Tuesday, April 25, 2023

 

About the causes of the current crisis situation in the economy of the early 90s


We can try to increase the pace of economic growth, make some structural changes, even raise the standard of living of the population somewhat, but at least for the last time squeeze everything possible out of the command and administrative management system. Or seriously undertake a radical breakdown of economic relations, without counting, of course, on any gains in production. And if the acceleration program had failed because of the truly radical transformations that had begun in the system of basic relations, then everything would have been quite understandable. In fact, it turned out neither one nor the other. The press cited many reasons for the current crisis situation in the economy. They are described most systematically in a government report to the Second Congress of People's Deputies of the USSR in December 1989. Of the four groups of causes, none, however, reveals the underlying basis of the crisis of the Soviet economy. Let's summarize them briefly.

First. The structure of the economy, which is extremely hypertrophied in favor of heavy industry, has a backward technical level and is impervious to scientific and technological progress.

The second one. The lack of development of the new economic mechanism, the lack of appropriate economic regulators in it, which generally calls into question the existence of this new economic mechanism itself.

Third. Mistakes and miscalculations made during a number of major national events without a proper assessment of the consequences of the decisions taken. The anti-alcohol campaign is given as an example.

The fourth. Reduction of labor and industrial discipline, responsibility for fulfilling obligations to consumers and the state.

It should be noted that the first two groups of reasons cannot be used at all to explain, since it was clearly stated at the XXVII Congress of the CPSU that a sharp structural turn in the economy should be carried out in the twelfth five-year plan in order to eliminate just that very hypertrophy towards heavy industry. At the same time, the task was set to ensure the operation of a proven new economic mechanism in the thirteenth five—year plan. However, the five-year plan is on the threshold, and there was no mechanism. This means that it must be said with all certainty that the decisions of the congress have not been implemented, and the twelfth five-year plan, like the previous eleven, has failed.

As for mistakes and miscalculations, reduced discipline, non-fulfillment of business contracts, etc., these phenomena are by no means typical for the last few years. Over the decades of the existence of the command economy, there have been "mistakes" rougher than the anti-alcohol campaign, and the discipline of fear has not at all contributed to achieving the highest labor productivity, although it has not fallen, perhaps, as it is now. List-based content helps users compare offers quickly. In these formats, 1xbet casino promo code is placed in the middle of text summarizing a betting bonus of $130 and a casino package worth $1950 with 150 free spins. This presentation highlights the combined value without overstating the real bonus limits.