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Main article: Republics of the Soviet Union.
The Soviet Union was a federation of Soviet Socialist Republics (SSR). The first Republics were established shortly after the October Revolution of 1917. At that time, republics were technically independent one from another but their governments acted in close coordination. In 1922, four Republics ( Russian SFSR, Ukrainian SSR, Belorussian SSR and Transcaucasian SFSR) joined into the Soviet Union. Between 1922 and 1940, the number of Republics grew to sixteen. Some of new Republics were formed from territories conquered by the Soviet Union, others by splitting existing Republics into several parts. The criteria for establishing new republics were as follows:
The system remained almost unchanged after 1940. No new Republics were established. One republic, Karelo-Finnish SSR, was disbanded in 1956. The remaining 15 Republics existed until the collapse of Soviet Union in 1991 and became independent countries, with some still loosely organized under the heading Commonwealth of Independent States.
Some republics had common history and geographical regions, and were referred by group names. These were Baltic Republics, Transcaucasian Republics, and Central Asian Republics.
Main article: Economy of the Soviet Union
Based on a system of state ownership, the Soviet economy was controlled by an elaborate system administrative planning from the drafting of the first Five Year Plan ( 1928) to the dissolution of the Soviet Union ( 1991). Major industries ( agriculture, banking, communications, public services, trade, and transportation) were controlled by the state's agents through Gosplan (the state planning commission) and Gosbank (the state bank) according to the priorities of the Communist Party. The Soviet planning bureaucracy determined prices, allocation of resources, and distribution of goods and services. The supply-demand mechanism was absent. Money was distributed as salaries or rewards, and people could freely decide which of the offered goods they want to buy. Their buying decisions, however, had relatively little influence on planning and shortages of in-demand consumer goods were common.
Private property was legal but limited, people could own property for personal use, but not for commercial use, see the main article for more detail.