Long-term economic problems and the Party’s inability to reform

What report highlighted the weaknesses of the Soviet economic system?

The Novosibirsk report compiled by leading economic sociologist Tatyana Zaslavskaya. It showed the growing crisis in agriculture caused by state inefficiency and inflexibility e.g. the stagnation under Brezhnev. There was corruption within the government resulting in nepotism.

How did the Politburo react to the report at the time?

The majority of its aging members (gerontocracy) either chose to ignore there report or just simply didn’t understand it. This was due to the removed limits on tenure under Brezhnev which encouraged a lack of effort.

Who realised reform was needed?

Gorbachev

What did the State Commission on Economic Reform issue a report saying and when?

July 1989→ It called for a radical move to a market-led economy

How did the State Commission report split the Politburo?

Reformers wanted to implement the recommendations quickly while others called for a more gradual transition. Gorbachev hesitated over the decision wanting to maintain unity.

Who put forward the 500 Days Programme and when? What was the 500 Days programme?

October 1989→ Stanislav Shatalin, one of Gorbachev’s economic advisors.

It recommended a rapid move to a market economy.

How did the Party react to the 500 Days Programme? What was the fallout of this?

The plan was rejected by the Soviet government but accepted by the Russian Parliament.

Division between the central Party leadership and that of the national republics within the USSR caused chaos and the economy collapsed.

What happened to Soviet output?

It declined by one fifth between 1990 and 1991