ABSTRACT

This chapter argues that economic incentives provides a good starting point for approaching this bundle of thorny questions. Of all the components of income wages, premia, access to goods, social benefits only the first two will be discussed in detail. The preliminary nature of this chapter should be emphasised: only a beginning has been made here at surveying a wide literature. If full socialism thus was generally seen to be just around the comer, it was also natural that economic incentives were seen as becoming old-fashioned. The incentive system of the classic Soviet-type economic system has often been described in the literature. The Soviet industrialisation drive of 1928-32 underwent several phases, each of which was also reflected in the status of khozraschet. Financial stability was now emphasised in deeds too. To standardise the financial relations of enterprises and the state it was decided in September 1930 that enterprises should pay their contribution into the state budget in two forms.