Some Recent Changes in Soviet Economic Policy

Abstract

SOVIET economic policy in the few years since Stalin's death has been characterized by flamboyance and ferment. In an attempt to free economic growth from the bottleneck of stagnation in agriculture, Khrushchev has sponsored some extravagant gambles in corn-growing and in expansion of the sown acreage. Policy toward the consumer has gone through two complete reversals: the regime at first experimented with offering the population an improvement in the standard of living, but is now once again asserting that abundance in the future requires austerity today. Perhaps the most startling innovation of all emerged in the past year when the regime began to develop a program of foreign economic assistance as a weapon in its economic competition with the capitalist part of the world. Because of their spectacular nature, these shifts of policy have attracted considerable attention in the West and have been commented on at length. Aware diat the Soviet Union is expanding her economic power at a more rapid rate than are the capitalist countries, Western students of the Soviet economy have sought in these policy changes-some clue as to whether its rate of growth is likely to decline or to be maintained in the future. The early indications of a rise in standards of living that would cause a reduced growth of heavy industry and so a decline in investment and in the rate of growth have now been dispelled. The inability of Soviet agriculture to provide an expanding food supply for a growing work force certainly appears to be a real threat to industrial growth, and with die failure of Khrushchev's gambles, this threat remains. Thus the evidence as to the over-all effect of these changes on the rate of expansion of die Soviet economy is still inconclusive.