A fundamental difference between modern dictatorships and all other tyrannies of the past is that terror is no longer used as a means to exterminate and frighten opponents, but as an instrument to rule masses of people who are perfectly obedient. Terror as we know it today strikes without any preliminary provocation, its victims are innocent even from the point of view of the persecutor. This was the case in Nazi Germany when full terror was directed against Jews, i.e., against people with certain common characteristics which were independent of their specific behavior. In Soviet Russia the situation is more confused, but the facts, unfortunately, are only too obvious. On the one hand, the Bolshevik system, unlike the Nazis, never admitted theoretically that it could practice terror against innocent people, and though in view of certain practices this may look like hypocrisy, it makes quite a difference. Russian practice, on the other hand, is even more "advanced" than the German in one respect: arbitrariness of terror is not even limited by racial differentiation, while the old class categories have long since been discarded, so that anybody in Russia may suddenly become a victim of the police terror. We are not concerned here with the ultimate consequence of rule by terror—namely, that nobody, not even the executors, can ever be free of fear; in our context we are dealing merely with the arbitrariness by which victims are chosen, and for this it is decisive that they are objectively innocent, that they are chosen regardless of what they may or may not have done.
A confidential report delivered in June 1965 by Abel Aganbegyan, director of the Novobirsk Institute of Economics, highlighted the difficulties. Aganbegyan noted that the growth rate of the Soviet economy was beginning to decline, just as the rival US economy seemed particularly buoyant; at the same time, some sectors of the Soviet economy - housing, agriculture, services, retail trade - remained very backward, and were failing to develop at an adequate rate. The root causes of this poor performance he saw in the enormous commitment of resources to defense (in human terms, 30-40 million people out of a working population of 100 million, he reckoned), and the 'extreme centralism and lack of democracy in economic matters' which had survived from the past. In a complex modern society, he argued, not everything could be planned, since it was impossible to foresee all possible contingencies and their potential effects. So the plan amounted to central command, and even that could not be properly implemented for lack of information and of modern data-processing equipment. 'The Central Statistical Administration ... does not have a single computer, and is not planning to acquire any,' he commented acidly. Economic administration was also impeded by excessive secrecy: 'We obtain many figures... from American journals sooner than they are released by the Central Statistical Administration.' Hence the economy suffered from inbuilt distortions: the hoarding of goods and labour to provide for unforeseen contingencies, the production of shoddy goods to fulfill planning targets expressed in crude quantitative terms, the accumulation of unused money by a public reluctant to buy substandard products, with resultant inflation and a flourishing black market.