Question

why were economic reforms necessary in USSR​

Answer 1

Economic Reform in the USSR

the transition that took place in the mid-1960’s—after the March and September 1965 plenums of the Central Committee of the CPSU—to a new system of management based on improved centralized planning, broader use of economic management techniques, greater autonomy in the economic operation of enterprises and economic organizations, and workers’ increased responsibilities, as well as great material incentives, in raising the efficiency of production.

The factors that led to the economic reform were the higher level of development and scale of production and the greater complexity of economic relations caused by the scientific and technological revolution; these circumstances demanded, on the one hand, greater concentration on the long-range problems of improving production and, on the other, a high degree of operational efficiency in day-to-day economic activity. The system of economic management that had evolved was now hindering the effort to increase the productivity of labor and the efficiency of production, thereby reducing the possibility of achieving rapid growth in the material and cultural level of the population and high scores in the economic competition with capitalism.

The reform of wholesale prices was an important component of the economic reform. Effective profit-and-loss accounting demanded that prices more fully reflect the socially necessary labor expenditures on production, that unprofitable operations in various branches of the national economy be eliminated, and that prices be more effectively used to improve the quality of products and modify the product mix. The reform of wholesale prices (1967) made it possible to plan prices in terms of the capital-output ratio of production.

With the economic reform, the use of commodity-money relations and cost categories in the national economy was substantially expanded. Bourgeois economists tried to use this circumstance to distort the content of the reform; they interpreted the reform as the abandonment of the foundations of socialism, as a denial of the Marxist-Leninist principles of economic construction of the new society, as an evolutionary step toward capitalism, as a kind of “liberalization” of socialism, or as evidence of the “convergence” of the two systems. Events have shown, however, that the economic reform represents the further development of the specific forms of organization of socialist production and is directed toward the improvement and consistent implementation of the management principles developed by V. I. Lenin and enriched by the practice of economic construction in the USSR and in the other socialist countries.

The economic reform was a factor in the greater efficiency of social production and in the growth of the country’s economic potential in the stage of advanced socialism. On the other hand, improvements in economic relations are not limited to those achieved within the framework of the economic reform. The course of communist construction is marked by continuing efforts to further improve the mechanism and techniques of economic management.

Answer 2

The economic reforms necessary in USSR because it is used to promote socialist competition.

Explanation:

• The transition in the mid-1960s after the plenary sessions of March and September 1965 of the CPSU Central Committee — to a new management system based on improved centralized planning, wider use of economic management techniques.
• Increased autonomy in the economic operation of businesses and economic organizations and increased responsibilities of workers, as well as major material incentives, in increasing production efficiency.
• The factors that led to the economic reform were the higher level of development and production size and the greater uncertainty of the economic relations generated by the change in science and technology.

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