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The Second Economy in the Soviet Union

In: The Second Economy in Marxist States

Author

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  • Louise I. Shelley

Abstract

The Soviet economy is a model for many nations that have followed the socialist form of economic development. Many of these states adopted a centrally-controlled and state dominated economy. An examination of their economies reveals that many socialist nations have followed the same pattern as the USSR. A centralised planning process, a system of fixed wages, established price controls, and extensive regulations govern the official economy. But alongside the official economy, a large unofficial economy, popularly called the second economy,1 has arisen, adding much flexibility to the economic system.

Suggested Citation

  • Louise I. Shelley, 1990. "The Second Economy in the Soviet Union," Palgrave Macmillan Books, in: Maria Łoś (ed.), The Second Economy in Marxist States, chapter 2, pages 11-26, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-20422-9_2
    DOI: 10.1007/978-1-349-20422-9_2
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    Cited by:

    1. Ivo Bicanic & Katarina Ott, 1997. "The Unofficial Economy in Croatia : Causes, Size and Consequences," Occasional paper series 03, Institute of Public Finance.

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