Latsis: Economic Reform in USSR, page 7

National Economic Development Plan for 1990


Of course, the problems that have been piling up over the decades cannot be resolved overnight. The fulfillment of the 1989-1990 plan targets can check the deterioration of the economic situation and stop the growth of social tensions. The Soviet economy has all means at its disposal to begin working normally fairly soon: there are plentiful natural resources, the world's second largest industry and a powerful scientific and technological potential; a long-term concept of the reform is being developed; adequate economic mechanisms are being developed at enterprise level, and the processes of self-government and self-financing in the constituent republics are being worked out. We are going through the difficulties of transition, caused by our being 30-40 years late with the reform, and also by our inconsistency in introducing it.

A certain social mentality typical of socialism is also in the way. People tend to think, simplistically, that socialism is a system for the working people, which should protect and provide for everyone. It is a system of equal, and therefore the supposedly fairest, distribution. Such ideas have taken root in public consciousness, while Lenin's premise that socialism should have higher labour productivity than any other system has been relegated to the background.

We want to gain everything while losing nothing, and that is one of the difficulties of perestroika. But in politics we must make little sacrifices for the sake of large gains. The "advantage" of shoddy workmanship must finally go. Society must ultimately shake off its laziness, even though this offers an easier and more relaxed life than applying oneself to the limit. Unless such attitudes are left behind, our prospects are bleak.

We must not underestimate the constructive work done in the economy in the recent period in spite of all the present difficulties and the novelty of the problems. The national economic leadership is overcoming old stereotypes and shifting its efforts, which is the primary precondition of improvement.

It is heartening that the government has come to grips in earnest with the huge budget deficit. The original intention was, as the first Congress of People's Deputies was told, to cut it by 29 billion roubles in 1989 and by 34 billion roubles next year. But that would have been nowhere near enough for the necessary rapid improvement of the economic situation, Deputies' criticism made the government revise its programme, and the task now is to cut the deficit back to 60 billion roubles in 1990. It is a sensible and realistic, if tough, approach. If it is carried through, we will quickly be able to stabilise our finances.

The national economic development plan for 1990, approved by the Supreme Soviet of the USSR, has set a series of priorities in the social sphere. All sectors of the national economy will be effectively re-oriented primarily to meeting people's needs. The plan was keenly debated in Parliament. While noting its positive aspects, many speakers pointed out that no mechanism had been devised to couple planning with the market economy, and that the structural shift was not being backed with any serious reallocation of resources. The deputies' exacting attitude is explained by the fact that emergency measures are to be put into effect.

The draft laws mentioned above were considered in the same spirit; they are a package of basic measures designed to usher in a new stage pf the economic reform and to prepare the ground for a drastic reconstruction of relations of production.

I am certain that the implementation of these measures will create the right conditions for the healthy functioning of the new economic system and for resolving pressing social problems. Only then will a stable and dynamic economic growth become a reality.


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