ABSTRACT
This chapter looks at the most visible alterations in the Soviet economic system from the standpoint of their feasibility and the difference, if any, they can make. It suggests a model of Soviet economic reform. The chapter believes that, for the reform to succeed, some fundamental changes in the Soviet socioeconomic system must be introduced. It purposes the worker equity-ownership program, discussed below in detail, is at the heart of the model. The chapter analyzes the developments in economic reform in the Soviet Union. The idea of self-investment and self-financing is not new to Soviet economic planning; yet it has begun to be implemented in industry. The allocation of resources under new economic mechanism is geared to the industries inducing technological change in the Soviet economy, in particular machine-building and metalworking. Worker equity ownership can cut the vicious circle of Soviet economic reform.
