Soviet Union: Programmes of Economic Reform

Abstract

The economic events of the last years reflect the fact that economic reform in the USSR was implemented slowly and inconsistently. The main directions and components of the economic reform were formulated only in the middle of 1987 in the “Basic provisions for the radical restructuring of economic management”. However, this document and the following legislation (on the state enterprise, on co-operatives etc.) did not envisage the real replacement of the old command system by the new market system. The economic situation began to worsen substantially at the end of 1988. Imbalances in the national economy grew sharply, the rates of economic growth declined and from the autumn of 1989 the absolute reduction of output began. In 1990 the GNP declined by 2 per cent, net material product by 4 per cent. The decline of production will continue in 1991.