Matchbox label made in Czechoslovakia late 1950’s, early 1960’s. The text on the top 4 labels reads:”Work Advances”, on the bottom 2 reads:”Agricultural Youth”. On the bottom of all labes it reads:”New shift of the 2nd Five-Year Plan”.
The Second Five-Year was during 1956-1960. During that period, investment continued at a high rate, although real wages and the supply of consumer goods also increased substantially, and national income grew by 6.9%. In the late 1950s, however, economic leaders noted that investment efforts were yielding diminishing returns. Large investments were required to sustain economic growth.
In 1958 and 1959, in response to this troubling situation, the government made several relatively minor adjustments in the functioning of organizations and prices, the first of the country’s economic reforms. The reforms involved some limited decentralization of authority, most notably giving enterprises more autonomy in handling investment funds. The intention was not to alter the Soviet economic model to any great extent but rather to enhance its overall operation. The reforms did not result in noticeable improvements in economic performance, however. Eventually, in 1962, planners quietly scrapped the entire reform program, reimposing most of the central controls.