Reforming The Soviet Economy
Hewett's masterly study does much more than sketch out the Gorbachev reform plans adopted in July 1987 and speculate on their chances of success. It gives a clear description of the Soviet economy since Stalin's time, both the formal economy and the system as it actually operates. He analyzes the earlier attempts at reform (those of Khrushchev, the Kosygin reforms of 1965, and the later ones in the 1970s); these efforts largely failed, but an understanding of them and why they failed helps to explain the magnitude and risks of Gorbachev's task. Among other things, Hewett argues, Gorbachev has to find a tolerable balance between improved economic performance and the widespread desire in Soviet society for equality and security, for to have both in full measure is impossible. Hewett's book invites comparison with other recent studies on the subject. In general he digs deeper, is clearer in analysis, and is cautious about predicting the future.
Related
The jailing of Russian oil tycoon Mikhail Khodorkovsky has revealed the fault lines running through the post-Soviet political economy. The reforms and privatization of the 1990s were so flawed and unfair as to make them unstable. A backlash was inevitable. Given Vladimir Putin's authoritarian tendencies, that backlash has proved equally flawed and unfair-and perhaps equally unstable.
Analysis of the 'Shatalin plan' to introduce a market economy within 500 days.
Most people think that Russia's economic problems are due to the shock of fast and radical reforms. Actually, the Russian economy is not very liberalized at all, and its problems have been caused by reforms that were too slow and partial, not too sweeping. Russia suffers not from too free a market but from corruption, which thrives by preying on an unwieldy bureaucracy. Still, the outlook for the months ahead is promising. If Poland could do it, why can't Russia? The private sector got a salutary wake-up call from the 1998 collapse of the ruble, and the strength of the political center bodes well for economic recovery and social change.
