Economy
The whole economy of the Soviet Union was planned by the state. The production of goods was centralised. There was no free trade and private companies did not exist. So-called five-year plans were used to develop industries as well as the energy sector. During the first decades, the Soviet Union changed from a farming country to a highly industrialised nation. At its climax, it was the second largest economy of the world.
Production, however, did not take into consideration what people really needed. Western goods were impossible to get. Workers got the same wages, regardless of how hard they worked. Prices were also set by the state. On the other side, the government provided basic services, like health care, housing and education.
During the Cold War, the Soviet Union spent a lot of money on weapons and the arms race. This led to shortages in food production so that the country often had to import products from the west. The Soviets had a vast supply of natural resources. Oil and natural gas were produced for the world market. Pipelines brought energy to Western Europe.
Population and ethnic groups
The Soviet Union consisted of many ethnic groups with different languages, cultures and religions. In 1991, about 290 million people lived in the county, but only 60% of them were Russians. The U.S.S.R. had problems integrating these cultures. Especially during the 1980s, the Islamic population in the southern republics wanted more autonomy and independence from Soviet authorities. This led to the Soviet invasion of Afghanistan in 1979.
Why the Soviet Union collapsed
There are many reasons for the fa