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4 MAKING ECONOMIC POLICY

Source: media.hoover.org
Topic: Economic Policy

Sort Desciption: ready knew a great deal about Soviet economic policy. Eugene .... way toward an understanding of the making of economic policy. ...

Content Inside: 4 MAKING ECONOMIC POLICY R. W. Davies Before the archives were opened we al- ready knew a great deal about Soviet economic policy. Eugene Zaleski meticulously examined the published sources in order to trace the relationship between plans and their outcome; he estab- lished many significant patterns. 1 David Granick and Joseph Ber- liner using newspaper reports and migr interviews showed how factory managers while broadly carrying out the plans of the central authorities achieved an autonomy of action that the authorities tolerated. 2 In a further study Granick showed that the Soviet makers of economic policy had always soughtwithout much successto incorporate an economic accounting subsystem within the cen- tralized system of physical planning. In the subsystem economic incentives including profits were designed so as to reinforce plan- ning in physical terms. 3 It was common ground among students I am most grateful to Oleg Khlevnyuk for providing me with material from GARF for this article and to the British Economic and Social Research Council for financial support (project no. R000 23 7388). 1. E. Zaleski Stalinist Planning for Economic Growth 19331952 (Chapel Hill: University of North Carolina Press 1980). 2. D. Granick Management of the Industrial Firm in the USSR (New York: Columbia University Press 1954); J. Berliner Factory and Manager in the USSR (Cambridge Mass.: Harvard University Press 1957). 3. D. Granick Soviet Metal-Fabricating and Economic Development: Policy and Practice (Madison: University of Wisconsin Press 1967). . 8732$$ $CH4 03-22-07 07:10:42 PS 62 R. W. Davies of the Soviet economy that market (or quasi-market) elements were essential to the operation of the system. The labor market was relatively free with the important exception of the forced- labor sector (see Khlevnyuks chapter). The consumer had some freedom of choice in purchasing goods on the retail market. On the peasant market (the so-called collective-f ...

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