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The economic stagnation of the late Brezhnev era was the result of various factors: the exhaustion of easily available resources, especially raw materials, and the growing structural imbalance of the economy due to the distorting effects of the incentive system, which paralyzed initiative and dissuaded people from doing an honest day’s work. Under perestroika the economy moved from stagnation to crisis, and this deepened as time passed. Hence the policies of perestroika must carry much of the blame for the economic catastrophe that resulted. Gorbachev admitted in 1988 that the first two years had been wasted since he was unaware ...(100 of 33818 words)