Manual Friedrich the Blacksmith: From The Promised Land of Catherine the Great to the Gulags of Comrade

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    Andreï Makine’s Novels as Historiographic Metafictions

    Credit was discouraged, but widespread. Final allocation of output was achieved through relatively decentralized, unplanned contracting. Although in theory prices were legally set from above, in practice they were often negotiated, and informal horizontal links between producer factories etc. A number of basic services were state-funded, such as education and health care.

    In the manufacturing sector, heavy industry and defense were prioritized over consumer goods. Under command economy, consumers had almost no influence on production, so the changing demands of a population with growing incomes could not be satisfied by supplies at rigidly fixed prices.

    Legalization of some elements of the decentralized economy was attempted with the reform of Although statistics of the Soviet economy are notoriously unreliable and its economic growth difficult to estimate precisely, [] [] by most accounts, the economy continued to expand until the mids.

    During the s and s, it had comparatively high growth and was catching up to the West. Overall, between and , the growth rate of per capita income in the Soviet Union was slightly above the world average based on countries.

    A History of Russia

    By their calculation, per capita income of Soviet Union in should have been twice higher than it was, considering the amount of investment, education and population. The authors attribute this poor performance to low productivity of capital in the Soviet Union. In , Mikhail Gorbachev tried to reform and revitalize the economy with his program of perestroika. His policies relaxed state control over enterprises, but did not replace it by market incentives, resulting in a sharp decline in output. The economy, already suffering from reduced petroleum export revenues , started to collapse.

    Prices were still fixed, and property was still largely state-owned until after the dissolution of the Soviet Union. It was the third-highest in the Eastern Bloc , behind Czechoslovakia and East Germany , and the 25th in the world of countries. The need for fuel declined in the Soviet Union from the s to the s, [] both per ruble of gross social product and per ruble of industrial product.

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    At the start, this decline grew very rapidly but gradually slowed down between and From and , it grew even slower, [ clarification needed ] only 2.