Abstract: This paper analyses the Soviet economic decline in the light of the theory of economic growth and development as well as in the light of the Soviet official and alternative economic growth record. The Soviet economic paradox rises out the circumstance that the Soviet growth record was rather decent by most measurements most of the time. Reasons for the Soviet economic failure are looked for in the neoclassical growth theory as well as in the economic meaningfulness of the technical systems of national accounting in a comparative system context.  As any economic system is formed by economic geography, the  physical system of production as well as by institutions some institutional issues cannot be avoided.