 |
Business | Industries | Finance | Tax |
| Index: > A B C D E F G H I J K L M N O P Q R S T U V W X Y Z |
|
|||||
| First Prev [ 1 2 ] Next Last |
At the June 1987 plenary session of the Central Committee of the Communist Party of the Soviet Union (CPSU), Gorbachev presented his "basic theses," which laid the political foundation of economic reform for the remainder of the decade.
In July 1987, the Supreme Soviet passed the Law on State Enterprises. The law stipulated that state enterprises were free to determine output levels based on demand from consumers and other enterprises. Enterprises had to fulfill state orders, but they could dispose of the remaining output as they saw fit. Enterprises bought inputs from suppliers at negotiated contract prices. Under the law, enterprises became self-financing; that is, they had to cover expenses ( wages, taxes, supplies, and debt service) through revenues. No longer was the government to rescue unprofitable enterprises that could face bankruptcy. Finally, the law shifted control over the enterprise operations from ministries to elected workers' collectives. Gosplan's responsibilities were to supply general guidelines and national investment priorities, not to formulate detailed production plans.
The Law on Cooperatives, enacted in MayThis article is about the month of May. For other uses, see May (disambiguation). May is the fifth month of the year in the Gregorian Calendar, with 31 days. It may have been named for the Roman goddess Maia or more likely for the Roman goddess of fertili 1987, was perhaps the most radical of the economic reforms during the early part of the Gorbachev regime. For the first time since Vladimir LeninVladimir Ilyich Lenin ( Russian: ), original name Vladimir Ilyich Ulyanov ( Russian: ) ( April 10 ( April 22, New Style), 1870 January 21, 1924), was a Russian revolutionary, the leader of the Bolshevik party, the first Premier of the Soviet Union and the's New Economic PolicyThe New Economic Policy or NEP was a system of economic reforms, partly market-oriented, that Vladimir Lenin instituted in the Soviet Union in 1921. The emergency policy of War communism, intoduced during the Russian Civil War, was terminated, and the NEP, the law permitted private ownership of businesses in the services, manufacturing, and foreign-trade sectors. The law initially imposed high taxes and employment restrictions, but it later revised these to avoid discouraging private-sector activity. Under this provision, cooperative restaurants, shops, and manufacturers became part of the Soviet scene.
Gorbachev brought perestroika to the Soviet Union's foreign economic sector with measures that Soviet economists considered bold at that time. His program virtually eliminated the monopoly that the Ministry of Foreign Trade had had on most trade operations. It permitted the ministries of the various industrial and agricultural branches to conduct foreign trade in sectors under their responsibility rather than having to operate indirectly through the bureaucracy of trade ministry organizations. In addition, regional and local organizations and individual state enterprises were permitted to conduct foreign trade. This change was an attempt to redress a major imperfection in the Soviet foreign trade regime: the lack of contact between Soviet end users and suppliers and their foreign partners.
The most significant of Gorbachev's reforms in the foreign economic sector allowed foreigners to invest in the Soviet Union in the form of joint ventures with Soviet ministries, state enterprises, and cooperatives. The original version of the Soviet Joint Venture Law, which went into effect in June 1987, limited foreign shares of a Soviet venture to 49 percent and required that Soviet citizens occupy the positions of chairman and general manager. After potential Western partners complained, the government revised the regulations to allow majority foreign ownership and control. Under the terms of the Joint Venture Law, the Soviet partner supplied labor, infrastructure, and a potentially large domestic market. The foreign partner supplied capital, technology, entrepreneurial expertise, and, in many cases, products and services of world competitive quality.
Although they were bold in the context of Soviet history, Gorbachev's attempts at economic reform were not radical enough to restart the country's chronically sluggish economy in the late 1980sMillennia: 1st millennium 2nd millennium 3rd millennium Centuries: 19th century 20th century 21st century Decades: 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s 2020s 2030s Years: 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 Events and trends. The reforms made some inroads in decentralization, but Gorbachev and his team left intact most of the fundamental elements of the Stalinist system-- price controls, inconvertibility of the ruble1998 Russian Federation one rouble coin. Heads (right) and tails (left) 1898 Russian Empire one rouble bill. 1898 Russian Empire one rouble bill. The ruble ( Russian French-derived transliteration rouble is the name of the currency of the Russian Federati, exclusion of private property ownership, and the government monopolyAlternate use: Monopoly (game In economics, a monopoly (from the Greek monos one + polein to sell) is defined as a market situation where there is only one provider of a product or service. Monopolies are characterized by a lack of economic competition fo over most means of production.
By 1990Events January January 3 Former leader of Panama Manuel Noriega surrenders to American forces. January 7 The Leaning Tower of Pisa is closed to the public due to safety concerns. January 9 Lt Gen Bazilio Olara Okello The man who led the coup aginst Dr Apo the government had virtually lost control over economic conditions. Government spending increased sharply as an increasing number of unprofitable enterprises required state support and consumer price subsidies continued. Tax revenues declined because revenues from the sales of vodka plummeted during the anti- alcohol campaign and because republic and local governments withheld tax revenues from the central government under the growing spirit of regional autonomy. The elimination of central control over production decisions, especially in the consumer goods sector, led to the breakdown in traditional supplier-producer relationships without contributing to the formation of new ones. Thus, instead of streamlining the system, Gorbachev's decentralization caused new production bottlenecks.
| Politics | Business | Finance |
 |
 |
 |
|