Document Type

Article

Disciplines

International Law

Abstract

Coming to power in 1985, Gorbachev almost immediately announced that the Soviet economy was in an extremely deplorable state, and that it would collapse, unless urgent measures would be applied. He thought that it was necessary to connect the so-called socialist economic system, deprived of any economic stimuli, with other economic phenomena, containing these stimuli, in order to overcome dangerous stagnation and achieve at least certain progress. The idea entailed various steps: mitigating the centralized planning and unfolding the local initiative on the level of the lowest economic entities; private efforts to develop state enterprises in the form of leasing enterprises' workshops and fulfillment of production tasks by individual lessees in accordance with the lessor's assignments; establishing similar relations between collective farms and peasant families along with creating small cooperatives around each collective farm to perform agricultural activities more efficiently than under previously introduced organizational forms, etc. However, all these measures proved to be impractical and therefore failed one after another.

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