Causes of the crisis of the socialist economy of the USSR in 1989–1991

Abstract

This paper attempts to prove that the socialist economy was extremely effective as long as it was skillfully managed. Even along with a really occurred period of less effectiveness between 1975 and 1985, it did not yield growth rates of the developed countries. Gorbachev's reforms led to a distortion of the essence of the Soviet economy. It ceased to be socialist, and there was a crisis.The provisionof all necessary goods was deteriorating day by day and, of course, it caused irritation. And because people did not realize that this deterioration is precisely due to the refusal of the socialist methods of economic management, they attributed all the troubles of shortcomings of the socialist system over capitalism. All the more, such an unfair comparison in favor of the capitalist countries constantly sounded in all media. So, the current politicians claim to have received a credit of trust for nothing but dismantling of the socialist economy. The collapse of the soviet economy occurred in the Soviet Union under the leadership of its president, who simultaneously was the General Secretary of the Central Committee of the Communist Party of the Soviet Union.

Keywords

• socialist economy
• Kondratiev cycles
• radical economic reform