A Stakeholder analysis of the Soviet second economy

CHOI, Jae-hyoung

Abstract: This research aims to demonstrate, through a stakeholder analysis, that the

institutionalization of the second economy in the Soviet Union was a natural byproduct of the interaction among three major stakeholders of Soviet society: the state, the bureaucracy, and the people. The three stakeholders responded to the incentive structure of the socialist economic system, interacting with each other in order to enhance their own interests. This research argues that their interaction was the internal necessity or dynamics that formed this informal market mechanism and elevated it to a characteristic feature of Soviet society

Keywords: Informal sector (Economics)--Soviet Union.
Soviet Union--Economic conditions.

Contents: 1. Introduction

1.1 Literature Review

2. The Soviet State

2.1 Legal and Institutional Framework of the Soviet Economy

2.2 Economic Planning and Macroeconomic Disequilibria

3. The Soviet People

4. The Soviet Bureaucracy

4.1. Historical Analysis of the Structural Defect of the Soviet Bureaucracy

4.2. Corruption and Bureaucratic Entanglement with the Second Economy

5. Conflict of Interests between State and Bureaucracy

5.1. Bureaucratic Resistance against Andropov’s Reform

5.2. Perestroika and Bureaucratic Mass Defection

6. Conclusion