Imminence of Capitalism in the Soviet Union
22 September, 2011
Imminence of Capitalism in the Soviet Union

Minor examples of capitalist attempts all over the Soviet Union served as a vivid corroboration of the fact that the introduction of real capitalism was imminent in the country. Capitalization became inevitable and major enterprises were sure to take place of sporadic minor workshops. Professor Simon Maskharashvili has more.

GJ – The ruling elite of the Soviet Union was aware of necessity of reforms in the country even before the entrance of Gorbachev who decided to make practical steps and to

put the country on a totally different track of economic and social development. This was certainly a very difficult, painful and complicated process to embark on, wasn’t it?

SM – Introduction of capitalism in the USSR – the flagman of the world socialist system – was probably an extremely complicated and multi-faceted process. Gorbachev must have been very well aware of this presumption. Therefore, a thorough preparation for the process to start and continue made huge sense. For example, a minor experiment was staged in Soviet Georgia in this connection: in the Abasha district of west Georgia, the peasants (they were not yet called farmers) were given in private ownership certain amount of heads of cattle to work with. The result turned out to be very promising. Soon these cattle ‘farmers’ managed to increase the production and their own revenues.  Even the Minor examples of capitalist attempts all over the Soviet Union served as a vivid corroboration of the fact that the introduction of real capitalism was imminent in the country. Capitalization became inevitable and major enterprises were sure to take place of sporadic small workshops. In order to set the country back on feet it became necessary to privatize and expand major enterprises and to let commerce develop accordingly. Even if the overwhelming and immediate transfer to market economy was not possible yet, the gradual introduction of private property, free market economy, economic competition and profit-oriented activity were becoming absolutely inevitable. There definitely was no other way out. Had it been continued in the old socialist way, the Soviet economy would simply have stopped functioning at a certain point in the nearest future. The incentive for working was simply non-existent in the country. And Gorbachev had got it right.

GJ – Before Gorbachev, general secretary Andropov had tried to introduce certain economic reforms in the Soviet Union, hadn’t he?

SM – Yes he had! The discussion of the issue of possible economic collapse in the Soviet Union had started as early as 1983 in the Kremlin when the construction of the Uzhgorod-Urengoy gas pipe-line was crippled. But the Andropov plan to make people work by force and under terror could not justify itself. This is why the discussion of the problem persistently continued in the Soviet government in search of the optimal way to continue living and working. The government was not prepared to admit the full entry of capitalism, but they were compelled to introduce something partial, like the so called ‘khozraschyot’ – cost accounting – a method of the planned running of an economic unit  based on the confrontation of the expenses incurred in production with the production output, on the compensation of expenses with the income. This much they understood.

GJ – Could you please explain the notion of ‘khozraschyot’ in more comprehensible terms?

SM – I will certainly try my best! A factory or any other enterprise would determine the salaries for workers based on the amount of production and the actual realization of the product. This sounded like the first stage of Soviet capitalism. The Soviet leadership wanted to keep the Soviet people living and thinking within the framework of communist ideology and at the same time let the Soviet economy start rolling onto the capitalist track. In a word, they wanted to give the economy the ‘state capitalism’ orientation, which could be described as management of business and productive forces by the state. In this case, the entire money, generated as profit would go to the deep pockets of the communist party elite representatives exactly as it was happening in China.

Print
Other Stories
17 dead from flu virus in Georgia, but the dynamic is decreasing
17 people have died from clinically confirmed flu virus in Georgia so far.
Tourists climb over fence to enter Jvari Monastery in Mtskheta
Tourists have found an alternative way to enter the territory of Jvari Monastery in Mtskheta.
Georgian couple quitting their jobs  to travel
Georgian couple Elene Gelagutashvili and Giorgi Tevzadze quitted their jobs to embark on adventures to South America.
How is Georgia preparing for Eurovision Song Contest?
Eurovision Song Contest is one of the largest of its kind and around 300 million spectators are getting ready to watch the show.
Georgian emigrant cooking amazing desserts with sugar and ginger
Georgian emigrant Meri Chichiashvili cooks unusual desserts with sugar and ginger.
Khatia Buniatishvili with Zubin Mehta perform in Tsinandali Palace, Georgia
Last year, on the 14th of September famous Georgian pianist Khatia Buniatishvili and the Israeli conductor Zubin Mehta held concert in Tsinandali.
Irakli Grdzelishvili, Georgian actor to act in Grey’s Anatomy
Georgian actor Irakli Grdzeilishvili will participate in one of the most watched American TV series – Grey’s Anatomy.
Glamour magazine about David Koma’s sequin dresses
Glamour magazine has recently published an article naming those “items” everyone will be buying this year.
Famous Youtuber PewDiePie wearing Demna Gvasalia
Felix Arvid Ulf Kjellberg, also known as PewDiePie, was dressed up in Demna Gvasalias’s shirt in one of his videos.
Mariam Goguadze – a Georgian singer and female rugby player
Mariam Giorgadze is a 20-year-old Georgian rugby player.
Ana Kipiani – a talented Georgian pianist
Ana Kipiani is a gifted Georgian pianist. She is currently studying at the Royal College of Music in London.
Exclusive interview with Neka Dorokashvili about herself and her family life
Interviews from Neka Dorokoshvili, wife of famous Georgian tennis player Nikoloz Basilashvili are rare,
Tbilisi Mayor spending holidays in Switzerland with his family
Tbilisi Mayor Kakha Kaladze and the first lady of Georgia’s capital, Anouki Areshidze with their four children are spending the Christmas holidays in Switzerland.
Lady Gaga wearing black vinyl boots by Datuna Sulikashvili
Lady Gaga has recently worn thigh-high black vinyl boots by a Georgian designer Datuna Sulikashvili.
Bera and Nanuka Gudavadze - Photo session in Kazbegi
Bera Ivanishvili is a Georgian rapper. Bera has now released an album “Gpirdebi” (I promise).
Georgian man badly injured by circus tiger in Italy
A 25-year-old Georgian was badly injured by a tiger after breaking into the cage at the Lidia Togni circus, which is currently in Reggio Calabria,
Melania Trump, Michele Obama taking after Georgian star Tina Kandelaki?
Tina Kandelaki is a Georgian journalist who has been living in Russia for years.
Georgian taxi driver in Poland picks up Mikheil Saakashvili
Georgian woman Megi Chkoidze works as a taxi driver in Poland.
Demna Gvasalia accused in plagirasim by Avtandil Tskvitinidze, Georgian designer
Demna Gvasalia was accused in plagiarism by another Georgian designer Avtandil Tskvitinidze.
“Insiders”: New Generation chooses Demna Gvasalia
Melchior Tersen, a Parisian photographer has recently represented a very interesting work for the latest issue of Replica Magazine.
Unforgettable Pre-New-Years party by Beaumonde
Beaumonde, a well-known Georgian magazine organized an unforgettable Pre-New-Year’s party for its readers, partner organizations and celebrities.
Kourtney Kardashian wearing a black dress by George Keburia
American TV star and model Kourtney Kardashian has recently uploaded a photo on Instagram wearing a sexy black dress by George Keburia.
Michelle Obama wearing Balenciaga and David Koma at “Becoming” tour
Michelle Obama has recently been witnessed in Georgian designers’ outfits.
Bringing life into non-living things
Jana Antipova is a Georgian artist. She makes incredible compositions with cobbles.
Tako Natsvlishvili’s photo session for Pain de Sucre
Tako Natsvlishvili is a 20-year old model from Georgia. She was photographed by a prominent French photographer David Bellemere in summer.
PHOTO OF THE DAY

Exchange Rates
GEL Exchange Rate
Convertor
20.01.2019
21.01.2019
USD
1
USD
2.6629
2.6629
EUR
1
EUR
3.0368
3.0368
GBP
1
GBP
3.4463
3.4463
RUB
100
RUB
4.0103
4.0103
Other Stories
World famous British singer Jessie J has decided to wear clothes made by Anouki Areshidze, Georgian designer and wife of the mayor of Tbilisi.
Bassiani, one of the most popular underground clubs not only in Georgia but throughout Europe as well, has opened today
An amazing video made in Georgia by tourists from the Philippines have gone viral on the internet.
Over the recent two days May 12-13 Tbilisi city saw a peaceful protest rally in the center of the city.
Hundreds of people took to the main street Rustaveli Avenue in Tbilisi to protest the raid in Tbilisi’s popular night clubs.
Two bear cubs listed as endangered on the red list were handed over to Tbilisi Zoo,
Tbilisi Mayor Kakha Kaladze and Deputy Tbilisi Mayor Ms. Sophio Khuntsaria have gifted a food stand
Pamela Anderson, famous Canadian American actress and model has appeared in the chic sunglasses by internationally acclaimed Georgian designer George Keburia.
A ski lift accident in Georgia’s eastern Gudauri resort,in particular at Sadzele 5 lift, has left 8 people with injuries.
The ski lift in Gudauri winter resort in Georgia has broke down in the aftermath of which several people have been injured.
GEL Exchange
USD
1
USD
2.6629
EUR
1
EUR
3.0368
GBP
1
GBP
3.4463
RUB
100
RUB
4.0103
January 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31