Last time I checked Australia was a First World country with a PCI higher than Canada or Finland.
PCI by country You make it sound that Australia is down there with Russia and Kazakhstan.
Australia started the century richer, didn't lose WW1, didn't oppose the allied might of the entire rest of the industrial world for over 40 years, didn't try to completely re-invent the industrial economy, didn't give one man so much power he could become a paranoid dictator and didn't have an army of Germans murdering and raping their way through the most developed part of the country.
And to point out that Australia has suffered consequences for its heavy raw material extraction focus is hardly the same as calling the country poor.
This is kinda dangerous.
How would a NEP oriented USSR fare against Nazi Germany?
Potentially quite well. Allen in Farm to Factory modeled a "continuing NEP" scenario that by the start of Barbarossa had delivered almost as much economic gains as the "Stalinist" reference model and the actual statistics recorded by the real OTL Soviet Union. Of course, a continuing NEP would have resulted in an economy less focused on heavy industry, but if one buys the idea that the severity of the Stalinist purges was a counter-reaction to the reaction of people and military officers to the Holodomor (which to my knowledge has not been conclusively demonstrated, but does seem credible), it would also have wasted less human and military potential during the 30s.
However, Allen's work is quite old now, and his computer models are very simplistic, also, many of his assumptions are open to question. (Most significantly, Allen believes that the Scissors Crisis would go away on its own, which I am of the view is credible since a continuing NEP would not be static, but which Sam R. for example does not agree with since the NEP as it existed was a real basket case and it could easily have continued being a basket case. That the NEP was better than the War Communism that preceded it should not give any student of Soviet history the impression that it was good. It was just less bad.)
So there are big caveats to that "potentially quite well" - it is also possible to imagine a plausible "continued NEP" timeline where the Soviet Union folds like a wet paper bag the way Hitler expected.
Much better, cause you'd be rid of Stalin. Perhaps worse, cause arguably the factories Stalin shoved through their throats might have saved their asses. Another reason for worse is Stalin might have stopped some potential nationalistic uprising.
Why would a continued NEP mean they'd be rid of Stalin?
Stalin was effectively in charge even before Lenin died. Note that he only ended the NEP when he had purged the inner Party of any conceivable rivals AND when the NEP itself seemed to have reached an existential crisis. Which is to say, it is very hard to avoid Stalin running the show once Lenin's health entered critical decline and it is also possible to imagine Stalin keeping the NEP going longer, since he'd already been the fellow running things for almost its entire run.
Anyone other than Stalin would not have cut a deal with the Mustache in 1939 to be near allies, in the face of total hostility from 1932-1938
Possibly? Kamenev and Zinoviev (by far the most plausible alternatives to Stalin who aren't called Lenin) probably wouldn't cut a deal, simply because I would expect them to be too weak to cut a deal.
But the most likely alternative to Stalin is a longer lived Lenin, and I can easily imagining him working with Hitler, simply because I don't see Britain and France being any more willing to form an anti-Nazi alliance with Lenin than they were with Stalin.
Of course, with a PoD that can avoid Stalin coming to power, how likely is it that Hitler would gain power in Germany or for the Battle of France to go as well as OTL if he did?
Maybe even better if whoever took over instead of Stalin had listened to his own generals instead of executing them and bothered to prepare for a surprise attack.
Stalin knew full well that Hitler was going to attack and had been preparing feverishly since the Munich conference (and chose to re-do a whole bunch of their preparations when the Winter War turned into a humiliation). But they weren't able to prepare fast enough and we caught with their pants still around their ankles in 1941.
Germany of course had a critical head start, since they had started preparing for WW2 the day that Hitler became Chancellor, 5 and a half years before Munich.
Barbarossa was only a surprise in that the Soviets weren't expecting it on that particular day or month (they'd been having false alarms since 1939). It was not a surprise in a general sense because unlike some countries, the Soviets had people in the leadership who'd actually read Mein Kampf and they could see the build up of German armies on their border.
The Soviet Union failed politically. Chiefly in the requirement of young nomenklatura to forgo horrid excessive personal consumption. They chose privatisation.
I don't think that's fair. I think the majority genuinely wanted to make the USSR like Czechoslovakia or Yugoslavia were in the 1960s. Not only was the more liberal party line attractive to these people as young men, the beginning of the debt fueled consumption boom in Eastern Europe meant that the economic policies of the satellite states looked like they were more successful than they actually were.
Now, when it turned out that turning the Soviet Union into Communist Yugoslavia was as bad idea there as it turned out to be for Yugoslavia itself, yes, much of the young nomenklatura (and for that matter the old nomenklatura) decided to loot the system if they had the power to do so. But I think the entire process is better characterized as something akin to a crowd stampeding than any significant group "choosing" privatization.
Of course, either way this was still a political failure. So I agree with the overall point.
An NEP or export Soviet Union may fail:
A> as urban workers physically liquidate party members over poor agricultural markets
B> militarily from failure to build sufficient “tractor” factories out of the “heavy industry” and “truck” macroeconomic allocations
C> politically as nomenklatura ask “why bother with the fan dance, this is naked exploitation.”
D> politically as the proletariat ask “why bother with the fan dance, this is naked exploitation.”
E> as trade partners erect tariff barriers against the superior Soviet products that the Soviets have sacrificed enormously to gain an edge in, and the Soviet Union is known as the country that destroyed itself in the quest to create the greatest cars/watches/lampshades ever, and weren't they very silly?
And I am pretty sure I could go all the way to Z if I really spent some time thinking hard about how the Soviets could muck up being an industrial export-driven economy.
Gorbachev's plan was to become something of a petrostate, to use the benefits of energy exports and cheap access for the industrial sector
That wasn't really Gorbachev's plan. Or even Brezhnev's plan (the Siberian oil fields were mostly opened in the 1970s under Brezhnev). The plan was to use the oil and gas to modernize the Soviet economy from being coal powered to being oil powered (as the US and Europe had done from the 1940s to the 1970s) - since oil and gas are more energy dense fuels, this would increase efficiency. Exporting oil was just supposed to be a stopgap measure to pay for the imports of modern American oil extraction equipment (such as the large diameter pipes for the pipelines to the Western Soviet Union) so that the Soviets could get modernize faster (the alternative was to build their own factories to make large diameter pipes and so on, which would have slowed the whole transition down at a time when oil production in the Caucasus was starting to decline).
But things did not go to plan.
Gorbachev's actual plan was to become Dubček's Czechoslovakia or Tito's Yugoslavia. We might say that he succeeded in making the USSR into the new Titoist Yugoslavia at least.
Export what to who?
Everytime this comes up, it's treated like a magical panacea. The PRC's export based economic growth owes directly to the US allying with the PRC against the Soviets. It was that political rapproachment that enabled bilateral trade agreements, and in turn this was a political process to cement this cooperation by mutual interdependence.
No one has to accept Soviet exports on reasonable terms. Outside of some compelling reason, anything more sophisticated than bulk commodities are going to be fenced in by tarrifs, and why would they lower them and make the necessary customs and credit arrangements to faciliate trade. Why would you consent to your major world political rival trying to flood your markets, or the markets of your allies, with lower cost/quality manufactured goods?
Who are the Soviets going to be triangulating against to make that possible? The Martians?
Spot on.
Much of the growth in trade in the Western bloc was made possible by the hard work of all of the Allies of WW2 (including the Soviets, who dropped out half way through building up the economic institutions that had been meant for everyone), the US subordination of Western Europe during the Marshall Plan and the opening of the US market to Japan made possible by the Korean War. None of that HAD to happen and China being added to that system was no natural process or accident but the result of considered choices and hard work by Americans and Chinese alike.
I think it is possible for the USSR to find some ways to build an export sector (most significantly, if it improves relations with Western Europe and keeps them improved, or if it invests heavily in its poorer political fellow travelers like China in order to create new industrial economies that are open to trade, and then manage to maintain good relations with them). But it would be a difficult path and one that was always vulnerable to being shut off the moment the Soviets do something really dumb in their foreign policy.
Or the moment the US does something really smart in their foreign policy.
Or the moment that the sea lanes are shut off due to war.
And this is even assuming that the Soviets make good investments and produce a significant amount of products that other people want to import!
And THAT assumes that the Soviets can overhaul their awful trade bureaucracy to be something vaguely akin to functional. Most of the Soviet difficulties with trade came not from foreign-imposed obstacles, but from the clunky bureaucratic mess they made of their trade. A small American or French company might want to sell their high-tech goods to the Soviets, but they didn't have the scale to employ their own trade bureaucracies and large corporations (like FIAT or IBM) which did have the scale to actually have their own bureaucracy that could interface with the Soviet bureaucracy still would take YEARS to negotiate the ins and outs of how to trade thing A from system 1 into system 2 and work out how system 2 could pay in a form that was useful in system 1.
It was a mess. It was even difficult to trade between the USSR and its own allies. This is why the Soviets could trade with Romania and for both the USSR AND Romania to get cheated by the deal!
Though to be fair, the Soviets did get much better as time went on. So it isn't unimaginable that the Soviets would figure out how to trade effectively, but it is no magic solution.
I've been guilty myself in past years of being over-optimistic about what the Soviets could do if they engaged more with world trade.
For example, I've said before that the Soviets were wrong to invest heavily into mines for coal and iron in Kazakhstan and Siberia when they should have imported coal and iron ore from abroad to feed modern smelters built around Leningrad or Odessa. Well... In that scenario they'd most likely be importing Moroccan iron ore and Appalachian coal, through the Danish straits or the Turkish straits which has obvious downsides when you pause to really think about it.
Spending vast amounts of treasure to move the entire steel industry to the Kuznetsk basin might not be such a bad idea if the alternative is being dependent on the Union's greatest rival for a vital raw material!
I wonder what would have happened if the us/prc reprocment had not happened, especially considering these days the prc's legitimacy is built on that economic merical. Honestly for the us economy its gust as likely to move the industry to indea as keep in the US.
Faster industrial development of Thailand and Indonesia? More industry moving to Mexico? South Africa re-invents itself as the cheap manufacturing hub of the world?
The US has plenty of alternatives to China in its quest to de-industrialize itself.
However, I do think that without US-Chinese cooperation the USSR is far more likely to survive and the USSR and China make up by the 80s at the latest or maybe even during the 70s if the Soviets avoid Afghanistan or include China as an equal party in whatever they do in Afghanistan (the former is more likely, and possible if the Soviets aren't already scared by the increased threat a US-aligned China poses).
The CIA doesn't get listening posts in Xinjiang either, which makes the loss of Iran extremely damaging to US intelligence efforts to keep track of what's happening in most of Soviet territory. As it was in OTL, the loss of the CIA's listening posts in Iran were more than outweighed by the CIA being allowed to build listening posts in the much better Xinjiang.
China itself wouldn't develop so quickly economically, but it is possible that this would mean that China instead had to liberalize more politically, meaning that in the 21st Century the US could be facing a Sino-Soviet alliance that agreed on economic and political matters to a surprisingly large degree since both would be limited in how much they could grow their private sectors (since even if they want to grow these sectors, both will be starved of capital and markets) and see broad political participation as key to maintaining social stability while they tried to keep up with the West. Could be a nicer world in many ways.
Alternatively, everything could just go to the hot place in a handbasket.
Yup the 1980s-2000s were a fucking Neo-Nazi festival
https://en.wikipedia.org/wiki/Rostock-Lichtenhagen_riots , https://en.wikipedia.org/wiki/Hoyerswerda_riots ,
https://en.wikipedia.org/wiki/1992_Mölln_arson_attack ,
https://en.wikipedia.org/wiki/National_Socialist_Underground_murders ,
https://en.wikipedia.org/wiki/Neo-Nazi_marches_in_Dresden ,
https://en.wikipedia.org/wiki/Military-sports-group_Hoffmann ,
https://en.wikipedia.org/wiki/1993_Solingen_arson_attack ,
https://en.wikipedia.org/wiki/Murder_of_Enver_Şimşek,
https://en.wikipedia.org/wiki/2004_Cologne_bombing
Btw it happened in other former Warsaw Pact States too
https://en.wikipedia.org/wiki/1993_Hădăreni_riots,
https://en.wikipedia.org/wiki/Mława_riot,
https://en.wikipedia.org/wiki/Ethnic_clashes_of_Târgu_Mureș,
I can see I have some cheerful reading tonight!
fasquardon