Shock therapy (economics)In economics, shock therapy is a group of policies intended to be implemented simultaneously in order to liberalize the economy, including liberalization of all prices, privatization, trade liberalization, and stabilization via tight monetary policies and fiscal policies. In the case of post-Communist states, it was implemented in order to transition from a command economy to a market economy. Shock therapy is a program intended to economically liberalize a mixed economy or transition a planned economy or developmentalist economy to a free-market economy through sudden and dramatic neoliberal reform.
State socialismState socialism is a political and economic ideology within the socialist movement that advocates state ownership of the means of production. This is intended either as a temporary measure, or as a characteristic of socialism in the transition from the capitalist to the socialist mode of production or to a communist society. State socialism was first theorised by Ferdinand Lassalle. It advocates a planned economy controlled by the state in which all industries and natural resources are state-owned.
Soviet rubleThe ruble or rouble (ˈruːbəl; рубль) was the currency of the Soviet Union. It was introduced in 1922 and replaced the Imperial Russian ruble. One ruble was divided into 100 kopecks (копейка, pl. копейки – kopeyka, kopeyki). Soviet banknotes and coins were produced by the Federal State Unitary Enterprise (or Goznak) in Moscow and Leningrad. In addition to regular cash rubles, other types of rubles were also issued, such as several forms of convertible ruble, transferable ruble, clearing ruble, Vneshtorgbank cheque, etc.
Bureaucratic collectivismBureaucratic collectivism is a theory of class society. It is used by some Trotskyists to describe the nature of the Soviet Union under Joseph Stalin and other similar states in Central and Eastern Europe and elsewhere (such as North Korea). A bureaucratic collectivist state owns the means of production, while the surplus or profit is distributed among an elite party bureaucracy (nomenklatura), rather than among the working class. Also, most importantly, it is the bureaucracy—not the workers, or the people in general—which controls the economy and the state.
Central Committee of the Communist Party of the Soviet UnionThe Central Committee of the Communist Party of the Soviet Union was the executive leadership of the Communist Party of the Soviet Union, acting between sessions of Congress. According to party statutes, the committee directed all party and governmental activities. Its members were elected by the Party Congress. During Vladimir Lenin's leadership of the Communist Party, the Central Committee functioned as the highest party authority between Congresses.
Economic planningEconomic planning is a resource allocation mechanism based on a computational procedure for solving a constrained maximization problem with an iterative process for obtaining its solution. Planning is a mechanism for the allocation of resources between and within organizations contrasted with the market mechanism. As an allocation mechanism for socialism, economic planning replaces factor markets with a procedure for direct allocations of resources within an interconnected group of socially owned organizations which together comprise the productive apparatus of the economy.
Dissolution of the Soviet UnionThe dissolution of the Soviet Union was the process of internal disintegration within the Soviet Union (USSR), which resulted in the end of the existence of the country and of its federal government as a sovereign state, which in turn resulted in its 15 constituent republics gaining full independence on 26 December 1991. It brought an end to General Secretary (also President) Mikhail Gorbachev's effort to reform the Soviet political and economic system in an attempt to stop a period of political stalemate and economic backslide.
Administrative-command systemThe administrative-command system (Administrativno-komandnaya sistema), also known as the command-administrative system, is the system of management of an economy of a state characterized by the rigid centralization of economic planning and distribution of goods, based on the state ownership of the means of production and carried out by the governmental and communist party bureaucracies ("nomenklatura") in the absence of a market economy. The term is used to describe the economy of the Soviet Union and the economies of the Soviet Bloc which closely followed the Soviet model.
