The Economics of Transition From Socialist Economy to Market Economy
Substantially revised and updated the second edition of this highly acclaimed text is both a vital guide and a valuable critical analysis. The book provides a contemporary comparative approach to the process of transformation of the economies of Eastern E
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The Economics of Transition From Socialist Economy to Market Economy Second Edition MARIE LAVIGNE
pal grave macmillan
© Marie Lavigne 1995, 1999 AIL rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author(s) has/have asserted his/her/their right(s) to be identified as the author(s) of this work in accordance with the Copyright, Designs and Patents Act 1988. First edition 1995 Reprinted twice Second edition 1999 Reprinted 2008 Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin's Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries.
ISBN 978-0-333-75416-0 ISBN 978-1-349-27313-3 (eBook) DOI 10.1007/978-1-349-27313-3
This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. Copy-edited and typeset by Povey-Edmondson Tavistock and Rochdale, England
Contents
List of Tables, Boxes and Figures
ix
Preface to the First Edition
xii
Preface to the Second Edition
xvii
List of Abbreviations
xix
PART I
THE PAST: REAL SOCIALISM
1 The Bases of the Socialist Economic System
3
TilE PARTY CONTROL OF TilE ECONOMY
3 4 4 5 6 7 7 8
The Ideology The Nomenklatura The Economic Administration Local Government Self-Management
COLLECTIVE OWNERSHIP OF TilE MEANS OF PRODUCTION
Socialist Ownership Non-Socialist Ownership
9 10 10
CENTRAL PLANNING
Planning Techniques A Non-Reformable System Plan versus Money
12 13
2 History
15
TilE USSR: TilE STALINIST MODEL
16
TilE CREATION OF TilE PEOPLE'S DEMOCRACIES IN EUROPE
16 20 23 23 24 25 25
The Beginnings: From War Communism to the NEP and from NEP to Stalinism The Stalinist Era Post-Stalinism
The First Measures The Shift to the Soviet Model Was Yugoslavia a Different Model?
v
Contents
vi
THE VARIANTS OF THE SOCIAUST MODEL IN THIRD WORLD COUNTRIES
3 The Reforms: Experiences and Failures
