Brian Walsh
Abstract: The Soviets refer to their huge underground economy as na levo, which is slang for “on the left” or “under the table.” Under the Gorbachev regime, it has been estimated that these black market, “under the table” transactions in the Soviet Union amount to 145B USD annually. This money is spent on underground services, agricultural products, and foreign goods that the official government is unwilling or unable to supply. Reports show that the majority of Soviet citizens and businesses utilize the black market for various reasons, from food to production supplies. The article provides insight into the complexities of the Soviet black market by tracking the sources for black market goods, including smuggling and theft. The article cites the inability of the Soviet Union to provide for its citizens as the reason for the existence of the black market and expands on the activities of the black market. In addition to regulated or unavailable goods, such as agricultural supplies, the black market also provides access to almost any service, from auto repair to medical examinations at reduced cost. The black market also has a money exchange program, trading international currency on a daily basis. The article next analyzes the effects of the black market on the Soviet Union as a whole, including its economic impact on the government and its relationship to organized crime. Finally, after previewing Gorbachev’s failed efforts at reforms, the author recommends modified reform proposals in order to more effectively combat the black market in the Soviet Union.
Keywords: Black Market, Soviet Union, Underground, Economy, Agriculture, Reform, Gorbachev
