ABSTRACT
The Soviet economy suffers from numerous well-known ailments: dwindling natural resources; inefficient utilization of capital and labor; overcentralization and organizational rigidities; insufficient horizontal ties between enterprises; inadequate transport and infrastructure; and outdated technology. The Joint Economic Committee report to Congress described Soviet plan targets for economic growth over the next Five-Year Plans as highly unrealistic. Mikhail S. Gorbachev has publicly moved from a position of cautious tinkering to endorsement of an economic revival through major economic reform. CIA analyst Gertrude Schroeder concludes that "taken as a whole" the package of reform measures is "impressive" and "represents a comprehensive package, embracing nearly every aspect and sector of the economy." Agricultural reform, given that sector's enormous inefficiencies, would provide a flow of goods and services at relatively little pain. Sold at high prices, imports would both soak up excess purchasing power and provide the missing stimulus for greater effort at the workplace.
