1979 Soviet economic reform

Alexei Kosygin (right) shaking hands with Romanian communist leader Nicolae Ceaușescu on 22 August 1974

The 1979 Soviet economic reform, or "Improving planning and reinforcing the effects of the economic mechanism on raising the effectiveness in production and improving the quality of work", was an economic reform initiated by Alexei Kosygin, the Chairman of the Council of Ministers. During Leonid Brezhnev's rule of the Union of Soviet Socialist Republics (USSR) the Soviet economy began to stagnate; this period is referred to by historians as the Era of Stagnation. Even after several reform attempts by Kosygin and his protégés, the economic situation in the country continued to deteriorate. In contrast to his earlier reform initiative, the 26th Congress decided that his government would implement the reform during the Eleventh five-year plan from 1981 to 1985. This never happened, and even Brezhnev complained that implementation of the reform had been slow. This unfinished reform is seen by some as the last major pre-perestroika reform initiative put forward by the Soviet government.


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