Murrell and Olson (1991) set forth the hypothesis that in centrally pl
anned economies economic interests over time become fragmented as bure
aus become more autonomous and form into narrowly-based distributional
coalitions. As a consequence, the national leader's encompassing inte
rest in economic growth becomes compromised and growth begins to slow.
This paper provides the first direct test of the hypothesis that grow
ing bureaucratic autonomy results in declining economic growth in cent
rally planned economies.