Changes in economic management in USSR

Date of publication: September 1, 1988

Abstract:

Recent changes in economic mechanism in USSR profoundly affect all aspects of national economy. They are closely connected to the shift from administrative methods of management to economic ones, much larger role of enterprises in the economic system, their conversion to full-cost accounting and self-financing, increased responsibility for their operational results, direct linkage of their income level to work performance etc. The changeover involves cardinal reform in planning, pricing, financing and crediting, transition to wholesale trade in industrial goods. This implies creation of new organizational structures to ensure deeper specialisation and more reliable co-production schemes etc. These new ways and methods of management open much greater possibilities for use of marketing in Soviet economy than earlier. Besides this new situation calls for certain revaluation of existing marketing practices in the USSR. These new developments also affect foreign firms having business connections with the USSR. They have to deal now with completely new organisational bodies - foreign trade firms and associations of enterprises and ministries that as of January 1, 1987 received the right for independent dealing on the world markets. However not all foreign companies and soviet enterprises have adopted well enough to these changes. So a lot of mutually beneficial opportunities are missing. Besides there is an acute need for consulting services on the field of marketing for different products on the internal market etc. The paper shows that now when there exist a clear understanding on needs of marketing in the USSR the way is paved for greater cooperation in this field, and gives also a number of recommendation in this matter.

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