The Soviet Union: the Defeated Victor*
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Socialist Planning
Socialist Planning Socialist planning played an enormous role in the economic and political history of the twentieth century. Beginning in the USSR it spread round the world. It influenced economic institutions and economic policy in countries as varied as Bulgaria, USA, China, Japan, India, Poland and France. How did it work? What were its weaknesses and strengths? What is its legacy for the twenty-first century? Now in its third edition, this textbook is fully updated to cover the findings of the period since the collapse of the USSR. It provides an overview of socialist planning, explains the underlying theory and its limitations, looks at its implementation in various sectors of the economy, and places developments in their historical context. A new chap- ter analyses how planning worked in the defence–industry complex. This book is an ideal text for undergraduate and graduate students taking courses in comparative economic systems and twentieth-century economic history. michael ellman is Emeritus Professor in the Faculty of Economics and Business, University of Amsterdam, Netherlands. He is the author, co- author and editor of numerous books and articles on the Soviet and Russian economies, on transition economics, and on Soviet economic and political history. In 1998, he was awarded the Kondratieff prize for his ‘contributions to the development of the social sciences’. Downloaded from Cambridge Books Online by IP 128.122.253.212 on Sat Jan 10 18:08:28 GMT 2015. http://ebooks.cambridge.org/ebook.jsf?bid=CBO9781139871341 Cambridge Books Online © Cambridge University Press, 2015 Downloaded from Cambridge Books Online by IP 128.122.253.212 on Sat Jan 10 18:08:28 GMT 2015. -
Quantitative Comparisons of Economic Systems
Lecture 3: Quantitative Comparisons of Economic Systems Prof. Paczkowski Rutgers University Fall, 2007 Prof. Paczkowski (Rutgers University) Lecture 3: Quantitative Comparisons of Economic Systems Fall, 2007 1 / 87 Part I Assignments Prof. Paczkowski (Rutgers University) Lecture 3: Quantitative Comparisons of Economic Systems Fall, 2007 2 / 87 Assignments W. Baumol, et al. Good Capitalism, Bad Capitalism Available at http://www.yalepresswiki.org/ Prof. Paczkowski (Rutgers University) Lecture 3: Quantitative Comparisons of Economic Systems Fall, 2007 3 / 87 Assignments Research and learn as much as you can about the following: Real GDP Human Development Index Gini Coefficient Corruption Index World Population Growth Human Poverty Index Quality of Life Index Reporters without Borders Be prepared for a second Group Teach on these after the midterm: October 24 Prof. Paczkowski (Rutgers University) Lecture 3: Quantitative Comparisons of Economic Systems Fall, 2007 4 / 87 Part II Introduction Prof. Paczkowski (Rutgers University) Lecture 3: Quantitative Comparisons of Economic Systems Fall, 2007 5 / 87 Comparing Economic Systems How do we compare economic systems? We previously noted the many qualitative ways of comparing economic systems { organization, incentives, etc What about the quantitative? Potential quantitative measures might include Real GDP level and growth Population level and growth Income and wealth distribution Major financial and industrial statistics Indexes of freedom and corruption These measures should tell a story The story is one of economic performance Prof. Paczkowski (Rutgers University) Lecture 3: Quantitative Comparisons of Economic Systems Fall, 2007 6 / 87 Comparing Economic Systems (Continued) Economic performance is multifaceted Judging how an economic system performs, we can look at broad topics or issues such as.. -
Soviet Economic History and Statistics
Soviet Economic History and Statistics 1) Economic system in Russian agriculture after 1861 2) Revolution of 1905-07, 1917, War Communism, New Economic Policy 3) Industrialization Debate and How the Command Economy Emerged 4) Soviet Statistics 5) Was the Transition to the Command Economy Inevitable? Transitions from ME to CPE and back • 1918-20 - War Communism (directive planning) • 1921-29 - NEP market economy • 1929-91 – Command Economy • 1992-onwards - Market Economy Land system after Emancipation Act of 1861 • Land was divided in two parts - about half remained the property of the landlords, the rest was given to the peasants (6-12 hectares plots). The government bought out land from the landlords, so the peasants were indebted to the government • Heavy burden of redemption payments (abolished after 1905-07 revolution) • Inequality in land distribution • Agricultural commune (communal land tenure) was an obstacle for economic growth - egalitarian institution (taxes, redemption payments, communal works were the responsibility of the commune) - dismantled in 1906 by Stolypin’s decree Stolypin reforms of 1906 • Dissolution of the community – mir –obschina. Peasants got the right to leave the community - khutor and otrub peasants households • Mortgages for peasants to buy out land from the landlords • Migration to new territories Lenin's article “The Last Valve”: elimination of the commune is the last valve that could be opened in the overheating steam machine of the tsarist regime without liquidating large land ownership. No more valves -
The Soviet Union After 1945: Economic Recovery and Political Repression
The Soviet Union after 1945: Economic Recovery and Political Repression Mark Harrison* Department of Economics, University of Warwick Centre for Russian & East European Studies, University of Birmingham Hoover Institution on War, Revolution, and Peace, Stanford University Abstract Salient features of the Soviet Union after World War II include rapid economic recovery and the consolidation of Stalin’s rule. Both economic recovery and political consolidation are explained in large part by temporary factors arising from the war. Rapid postwar growth is attributed to the scope arising from a combination of preceding shocks that included the war itself but also stretched back into the prewar years. Political-economy considerations link Stalin’s capacity to organizing recovery while delaying reforms to the quality of repression, based on his exploitation of the war as a source of new information about the citizens over whom he ruled. JEL Codes: E1, N4, P2 * Mail: Department of Economics, University of Warwick, Coventry CV4 7AL, UK. Email: [email protected]. First draft: December 11, 2006. This version: April 14, 2010. The Soviet Union after 1945: Economic Recovery and Political Repression The story of the Soviet Union’s postwar years appears almost as remarkable as the story of the war.1 The USSR came to victory in 1945 only after first coming close to total defeat. In 1945 the Red Army occupied Tallinn, Riga, Vilnius, Warsaw, Berlin, Vienna, Prague, Budapest, and Sofia, but behind the army the country lay in ruins. Its people had suffered 25 million premature deaths. The survivors were profoundly weary. Many hoped for reconciliation and relaxation. -
From Socialism to Market Economy: the Transition Problem
Upjohn Press Upjohn Research home page 1-1-1992 From Socialism to Market Economy: The Transition Problem William S. Kern Western Michigan University Follow this and additional works at: https://research.upjohn.org/up_press Part of the International Economics Commons Citation Kern, William S., ed. 1992. From Socialism to Market Economy: The Transition Problem. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/9780880995641 This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License. This title is brought to you by the Upjohn Institute. For more information, please contact [email protected]. C/5"T1 ^ut^r :Svv=a J^F>?MS 1^1^ ^^PSg-pwpt^lMl^S^^I5*! B-ft) From SOCIALISM to MARKET ECONOMY The Transition Problem William S. Kern, Editor 1992 W.E. UPJOHN INSTITUTE for Employment Research Kalamazoo, Michigan Library of Congress Cataloging-in-Publication Data From socialism to market economy: the transition problem / William S. Kern, editor, p. cm. Includes bibliographical references and index. ISBN 0-88099-129-1 (hard). — ISBN 0-88099-130-5 (pbk.) 1. Soviet Union—Economic policy—1986-1991—Congresses. 2. Post- communism—Soviet Union—Congresses. 3. Europe, Eastern—Economic policy—1989—Congresses. 4. Post-communism—Europe, Eastern— Congresses. I. Kern, William S., 1952- HC336.26.F77 1992 338.947—dc2 92-26336 CIP Copyright © 1992 WE. Upjohn Institute for Employment Research 300 S. Westnedge Avenue Kalamazoo, Michigan 49007 THE INSTITUTE, a nonprofit research organization, was established on July 1, 1945. It is an activity of the W.E. Upjohn Unemployment Trustee Corporation, which was formed in 1932 to administer a fund set aside by the late Dr. -
77 3 the Estimation of Gross Domestic Product and Its Growth
LA7.772 - 3 The Estimation of Gross Domestic Product and Its Growth Rate for the German Democratic Republic Public Disclosure Authorized Irwin L. Collier . r', 'WORLD BANK STAFF WORKING PAPERS Number 773 A Background Study for Doilar GNPs of the U.S.S.R. anid Ensfern Euirope Public Disclosure Authorized 0- ..- Public Disclosure Authorized 0 0- Public Disclosure Authorized WORLD BANK STAFF WORKING PAPERS Number 773 A Background Study for Dollar GNPs of the U.S.S.R. and Eastern Europe The Estimation of Gross Domestic Producd and Its Growth Rate for the German Democratic Republic Irwin L. Collier The World Bank Washington, D.C., U.S.A. Copyright (© 1985 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing November 1985 This is a working document published informally by the World Bank. To present the results of research with the least possible delay, the typescript has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. The publication is supplied at a token charge to defray part of the cost of manufacdtue and distribution. The World Bank does not accept responsibility for the views expressed herein, which are those of the authors and should not be attributed to the World Bank or to its affiliated organizations. The findings, interpretations, and conclusioins are the results of rescilch supported by the Bank; they do not necessarily represent official policy of the Bank. -
The Reliability of China's Economic Data
U.S.-China Economic and Security Review Commission Staff Research Project January 28, 2013 The Reliability of China’s Economic Data: An Analysis of National Output by Iacob N. Koch-Weser USCC Policy Analyst, Economics and Trade Disclaimer: This paper is the product of professional research performed by staff of the U.S.-China Economic and Security Review Commission, and was prepared at the request of the Commission to support its deliberations. Posting of the report to the Commission’s website is intended to promote greater public understanding of the issues addressed by the Commission in its ongoing assessment of U.S.-China economic relations and their implications for U.S. security, as mandated by Public Law 106-398 and Public Law 108-7. However, the public release of this document does not necessarily imply an endorsement by the Commission, any individual Commissioner, or the Commission’s other professional staff, of the views or conclusions expressed in this staff research report. 1 Table of Contents Table of Contents .................................................................................................................................... 2 Executive Summary ............................................................................................................................... 4 Introduction .............................................................................................................................................. 6 Section I: The Quality of Statistical Work ..................................................................................... -
World Bank Document
Report No. 26839-RU No. Report Russian Federation Country Financial Accountablility Assessment Accountablility Financial Country Federation Russian Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank World Document of the Asia Region Europe and Central and Services Unit Policy Operations September 16, 2003 Assessment Accountability Country Financial Russian Federation Report No. 26839-RU CTJFtFtENCY EOUIVALENTS Unit of currency = Ruble EXCHANGE RATE US$ 1 = 3 1.825 Rubles (December 30,2002) ACRONYMNS AND ABBREVIATIONS AC Accounts Chamber PAC Public Accounts Committee ASOSAI Asian Organization of Supreme Audit PEIR Public Expenditure and Institutional Institutions Review CAS Country Assistance Strategy PIU Project Implementation Unit CBR Central Bank of Russia PSC Public Sector Committee COA Chart of Accounts RF Russian Federation CID Control and Inspections Division RFTA Regional Fiscal Technical Assistance CIFA Core Integrative Fiduciary Assessment ROSC Report on Observance of Standards and Code CPI Corruption Perceptions Index SAI Supreme Audit Institution CPPR Country Portfolio Performance Reviews SAL Sectoral Adjustment Loan DFID Department for International Development SNAO Swedish national Accounting Office (UK) ESW Economic and Sector Work SOE State-Owned Enterprise EUROSAI European Organization of Supreme Audit su Spending Units Institutions FMI Financial Management Initiative TGL Treasury General Ledger FMIS Financial Management Information -
Structural Change in Russian Transition
Gregory: Russian Structural Change 5/28/2004 Structural Change in Russian Transition Paul R. Gregory Professor of Economics University of Houston May 25, 2004 Final Version Gregory: Russian Structural Change 5/28/2004 INTRODUCTION Socialist economies such as the Soviet Union practiced centralized distribution of resources according to what became known as “planner’s preferences”.1 Planner’s preferences were essentially the preferences of the dictatorial government rather than of consumers. The distribution of resources was also affected by special interests such as the military-industrial complex or the heavy industry lobby. In addition, rigidity of material balance planning or “planning from the achieved level,” produced additional deviations from market-like resource allocations. Finally, relative autarky of the socialist economies (primarily limited to intra- COMECON trade) prevented them from realizing their comparative advantages and created additional biases. Consequently, the patterns of resource allocation and structural proportions (as observed in the structure of GDP, consumer budgets, foreign trade, and so on) that emerged in the Soviet period differed significantly from those of market economies at similar levels of development. These structural distortions produced inefficiencies that were in part responsible for inadequate levels and distorted structures of consumption in Eastern Europe and former Soviet Union and for the stagnation of these economies in the 1970s and 1980s.2 Transitional economies, including Russia, started their transformation with initial conditions inherited from the pre-existing socialist economies. It is therefore natural to expect that these economies, after the removal of the constraints of planning, should move in the direction of more “normal” proportions of market economies in the process. -
The Memory Revolution Meets the Digital Age Red Army Soldiers Remember World War II by Iva Glisic and Mark Edele*
The Memory Revolution Meets the Digital Age Red Army Soldiers Remember World War II by Iva Glisic and Mark Edele* This essay analyzes iremember.ru – an open-access oral history collection containing more than 2,500 interviews with Soviet veterans of the Second World War. Launched in 2000 as a small grassroots project, it soon received state backing and grew into a vital element of Russia’s contemporary memory landscape. The essay examines the origins of this project and its value as a historical source; just as well, it explores its evolution and the curious role it plays in contemporary Russian memorial culture. Bringing together history, memory studies, and the study of contemporary politics, the essay argues that iremember.ru provides important insights into both the Soviet experience of the Second World War and the forces that shape political discourse in Russia today. Military life for young infantry recruit Daniil Zlatkin began on July 3, 1941. After several months of intense training, and narrowly avoiding a death sentence after being accused of stealing potatoes to supplement his meagre food rations, Zlatkin found himself boarding a railroad boxcar (teplushka) with “sixty to eighty” other men on a journey to an unknown destination.1 They would disembark to the sounds of gunfire and explosions in the village of Myshkino, near Borodino, some 150 kilometers west of Moscow – a village whose name would remain with Zlatkin for the rest of his life. That evening, a sergeant (starshii serzhant) summoned the new arrivals and demonstrated the workings of the Degtyaryov machine gun. In concluding his lesson, the sergeant asked the men to confirm that they understood how the device * Research and writing were made possible in part by an Australian Research Council Discovery Grant (DP130101215) and an Australian Research Council Future Fellowship (FT140101100). -
I from the CENTRALLY PLANNED ECONOMY to CAPITALIST
FROM THE CENTRALLY PLANNED ECONOMY TO CAPITALIST GLOBALISATION: HOW ECONOMISTS UNDERESTIMATED THE GROWTH OF THE WORLD MARKET WILLIAM RICHARD JEFFERIES A thesis submitted in partial fulfilment of the requirements of the Manchester Metropolitan University for the degree of Doctor of Philosophy Department of Marketing the Manchester Metropolitan University 2013 i The copyright of this thesis belongs to the author under the terms of the Copyright Act 1987 as qualified by Regulation 4 (1) of the Multimedia University Intellectual Property Regulations. Due acknowledgement shall always be made of the use of any material contained in, or derived from, this thesis. © William Jefferies, 2013 All rights reserved. ii DECLARATION I hereby declare that the work has been done by myself and no portion of the work contained in this Thesis has been submitted in support of any application for any other degree or qualification on this or any other university or institution of learning. _______________ William Jefferies iii ACKNOWLEDGMENT. Thanks to Tony Hines and Paul Brook for their support, encouragement and criticism and Viv Davies and Hillel Fridman for their helpful comments throughout. iv DEDICATION. To my brother Rob. v TABLE OF CONTENTS COPYRIGHT PAGE. ii DECLARATION . iii ACKNOWLEDGEMENT . iv DEDICATION . v TABLE OF CONTENTS. viii LIST OF TABLES. ix LIST OF FIGURES. x GLOSSARY xi ABSTRACT 1 CHAP TER 1: Introduction. 3 1 .1 Opening 3 1.2 Chapter 2 4 1.3 Chapter 3 4 1.4 Chapter 4 10 1.5 Chapter 5 12 1.6 Chapter 6 13 1.7 Chapter 7 17 CHAPTER 2: Marxist Method. 18 2.1 Marx’s materialism and the dialectical method 18 2.2 Abstraction and the Labour Theory of Value 24 2.3 The nature of value 31 2.4 Transformation problem 37 2.5 National accounting and statistics 61 CHAPTER 3: The Measurement of Soviet Economic Growth. -
The Industrialization and Economic Development of Russia Through the Lens of a Neoclassical Growth Model∗
The Industrialization and Economic Development of Russia through the Lens of a Neoclassical Growth Model∗ Anton Cheremukhin, Mikhail Golosov, Sergei Guriev, Aleh Tsyvinski July 2014 Abstract This paper studies the structural transformation of Russia in 1885-1940 from an agrarian to an industrial economy through the lens of a two-sector neoclassical growth model. We construct a dataset that covers Tsarist Russia during 1885-1913 and Soviet Russia during 1928-1940. We use the growth model to develop a procedure that allows us to identify the types of frictions and economic mechanisms that had the largest quantitative impact on Russian economic de- velopment, as well as those that are inconsistent with the data. Our methodology identies frictions that lead to large markups in the non-agricultural sector as the most important rea- son for Tsarist Russia's failure to industrialize before WWI. Soviet industrial transformation after 1928 was achieved primarily by reducing such frictions, albeit at a signicant cost of lower TFP. We nd no evidence that Tsarist agricultural institutions were a signicant barrier to labor transition to manufacturing, or that "Big Push" mechanisms contributed to Soviet growth. ∗Cheremukhin: Federal Reserve Bank of Dallas; Golosov: Princeton; Guriev: NES and Sciences Po; Tsyvin- ski: Yale. The authors thank Mark Aguiar, Paco Buera, V.V. Chari, Hal Cole, Raquel Fernandez, Joseph Kaboski, Andrei Markevich, Joel Mokyr, Lee Ohanian, Richard Rogerson for useful comments. We also thank participants at Berkeley, EIEF, Federal Reserve Bank of Philadelphia, Harvard, HEC, NBER EFJK Growth, Development Economics, and Income Distribution and Macroeconomics, New Economic School, Northwestern, Ohio State, Paris School of Economics, Princeton, Sciences Po.