| Высший совет народного хозяйства | |
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| Agency overview | |
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| Formed | 1917 (1917) |
| Jurisdiction | Russian Socialist Federative Soviet Republic |
| Headquarters | Moscow |
| Politics of the Soviet Union |
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TheSupreme Soviet of the National Economy orSuperior Soviet of the People's Economy (Russian:Высший совет народного хозяйства,ВСНХ,romanized: Vysshiy sovet narodnogo khozyaystva,VSNKh,Vesenkha orVesenka) was the superior state institution for management of theeconomy of theRSFSR and later of theSoviet Union. There were two institutions with this name, at different times, 1917–1932 and 1963–1965.
The VSNKh of the first period was the supreme organ of the management of the economy, mainly of theindustry.
The VSNKh was launched on December 5, 1917, through adecree of theCouncil of People's Commissars (Sovnarkom) andAll-Russian Central Executive Committee of Soviets of theRussian Socialist Federative Soviet Republic.[1] Its stated purpose was to "plan for the organization of the economic life of the country and the financial resources of the government".[2] It was subordinated to theSovnarkom. The recently establishedAll-Russian Council for Workers' Control was dissolved into the new organisation. It had rights ofconfiscation andexpropriation. The first chairman wasValerian Osinsky and withBukharin,Georgy Oppokov (Lomov),Milyutin,Sokolnikov, andVasili Schmidt also appointed to the council.[2]
After the creation of theSoviet Union in 1923 it was transformed into the joint all-Union and republicanPeople's Commissariat. In 1932, it was reorganized into threePeople's Commissariats: ofheavy industry,light industry andforestry.
In each of theunion republics of the Soviet Union, subordinate organisations existed. These were referred to asВСНХ followed by their union republic acronym. (for exampleВСНХ БССР (VSNKh BSSR) for theBelarusian SSR). The all-union council could be referred to asВСНХ 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 "enterprises of republican subordination". Large scale industrial enterprises ("enterprises of union subordination") were controlled by one of the industrial sector departments of the all-union VSNKh.
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Within the VSNKh, departments were split into two types.
Departments within the functional sector dealt with decisions relating tofinance,planning, economic policy, andresearch and development.
Departments of this type were created by decree in 1926 and consisted of "chief departments", known asglavki (glavnye upravlenija).
Heads of all the departments in this sector formed the council of the all-unionVSNKh together with representatives from the union republics.
Vesenkha was reestablished byNikita Khrushchev when he introduced decentralization of the management of industry by means ofsovnarkhozes. It was subordinated to theCouncil of Ministers of the USSR and managed industry and construction.
Sovnarkhozes were introduced byNikita Khrushchev in July 1957 in an attempt to combat the centralization and departmentalism of ministries. TheUSSR was initially divided into 105 economic regions, with sovharknozes being operational and planning management. Simultaneously, a large number of ministries were shut down.
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