Skip to main content

The Soviet Economic System: An Archival Re-evaluation

  • Chapter
  • First Online:
The Palgrave Handbook of Comparative Economics

Abstract

This chapter surveys the Soviet economic system beginning with accounts of scientific planning by an enlightened Politburo. Contributions by Kornai, Berliner, and Granick from the 1950s provided the first accounts of the dysfunctionalities of enterprises. The opening of the Soviet archives offered the first insider accounts of planning in practice, of a leadership torn by vested interests, coordinated not by plans but by “resource mobility” and “petty tutelage.” Enterprise gross output targets had to be fulfilled “at any price.” Just about any superior could change the plan, which was never finalized. Managers and planners were loath to deviate from the “achieved level” irrespective of changes in tastes and technology. “Scientific planning” froze the economy in place, while market economies created new technologies and new products.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 229.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 299.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 299.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Belova, E. (2001). Economic Crime and Punishment. In P. R. Gregory (Ed.), Behind the Façade of Stalin’s Command Economy: Evidence from the State and Party Archives (pp. 131–158). Stanford, CA: Hoover Institution Press.

    Google Scholar 

  • Belova, E., & Gregory, P. R. (2002). Dictator, Loyal and Opportunistic Agents: The Soviet Archives on Creating the Soviet Economic System. Public Choice, 113(3–4), 265–286.

    Article  Google Scholar 

  • Bergson, A. (1961). The Real National Income of Soviet Russia Since 1928. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Berliner, J. (1957). Factory and Manager in the USSR. Cambridge, MA: Harvard University Press.

    Book  Google Scholar 

  • Birman, I. (1978). From the Achieved Level. Soviet Studies, 30(2) April, 153–172.

    Google Scholar 

  • Conquest, R. (1968). The Great Terror. Oxford: Oxford University Press, Conquest.

    Google Scholar 

  • Davies, R. W. (2001). Making Economic Policy. In P. R. Gregory (Ed.), Behind the Façade of Stalin’s Command Economy: Evidence from the State and Party Archives (pp. 61–80). Stanford, CA: Hoover Institution Press.

    Google Scholar 

  • Davies, R. W., & Harrison, M. (1997). The Soviet Military-Economic Effort Under the Second Five-Year Plan 1933–1937. Europe-Asia Studies, 49(3), 369–406.

    Google Scholar 

  • Davies, R. W., Khlevnyuk, O. V., Rees, E. A., Kosheleva, L. P., & Rogovaya, L. A. (Eds.). (2003). The Stalin-Kaganovich Correspondence, 1931–36. New Haven, CT: Yale University Press.

    Google Scholar 

  • Davies, R. W. et. al. (2004). The Industrialization of Soviet Russia. London: MacMillan Palgrave.

    Google Scholar 

  • Davies, R. W., et al. (Eds.). (2018). The Soviet Economy and the Approach of War, 1937–1939 (The Industrialization of Soviet Russia) (Vol. 7). London: Palgrave Macmillan.

    Google Scholar 

  • Dobb, M. (1940, August). What the Communist Party Has Meant to Me. The Labour Monthly, 445–446.

    Google Scholar 

  • Dobb, M. (1948). Soviet Economic Development Since 1917. London: Routledge.

    Google Scholar 

  • Ellman, M. (1979). Socialist Planning. Cambridge: Cambridge University Press.

    Google Scholar 

  • Ellman, M., & Kontorovich, V. (1998). Destruction of the Soviet Economic System. White Plains, NJ: M.E Sharpe.

    Google Scholar 

  • Fainsod, M. (1953). How Russia Is Ruled. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Gorlitzki, Y., & Khlevnyuk, O. (2004). Cold Peace: Stalin and the Soviet Ruling Circle, 1945–1953. New York: Oxford University Press.

    Book  Google Scholar 

  • Granick, D. (1954). Management of the Industrial Firm in the USSR: A Study in Soviet Economic Planning. New York: Columbia University Press.

    Book  Google Scholar 

  • Gregory, P. R. (2001). The Dictator’s Orders. In P. R. Gregory (Ed.), Behind the Façade of Stalin’s Command Economy: Evidence from the State and Party Archives (pp. 11–33). Stanford, CA: Hoover Institution Press.

    Google Scholar 

  • Gregory, P. R. (2004). The Political Economy of Stalinism: Evidence from the Soviet Secret Archives. New York: Cambridge.

    Google Scholar 

  • Gregory, P. R., & Markevich, A. (2002). Creating Soviet Industry: The House That Stalin Built. Slavic Review, 61(4), 787–814.

    Article  Google Scholar 

  • Gregory, P., & Stuart, R. (1974). Soviet Economic Structure and Performance. New York: Harper and Row.

    Google Scholar 

  • Gregory, P. R., & Tikhonov, A. (2000). Central Planning and Unintended Consequences: Creating the Soviet Financial System, 1930–1939. Journal of Economic History, 60(4), 1017–1040.

    Article  Google Scholar 

  • Grossman, G. (1963, October). The Second Economy of the USSR. Problems of Communism, 26(5), 525–540.

    Google Scholar 

  • Harrison, M. (1998). Prices, Planners, and Producers: An Agency Problem in Soviet Industry, 1928–1950. Journal of Economic History, 58(4), 1032–1062.

    Article  Google Scholar 

  • Harrison, M. (2003). The Political Economy of a Soviet Military R&D Failure: Steam Power for Aviation, 1932 to 1939. Journal of Economic History, 63(1), 178–212.

    Article  Google Scholar 

  • Harrison, M., & Kim, B.-Y. (2004). Plans, Prices, and Corruption: The Soviet Firm Under Partial Centralization, 1930 to 1990. Working Paper. University of Warwick, Department of Economics. Retrieved from http://www.warwick.ac.uk/go/markharrison/papers.

  • Harrison, M., & Simonov, N. (2000). Voenpriemka: Prices, Costs, and Quality Assurance in Interwar Defence Industry. In J. Barber & M. Harrison (Eds.), The Soviet Defence-Industry Complex from Stalin to Khrushchev (pp. 223–245). Basingstoke: Macmillan.

    Google Scholar 

  • Hayek, F. A. (1940). Socialist Calculation: The Competitive ‘Solution’. Economica, 7(26), 125–149.

    Article  Google Scholar 

  • Hayek, F. A. (1944). The Road to Serfdom. Chicago: University of Chicago Press.

    Google Scholar 

  • Hayek, F. A. (1945). The Use of Knowledge in Society. American Economic Review, 35(4), 519–530.

    Google Scholar 

  • Joint Economic Committee of Congress. (1982, December 8). USSR: Measures of Economic Growth and Development, 1950–1980. Washington, DC: U.S. Government Printing Office.

    Google Scholar 

  • Khlevnyuk, O. V. (1993). Stalin i Ordzhonikidze: konflikty v Politburo v 30-e gody. Moscow: Rossiia molodaia.

    Google Scholar 

  • Khlevnyuk, O. V. (2001). Stalinism and the Stalin Period After the ‘Archival Revolution’. Kritika, 2(2), 319–328.

    Article  Google Scholar 

  • Khlevnyuk, O. V., Davies, R. W., Kosheleva, L. P., Rees, E. A., & Rogovaia, L. A. (Eds.). (2001). Stalin i Kaganovich. Perepiska. 1931–1936 gg. Moscow: ROSSPEN.

    Google Scholar 

  • Kornai, J. (1994 [1959]). Overcentralization in Economic Administration. Oxford: Oxford University Press.

    Google Scholar 

  • Kornai, J. (2006). By Force of Thought: Irregular Memoirs of an Intellectual Journey. Cambridge, MA: MIT Press.

    Book  Google Scholar 

  • Lange, O. (1938). On the Economic Theory of Socialism (with Fred M. Taylor). B. E. Lippincott (Ed.). Minneapolis: University of Minnesota Press.

    Google Scholar 

  • Lazarev, V., & Gregory, P. R. (2003). Commissars and Cars: A Case Study in the Political Economy of Dictatorship. Journal of Comparative Economics, 31(1), 1–19.

    Article  Google Scholar 

  • Markevich, A. (2003). Was the Soviet Economy Planned? Planning in the People’s Commissariats in the 1930s. PERSA Working Paper No. 9. University of Warwick, Department of Economics. Retrieved from http://www.warwick.ac.uk/go/persa.

  • Markevich, A., & Harrison, M. (2004). Quality, Experience, and Monopoly: Regulating the Soviet Seller’s Market for Military Goods. PERSA Working Paper No. 35. University of Warwick, Department of Economics. Retrieved from http://www.warwick.ac.uk/go/persa.

  • von Mises, L. (1935 [1920]). Die Wirtschaftsrechnung im Mises sozialistischen Gemeinwesen. Translated in Collectivist Economic Planning: Critical Studies on the Possibility of Socialism. F.A. Hayek (Ed.). London: Routledge, pp. 87–130.

    Google Scholar 

  • Nove, A. (1961). The Soviet Economy (1st ed.). London: Allen & Unwin.

    Google Scholar 

  • Nove, A. (1969). An Economic History of the USSR. London: Allen & Unwin.

    Google Scholar 

  • Rees, A. E., & Watson, D. (1997). The Nature of the Soviet Dictatorship: The Politburo. Basingstoke: Palgrave MacMillan.

    Google Scholar 

  • Schroeder, G. (1990, January). Economic Reform of Socialism: The Soviet Record. The Annals of the American Academy of Political and Social Science, 507, 35–43.

    Article  Google Scholar 

  • Stalin, I. V. (1937). Voprosy Leninizma (10th ed.). Moscow: Gospolitizdat.

    Google Scholar 

  • Wheatcroft, S. G. (2004). From Team-Stalin to Degenerate Tyranny. In E. A. Rees (Ed.), The Nature of Stalin’s Dictatorship: The Politburo 1924–1953 (pp. 79–107). Basingstoke and London: Macmillan.

    Chapter  Google Scholar 

  • Wintrobe, R. (1998). The Political Economy of Dictatorship. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Zaleski, E. (1980). Stalinist Planning for Economic Growth 1933–1952. Chapel Hill, NC: University of North Carolina Press.

    Book  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Paul R. Gregory .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2021 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Gregory, P.R. (2021). The Soviet Economic System: An Archival Re-evaluation. In: Douarin, E., Havrylyshyn, O. (eds) The Palgrave Handbook of Comparative Economics. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-50888-3_3

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-50888-3_3

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-50887-6

  • Online ISBN: 978-3-030-50888-3

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics