Supreme Soviet of the National Economy
Encyclopedia
Supreme Soviet of the National Economy, Superior Soviet of the People's Economy, Vesenkha (Высший Совет Народного Хозяйства, ВСНХ, Vysshiy soviet narodnogo khozyaystva, VSNKh) was the superior state institution for management of the economy
of the RSFSR and later of the Soviet Union
. There were two institutions with this name, at different times, 1917–1932 and 1963–1965,
.
The Vesenkha was formed in December 1917 by a Decree
of the Council of People's Commissars (Sovnarkom) and VTsIK of RSFSR and subordinated to the Sovnarkom. Its purpose was to supervise and control the newly nationalised industries. It had rights of confiscation
and expropriation
. After the creation of the Soviet Union
in 1923 it was transformed into the joint all-Union and republican People's Commissariat. In 1932, it was reorganized into three People's Commissariats: of heavy industry
, light industry
and forestry
.
In each of the union republics of the Soviet Union, subordinate organisations existed. These were referred to as ВСНХ followed by their union republic acronym. (for example: ВСНХ БССР (VSNKh BSSR) for the Belarusian SSR). The all-union council could be referred to as ВСНХ СССР (VSNKh SSSR). The republican VSNKhs had control over small scale, minor industries which used local materials and supplied local markets and which were referred to as "enterprizes of republican subordination". Large scale industrial enterprises ("enterprizes of union subordination") were controlled by one of the industrial sector departments of the all-union VSNKh.
, planning
, economic policy, and research and development
.
Heads of all the departments in this sector formed the council of the all-union VSNKh together with representatives from the union republics.
when he introduced decentralization of the management of industry by means of sovnarkhoz
es. It was subordinated to the Council of Ministers of the USSR and managed industry and construction.
Sovnarkhozes were introduced by Nikita Khrushchev
in July 1957 in an attempt to combat the centralization and departmentalism of ministries. The USSR was initially divided into 105 economic regions, with sovharknozes being operational and planning management. Simultaneously, a large number of ministries were shut down.
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...
of the RSFSR and later of the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
. There were two institutions with this name, at different times, 1917–1932 and 1963–1965,
1917–1932
The Vesenkha of the first period was the supreme organ of the management of the economy, mainly of the industryIndustry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
.
The Vesenkha was formed in December 1917 by a Decree
Soviet Decrees
Decrees were legislative acts of the highest Soviet institutions, primarily of the Council of People's Commissars and of the Supreme Soviet or VTsIK , issued between 1917 and 1924...
of the Council of People's Commissars (Sovnarkom) and VTsIK of RSFSR and subordinated to the Sovnarkom. Its purpose was to supervise and control the newly nationalised industries. It had rights of confiscation
Confiscation
Confiscation, from the Latin confiscatio 'joining to the fiscus, i.e. transfer to the treasury' is a legal seizure without compensation by a government or other public authority...
and expropriation
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
. After the creation of the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
in 1923 it was transformed into the joint all-Union and republican People's Commissariat. In 1932, it was reorganized into three People's Commissariats: of heavy industry
Heavy industry
Heavy industry does not have a single fixed meaning as compared to light industry. It can mean production of products which are either heavy in weight or in the processes leading to their production. In general, it is a popular term used within the name of many Japanese and Korean firms, meaning...
, light industry
Light industry
Light industry is usually less capital intensive than heavy industry, and is more consumer-oriented than business-oriented...
and forestry
Forestry
Forestry is the interdisciplinary profession embracing the science, art, and craft of creating, managing, using, and conserving forests and associated resources in a sustainable manner to meet desired goals, needs, and values for human benefit. Forestry is practiced in plantations and natural stands...
.
In each of the union republics of the Soviet Union, subordinate organisations existed. These were referred to as ВСНХ followed by their union republic acronym. (for example: ВСНХ БССР (VSNKh BSSR) for the Belarusian SSR). The all-union council could be referred to as ВСНХ СССР (VSNKh SSSR). The republican VSNKhs had control over small scale, minor industries which used local materials and supplied local markets and which were referred to as "enterprizes of republican subordination". Large scale industrial enterprises ("enterprizes of union subordination") were controlled by one of the industrial sector departments of the all-union VSNKh.
Functional sector departments
Departments within the functional sector dealt with decisions relating to financeFinance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
, planning
Planned economy
A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...
, economic policy, and research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...
.
Industrial sector departments
Departments of this type were created by decree in 1926 and consisted of "chief departments", known as glavki (glavnye upravlenija).Heads of all the departments in this sector formed the council of the all-union VSNKh together with representatives from the union republics.
Heads of the VSNKh
- Valerian Osinski (1917–1918)
- Alexei RykovAlexei RykovAleksei Ivanovich Rykov was a Russian Bolshevik revolutionary and a Soviet politician most prominent as Premier of Russia and the Soviet Union from 1924–29 and 1924–30 respectively....
(1918–1920) - Felix Dzerzhinsky (1924–1926)
- Valerian Kuibyshev (1926–1930)
- Grigoriy OrdzhonikidzeGrigoriy OrdzhonikidzeGrigol Ordzhonikidze ორჯონიკიძე - Grigol Orjonikidze, , generally known as Sergo Ordzhonikidze ; – February 18, 1937) was a Georgian Bolshevik, later member of the CPSU Politburo and close friend to Joseph Stalin...
(1930–1932)
1963–1965
Veseenkha was reestablished by Nikita KhrushchevNikita Khrushchev
Nikita Sergeyevich Khrushchev led the Soviet Union during part of the Cold War. He served as First Secretary of the Communist Party of the Soviet Union from 1953 to 1964, and as Chairman of the Council of Ministers, or Premier, from 1958 to 1964...
when he introduced decentralization of the management of industry by means of sovnarkhoz
Sovnarkhoz
Sovnarkhoz, , usually translated as Regional Economic Council, was an organization of the Soviet Union to manage a separate economic region....
es. It was subordinated to the Council of Ministers of the USSR and managed industry and construction.
Sovnarkhozes were introduced by Nikita Khrushchev
Nikita Khrushchev
Nikita Sergeyevich Khrushchev led the Soviet Union during part of the Cold War. He served as First Secretary of the Communist Party of the Soviet Union from 1953 to 1964, and as Chairman of the Council of Ministers, or Premier, from 1958 to 1964...
in July 1957 in an attempt to combat the centralization and departmentalism of ministries. The USSR was initially divided into 105 economic regions, with sovharknozes being operational and planning management. Simultaneously, a large number of ministries were shut down.