More power for the Soviets:Perestroikaand energy

Abstract

ACCORDING TO recent survey data, a majority of the Soviet population is convinced that the country's economic situation has deteriorated since the beginning of perestroika, Gorbachev's restructuring policy.1 This general feeling ties in with the observation of top Soviet economists that the country is facing a dramatic economic crisis and that the outlook for the coming decade is bleak. While both Soviet and foreign observers concentrate on the rapidly deteriorating supply situation, the real Achilles' heel of the Soviet economy, namely energy supply, is eclipsed by the current problems that are in the media limelight. The energy sector plays a crucial role for the restructuring process because virtually all economic sectors depend on its performance. The fate of perestroika therefore hinges on a successful restructuring of the energy sector. The importance of the Soviet energy sector can hardly be exaggerated. In contrast to other industrially developed countries, Soviet energy was, in addition to its key role in purely economic terms, an essential part of the tacit bargain concluded between Soviet leaders and the population at large. Moreover, heat supply has been a crucial survival asset under the harsh climatic conditions of most parts of the country.