The Soviet Economy

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Case Details:

Case Code : ECON028
Case Length : 19 Pages
Period : 19915-2007
Pub. Date : 2008
Teaching Note :Not Available
Organization : -- Industry : - Countries : Russian Federation

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

The history of Russia dates back to the ninth century; however, the region is believed to have been populated some 4,000 years earlier. In the ninth century, Russia was a collection of cities that gradually came together to form a nation state...

The Economy in The Soviet Era

In 1921, the civil war ended with Lenin emerging victorious, though by then, the war and the droughts of 1920 and 1921 had devastated the Russian economy. By 1921, industrial production had fallen to one-seventh, the agricultural production to one third, and land under cultivation to 21% of that in 1913...

The Stalin Era
Stalin, who emerged as the leader of the Communist Party in 1924, replaced the NEP with the first Five-Year Plan in 1928...

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The Krushchev and Brezhnev Eras
After Stalin's death in 1953, there was a power struggle within the party. In late 1953, Nikita Khrushchev (Khrushchev) was appointed first secretary of the Communist Party. He consolidated his authority in the Union government by 1957...

The Gorbachev Era
By 1985, when Mikhail Gorbachev (Gorbachev) became general secretary of the Communist Party of the Soviet Union, the Soviet economy had been through an almost two decade-long period of stagnation and was in immediate need of reform...

The Collapse of The Soviet Union

Although Gorbachev's economic and political reforms were a break from the past they were not enough to improve the country's economic situation in the late 1980s.

Although the reforms tried to restructure the existing system, in most areas, the fundamental elements of the Stalinist system such as price controls, non-convertibility of the ruble, exclusion of private property ownership, and government monopoly over most means of production remained...


Exhibit I: Karl Marx's Ideology
Exhibit II: Leninism
Exhibit III: The Map of USSR
Exhibit IV: A Brief Note on Command Economies and Five-Year Plans
Exhibit V: Expenditures of the Soviet Government
Exhibit VI: The Constituents of USSR

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4] Lenin was the leader of the Russian Revolution in 1917 and the first leader of the Soviet Union.


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