By 1990, the Soviet economy was in crisis, following the
Era of Stagnation and
Perestroika. Productivity had severely declined, and shortages became widespread. As a result, Soviet leader
Mikhail Gorbachev sought the advice of Shatalin and several other liberal economists to devise an economic plan. The end result was what would later become known as the
500 Days Programme. Despite opposition from government voices such as
Nikolai Ryzhkov, Shatalin's programme was adopted in September 1990, leading
The New York Times to later remark that "Mr. Shatalin became famous almost overnight" as a result of the reforms. Shatalin's economic plan was regarded as radical for its time; it called for rapid privatisation, economic decentralisation, and privatisation, eventually envisioning the Soviet Union's reformation into more of an economic union than a political union. The programme called for 70% of Soviet industry and an even larger percentage of agriculture to be privatised, as well as the privatisation of the service and commerce sectors effectively in entirety. It also argued that workers should be given the right to
salary negotiation, unprofitable businesses closed, and the complete abolition of
price controls. Shatalin supported his position by arguing that, Following Gorbachev's cancellation of the 500 Days Programme, Shatalin experienced a reversal in fortune, being removed from the economic council he served on. After these events, he became an outspoken opponent of the Soviet government, including protesting against the
1991 deployment of Soviet troops to Lithuania. He also co-founded the
Russian Democratic Reform Movement in 1991. == Later career and death ==