What was the Classical System?

Russia – Nikita Khrushchev's Economy, 1953-1964

In this course, Dr Emilio Carnevali (Northumbria University) discusses the Soviet economy through the rule of Nikita Khrushchev, 1953-64. In the first lecture we introduce Kornai’s concept of the classical system of the Soviet Economy. In the second lecture we explore the context, from the state of the USSR as it was left by Josef Stalin, and the atmosphere in which Khrushchev was attempting to build a new Soviet Union. Third, we investigate agricultural reform, looking at the Virgin Lands Scheme and the corn Campaign. In the fourth lecture, we examine Soviet industry and the prioritisation of light industries, consumer goods and housing over heavy industry. Finally, in the fifth lecture, we conclude with an overview of the legacy left by Khrushchev and the lasting impact of his economic reforms.

What was the Classical System?

In this module we think about the economy of the Soviet Union and the application of the Classical System, focussing on: (i) Khrushchev’s take over of the Soviet Union and inheritance of Stalin’s economy; (ii) the key features of Stalin’s ‘Classical’ economic model,including the dominance of the Communist Party, state ownership of industrial firms, collective agriculture, and centralised economic planning; (iii) Khrushchev sought to reform the system, addressing inefficiencies such as shortages and rigid production targets.