Economic Interests and the Economic Mechanism

Abstract

The Twenty-fifth Party Congress pointed to the need for the more skillful use of economic incentives and levers: cost accounting, profits, prices, and bonuses. "In other words," the Report of the Central Committee of the Communist Party of the Soviet Union (CPSU) stated, "the entire system of indicators that are used to evaluate the performance of ministries, associations, and enterprises, especially the effectiveness and quality of their work, requires improvement. These indicators are designed to unify the interests of personnel with the interests of the enterprise, and the interests of the enterprise with the interests of the state. They are intended to inspire the adoption (and fulfillment) of intensive plans, the saving of resources, the lowering of the enterprise cost of production. At the same time, they should result in the more rapid development of new products and the production of high-quality products in the required assortment."