A study of economies in transition taking Russia as a case
1/1/2008
Thierry Bosnoyan |
For well over half a century the Soviet Union was one of the most powerful empires in history (1985-1991). At its peak it included 15 national republics so wide they covered 13 time zones. However the communist party determined the USSR’s political, economic and military destiny for several decades. The reform of the system aimed to enhance the whole economic structure, strengthen it and make the Soviet Union profitable and popular. Nevertheless the party opposition led to its demise in the nineties. The Soviet Union was created in October 1917 by a small but devout band of revolutionaries …show more content…
He served as first secretary for 18 years, but under his rule the soviet regime decayed year by year, the economy stagnated, falling more behind those of the advanced industrial countries. Workers had little incentive to exert themselves now that punishment was abolished, and as it was cynically put “they pretended to pay us and we pretended to work”. The USSR did not participate in advancements in information technology, which revolutionized western economies. The living standards of ordinary citizens fell below the low minimal norms set by the state, and in the late 1980s nearly one half of the soviet population earned less than 10 dollars a month. Drunkenness was endemic; the soviet republic had the highest rate of alcohol consumption in the world as well as alcoholic deaths. The Russian population which under czarism had grown at the most rapid rate in Europe showed by the 1970s a deficit were more Russians died each year than were born. During that time corruption flourished and to get anything done, one had to bribe officials in charge of goods and services. High posts were sold to the highest bidders, theft of public property was abundant, and Russians became so accustomed to corruption that they were ready to bribe without being sure that it served purpose. The corruption in the entire nation could be summarized in the following popular quote at the time “if you don’t steal from the government, you are stealing from your family.” Economic performance was in decline were the growth rate of GDP already down from more than 5% per year since Kruschev fell from 3.7% to 2.3% by the first half of the