Price Reform in the USSR: Comment on Shmelev

An apparent shift and rethinking of earlier views on prices by one of perestroyka's most outspoken and visible architects prompts an analysis by a leading American specialist in the field. Problems of the three main components of the Soviet price system, namely industrial producer prices, agricultural producer prices, and state retail prices, are examined. Proposals and official plans for changes in the price system are discussed. Journal of Economic Literature, Classification Numbers: 027, 052, 124, 227.     

Wie entstehen Preise?

How are prices made? From the perspective of economic price theory prices are determined by supply and demand, while from an economic sociology point of view they result from the embeddedness of market transactions in institutions, networks or cultural frames of meaning. In order to build a price, the value of a good has to be transformed into economic value, i.e. a price. The paper analyses the process of transformation from value to price on the market for the rating of structured finance products. On this market, with the help of calculative practices, the abstract value of ??creditworthiness?? is converted into a concrete rating which determines credit costs. As the subprime crisis has shown, the credit bureaus and rating agencies responsible for this translation process have not been able to draw the price near to the value to which it refers. The article describes the divergence between value and price as the ??social space?? where price building is influenced by social factors that may distort prices and lead to a breakdown of the market.     

Soviet Price Policies

Recent Soviet policies regarding industrial producer prices, agricultural purchase prices, and retail prices are analyzed. Effects on the level and structure of each price category, and on the relationships among the three categories, are evaluated. Some constructive steps in the reform of the price system have been taken, and others adopted although not yet implemented, but important deficiencies remain. Hence, further changes are proposed to make prices of all three types reflect cost and scarcity more accurately, in order to exert greater influence on resource allocation and income distribution. Journal of Economic Literature, Classification Numbers: 027, 052, 124, 227.     

Rethinking Price Reform in the USSR

A distinguished and outspoken Soviet proponent of perestroyka, who is one of its key architects, outlines the major components of an “ideal” price reform package before examining its possible consequences and obstacles to its full realization. He then presents what he believes is a workable alternative to the official Soviet policy on price reform, as well as a crude timetable for its implementation (sequence of reforms in retail and wholesale prices). The paper marks a significant shift in the author's view on the subject, journal of Economic Literature, Classification Numbers: 027, 052, 124, 227.     

Anatomy of Gorbachev's Economic Reform

The paper outlines and assesses the initial and potential effectiveness of a package of radical economic reforms, adopted by the CPSU Central Committee and Supreme Soviet in late June 1987. The areas involved include the central planning system, the enterprise, territorial versus sectoral management of the economy, the supply system, prices and wages, finance and credit, foreign trade, private and cooperative activity, and agriculture. Problems which may compromise the success of reform efforts, particularly inconsistencies between reform goals and long-established policies, are outlined as well. Journal of Economic Literature, Classification Numbers: 027, 054, 124.     

Soviet Foreign Trade in Foodstuffs

Analysis of import dependence or of shares of imported food in consumption when measured in value terms is severely handicapped by the fact that Soviet foreign trade statistics are reported in world market values which differ from domestic prices and by the nonequilibrium nature of the latter. This study offers an alternative method of relating imports to consumption based on calorie measures. Having recomputed exports and imports in calories, the study shows that between 1970 and 1981 the USSR changed from a position of net exporter of food to a high dependence with about 22% of total domestic consumption provided by imports. Journal of Economic Literature, Classification Numbers: 124, 421, 713.     

Understanding Gorbachev: The Importance of Politics

Two senior CIA economists analyze the status of interrepublican economic relations in the former USSR from the fall of 1991 through July 1992. Critically assessed are Russia's role in forcing adjustments in other republics' economic policies, their failure to agree on an economic union in 1991, and efforts to cooperate in 1992. Strategies to cope with mounting debt, new currencies, reliance on barter, and severed supply links are then examined, as are prospects for near-term stabilization of interrepublican trade (including prices) and longer-term outlook for the republics in light of ongoing discussions on a ruble zone. Journal of Economic Literature, Classification Numbers: P20, P27, P40.     

The Interenterprise Arrears Crisis in Russia

Two American economists discuss in considerable detail the critical problem of interenterprise arrears (overdue payments for goods and services) in Russia that undermines the transition to a market economy and privatization. The study is based on interviews involving directors of 32 industrial enterprises, managers of commercial banks, and Central Bank officials in Moscow, Novosibirsk and Sochi from May to mid-November 1992. In addition to analyzing the causes of the mounting accumulation of debt and highlighting the financial problems of enterprises coping with the crisis, the authors examine the anatomy of present-day banking and extension of credit to finance production in the former USSR. Journal of Economic Literature, Classification Numbers: P21, Ol7, G20.     

Satellite Communications in the USSR

Satellite communications, specifically TV distribution, constituted the first commercial application of space technology in the USSR. Soviet comsat systems have been costly and technologically unsophisticated. The capacity of these systems is low. Little has been achieved in exploiting the potential of communication satellites for other tasks important for operation of the economy, such as telephony, facsimile transmission, or data exchange, due in part to competition with the military. The USSR has rejected membership in the International Telecommunications Satellite organization in favor of its own Intersputnik system, but has been an active member of the international organization Inmarsat. Journal of Economic Literature, Classification Numbers: 052, 124, 620.     

The Most Recent Input-Output Table: A Milestone in Soviet Statistics

The paper reproduces the 18 × 18 sector Soviet input-output table for 1988 which became available in the West in April 1990, but has not been published in the USSR. The layout (quadrants) and selected elements of the table are described and briefly analyzed. Because the hitherto unavailable statistics facilitate the analysts of a variety of critical issues such as the price reform, defense expenditures, and private incomes and taxation, the input-output table is regarded as an important contribution as well as a milestone in the gradual process of releasing economic data in accordance with the policies of glasnost'. Journal of Economic Literature, Classification Numbers: 027, 052, 222.     

Restructuring the Mechanism of Foreign Economic Relations in the USSR

An up-to-date paper by the Deputy Chairman of the State Commission on Foreign Economic Relations, USSR Council of Ministers, details recent economic reforms in the foreign trade sector of the USSR. Particular emphasis is placed on direct business relations between Soviet enterprises and their foreign counterparts, and on joint ventures with CMEA partners as well as firms in Western and developing countries. Anticipated changes in the role exports and imports are to play in the Soviet economy are also discussed. Journal of Economic Literature, Classification Numbers: 052, 124, 420.     

Regime Transition in Communist Systems: The Soviet Case

An American political scientist reviews existing theories of transition from communism to democracy. Novel arguments suggesting that both regimecentered and society-centered theories underplay important factors, including processes of institution-building and redefinition of interests during the transition itself, are advanced and systematized. Included in the presentation are relevant references to the economy, particularly with regard to such aspects of modernization as urban degradation or change in occupational structures involving convergence of earnings. The paper marshals evidence on the nature of efforts in the USSR to build political organizations that bridge exclusive ethnic and regional identities. Journal of Economic Literature, Classification Numbers: 124, 822.     

Supporters and Opponents of Perestroyka: The Second Joint Soviet Economy Roundtable

Support and opposition to perestroyka in the USSR and the U.S. are discussed on the eve of Academician Andrey Sakharov's trip to the U.S. in November 1988. Participating in the roundtable are leading Soviet economists, historians, philosophers, publishers and journalists as well as American Sovietologists. Different perspectives are offered on resistance to perestroyka and its origins, on concepts of change, the constitutional revisions in prospect, the pace and scope of the reform and the nationalities issue. Selected statements, notably those of Andrey Sakharov, are of historical significance. Journal of Economic Literature, Classification Numbers: 027, 124.     

The Age Structure of Soviet Population: Preliminary Analysis Of Unpublished Data

This article presents and analyzes hitherto unpublished data on the age structure of the population of the USSR and four of its republics. Analysis of the patterns revealed by these newly available data provides a basis for understanding why they had not been published in the USSR in the six years since the census date. The implications of the data for the analysis of Soviet society, its economic potential, and military draft pools are discussed. Journal of Economic Literature Classification Numbers: 052, 124, 800.     

Approaches to the Politics of Systemic Economic Reform in the Soviet Union

Political support for economic reform in the USSR is evaluated at five different levels of Soviet society, or more properly, of the political-administrative hierarchy: the top leader (Gorbachev himself), the collective leadership (Politburo), the bureaucracy, knowledge specialists (intelligentsia), and the population at large. Attitudes and motivations within each group are examined in order to demonstrate how interest group relations in the Soviet Union have made and will continue to make basic economic change a protracted, complex, and unpredictable process. journal of Economic Literature, Classification Numbers: 052, 113.     

The Recent Appearance of Favelas in São Paulo City: an Old Problem in a New Setting

Abstract— While favelas have been an important feature of many Brazilian cities over the past 50 years, they were relatively insignificant in São Paulo until the mid- 1970s. Since then, São Paulo's favelas have experienced a dramatic expansion and some estimates now put their total population in the region of two million. This article examines potential explanations for this sudden change, including migration, changes in the housing market, relative prices and state intervention.     

Budget Deficit,Market Disequilibrium and Soviet Economic Reforms

Problems within the present fiscal and monetary system of the USSR are examined (a) as a function of both past systemic shortcomings and of fiscal developments caused by economic reforms enacted to date and (b) as obstacles that must be overcome during the transition to a more market-oriented economy. Major sources of disequilibrium in the present economy are identified through analysis of Soviet budgets from both the reform and pre-reform periods, and a concluding section presents policy options for the period of transition to a more radical economic reform. Journal of Economic Literature, Classification Numbers: 027, 124, 300.     

Environmentalism in the USSR: The Opposition to the River Diversion Projects

The opposition to the Soviet river diversion projects is analyzed in order to explore the nature of environmentalism in the USSR. Three groups are distinguished: (1) utilitarians, who concentrate upon economics and argue for the more rational use of natural resources and freer specialist participation in policymaking; (2) populists, who argue that nature also has noneconomic value and advocate broader public participation; and (3) Russian nationalists, who argue that economic development has destroyed the spirituality of modern Soviet man, and wish to reverse this process in order to return to the traditional values of the Russian village. Journal of Economic Literature, Classification Numbers: 052, 124, 720.     

Alternative production and consumption relations?: fair trade,the state,and cooperatives in the global South

This paper explores the relation between the fair trade market in the North and producer cooperatives in the South. It specifically focuses on three agricultural cooperatives in Ethiopia, Tanzania, and South Africa to look at the way in which the fair trade market and the state have promoted or hindered alternative production in the global South. Fair trade has gained considerable popularity among Northern consumers in the last decade. For many consumers, the assumption is that buying fair trade ensures producers in the South receive a fair price for their goods. However, fair trade is much more complex than consumer choices or simply offering fair prices to producers. Does fair trade constitute an alternative trading system or is it an attempt to introduce fairer conditions within the current system? What is the role of the state? What is the role of the market? Are there other ways to ensure producers in the global South receive fair prices? These are the central questions explored in this paper.     

Roadblock to Economic Reform: Inter-Enterprise Debt and the Transition to Markets

Two American specialists on Soviet and East European economies examine the relationship between inter-enterprise payments for goods and services and economic reform in Russia. Based on extensive interviews with Russian governmental officials and enterprise directors, as well as unpublished documents, the authors trace and discuss the unsuccessful policies of the government and Central Bank of Russia to eliminate arrears during 1992-93. They also explain why financial underdevelopment poses a serious obstacle to economic reform, and why an effort to sharply tighten credit in 1993-94 could lead to cascading enterprise failures. The analysis includes references to the change after October 1993. Journal of Economic Literature Classification Numbers: P21, O17, G20.