Supreme Soviet of the National Economy

Supreme Soviet of the National Economy, Vesenkha (Высший Совет Народного Хозяйства, ВСНХ, "Vysshiy soviet narodnogo khozyaystva", VSNKh) was the superior state institution for management of the economy of the RSFSR and later of the Soviet Union. There were two institutions with this name, at different times, 1917-1932 and 1963-1965,

1917-1932

The Vesenkha of the first period was the supreme organ of the management of the economy, mainly of the industry.

The Vesenkha was formed in December 1917 by a Decree of the Council of People's Commissars (Sovnarkom) and VTsIK of RSFSR and subordinated to the Sovnarkom. Its purpose was to supervise and control the newly nationalised industries. It had rights of confiscation and expropriation. After the creation of the Soviet Union in 1923 it was transformed into the joint all-Union and republican People's Commissariat. In 1932, it was reorganized into three People's Commissariats: of heavy industry, light industry and forestry.

In each of the union republics of the Soviet Union, subordinate organisations existed. These were referred to as "ВСНХ" followed by their union republic acronym. (for example: "ВСНХ БССР" (VSNKh BSSR) for the Belarusian SSR). The all-union council could be referred to as "ВСНХ 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 "enterprizes of republican subordination". Large scale industrial enterprises ("enterprizes of union subordination") were controlled by one of the industrial sector departments of the all-union VSNKh.

Organisational structure

Within the VSNKh, departments were split into two types.

Functional sector departments

Departments within the functional sector dealt with decisions relating to finance, planning, economic policy, and research and development.

Industrial sector departments

Departments of this type were created by decree in 1926 and consisted of "chief departments", known as "glavki" ("glavnye upravlenija").

Heads of all the departments in this sector formed the council of the all-union "VSNKh" together with representatives from the union republics.

Heads of the VSNKh

* Valerian Osinski (1917 - 1918)
* Alexei Rykov (1918 - 1920)
* Felix Dzerzhinsky (1924 - 1926)
* Valerian Kuibyshev (1928 - 1930)
* Grigoriy Ordzhonikidze (1930 - 1932)

1963-1965

Veseenkha was reestablished by Nikita Khrushchev when he introduced decentralization of the manegement of industry by means of sovnarkhozes. It was subordinated to the Council of Ministers of the USSR and managed industry and construction.

Sovnarkhozes were introduced by Nikita Khrushchev in July 1957 in an attempt to combat the centralization and departmentalism of ministries. The USSR was initially divided in 105 economic regions, with sovharknozes being operational and planning management. Simultaneously, a large number of ministries were shut down.