Czechoslovakia

Abstract

The economic reform in Czechoslovakia in 1966–9 was put into motion by the resolution of the Central Committee of the CP. The 1965 resolution made it clear that planning was to remain the fundamental instrument of the management of the economy and, in order for it to become more effective, it should utilise commodity-money relations. The role of the market in the reformed system was not elaborated on very much in the resolution; it was indicated by the stress given to the need for more rights to enterprises, for greater room to be given to the assertion of special interests, and for the constant renewal of the harmony between social and special interests. It also implied that the balancing method of plan formulation, which was criticised in the resolution as ineffective, would be supplemented by economic calculation and the pressure of the market (Život strany, no. 4, 1965).