Economic Reform in the Soviet Union - the Need for Comprehensive Reform

Resum

This paper discusses the prospects for economic reform in the Soviet Union and summarizes the recommendations that were made in a «Joint Study» by the IMF, the World Bank, the OECD, and the EBRD. The paper starts with a review of recent economic trends and a discussion of political factors which condition the economic reform effort. The economic reform program recommended by the four international agencies is outlined under the headings of macroeconomic management, systemic reform, and transitional measures. Because of the close inter-relationships between the policies and institutional reforms proposed, emphasis is placed on the need for a comprehensive reform, i.e., simultaneous or nearly simultaneous action in many areas. This is followed with a summary of the recommendations regarding external assistance. The paper concludes with comments on the prospects for the future.