Alexei Kosygin is considered not only an experienced business executive and a skilled, energetic organizer, but also the most intelligent and smart chairman of the government for the entire post-war period of the USSR.
The Kosygin reform, which was the first attempt after the war to transfer the Soviet economy to the market plane, contributed a lot to this. It covered not only all industries and agriculture, but also practically all spheres of life.
“Kosygin reform” was aimed at increasing economic incentives and independence of organizations. By decision of the Plenum of the CPSU of 1965, it was decided to reform all industrial enterprises. The main goal of this decision was ultimately to increase the efficiency of their work.
It was envisaged, in addition to the gross indicator, to introduce the concept of cost of goods sold, the creation of a common salary fund, the total amount of centralized capital investments. In order to stimulate the activity of enterprises, it was envisaged to leave part of the income to them.
“Kosygin reform” had several tasks: to strengthen the vertical of power, to restore the central ministries of industry, to abolish economic councils.
The reform of 1965 was introduced already under the Secretary General of L. I. Brezhnev. And if he dared to suspend the flywheel of transformations, launched under his predecessor - Khrushchev, then the economic reform of Kosygin would most likely have passed. Although no change of power, not a single "palace" coup, could at once abolish the then pressing requirements of the economy.
Before the reform was adopted, every step of the enterprise team was regulated to the smallest detail; any attempt at economic maneuvers was blocked. A military headquarters system was operating throughout the country with its dominant slogan: "give a plan at any cost."
In the country, “Kosygin reform” was met with mixed feelings. Many of the business executives saw in it a good opportunity to earn extra money, others predicted the final collapse of the economy.
The enterprises got the opportunity to become economically independent, and therefore they looked for opportunities to increase their profits. At the same time, the transition to a profitable indicator spurred inflation in the country.
Nevertheless, according to many economists, the period of “Kosygin reform” in terms of its economic and social indicators was the best for all the years of the post-war period.
However, the reform was not perfect: it was a set of contradictory and fragmented decisions, because the expansion of the independence of enterprises was combined with the strengthening of the powers of ministries.
The thing was that by introducing separate market regulators into the non-market command and administrative system, the “Kosygin reform” did not give the most important thing for a market economy - a freely regulated price. And this, in turn, limited the action of such moving levers as profitability and profit. And as a result, hidden inflation began in the country, profits obtained not by increasing production efficiency, but because of artificially high prices, and many other serious problems.
That is why very soon the party leadership felt that a threat began to hang over their undivided power. And by the mid-70s, the reform was curtailed, while its goals were not achieved.
Reformers, including A. Kosygin himself, understood that reforming was not necessary for the economy of the Soviet Union, but for the foundations of the social system, the country's way of life. However, they did not imagine the mechanism by which this should be carried out, although they realized that the “brainchild” they created could really undermine state principles and violate stability in the country.