ABSTRACT
The Soviet Union's only partly satisfactory economic situation shows some positive tendencies and displays stubborn areas of weakness. These have led to continuing discussions about the future direction of Soviet economic policy. The economic growth of 1983 and 1984 was founded on a distinct acceleration in the expansion of industrial production. The growth rate targets of the eleventh five-year plan remain unattainable. The improvement in productivity in Soviet industry shows itself both on the regional and sectoral levels. Resorting to trimming labor reserves allows the Soviet economy to achieve productivity improvements for a time without far-reaching changes in the planning system. Gorbachev himself has declared that economics deserves priority in the whole field of Soviet policy and that thorough modernization of the Soviet economy, and better satisfaction of the consumer and other social requirements of the population can no longer be postponed.
