The Third Five Year Plan which was designed for the period 1938-42 sought to avoid the defects of the Second Five Year Plan and mould the economy of the country according to the defence needs of the country in the face of growing Nazi threat. The Second Five Year Plan caused much discontent among the workers on account of policy of differential wages. It also led to production of goods of poor quality.
The Third Five Year Plan sought to ratify these defects and paid more attention to the production of consumer goods and provisions of housing facilities to the workers. During this period labour discipline was further tightened. The plan also favoured establishment of factories in remote regions on account of strategic reasons. The Russian leaders felt that concentration of industries in European Russia was a source of military weakness because these industries could easily fall in the hands of enemy in the event of attack on Russia.
Further, their loss would deprive the Russian army of an industrial base. It was felt that a new industrial base should be created in the east of the Urals which would be reasonably immune from western attack. At the same time it was felt desirable to develop this area to defend Russia against Japan and to meet the demands of the Russian army in the Far East.
In short, we can say with Ivar Spector that “in spite of all obstacles, the Five Year Plans laid the foundation of a powerful iron and steel industry in the Soviet Union, including the establishment of new centres of heavy industry in Siberia.
ADVERTISEMENTS:
In complete contrast with efforts under the Zsarist regime to ‘Westernize’ Russia the new industrial offensive was conducted without recourse to foreign loans and without returning to the policy of foreign concessions, characteristic of the new Economic Poliq, although quantities of industrial equipment were obtained on credit terms ranging from six months to several years.” [1]