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Counter‐intelligence in a command economy
Author(s) -
Harrison Mark,
Zaksauskienė Inga
Publication year - 2016
Publication title -
the economic history review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.014
H-Index - 49
eISSN - 1468-0289
pISSN - 0013-0117
DOI - 10.1111/ehr.12113
Subject(s) - secrecy , transparency (behavior) , government (linguistics) , monopoly , adverse selection , government regulation , business , function (biology) , market economy , documentation , competition (biology) , command and control , natural monopoly , economics , industrial organization , law , finance , political science , engineering , telecommunications , ecology , philosophy , linguistics , china , evolutionary biology , computer science , biology , programming language
This article provides the first thick description of the counter‐intelligence function in a command economy of the S oviet type. Based on documentation from S oviet L ithuania, the article considers the KGB (secret police) as a market regulator, commissioned to prevent the disclosure of secret government business and forestall the disruption of government plans. Where market regulation in open societies is commonly intended to improve market transparency, competition, and fair treatment of consumers and employees, KGB regulation was designed to enforce secrecy, monopoly, and discrimination. One consequence of KGB regulation of the labour market may have been adverse selection for talent. Here it is argued that the S oviet economy was designed to minimize costs.