Economic ideas and institutional change: Evidence from soviet economic debates 1987–1991

The article analyses the shift in ideas that took place in Soviet economic thought between 1987 and 1991 and its relation to the changes in the real economy. The main focus of the article is on the issue of whether the evolution of Soviet economic thought in the analysed period changed in a gradual, path-dependent manner, or in a discontinuous, revolutionary fashion. Following the approach of Imre Lakatos, I argue that the conviction of being on the road to the ‘wholesome society’ formed the hard core of Soviet ideology, while ‘democratic centralism’ and the centralised economy provided its protective belt. Perestroika was the last attempt to save the hard core of Soviet ideology by adjusting the protective belt. This attempt failed, and the economic debates, which at first had been restricted to the protective belt, more and more approached its hard core, until it finally cracked. In this sense there was certainly a paradigm shift in Soviet economic thought. However, the notion of history as a purposeful process was not given up even by the Soviet adherents of monetarism. The utopian liberalism which became fashionable among Russian economists for a short period of time, it is argued, provides evidence that paradigm shifts and path-dependence in the evolution of economic ideas are not mutually exclusive.