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Supreme Council of the National Economy

government council, Soviet Union
Also known as: V.S.N.Kh.

Quick Summary

The Supreme Council of the National Economy (V.S.N.Kh.) was an early attempt at centralized economic planning in the Soviet Union during the period of War Communism. Established after the Bolsheviks seized power in 1917, its role was to administer state control over industry and trade. However, this initial planning effort was largely unsuccessful, marked by rationing issues, famine, and a significant drop in output. The V.S.N.Kh. was eventually replaced by People's Commissariats, which were further divided into ministries, each overseeing a specific branch of industry. This system operated under the overarching policy objectives set by the Communist Party. Gosplan, established in 1921, later evolved into the central body responsible for translating these objectives into specific national economic plans, particularly after the adoption of the First Five-Year Plan in 1928, which prioritized rapid industrialization.12

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