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Brezhnev period of Soviet oil and gas industry development and its impact

Author: ShiLanLan
Tutor: DingPeiHua;YuJianHua
School: Shanghai Academy of Social Sciences
Course: World History
Keywords: Oil and gas industry Soviet Union Leonid Brezhnev era Influence
CLC: F416.22
Type: Master's thesis
Year: 2011
Downloads: 4
Quote: 0
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Abstract


This paper focuses on the Soviet oil and gas industry in Leonid Brezhnev era. During this period, the oil and gas industry lastingly influenced the Soviet society, politics, economy, and even had an affect on the national disintegration. More or less, it also shackled the development of Russian oil and gas.Leonid Brezhnev’s oil and gas industry occupied an important position in Soviet energy industry. Brezhnev’s Soviet Union is the most important turning-point period in the Soviet era. This period was not only the Soviet glory era, but also the early stage of the collapse of the Soviet Union. Oil and gas resources made the Soviet national strength get to the top as economic foundation of the Soviet Union. Due to soaring oil and gas revenue, the nation’s economy grew rapidly, the people lived a happy life. As a result, the Soviet government gave up reform immediately, continued to Sustain the rigid institution and the conservation system by using the oil and gas revenues. The oil and gas industry boomed thanks to the government attention. And the prosperous oil and gas economy promoted social development in Soviet Union. In this period, the economy, the politics and the society all were in the best stage in Soviet history. The economy grew at double-digit rates and kept the second level in long-term. Using the oil and gas as a political and economic lever, the Soviet Union in one hand strengthened the political influence on eastern Europe, on other hand, increased the economic exchanges with western countries. Owing to the momentum of the domestic economic was good, the national strength especially the military strength increased dramatically. The military clout even could challenge American, in some way it had already surpassed the United States. The Soviet Union became a superpower apart from the United States. It carried out the global expansion strategy around the world, puting a lot of resources on the aggression and the military confrontation.It should be point out that the great profit could’t blanket the contradiction below the Soviet economic system. They even objectively delayed the reform process, promoted the government overdeveloped the military industrial. They were busy making large investment in heavy industry, engaging in an arms competition with the United State. Soon, the country’s economic development slowed down, then turned into stagnation. In 80’s, the domestic oil production continued to decline, in addition to the the soaring oil prices, the Soviet oil and gas revenue came to naught. The similarity happened in Russia in 21st century. In 2008, under the impact of both the global financial crisis and the oil price steeping fall, Russian economic situation has plunged, appeared economic negative growth.History proved, the condition of Brezhnev’s oil and gas industry was the key factor which affected the economic development. The state of the economy depended on the trends of oil and gas industry in a great extent. Once the policy, administrate, trade of the oil and gas industry changed slightly, every economic nerve will be affected. The force of Brezhnev’s oil and gas industry even lasted untill the nation disintegrated. But the oil and gas industry is only one of the many industrial sectors in the Soviet Union. It have very limited influence on the Soviet comprehensive strength. It could’t become the leading factors in Soviet economy. It is not advisable to vast exaggerate the positive role and the negative effects of the oil and gas industry. It is the economy, politics and social and so on led the disintegration of the Soviet Union. Oil and gas exchange only temporarily concealed the various contradictions and problems. It is too weak to save the country from disintegrate.Research Brezhnev’s hydrocarbon industry and hydrocarbon policy, it has very important value for us to recognize oil and gas industry in the Soviet Union and Russia from a specific profiles.

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CLC: > Economic > Industrial economy > The world's industrial economy > Industrial sector economy > Energy industry,power industry > Oil and gas industry
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