Producer/Consumer Relationship in Soviet Economy

Milner, B.Z. (1982). Producer/Consumer Relationship in Soviet Economy. IIASA Collaborative Paper. IIASA, Laxenburg, Austria: CP-82-077

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Abstract

With the growth of Soviet economy, the problems of identifying the needs of individual branches of national economy as well as those of the population and the corresponding demand for goods and services increased in complexity. At the same time it is clear that only when intermediate and final consumption takes place real demands are met. Therefore the designers of management systems on all levels of economy are concentrating on the producer/consumer interface. A hierarchical organizational structure is created which guarantees that short and long term interest of the society are well served. Simultaneously managers strive to create an economic environment that will stimulate cooperative behavior of these two important economic subjects (actors).

In this paper, individual measures taken by the state and the union authorities are described in detail. What is gleaned from the whole paper is the trend to a more precise turning of the distribution system to the growing needs of society at large is obvious. The endeavor to make this process as smooth as possible leads to several schemes of stimulation, Soviet planners are well aware of the fact that only when producer/consumer relations are functioning properly can the reproduction of the national economy be secured efficiently. This paper by Professor B.Z. Milner is proof of this.

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