The Soviet economy during the Khrushchev thaw: bold reforms and the contradictory implementation

This article delves into the peculiarities of the economic development of the USSR during the years 1953-1964. It illustrates Nikita Khrushchev's endeavor as a political leader to enact economic transformations in the country in line with his ideological course of de-Stalinization and relative liberalization. It argues that the absence of a pragmatic economic strategy based on the actual state of affairs in the country led to the implementation of inconsistent reforms, primarily focused on organizational and administrative changes. Economic decisions during the Khrushchev Thaw, including the abolition of sectoral planning, introduction of egalitarian wage systems, nationalization of industrial cooperatives, and transition to a territorial principle of economic management, were conceived as bold innovative reforms but failed to consider the actual conditions and accumulated historical experience, leading to a crisis in the industrial sector. In conclusion, the economic policies pursued during the Khrushchev Thaw exemplify the challenges of implementing bold reforms without a pragmatic understanding of the prevailing economic conditions. The crisis in the industrial sector underscores the importance of evidence-based decision-making and historical context in shaping effective economic strategies.