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This paper analyses the economic differences between Soviet republics and draws some implication from the analysis mainly over the period of 1971-1990, during which Soviet Union was controlled by a central planning authority. Soviet economic indicators show that the objectives of pursuing economic equalities between Soviet republics have been abandoned prior to 1985. In this paper, we emphasize Gorbachev's economic policy had rather expanded and deepened the differences of economic development between the republics. The differences in the economic development of the republics had threatened the Soviet Union's continued existence as a multinational state and single economic space by fueling ethnic tensions and strengthening the centrifugal forces. Gorbachev had few promising options for narrowing the developmental gap. At a time when increasing supplies of consumer goods and reducing the massive budget deficit are the Soviet leader's top economic priorities, expensive regional development projects are beyond central government’s means. Instead, Gorbachev could have looked only to greater regional autonomy and increased reliance on market forces as ways of encouraging and enabling the republics to meet their own development needs. Such options, however, also had run the risk of strengthening the separatist tendencies Gorbachev had been trying to counter. This paper elucidates that the disintegration of economic space based on the economic differences between the republics has been a major factor explaining the economic collapse of the transition countries in Former Soviet Union.