Soviet Business: Entrepreneurs, Black Markets, and Informal Economies MTA
How Second Economies Operated Within and Around Central Planning

About this book:

In a stark contrast to the Soviet Union's official narrative of monolithic central planning and the absence of private initiative, "Soviet Business" unearths a vibrant, indispensable "second economy" that thrived beneath the surface. This book meticulously chronicles the entrepreneurs, black markets, and informal networks that emerged to compensate for the systemic failures of central planning—chronic shortages, artificial prices, and bureaucratic inflexibility. From the humble private plots of collective farmers and the discreet "under-the-counter" sales in state shops to the daring "fartsovka" trade in foreign goods and the pervasive "blat" system of favors and connections, the book reveals how millions of Soviet citizens creatively adapted to secure necessities and aspire to a better life, often at great personal risk.

The study explores the complex interplay between state repression and individual ingenuity, demonstrating how the constant cat-and-mouse game between official enforcement and informal evasion shaped daily life. It delves into the roles of diverse "operatives," including resourceful enterprise directors who subverted state plans through "factory schemes," and the deep-seated corruption of officials who colluded with illicit trade. The book highlights the unique contributions of women, who often bore the brunt of household procurement, and examines how specific ethnic and regional trading networks, such as those from Georgia and Central Asia, developed sophisticated, far-reaching informal economies. Ultimately, "Soviet Business" argues that this shadow economy was not a peripheral anomaly but a central, albeit unacknowledged, pillar of Soviet society that both lubricated the dysfunctional official system and, in its very existence, subtly eroded the state's legitimacy, profoundly influencing the tumultuous transition to capitalism after the USSR's collapse.

What You'll Find Inside:

• Explore how chronic shortages and artificial pricing in the Soviet planned economy fueled widespread black markets for everything from consumer goods to industrial materials.
• Uncover the 'blat' system, a complex network of personal favors and connections that was essential for navigating daily life and obtaining scarce goods and services.
• Meet the 'speculators' and 'fartsovshchiki' – the audacious entrepreneurs who risked severe punishment to trade in coveted foreign goods and other 'deficit' items.
• Examine the pervasive role of official corruption and collusion, showing how state and party officials often facilitated or directly participated in the informal economy.
• Understand the profound social and moral impact of the second economy, as it subtly undermined Soviet ideological legitimacy and prepared citizens for a market transition.

Who's It For:

This book is for anyone interested in economic history, Soviet studies, or the sociology of underground economies. It will particularly appeal to readers seeking to understand how individuals and societies adapt and innovate when formal systems fail, and how informal practices can profoundly shape national transitions from planned to market economies. Historians, economists, political scientists, and general readers curious about the real daily life and economic struggles within the USSR will find it invaluable.