Five-year plan is a program to increase a country’s standard of living in a five-year period. The Soviet Union originated the five-year plan as a major part of the plan to develop a socialist economic system. Such plans were used to organize the production and distribution of goods and services, with an emphasis on industrial goods, such as coal and steel, and defensive capabilities. The production of consumer products never figured prominently in such plans.
The first Soviet five-year plan implemented in 1928 reflected leader Joseph Stalin’s relentless desire to industrialize the country as quickly as possible. Stalin wanted industrialization for the development of the Soviet Union as a modern country prepared to defend itself militarily. The 1928 plan also called for the state’s takeover of agriculture. This policy, known as collectivization, meant that the state or government owned almost all of the farmland and farm equipment. The Soviet government then produced additional five-year plans for industrial production and for all crops and livestock.
In 1958, the Soviet Union replaced the five-year plan with a seven-year plan, with the aim of surpassing the industrial progress of the United States. However, that goal was not achieved. The Soviet five-year plans were reinstated in 1966 and used until 1990. The Soviet Union was dissolved in 1991.
Today, many historians believe the Soviet five-year plans set targets for economic development that were unreasonably high. They point out problems that occur when leaders set unrealistic goals for various sectors of a national economy that actually cause greater failure and corrupt practices than intended. As officials were pressured to achieve five-year plan objectives, they often falsified reports about productivity and industrial and agricultural output to make it appear as if targets were being met.
China and India have adopted five-year plans, as have other, mainly socialist countries. Experts do not view such plans as bad or dangerous. Today, organizations and institutions throughout the world use variations of the five-year plan to improve work environments and meet goals.
