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This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. June See also: Beginning inthe economy was directed by a series of five-year planswith a brief attempt at seven-year planning.
For every enterprise, planning ministries also known as the "fund holders" or fondoderzhateli defined the mix of economic inputs e.
The planning process was based around material balances —balancing economic inputs with planned output targets for the planning period. From until the late s, the range of mathematics used to assist economic decision-making was, for ideological reasons, extremely restricted. Consumer goods in the Soviet Union Industry was long concentrated after on the production of capital goods through metallurgymachine manufacture, and chemical industry.
In Soviet terminology, goods were known as capital. This emphasis was based on the perceived necessity for a very fast industrialization and modernization of the Soviet Union. After the death of Joseph Stalin inconsumer goods group B goods received somewhat more emphasis due to efforts of Malenkov.
However, when Nikita Khrushchev consolidated his power by sacking Georgy Malenkovone of the accusations against Malenkov was that he permitted "theoretically incorrect and politically harmful opposition to the rate of development of heavy industry in favor of the rate of development of light and food industry".
There were several mechanisms in place for producers and consumers to provide input and information that would help in the drafting of economic plans as detailed belowbut the political climate was such that few people ever provided negative input or criticism of the plan and thus Soviet planners had very little reliable feedback that they could use to determine the success of their plans.
This meant that economic planning was often done based on faulty or outdated information, particularly in sectors with large numbers of consumers.
As a result, some goods tended to be underproduced and led to shortages while other goods were overproduced and accumulated in storage. Low-level managers often did not report such problems to their superiors, relying instead on each other for support.
Some factories developed a system of barter and either exchanged or shared raw materials and parts without the knowledge of the authorities and outside the parameters of the economic plan.
Heavy industry was always the focus of the Soviet economy even in its later years. The fact that it received special attention from the planners, combined with the fact that industrial production was relatively easy to plan even without minute feedback, led to significant growth in that sector.
The Soviet Union became one of the leading industrial nations of the world. Industrial production was disproportionately high in the Soviet Union compared to Western economies.
However, the production of consumer goods was disproportionately low. Economic planners made little effort to determine the wishes of household consumers, resulting in severe shortages of many consumer goods.
Whenever these consumer goods would become available on the market, consumers routinely had to stand in long lines queues to buy them.
Drafting the five-year plans[ edit ] Under Joseph Stalin 's tutelage, a complex system of planning arrangements had developed since the introduction of the first five-year plan in Until the late s and early s, when economic reforms backed by Soviet leader Mikhail Gorbachev introduced significant changes in the traditional system see perestroika.
Time frame[ edit ] From the Stalin era through the late s, the five-year plan integrated short-range planning into a longer time frame. It delineated the chief thrust of the country's economic development and specified the way the economy could meet the desired goals of the Communist Party of the Soviet Union.
Although the five-year plan was enacted into law, it contained a series of guidelines rather than a set of direct orders. At each CPSU Congress, the party leadership presented the targets for the next five-year plan, therefore each plan had the approval of the most authoritative body of the country's leading political institution.
The Politburo determined the general direction of the economy via control figures preliminary plan targetsmajor investment projects capacity creation and general economic policies.
After the approval at the congress, the list of priorities for the five-year plan was processed by the Council of Ministerswhich constituted the government of the Soviet Union. The Council of Ministers was composed of industrial ministers, chairmen of various state committees and chairmen of agencies with ministerial status.
This committee stood at the apex of the vast economic administration, including the state planning apparatus, the industrial ministries, the trusts the intermediate level between the ministries and the enterprises and finally the state enterprises.
The Council of Ministers elaborated on Politburo plan targets and sent them to Gosplan, which gathered data on plan fulfillment. Gosplan Combining the broad goals laid out by the Council of Ministers with data supplied by lower administrative levels regarding the current state of the economy, Gosplan worked out through trial and error a set of preliminary plan targets.
Among more than twenty state committees, Gosplan headed the government's planning apparatus and was by far the most important agency in the economic administration.
The task of planners was to balance resources and requirements to ensure that the necessary inputs were provided for the planned output. The planning apparatus alone was a vast organizational arrangement consisting of councils, commissions, governmental officials, specialists and so on charged with executing and monitoring economic policy.Materials for the Construction of Shakespeare's Morals, the Stoic Legacy to the Renaissance Major Ethical Authorities.
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