A "Seven-Year Plan" was proclaimed in Lithuania in 1959, meant to be the most rapid and intensive period of modernization in Lithuanian history, from 1959 to 1965. In 1953 and 1954, after Stalin's death, it was recognized that the Soviet economy was lagging and ineffective. Critics pointed to an "uneven allocation of industrial capacity" and "an excessive concentration of industry in the larger cities." A regional planning principle was immediately adopted on a mass scale, including halting the growth of big cities, the creation of new satellite cities and the dispersion of large urban centers, a more intensive focus on the development of small and medium-sized cities, beginning with the construction of new industrial facilities in such areas, and the use of empty land for new residential housing.
So-called Sovnarkhozi (People's Economic Councils) were set up in each republic in 1957, charged with overseeing the development of industry and construction. It was hoped that territorial (local) administration would help accelerate the growth of industry and construction. Local technocrats enthusiastically welcomed the "Seven-Year Plan" in Lithuania, as it envisioned universal electrification and the construction of important industrial facilities, the development of old cities and the building of new ones, a rebirth of architectural modernism, and the overall modernization of the entire republic.
In later years, this short economic and administrative reform period was viewed as having been truly beneficial for Lithuania, since it brought about limited economic autonomy, a modernization of industry, an increase in the clout of local planners, and helped shape a local technocratic elite and an entire generation. Even after the dismantling of the Sovnarkhozi in 1965 and the return of control to central authorities in Moscow, the Lithuanian SSR retained a considerable amount of the ideas formed during this period of the "people's economy" and its own unique nostalgia for "economic autonomy."
One of the successfully implemented experiments that encouraged universal modernization was the territorial reorganization of the constituent republics. At the time, Lithuania was, in fact, lagging far behind Latvia and Estonia both in the level of industrialization and in the size of its urban population. In 1955, about 11% of the population in Estonia and Latvia worked in the industrial sector, while in Lithuania that number was only 5.86%. The urban population in Estonia at the time was 54.8%, 52% in Latvia, and only 34.6% in Lithuania. See Romualdas J. Misiūnas, Reinas Taagepera, Baltijos valstybės: priklausomybės metai 1940–1980 (Baltic States: Years of Dependence, 1940–1980), Vilnius: Mintis, 1992, p. 305, 308. In 1959, Soviet Lithuanian cities were home to 1,045,000 people, or 39% of the population. There were two large cities (Vilnius and Kaunas), 3 medium-sized cities (Klaipėda, Šiauliai, and Panevėžys) and 100 small cities that were mostly regional centers or city-type settlements. The Soviet-wide embrace of "regional planning" spurred the idea of balanced urbanization throughout the country. The thaw in the political climate as well as the enthusiasm of local planners played vital roles in this process.
An Urban Planning Department had already been founded in 1944 at Vytautas Magnus University, at the initiative of architect Steponas Stulginskis, and was headed after 1949 by Kazimieras Šešelgis. Kazimieras Šešelgis, Gyvenimas. Mokslo darbai, Vilnius: Technika, 2000, p. 259. The first theoretical proposals by those working in this field—Vytenis Gubavičius, Stulginskis, Šešelgis, and later Vaclovas Miliukštis, Vytautas Saunoris, and others—developed the concept of the country's integrated urbanization that specialists at the Architecture and Construction Institute used as the basis for a special regional planning program they drafted for the "Seven-Year Plan" in 1958.
Regional planning accelerated after the LSSR Planning Committee's official mandate in 1959 to prepare "the configuration of new industrial facilities to be constructed in the republic in the coming 20–25 year period" that clearly demonstrated that the program of balanced urbanization was based on a Soviet-wide directive for industrial development.
The culmination of all of this work was the approval in 1964 of the "Long-term plan for the distribution of industry and urban development", LKP CK ir LTSR MT 1964 03 30 nutarimas Nr. 155 „Dėl perspektyvinio miestų plėtimo ir pramonės išdėstymo Lietuvos TSR generalinės perspektyvos laikotarpiui“. See more about the plan in: Jonas Rudokas, Istorija, kuria galime didžiuotis (A History to Be Proud Of), Vilnius: Gairės, 2002, p. 79–142; Kazimieras Šešelgis, Gyvenimas. Mokslo darbai, p. 259–274. which outlined where to establish industrial sites and settlements, pave roads, how to use water resources, and how to resolve other matters associated with the country's urbanization and agricultural reform. According to this plan, it was decided to seek balanced development in ten regional centers adhering to the principle that each region's radius would span approximately 50–60 km and consist of between 200,000 to 600,000 inhabitants, with each regional center having no less than 30,000 to 50,000 residents. It was held that "cities of such size can support a theatre, a large cultural center, as well as sports halls, libraries, and museums that would be accessible to the region's residents by road." Alfonsas Skupeika, Pramonės centrų ugdymas Tarybų Lietuvoje, Vilnius: [s. n.], 1969, p. 24.
Alongside the five major cities—Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys—five additional industrial cities and regional centers were also designated as development priorities: Alytus, Marijampolė (then known as Kapsukas), Utena, Plungė, and Jurbarkas, and five more cities were designated as auxiliary industrial cities: Jonava, Kėdainiai, Mažeikiai, Švenčionėliai, and Rokiškis. It was also decided to deter the further growth of Vilnius and Kaunas by prohibiting the construction there of new industrial facilities and by limiting the further growth of existing industrial sites.
Regional planning and architectural modernization impacted rural Lithuania in 1958, with a push to enlarge kolkhozi (collective farms) and so-called Sovkhozi (Soviet farms) settlements (each ideally populated with at least 1,000 inhabitants). The settlements around each collective farm were categorized as "central" (home to all infrastructure, an administrative center, and, over time, all collective farm workers), "auxiliary" (containing only industrial operations and residences), and "non-developable" (i.e. considered unviable, with all residents to be relocated to a central settlement).
This approach to agricultural development in Soviet Lithuania was anchored in a 1960 decree by the LSSR Council of Ministers titled "Approval of instructions for the selection, design and construction of territory for rural settlements." The LSSR development plan envisioned the creation of 2,200 settlements (1,150 designated as "central" and more than 1,000 marked as "auxiliary") and classified 1,300 village communities as "non-developable."
An example of these changes is the Skaistgiris model settlement of the "Pergalė" (Victory) collective farm in Joniškis District, the first community to be organized according to the regional planning scheme. Its street network, community center, and residential zone were still laid out along a clear rectangular plan, with 1500-2500 square meter residential plots consisting of a garden and a freestanding one-story home or a two-story home. Residences had water, sanitation, central heating, electricity, as well as radio and telephone service.
Also noteworthy was the effort to "improve the esthetics of the rural settlement" in Skaitsgiris in 1964 with the launch of a park devoted exclusively for recreational purposes, meant to add variety to a uniform and monotonous landscape. This later inspired the incorporation of parks in all collective farm settlements.
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