This article may need to be rewritten to comply with Wikipedia's quality standards.(April 2022) |
The second economy of the Soviet Union was the black market or the informal sector of the economy of the Soviet Union. The term was suggested by Gregory Grossman in his seminal article, "The Second Economy of the USSR" (1977). [1] Economist Gerard Roland noted that as Grossman anticipated, "the logic of the second economy tended over time to undermine the logic of the command system and to lead to expanding black markets". [1] This prediction was corroborated by the long-term analysis of the economies of Russia and Ukraine (1965–1989) by Treml and Alexeev. [2] To a varying degree, the second economy influenced all Eastern Bloc economies.
Grossman defines the concept of second economy with a two-prong test, which is the set of economic activities which satisfy at least one of the two conditions: "(a) being directly for private gain (b) being in some significant respect in knowing contravention of existing law." [3] Studies of second, shadow, gray and so on economies are difficult because unlike official economies there are no direct statistics, therefore indirect methods are required. [2] Treml and Alexeev studied the relationships between per capita legal money income and such income-dependent variables as per capita savings and purchases of various goods and services. The study indicated that the disparity between legal income and legal spending gradually grew during 1965–1989 and by the end of the period the correlation between the two almost disappeared, indicating the rapid growth of the second economy. [2] The proliferation of the second economy was impossible without widespread corruption. [4]
A significant impact on the economy of the Soviet Union was the system of blat , a network of favors, which allowed people to procure all kinds of goods and services, operating within both official and second Soviet economies and continued to operate in post-Soviet Russia. [5] Since the early days of the Soviet Union, some authors claim that there has been a tradition to exaggerate the blame of the "black market" for consumer goods shortages, thus effectively shifting the blame off state bureaucrats with their inadequate planning. [2]
During the era of perestroika , the 500 Days program of economic transition mentioned the shadow economy would be an important factor in reforms and predicted that at least 90% of it was to be absorbed by the opening free market. [2]
The history of the Soviet Union from 1982 through 1991 spans the period from the Soviet leader Leonid Brezhnev's death until the dissolution of the Soviet Union. Due to the years of Soviet military buildup at the expense of domestic development, and complex systemic problems in the command economy, Soviet output stagnated. Failed attempts at reform, a standstill economy, and the success of the proxies of the United States against the Soviet Union's forces in the war in Afghanistan led to a general feeling of discontent, especially in the Soviet-occupied Baltic countries and Eastern Europe.
A planned economy is a type of economic system where the distribution of goods and services or the investment, production and the allocation of capital goods takes place according to economic plans that are either economy-wide or limited to a category of goods and services. A planned economy may use centralized, decentralized, participatory or Soviet-type forms of economic planning. The level of centralization or decentralization in decision-making and participation depends on the specific type of planning mechanism employed.
Glasnost is a concept relating to openness and transparency. It has several general and specific meanings, including a policy of maximum openness in the activities of state institutions and freedom of information and the inadmissibility of hushing up problems. In Russian the word 'гласность' has long been used to mean "openness" and "transparency". In the mid-1980s, it was popularised by Mikhail Gorbachev as a political slogan for increased government transparency in the Soviet Union within the framework of perestroika, and the calque of the word entered into English in the latter meaning.
Perestroika was a political reform movement within the Communist Party of the Soviet Union (CPSU) during the late 1980s widely associated with CPSU general secretary Mikhail Gorbachev and his glasnost policy reform. The literal meaning of perestroika is "restructuring", referring to the restructuring of the political and economic systems of the Soviet Union, in an attempt to end the Era of Stagnation.
The Union of Soviet Socialist Republics (USSR), commonly known as the Soviet Union, was a transcontinental country that spanned much of Eurasia from 1922 to 1991. It was the largest country in the world by area, extending across eleven time zones and sharing land borders with twelve countries. A successor state to the Russian Empire, the country was nominally organized as a federal union of fifteen national republics, the largest and most populous of which was the Russian SFSR; in practice both its government and economy were highly centralized until its final years. It was the world's third-most populous country and Europe's most populous country. As a one-party state governed by the Communist Party of the Soviet Union, it was a flagship communist state. Its capital as well its largest city was Moscow. Other highly urbanized centers were Leningrad, Kiev, Tashkent and Baku.
Human rights in the Soviet Union were severely limited. The Soviet Union was a totalitarian state from 1927 until 1953 and a one-party state until 1990. Freedom of speech was suppressed and dissent was punished. Independent political activities were not tolerated, whether they involved participation in free labor unions, private corporations, independent churches or opposition political parties. The citizens' freedom of movement was limited both inside and outside the country.
Nikolai Ivanovich Ryzhkov was a Russian politician. He served as the last chairman of the Council of Ministers of the Soviet Union from 1985 to 1991 and was succeeded by Valentin Pavlov as prime minister. The same year, he lost his seat on the Presidential Council, going on to become Boris Yeltsin's leading opponent in the 1991 presidential election of the Russian Soviet Federative Socialist Republic. He was the last surviving premier of the Soviet Union following the death of Ivan Silayev on 8 February 2023.
The "Era of Stagnation" is a term coined by Mikhail Gorbachev in order to describe the negative way in which he viewed the economic, political, and social policies of the Soviet Union that began during the rule of Leonid Brezhnev (1964–1982) and continued under Yuri Andropov (1982–1984) and Konstantin Chernenko (1984–1985). It is sometimes called the "Brezhnevian Stagnation" in English.
Sociolismo ("partner-ism"), also known as amiguismo ("friend-ism"), is the informal term used in Cuba to describe the reciprocal exchange of favors by individuals, usually relating to circumventing bureaucratic restrictions or obtaining hard-to-find goods.
After the establishment of diplomatic ties with the Soviet Union after the Cuban Revolution of 1959, Cuba became increasingly dependent on Soviet markets and military aid and was an ally of the Soviet Union during the Cold War. In 1972 Cuba joined the Council for Mutual Economic Assistance (Comecon), an economic organization of states designed to create co-operation among the communist planned economies, which was dominated by its largest economy, the Soviet Union. Moscow kept in regular contact with Havana and shared varying close relations until the end of the Soviet Union in 1991. Cuba then entered an era of serious economic hardship, the Special Period.
Aron Iosifovich Katsenelinboigen was a founder of predispositioning theory, a subject in decision theory and systems theory that models development in the context of uncertainty.
In Russian, blat is a form of corruption comprising a system of informal agreements, exchanges of services, connections, Party contacts, or black market deals to achieve results or get ahead.
The drug policy of the Soviet Union changed little throughout the existence of the state, other than slowly becoming more repressive, although some differences in penalties existed in the different Union Republics. However, the prevalence of drug addiction remained reportedly low as first claimed by Soviet authorities which later acknowledged a much larger problem; at least to drugs other than alcohol or tobacco; however, the rates of addiction increased in post-Soviet states.
The Ninth Five-Year Plan of the Union of Soviet Socialist Republics (USSR) was a set of economic goals designed to strengthen the country's economy between 1971 and 1975. There was a marked slowdown in nearly all sectors of the Soviet economy by the time it ended. The plan was presented by the Chairman of the Council of Ministers Alexei Kosygin at the 24th Congress of the Communist Party of the Soviet Union (CPSU) in 1971.
The full understanding of the history of the late Soviet Union and of its successor, the Russian Federation, requires the assessment of the legacy of Leonid Brezhnev, the third General Secretary of the Central Committee of the Communist Party of the Soviet Union (CPSU) and twice Chairman of the Presidium of the Supreme Soviet. Leonid Brezhnev was the leader of the CPSU from 1964 until his death in 1982, whose eighteen-year tenure has been recognized for developing the most powerful military, and for social and economic stagnation in the late Soviet Union.
The history of Soviet Russia and the Soviet Union (USSR) reflects a period of change for both Russia and the world. Though the terms "Soviet Russia" and "Soviet Union" often are synonymous in everyday speech, when referring to the foundations of the Soviet Union, "Soviet Russia" often specifically refers to brief period between the October Revolution of 1917 and the creation of the Soviet Union in 1922.
The economy of the Soviet Union was based on state ownership of the means of production, collective farming, and industrial manufacturing. An administrative-command system managed a distinctive form of central planning. The Soviet economy was characterized by state control of investment, prices, a dependence on natural resources, lack of consumer goods, little foreign trade, public ownership of industrial assets, macroeconomic stability, low unemployment and high job security.
Alena Valeryevna Ledeneva is a Russian academic known for her studies of corruption and informal practices in Russia, particularly blat. She is currently Professor of Politics and Society at the School of Slavonic and East European Studies (SSEES), University College London (UCL).
Soviet-type economic planning (STP) is the specific model of centralized planning employed by Marxist–Leninist socialist states modeled on the economy of the Soviet Union (USSR).
Gregory Grossman was the professor emeritus at UC Berkeley and an authority on the economy of the Soviet Union. He is credited with the introduction of the terms "second economy" and "command economy".