In recent years the chief emphasis of Soviet legislation on urban administration has been to expand the rights and responsibilities of city governments in planning and co-ordinating economic activities within their territory. Very little has been done, however, to enhance the power of city Soviets so that they might actually carry out these new responsibilities. The same problems that historically have plagued local Soviets continue to undermine their capabilities. Chief among these problems are the following:
1. Insufficient power vis-à-vis the ministries; in most decisions concerning enterprises subordinate to all-union (Moscow-based) or republic-level ministries, the local soviet has little influence. With the exception of Khrushchev's short-lived sovnarkhoz reform, which dismantled most of the central ministries and attempted to expand the power of regional authorities over economic decision-making, the branch principle of management has been dominant ever since the beginning of Stalin's industrialization drive. The most powerful actors are the ministries located in Moscow or in the republic capitals. A large percentage of the money invested in the construction of housing, cultural facilities and the urban infrastructure is not part of the budget of the local soviet. Instead, such facilities are financed out of funds that the ministries allocate to enterprises for these purposes. In the mid-1970s, ministries paid for and supervised the construction of 70 per cent of housing and 65 per cent of new kindergartens and nurseries. The result is that facilities are built according to the interests of the ministries rather than in response to more general, local needs.