chapter  4
26 Pages

Perestroïka and the Push Toward Marketization

ByGuoli Liu

perestroika was an ambitious program of systemic transformation. The tom perestroika is subjected to various interpretations. The democratization of the Soviet state and the growth of a pluralist political culture were necessary steps for creating and improving the new pattern of state-market relations in the USSR. Stalin destroyed the New Economic Policy along with its already limited market mechanisms and established the centrally planned economy by commands and coercion. A market-oriented economic culture is necessary for the establishment and development of a well-functioning market. The initial period of perestroika gave the Soviet people great hope. Democratization is a decisive factor in determining future state-market relations in Russia. The very question of marketization is both a political and an economic issue. The shift from the command economy to market mechanisms and the gradual integration of the Russian economy into the world economy will strengthen economic interdependence between the East and the West.