosening of government control and censorship and allowed for greater freedom of speech. economic freedom, and individual expressions. Gorbachev also sought to improve relations with the United States and other Western countries, leading to a reduction in Cold War tensions and ultimately the collapse of the Soviet Union.

• The increasing cost of supplying oil and natural gas during the Cold War, along with a decline in sales from exporting these resources, led to a trade imbalance and significant economic challenges for many countries, particularly those that were heavily dependent on these resources for revenue.
• This was the case for Soviet Union, which was purchasing food from abroad but was not exporting enough oil to balance the trade deficit, resulting in deficit spending by the government, an increase in printing money, and a devaluation of the national currency, the ruble.
• Soviet Union's economic situation, coupled with other factors such as inefficiency in the agricultural sector, led to a decline in living standards for many Soviet citizens, and contributed to the eventual collapse of the Soviet Union.
• This situation also had a major impact on the global economy, as the Soviet Union was a major player in the international oil market, and its economic troubles had ripple effects on countries that were dependent on Soviet oil exports.

The fall of the Soviet Union in 1991 marked the end of the Cold War and had a profound impact on the social and political landscape of the world. The collapse of the Soviet Union led to the independence of many Eastern European countries and the end of Soviet control over them. This brought about a significant shift in global power dynamics as the United States emerged as the sole superpower in the world. The fall of the Soviet Union also brought about significant social changes in the former Soviet states as citizens were granted greater political and economic freedoms. This led to an increase in civil society and the emergence of a market-based economy, but also led to economic challenges and social inequality. Overall, the fall of the Soviet Union had a profound impact on the global community, reshaping the political and social landscape and altering the balance of power in the world.

Cold War: Social & Economic Impacts

(The Soviet Union)