Abstract

Yevsei Liberman posed a reformist agenda to improve the material incentive system and increase the profitability of enterprises, as a person at the center of the controversy related to the reform or improvement of the system of Soviet and Eastern Socialism during the Cold War. This was a question of how to provide incentives to increase the profitability of individual and whole enterprises. His argument is also directly related to the debate on the essential nature of the socialist economy in that it discusses how to provide specific economic incentives to increase the profitability of an individual enterprise in a socialist society not intended for private profit. Existing studies range from the introduction of capitalist factors to the argument that Liberman’s argument elaborates the pricing mechanism under the planned economy. However, this is based on the dichotomical idea of the introduction of market elements or the elaboration of the central plan for the Soviet economic system. A review of the progress of the Liberman debate and its acceptance into policy reveals that it can not be judged whether or not the economic debate and the reform program of 1965 coincide with Liberman’s argument. The controversy between the material incentive system and the profitability of companies since 1955 has been converged with orthodox theories such as Gatovsky and reformist theories such as Liberman and Nemchinov. In other words, the debate over Liberman’s claims at the time was an attempt to solve problems within the Soviet socialist economic system.

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