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MYTHS AND REALITY OF THE ECONOMIC REFORM OF 1965 IN THE USSR

Elena B. Soshneva, E. A. Samylovskaya

Abstract

Economic history of the Soviet period needs further study to understand the motivations and actions of the state leaders, as well as the response of the population and public institutions to the ensuing results. Soviet political economy was primarily a tool of ideology. The objective laws of economics were not considered, as reflected in the economic policy of the Soviet state. The Kosygin reform of the 1965 takes a special place among the numerous Soviet reforms. They were preceded by the period of political "thaw", which in its content was very controversial. Adopted at the 22nd Congress “the program of the Communist party of the Soviet Union” determined the policy of building communism in the USSR, however, the state of the economy left much to be desired, and the reform of the organizational structure of the economy did not produce positive results. The reforms were necessary and the government attempted to liberalize the economic relations, altering the business management mechanisms. The article analyzes the concept and development of the reform in context of the socio-economic circumstances. Further, the proposed mechanisms of, and obstacles to, the reform are analyzed and discussed. The key impediment to reform was poor understanding of contradictions arising between accountability and state-owned enterprise.

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