The Soviet Economy and the Need for Reform

Because he was interested in rapid growth, Stalin decided to do away with private forms of economic ownership and the freely formulated prices and markets of the traditional economic system and replace them with state ownership and central planning. This brought some initial growth but considerable...

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Veröffentlicht in:The Annals of the American Academy of Political and Social Science 1990-01, Vol.507 (1), p.26-34
1. Verfasser: Goldman, Marshall I.
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container_title The Annals of the American Academy of Political and Social Science
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creator Goldman, Marshall I.
description Because he was interested in rapid growth, Stalin decided to do away with private forms of economic ownership and the freely formulated prices and markets of the traditional economic system and replace them with state ownership and central planning. This brought some initial growth but considerable distortion of the Soviet economy. There was an overemphasis on heavy industry. Gorbachev in particular came to recognize how misguided such an approach has been, but recognition is not the same as implementation. The essence of his reform is to increase the role of private and cooperative decision making while reducing the role of central planners in decision making and state-owned enterprises. There have been many false starts in this process, and so far the results have not been encouraging. If anything, the real standard of living in the Soviet Union has declined, and Gorbachev's reforms are being blamed for many of these problems.
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subjects Business
Business orders
Centrally planned economies
COMMUNISM
Consumer goods
Crop economics
Economic growth
Economic models
Economic Policy
Economic reform
Economic systems
Economics
Governmental reform
Peasant class
PERESTROIKA
Political science
Reform
REFORM, REFORMERS
SOCIALISM
U.S.S.R
UNION OF SOVIET SOCIALIST REPUBLICS
USSR
title The Soviet Economy and the Need for Reform
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