RES: [lbo-talk] Reagan, Arms Race and Collapse of Soviet Union

Alexandre Fenelon afenelon at zaz.com.br
Fri Mar 12 18:02:18 PST 2004


Gorbachov said very recently that the fSU spent 5 bn roubles per year on Afghan war. It is hard to believe that extra annual expenditure of 5 bn roubles was enough to destroy the fSU. What was the Soviet GDP in the 80s?

Ulhas

-1,5-2,0 trillion USD depending of the estimates (probably close to the second value). Official USSR estimates not reliable because their methodology excluded services from GDP calculations. Per capita PPP GDP in 1973 was US$6500, assuming a 20% increase from 1973 to 1990, we would have a result close to the highest estimatives.

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