Law on State Enterprise (1987)
국영기업법 (1987년)
Adopted by the USSR Supreme Soviet on 30 June 1987 and effective from January 1988, this law was the centrepiece of Gorbachev's perestroika economic reforms. It introduced full khozraschyot (cost accounting) and self-financing for state enterprises, allowing them to dispose of output beyond state orders according to market demand, and established workers' collective councils (STKs) for self-management. Because it freed enterprises to raise wages without accompanying price reform, it is judged to have deepened the monetary overhang and fiscal imbalances of the late Soviet economy.
Related historical events
Sources
- Wikipedia (EN) The Perestroika article details the July 1987 passage of the Law on State Enterprise, its provisions for enterprise autonomy, self-financing, state orders (goszakazy), and workers' collectives.
- encyclopedia.com Encyclopedia of Russian History entry explaining the law's separation of planning from operational control, direct links between enterprises, and the creation of Gospriyemka.
- csdfmuseum.ru Russian-language source giving the exact date (30 June 1987), full legal title, and the two models of khozraschyot introduced by the law.
- britannica.com Britannica confirms the law's aim to decentralise decision-making, encourage competition, and signal an end to soft credits and subsidies.