John P. Hardt
Abstract: In 1987, Mikhail Gorbachev outlined his plans for reorganization and transformation, called perestroika. For Gorbachev, perestroika means changing the institutional framework of the centrally planned economy at a rapid pace within the party controlled system. Gorbachev also has the benefit of learning from the mistakes that Khrushchev made when attempting to modernize and decentralize the economy. To achieve economic transformation and make it irreversible, Gorbachev has proposed four strategies: first, renewal and reform of central planning and decentralization management by mobilizing and energizing the nation’s institutions and cadres; secondly, intensification — restructuring the economy — primarily through decentralized resource allocation; thirdly, a Soviet technological-information revolution — creating a civilian-military and SDI-like technological base for the future; and fourthly, creation of a more open and interdependent foreign economy. If enough institutional power can be reallocated to decentralize the economy and allow for free market incentive systems, and if the populace accepts and responds to changes in productivity criteria, then an influential constituency in favor of reform may arise.
Key Words: Gorbachev, Economic Reform, Modernization, Soviet Union, Khrushchev
You must be logged in to post a comment.