ABSTRACT
This chapter provides historical perspective for the current round of hierarchical reforms as they concern the economy, as well as to describe them in some detail and to assess their likely results. It deals only with the first two aspects and focuses on the postwar period, leaving the complex third one for a future endeavor. The chapter provides historical background and then describe the actions taken or en train under Gorbachev. It delineates the problem of staff organization and functions, we limit ourselves to those concerned with planning, supply, price setting, and coordination of research and development. The chapter regards to the problem of organizing line functions, we deal primarily with the industrial sector of the economy. It treats the saga of changes in the formal relationships among major line organizations—ministries—and the business firms. It also deals briefly with the relationships between the center and the republics and local soviets.
