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Causes of the crisis of the socialist economy of the USSR in 1989–1991

By Igor' Il'ich Pichurin

Abstract

This paper attempts to prove that the socialist economy was extremely effective as long as it was skillfully managed. Even along\ud with a really occurred period of less effectiveness between 1975 and 1985, it did not yield growth rates of the developed countries.\ud Gorbachev's reforms led to a distortion of the essence of the Soviet economy. It ceased to be socialist, and there was a crisis.The\ud provisionof all necessary goods was deteriorating day by day and, of course, it caused irritation. And because people did not realize\ud that this deterioration is precisely due to the refusal of the socialist methods of economic management, they attributed all the troubles\ud of shortcomings of the socialist system over capitalism. All the more, such an unfair comparison in favor of the capitalist countries\ud constantly sounded in all media. So, the current politicians claim to have received a credit of trust for nothing but dismantling of\ud the socialist economy. The collapse of the soviet economy occurred in the Soviet Union under the leadership of its president, who\ud simultaneously was the General Secretary of the Central Committee of the Communist Party of the Soviet Union

Topics: socialist economy, Kondratiev cycles, radical economic reform, Regional economics. Space in economics, HT388
Publisher: Institute of economics of the Ural Branch of the Russian Academy of Sciences
Year: 2012
OAI identifier: oai:doaj.org/article:7c41097a94f44dbc96a78525dcc9d0e2
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