Wednesday, 25 March 2015

Why You Need a 5 Year Plan

In 1928, Stalin launched the first of thirteen "Five Year Plans" for the Soviet Union. At the time, the Union was in a state of poverty and disrepair with life expectancy low and infant mortality shockingly high. The idea was that the plans would ultimately lead to a communist utopia in the form of a hugely advanced industrial economy, a "powerhouse" of industry. The plans generally looked to address the shortfalls in the USSR's agriculture, transportation, communication, health, education and many more areas but the main emphasis of these plans was always centred around power and capital goods. The attempt to convert a starving, depressed nation into a western economy brought huge suffering to the people of Russia. In fact, the famine of 1932 which was caused by the disruption associated by "Collectivization" (aggressive land farming) caused the death of millions of people. This fact was vehemently denied until the dissolution of the Soviet Union in 1990, despite the fact that the census of 1937 revealed a population loss in line with the deaths associated with World War 2 in its entirety.

In 1936, the Nazi Party launched their very own Five Year Plan (this actually turned out to be a Four Year Plan) in order to ready themselves for war. Hitler put Hermann Goring in charge of this plan and awarded him a tremendous amount of power and control over the economy. His decision was to invest in military resource at the expense of civilian economic growth. In short, Goring led Germany into war-readiness.

Why is this relevant to your own Five Year Plan? It absolutely isn't.
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