The Soviet Economy

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Case Details:

Case Code : ECON028
Case Length : 19 Pages
Period : 19915-2007
Pub. Date : 2008
Teaching Note :Not Available
Organization : -- Industry : - Countries : Russian Federation

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"We need economic reform and political reform. The central question is with which to start."¹

- Yuri Andropov, General Secretary of the Communist Party, in 1982.

"Gentlemen, comrades, do not be concerned about all you hear about Glasnost and Perestroika and democracy in the coming years. They are primarily for outward consumption. There will be no significant internal changes in the Soviet Union, other than for cosmetic purposes."²

- Mikhail Gorbachev, General Secretary of the Communist Party of the Soviet Union at a politburo meeting in 1987.

Introduction

On August 20, 1991, Estonia, taking advantage of the relatively greater freedom that Mikhail Gorbachev (Gorbachev), president of the Union of Soviet Socialist Republic (USSR), allowed to the Soviet republics, formally declared its independence from the Soviet Union. Following this, several other republics³ of the Soviet Union started declaring their sovereignty, and the USSR, created in 1922 by the union of several republics that in earlier times had been part of the Russian empire, broke up into independent states.

The Russian empire had been controlled by the Tsars right from the 16th century.

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1] Kris D. Beasley, "Russian Military Reform from Perestroika to Putin: Implications for U.S. Policy," https://research.maxwell.af.mil, April, 2004.

2] http://www.catholictradition.org.

3] The Union of Soviet Socialist Republics was composed of 15 republics: the Russian Socialist Federated Soviet Republic (RSFSR), the Ukrainian Soviet Socialist Republic (SSR), the Byelorussian SSR, the Turkmen SSR, the Uzbek SSR, the Armenian SSR, the Azerbaijan SSR, the Georgian SSR, the Kazakh SSR, the Kyrgyz SSR, the Tajik SSR, the Estonesian SSR, the Latvian SSR, the Lithuanian SSR and the Moldovan SSR.