Word: shatalin
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...quite, at least not yet. Gorbachev, it turned out, is still beset by doubts over how to dismantle the centralized economy, and how quickly. Two weeks ago, he seemed determined to present a single economic program to the nation, combining elements from both the Ryzhkov and Shatalin programs. Gorbachev asked Abel Aganbegyan, one of the early architects of his perestroika policy, to draft the joint package. Last week the economist delivered his report to the Supreme Soviet. According to Aganbegyan, it had proved impossible "to make a single program out of the two." The compromise plan that he presented...
...Soviet President was particularly eager to dilute or delete the passages that transfer economic autonomy from the central government to the Soviet Union's 15 republics. Shatalin had proposed that even the tax collection be done by each republic. Gorbachev indicated that he would rather see such problems resolved in a new Union treaty...
Gorbachev also tinkered with the timetable and scope of some of the proposed reforms to make the changes less jolting. The Aganbegyan document, along with copies of the complete Shatalin plan, the Ryzhkov proposals and materials on 120 alternative schemes considered by a separate study group led by Aganbegyan, were dispatched last week to the Soviet parliament and the parliaments of Russia and the other republics...
...prices cannot stabilize as long as there are too many rubles chasing too few consumer goods. The Shatalin plan calls for absorbing excess rubles from the Soviet economy by selling back state-owned assets to the public. In addition, Gorbachev last week raised the idea of devaluing the official exchange rate for the ruble, from $1.66 all the way down to 50 cents. Economists for the Gorbachev-Yeltsin commission contend that once sufficient amounts of money have been pulled out of circulation, prices can be liberalized, since real market forces will operate to keep them stable. Unlike the Poles, argues...
After the stormy parliamentary session, Ryzhkov and a grim-looking Deputy Prime Minister Leonid Abalkin hinted that disaster would result if the Shatalin plan were approved without changes. Abalkin warned that trying an unsuccessful form of "shock treatment" might leave "the populace and the government allergic to the market idea for decades." Ryzhkov expressed concern that by giving free rein to market forces, the Gorbachev-Yeltsin group plan might set off a "staggering surge of prices, destabilize economic life and disorient enterprises...