May 1985 - reduced alcohol production of state - run factories by 50%
55,000 party members to new task force to stop illegal production of alcohol
Problems
Alcohol consumption in 1987 double than 1960
1987 - citizens over 15 consuming 15-16 litres of alcohol every year. 4.5m registered alcoholics
Citizens now drinking samogon, illegally manufactured alcohol
Consequences
Gov. make much less money out of vodka sales
Gov. alcohol revenues dropped by 67m roubles (9% of GDP) - economic problems worse
Failed to eradicate alcohol problem
Campaign abandoned in 1988
1 of 2
Acceleration (12th 5 year plan)
Reform
Designed to end stagnation
Increase in investment, designed to modernise Soviet economy, make more efficient
Problems
Decline due to global price of oil - fall from $70 a barrel in 1981 to $20 in 1985. Oil revenue down 2/3 and drop in alcohol = significantly less money from 1980s
Borrowed money from Western countries - increase in debt from $18.1b in 1981 to $27.2b in 1988
Gorbachev invested in energy production, ignoring advice from economic experts to invest in high-tech machines
Consequences
Increase in debt - gov. spending more on interest payment
Less money for further modernisation or to produce consumer goods - economic crisis
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