The number one problem was that the plan specified outputs in physical terms, and managers maximized tonnages of output, not its quality. So, low-quality Soviet products lost competition to better products from abroad which the «black market» offered, while the home warehouses and stores were stuffed with homemade goods. Secondly, the economic flow became increasingly clogged and clotted due to the fact that planners in Moscow could not efficiently for see all the situations of the on-site production in the provinces or elsewhere. But the real danger of socialism was that of a bureaucratization of economic life. A capitalist firm responds to challenges offered by the economy by changing prices and innovating because failure to do so will cause it to lose money.
A socialist ministry ignores these challenges because bureaucrats learn that doing something is more likely to get them in trouble than doing nothing, unless doing nothing results in absolute disaster.
Absolute economic disaster was reached in the Soviet Union and its Eastern former satellites, which made President Mikhail Gorbachev announce his intention to reconstruct the economy from top to bottom by introducing the market, reestablishing private ownership, and opening the system to free economic interchange with the West. Seventy years of socialism had come to an end.
Слова и выражения:
abort
– прерывать (apex
– вершина, макушкаarchitect
– архитекторbureaucrat
– бюрократbureaucratization
– бюро – кратизацияcentrally
– централизованноchallenge
– «вызов», опасностьclog
– засорять, забиватьclot
– сгущаться, тромбировать(ся), забиватьcornerstone
– краеугольный каменьcruelty
– жестокостьdirective
– директиваdisaster
– катастрофа, бедаfailure
– неудача, провалforce
– сила; вынуждать силойforsee
– предвидетьgap
– провал, разрыв, пробелignore
– игнорироватьinstitute
– устанавливать, вводитьinterchange
– взаимообменmalfunction
– неправильное функционированиеmaximize
– максимизироватьministry
– министерствоmobilize
– мобилизоватьpartial
– частичныйprerevolutionary
– дореволюционныйratio
– коэффициент, соотношениеreestablish
– восстанавливатьremedy
– лекарство, лекарственное средствоstuff
– вещество, вещи, мусор; набиватьsurpass
– превосходить, оставлять позадиtarget
– цельwarehouse
– склад (put in practice
– ввести в практикуprofit drive
– стремление к прибылиpyramid of command
– командная пирамидаtarget rate of growth
– целевые темпы ростаdue to the fact
– благодаря тому фактуon-site
– «на месте»is more likely
– в большей степени вероятноfrom top to bottom
– сверху донизуAnswer the questions:
1. What is the definition of socialism?
2. Who is usually thought to be the architect of socialism?
3. What was Lenin trying to substitute the profit drive and the market mechanism with?
4. What made Lenin introduce NEP?
5. What was the role of Gosplan?
6. What was the number one problem for the socialist planning?
7. What products were the Soviet goods to compete with?
8. Why was the economic flow increasingly clogged and clotted in the Soviet economic system?
9. What was the real danger of socialism for the national economic system?
10. What intention did Mikhail Gorbachev announce?Communism and Economics