1. Reform in the Krushchev era
It was a vicious circle" (McCauley 251). ... Thus the "vicious circle" continued. ... As a result, "The number of sovnarkhozy was reduced by mergers, a process that illustrated the need for a hierarchical management system to limit its transaction costs by containing the number of reporting units to be supervised at each level. ... All it caused with great confusion and disruption. ... Khrushchev knew this was a necessary step in order to help a nation desperately in need of change. ...
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