The economics of the construction sector of the USSR

This study was initiated to identify the major causes behind the ever-increasing volumes of unfinished construction in the USSR and to analyse their micro- and macro-economic implications. The approach taken was to identify the major economic participants in the construction sector and to study their motivations and behaviour under the conditions of the Soviet economic and political system. The specific activities of investment- and construction planning, construction plan implementation, material supply, and labor force participation were studied in depth. In each case the decision makers acted to maximize their perceived self-interest within the constraints immanent to the Soviet system. The major factors which contribute to the problems of unfinished construction were found to be both inherent in the planning proceses and the managerial initiatives at the enterprise level. These factors have been identified, analysed in detail and evaluated in terms of their impact on the sector and the economy as a whole.