Since its inception in the 1950s, the Five-Year Plan has been the cornerstone of economic development in the Soviet Union and later in the Russian Federation. The Five Year Plan was devised by the Central Committee of the Communist Party of the Soviet Union to chart the course of economic growth and development from 1950 to 1955. It was designed to achieve rapid industrialization and increase the production of consumer goods. The plan focused on the development of heavy industry, such as the steel and coal industry, while neglecting the development of the service and light industries.
The First Five-Year Plan (1950-1955) was an ambitious plan that targeted increasing the Gross National Product (GNP) by an average of 15 percent annually. There was an emphasis on heavy industry development, which was to be achieved through the construction of new factories and the modernisation of existing ones. The plan also introduced the concept of collectivisation, which saw industry nationalisation and the agricultural sector's reorganisation.
The Second Five-Year Plan (1956-1960) was a more conservative approach, aiming for a growth rate of 8-10% annually, and it focused more on the development of the light industry, such as consumer goods. The emphasis on the light industry increased the production of consumer goods, as well as an improvement in the quality of life for the Soviet people.
The Third Five-Year Plan (1961-1965) introduced a new economic policy which stressed the importance of technological development and foreign investment. This plan was largely successful, and by the end, the Soviet Union had achieved the highest rate of economic growth since the start of the Five-Year Plan.
The Fourth Five-Year Plan (1966-1970) was a period of stagnation, but the economy still experienced some growth. The plan focused on the development of heavy industry, while consumer goods production was neglected, and the quality of life of the Soviet people was not improved.
The Fifth Five-Year Plan (1971-1975) was a period of growth and development, and by the end of the plan, the Soviet Union had achieved the highest rate of economic growth since the start of the Five-Year Plan. The plan focused on the development of heavy industry and the modernisation of existing factories. It also introduced the concept of decentralisation, which saw the decentralisation of the economy and the emergence of a new market-oriented economy.
The Sixth Five-Year Plan (1976-1980) was a period of decline, and by the end of the plan, the Soviet Union had experienced its lowest rate of economic growth since the start of the Five-Year Plan. The plan focused on developing the light industry, with the modernisation of existing factories and introduction of new technology.
In conclusion, it is clear that the Five-Year Plan was the cornerstone of economic development in the Soviet Union and later in the Russian Federation. The periods of highest economic growth were during the First and Fifth Five Year Plans, while the periods of decline were during the Second and Sixth Five Year Plans. The Fifth Five Year Plan was the most successful, achieving the highest economic growth rate since the start of the Five Year Plan.
