Beastrabban\'s Weblog

Aganbegyan Pic

Abel Aganbegyan, leading economist of Perestroika

One of the ways the last Soviet leader, Mikhail Gorbachev, attempted to reinvigorate the country’s economy was through the establishment and transformation of state industries into workers’ co-operatives. They were also intended to create jobs for workers, who had been made unemployed through Gorby’s other reforms aimed at making the country’s industries more efficient. This started with 1986 Law on Economic Activity, which permitted a very limited amount of private enterprise. The only people permitted to work for themselves, either as self-employed or in co-operatives, were pensioners, students and employees working after hours. The materials they used had to be surplus to those of the state industries. The co-ops were restricted to a list of 29 permitted activities, such as taxi-driving and dress-making. This effectively legalised what many Russians were already doing any way. In March 1988 the restrictions were further lifted, so that…

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