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What actually caused the economic inefficiencies (shortages, stagnation, lines, etc.) of the late USSR and Warsaw Pact?

I understand that there was still much good about the Soviet/Eastern Bloc system and shortages and all didn't always happen and revisionism would eventually cause all sorts of issues. However, I'm looking for a detailed answer (feel free to send links too) to what actually caused the infamous economic struggles that many people faced (which apparently isn't just completely bourgeois propaganda) in the Soviet Union and other Warsaw Pact nations (particularly in their later years).

star (she) - 21hr

i wrote a comment about this a while ago. reposted:

  1. WW2 destruction and recovery. Around a third of the population was either dead or wounded. The most industrially and agriculturally developed areas (for one Ukraine) were devastated. After the war, USSR was economically and politically isolated, they did not benefit from the Marshall Plan like western europe. USSR invested into the eastern block to rebuild cities and industries there. A capitalist country under such economic and demographic strain would fold in 5 years imho. Later on, there were huge investments into the military industry, including support to socialist revolutions around the world, which put more strain on the economy.
  2. Increasing economic complexity. After the war, the amount of commodities/materials/indicators in the economy has increased exponentially. As there was a labour shortage (see point 1.), the economic planning model had to be adjusted to accommodate the capacity of the Gosplan. There was a point where cybernetics was considered, but the idea was dropped for being quite experimental and costly to implement. So instead, a retreat to markets was implemented in the form of Kosygin reforms (profit was created as an indicator, other indicators were simplified etc.).
  3. Kruschev and dilution of party goals. During his leadership, Kruschev implemented party reforms that have diluted its class character and down-played importance of struggle (like the anti-Stalin speech for instance). It was one of the issues that flung the party and USSR into a spiral of "reforms for the sake of reforms" rather than analysis them as either a retreat or advancement towards communism.
  4. Sabotage and public property misuse (corruption). The limited market reforms + party ideological crisis has created a certain "proto-capitalist" class that mainly consisted of factory managers who often appropriated public property for personal gains. They were the main proponents (as a class) for market reforms, but they only really gain power after Gorbachev's liberalisation and legalisation of private enterprises. Before Gorbachev, this class was very marginal and could be dealt with anti-corruption measures and modernisation, policies that were proposed by Andropov in 1982.

to conclude, there were no deeply ingrained issues, but a lack of capacity, imposed by the war and global isolation.

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fire86743 - 21hr

Asking out of curiosity: how much would OGAS have been able to resolve or minimize these issues?

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star (she) - 21hr

We will never know. To speculate, I would say that it would have resolved the issue of economic complexity, but it leaves a lot of questions on implementation. How resistant is the system to tampering? How is the economy modeled? How centralized is the system?

A proper implementation of OGAS would probably have taken a decade or two to test and debug so it could run reliably on a national scale. Considering that the USSR has a great shortage of computing power (due to sanctions mostly) I’m not sure it wouldve been possible to complete OGAS.

And then, you still have labour shortage and party organisation issues that OGAS does not solve.

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La Dame d'Azur - 18hr

I think we all know it was because Stalin ate all the grain with his comically large spoon.

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Large Bullfrog - 10hr

Economic isolation and being forced to maintain a colossal army are probably the main reasons. Franco's reactionary Spain tried a policy of economic autarky and it didn't work any better for him. It also got hindered by entrenched bureaucratic elements that prevented the USSR from capitalizing on the potential strengths of having of planned economy, such as project OGAS getting shut down by government workers just because they didn't want to get displaced.

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marl_karx - 11hr

I think it became overly dogmatic in some aspects and too "rigid". The partnership in the Treaty of Friendship, Cooperation, and Mutual Assistance became more and more top-down instead of equal, which is in itself a contradiction of internationalist marxist policies that were advocated for. In response to NATO, the system became more of an extension to soviet bureaucracy, which angered many of the working class in the other pact states, because it felt like or "resembled" a system which felt too close to imperialist rulership with peripheral countries. Also, the COMECON failed to achieve economical convergence and rather deepened devolopmental gaps between the member states (for example compare Romania's economy to GDR and you will see what I mean). Some people also complain about the bureaucracy becoming it's own class but I think it's bs, I am not a leftcom. Although I think some were becoming too greedy in the way of wanting to own things a common worker could almost never own. This also stifled resentment.

So, to conclude I would say the Warsaw Pact did not fail because the idea of collective socialist defense was invalid. The threat of NATO was very real. It failed because its actual practice betrayed the very socialist and internationalist principles it claimed to uphold. It became a mechanism for bureaucratic control, masking deepening economic inequalities and national tensions. Its dissolution was the political-military consequence of the broader crisis of a specific, historically-formed model of socialism, one marked by bureaucratic deformation, economic stagnation, and a negation of genuine workers' democracy and national self-determination. Therefore, its end is seen not as a refutation of Marxism, but as the necessary collapse of a structure that had deviated from core Marxist principles.

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cfgaussian - 10hr

for example compare Romania's economy to GDR and you will see what I mean

This isn't entirely fair to blame on the socialist bloc's system as a whole. Romania deliberately chose to follow a more independent, autonomous path from the Soviet Union and distance itself from the bloc somewhat. This is a legitimate choice and as a Romanian i understand why it was made. It's fine to want to preserve your national independence but then you don't get to blame the problems (such as being forced to take out IMF loans) stemming from trying to go it alone on the bloc that you deliberately chose to keep a distance from. I have heard too many times other Romanians complain about not being helped enough by the Soviet Union while also denouncing the Soviet Union for being overbearing. But we can't have it both ways. At least Yugoslavia stood by its choice.

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marl_karx - 10hr

Yes that's what I mean. The member states were caught in a dilema between autonomy and integration, which was never resolved. In my view the only way this could be resolved is either by giving them complete autonomy with some sort of loose cooperation network. The Warsaw pact system tried to do something inbetween, which, at least when I talked to people who lived during that time, ofted created resentment because they percived the USSR as an overlord. I know it sounds a bit stupid, but that is how people tend to think, because humans are not always rational. The way people like Gorbatchov tried to resolve this was too much in too little time, it created too much instability. I think for the future we should learn from exampled like China for good governance. Please do not misunderstand me, I don't hate the USSR or anything, but I think it is important to uphold a high standard in self-critique. I would argue that the principles of sovereignty, equality, and mutual respect were not always upheld to a high standard.

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marl_karx - 10hr

What I mean is that generally the working class loved the socialist system, but it got overshadowed by the unresolved contradictions which continued to grow over time, eventually leading to a collapse.

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