The economic reform of 1965 in the USSR

When in 1959 the government of the USSR adopted the seven-year plan, the question of intensification of production was first posed and scientifically justified. But he was brought to the fore much later.

At the end of the seven-year period, the rates of productive growth not only did not increase, but significantly decreased. The capital productivity ratio also declined.

In 1964, in March, a new grouping was in power. It should be noted that the new political education (according to a number of researchers) did not show an active desire to carry out economic reforms in the country. However, it was simply impossible not to react to the situation at that time. The industrial and agricultural issue was especially acute. In some areas of the state, the lack of foodstuffs provoked the need to introduce standardized supply (by coupons) of the population.

In 1965, in March, the Plenum of the Central Committee of the CPSU was held . The new leader of the party, Brezhnev, spoke on it. Leonid Ilich spoke about the need to take urgent measures for the further development of the agricultural sector.

Undoubtedly, after the March Plenum, the state policy could not change at first. However, this period played an important role in the further economic development of the USSR. So, after the Plenum, allocations for rural needs have increased, the cost of products sold to the state has risen, the energy supply has increased and the material and technical base of agriculture has improved.

At the September Plenum of the Central Committee of the CPSU, the government adopted a resolution on making improvements in the management of industry, on the development and improvement of planning, and on strengthening the stimulation of industry and production. With the adoption of this resolution, the economic reform of 1965 began in the USSR.

Most researchers associate the transformations with Kosygin's activities. The report of the September plenum included some of EG Lieberman's proposals (a well-known economist).

The economic reform of 1965 was conceived on the model of the system that existed in the country during the NEP. However, the essential difference was that in the 1920s, private enterprises played an important role in the economy, which were completely absent in the 1960s and 1970s.

The economic reform of 1965 in its concept envisaged three directions.

To improve the quality of products and increase production volumes, it was necessary to increase the material interest of the collectives at the enterprises. The government planned to hold relevant events.

In addition, the economic reform of 1965 envisaged the adoption of certain measures to improve planning. They were aimed at ensuring that the adopted plans ensure the proportional development of agricultural industries and an increase in the production and technical level.

The third direction, which should have touched on the economic reform of 1965, was the system of industrial management. It was assumed that the existing economic councils would be liquidated and replaced by ministries that were to become not only Union-wide, but also union-republican. Thus, a unified technical progress would be ensured.

Economic reform in the USSR was to facilitate the transition from the administrative system of economic management to economic methods.

An important task of transformation was to increase the operational and economic independence of organizations and enterprises. Reform proclaimed production the main link in the socialist economy.

Thus, enterprises were given unprecedented freedom. From that moment, they could themselves plan the rate of development of labor productivity, lowering the cost price. In addition, enterprises could themselves set the average wage.