The socialist system

• List of Figures
• p. xiii

• List of Tables
• p. xv

• Preface
• p. xix

• Part 1
• Points of Departure

• 1.
• The Subject and Method
• p. 3

• 1.1
• Specific Lines of Historical Development and General Features
• p. 3

• 1.2
• Socialist Countries
• p. 4

• 1.3
• Interpretation of the Term "Socialism"
• p. 9

• 1.4
• Political Economy
• p. 11

• 1.5
• Positive Analysis
• p. 12

• 1.6
• Models
• p. 15

• 1.7
• Evaluation
• p. 16

• 2.
• Antecedents and Prototypes of the System
• p. 18

• 2.1
• Marx's Image of Socialism
• p. 18

• 2.2
• System Prototypes
• p. 19

• 2.3
• The System before the Socialist Revolution
• p. 21

• 2.4
• The Revolutionary Transition toward the Classical System
• p. 26

• Part 2
• The Anatomy of the Classical System

• 3.
• Power
• p. 33

• 3.1
• The Party
• p. 33

• 3.2
• The State
• p. 36

• 3.3
• The Mass Organizations
• p. 39

• 3.4
• Cohesive Forces
• p. 40

• 3.5
• Internal Conflicts
• p. 44

• 3.6
• Repression and the Totalitarian Nature of Power
• p. 45

• 4.
• Ideology
• p. 49

• 4.1
• The Official Ideology
• p. 49

• 4.2
• The Socialist System's Sense of Superiority
• p. 50

• 4.3
• The Basic Promises
• p. 53

• 4.4
• The Self-Legitimation and Paternalistic Nature of Power
• p. 55

• 4.5
• Discipline, Willing Sacrifice, and Vigilance
• p. 57

• 4.6
• Power and Ideology
• p. 59

• 5.
• Property
• p. 62

• 5.1
• Explanation of the Concepts
• p. 62

• 5.2
• Some Characteristic Property Forms before the Advent of the Socialist System
• p. 67

• 5.3
• The State-Owned Firm
• p. 71

• 5.4
• Other State Property Forms
• p. 75

• 5.5
• The Cooperative
• p. 76

• 5.6
• Private Property and Production Activity of a Private Nature
• p. 83

• 5.7
• Capitalism, Socialism, and Property
• p. 87

• 6.
• Coordination Mechanisms
• p. 91

• 6.1
• Main Types
• p. 91

• 6.2
• Some Observations on the Main Types
• p. 95

• 6.3
• Bureaucratic Coordination
• p. 97

• 6.4
• Market Coordination
• p. 100

• 6.5
• Self-Governing Coordination
• p. 103

• 6.6
• Ethical Coordination
• p. 105

• 6.7
• Family Coordination
• p. 106

• 6.8
• Spontaneous and Artificial Changes
• p. 108

• 7.
• Planning and Direct Bureaucratic Control
• p. 110

• 7.1
• The Precursors of Socialism on the Subject of Planning
• p. 110

• 7.2
• Initial Approach: Elaboration of the Plan
• p. 111

• 7.3
• Initial Approach: Plan Implementation and Management
• p. 114

• 7.4
• The Motivation of Leaders in the Economic Bureaucracy
• p. 118

• 7.5
• Bargaining and Inner Conflict
• p. 121

• 7.6
• Planning, Management, and Politics
• p. 124

• 7.7
• The Problem of Information
• p. 127

• 8.
• Money and Price
• p. 131

• 8.1
• Banking
• p. 131

• 8.2
• The State Budget
• p. 134

• 8.3
• Survey of Money Flows
• p. 139

• 8.4
• Soft and Hard Budget Constraint
• p. 140

• 8.5
• Income and Price Responsiveness
• p. 145

• 8.6
• Administrative Producer Prices
• p. 149

• 8.7
• Administrative Consumer Prices
• p. 153

• 8.8
• Market Prices
• p. 155

• 8.9
• Nonprice Signals
• p. 156

• 9.
• Investment and Growth
• p. 160

• 9.1
• Expansion Drive and Investment Hunger
• p. 160

• 9.2
• Central Allocation and Investment Tension
• p. 163

• 9.3
• Investment and Consumption
• p. 165

• 9.4
• Priorities
• p. 171

• 9.5
• Extensive and Intensive Methods
• p. 180

• 9.6
• Fluctuations in Growth; Cycles
• p. 186

• 9.7
• Measurement of Aggregate Output
• p. 193

• 9.8
• The System-Specific Growth Type: Forced Growth
• p. 197

• 9.9
• Growth Performance
• p. 199

• 10.
• Employment and Wages
• p. 203

• 10.1
• The Road to Full Employment
• p. 204

• 10.2
• The Development of Chronic Labor Shortage
• p. 211

• 10.3
• Direct Bureaucratic Control of Employment and Wages
• p. 216

• 10.4
• Employer-Employee Relations in the Factory
• p. 218

• 10.5
• Bureaucratic and Market Influences on Wages
• p. 224

• 11.
• Shortage and Inflation: The Phenomena
• p. 228

• 11.1
• Shortage Phenomena and the Shortage Economy
• p. 229

• 11.2
• The Process of Demand Adjustment
• p. 234

• 11.3
• Horizontal and Vertical Shortage
• p. 240

• 11.4
• Shortage and Surplus
• p. 243

• 11.5
• Market Regimes: The Buyers' and the Sellers' Market
• p. 245

• 11.6
• Normal Shortage and Normal Surplus
• p. 252

• 11.7
• Open, Declared, and Hidden Inflation
• p. 255

• 12.
• Shortage and Inflation: The Causes
• p. 262

• 12.1
• The Behavior of the Firm: Short-Term Decisions
• p. 262

• 12.2
• The Behavior of the Firm: Long-Term Decisions
• p. 268

• 12.3
• The Behavior of the Bureaucracy Managing Production
• p. 270

• 12.4
• Relative Prices
• p. 273

• 12.5
• Repressed Inflation in Interfirm Relations
• p. 275

• 12.6
• Repressed Inflation in the Consumer Sphere
• p. 278

• 12.7
• Excess Demand on the Macro Level
• p. 280

• 12.8
• The Propensity to Inflation; the Relationship between Shortage and Inflation
• p. 283

• 12.9
• The Self-Inducement and Reproduction of Shortage
• p. 286

• 12.10
• The System-Specific Nature of the Causes
• p. 288

• 12.11
• Economic Efficiency and Technical Progress
• p. 292

• 13.
• Consumption and Distribution
• p. 302

• 13.1
• The Growth of Consumption
• p. 302

• 13.2
• Other Factors in Material Welfare
• p. 304

• 13.3
• Economic Security
• p. 311

• 13.4
• First Approach: Distribution of Money Income
• p. 316

• 13.5
• The Distribution of Material Welfare: Other Manifestations
• p. 318

• 13.6
• The Explanation for the Distribution
• p. 323

• 13.7
• Tendencies toward Equalization and Differentiation
• p. 331

• 14.
• External Economic Relations
• p. 333

• 14.1
• The External Political Environment
• p. 335

• 14.2
• The Institutional System of External Economic Relations
• p. 341

• 14.3
• Capitalist Relations: Import Hunger, Export Aversion, and Propensity to Indebtedness
• p. 345

• 14.4
• Socialist Relations: Tie-Ins, Export Preferences, and the Pursuit of a Zero Balance
• p. 351

• 14.5
• An Attempt at Integration: The Council of Mutual Economic Assistance
• p. 355

• 15.
• The Coherence of the Classical System
• p. 360

• 15.1
• The Main Line of Causality
• p. 360

• 15.2
• The Affinity among Elements of the System
• p. 365

• 15.3
• The Prototype and the National Variations
• p. 368

• 15.4
• The Soviet Effect
• p. 372

• 15.5
• Verification
• p. 375

• 15.6
• The Viability of the Classical System
• p. 377

• Part 3
• Shifting from the Classical System

• 16.
• The Dynamics of the Changes
• p. 383

• 16.1
• The Inducements for Change
• p. 383

• 16.2
• The Depth and Radicalism of the Changes
• p. 386

• 16.3
• Reform and Revolution
• p. 387

• 16.4
• A Chronological Survey of Reforms and Revolutions
• p. 392

• 17.
• The "Perfection" of Control
• p. 396

• 17.1
• General Description of the Tendency
• p. 396

• 17.2
• Reorganizations on the Upper Level
• p. 398

• 17.3
• Merger of Firms
• p. 399

• 17.4
• The Development of Planning and Direct Control
• p. 403

• 17.5
• Preview: The Organizational Structure under the Postsocialist System
• p. 407

• 18.
• Political Liberalization
• p. 409

• 18.1
• The Monopoly of Power
• p. 409

• 18.2
• The Easing of Repression
• p. 412

• 18.3
• The Constant and Variable Elements in the Official Ideology
• p. 414

• 18.4
• The Seeds of Pluralism
• p. 418

• 18.5
• Opening toward the Capitalist World
• p. 423

• 18.6
• Change in the Scale of Publicity and Candor
• p. 425

• 18.7
• The Limits to Political Reform
• p. 428

• 18.8
• Preview: The Political Structure of the Postsocialist System
• p. 430

• 19.
• The Rise of the Private Sector
• p. 433

• 19.1
• The Inducements behind the Development of the Private Sector
• p. 433

• 19.2
• A Survey of the Private Sector
• p. 435

• 19.3
• The Private Sector and the Official Ideology
• p. 444

• 19.4
• The Affinity of Private Ownership and Market Coordination
• p. 447

• 19.5
• The Private Sector and the Bureaucracy
• p. 450

• 19.6
• The Economic Role of the Family
• p. 455

• 19.7
• Preview: The Private Sector under the Postsocialist System
• p. 459

• 20.
• Self-Management
• p. 461

• 20.1
• Self-Management as an Intellectual and Political Trend
• p. 461

• 20.2
• Political Relations
• p. 463

• 20.3
• Economic Effects
• p. 466

• 20.4
• Relations between Manager and Workers
• p. 469

• 20.5
• Ethical Coordination
• p. 470

• 20.6
• Preview: Self-Management under the Postsocialist System
• p. 472

• 21.
• Market Socialism
• p. 474

• 21.1
• Ideological Antecedents
• p. 474

• 21.2
• Generalization from the Historical Applications
• p. 479

• 21.3
• Classification of Alternative Strategies for Deregulation
• p. 480

• 21.4
• The Firm's Vertical Dependence
• p. 482

• 21.5
• The Softness and Hardness of the Budget Constraint, and the Firm's Responsiveness to Prices
• p. 489

• 21.6
• The Affinity between Public Ownership and Bureaucratic Coordination
• p. 497

• 21.7
• Horizontal Relations of Firms in Public Ownership
• p. 500

• 21.8
• Proportions of the Two Kinds of Dependence
• p. 504

• 21.9
• The Relation between Publicly Owned Firms and the Private Sector
• p. 505

• 21.10
• Interaction between the Mechanisms; Assessment of the Changes
• p. 507

• 21.11
• Preview: The State Sector under the Postsocialist System
• p. 511

• 22.
• Price Reforms
• p. 513

• 22.1
• Determination of Product Prices
• p. 513

• 22.3
• The Principles and Practice of State Price Determination and Fiscal Redistribution
• p. 521

• 22.4
• The Scope and Limits of Price Reforms
• p. 525

• 22.5
• Preview: Prices under the Postsocialist System
• p. 527

• 23.
• Macro Tensions
• p. 529

• 23.1
• Employment and Wages
• p. 530

• 23.2
• Growth and Investment
• p. 534

• 23.3
• The State Budget and Fiscal Policy
• p. 537

• 23.4
• The Credit System and Monetary Policy
• p. 543

• 23.5
• Shortage and Inflation: Internal Economic Relations
• p. 548

• 23.6
• Foreign Trade and Foreign Debt
• p. 552

• 23.7
• Shortage, Inflation, and Indebtedness
• p. 558

• 23.8
• The Standard of Living
• p. 559

• 23.9
• Preview: Macro Tensions in the Postsocialist System
• p. 563

• 24.
• Concluding Remarks
• p. 565

• 24.1
• The Depth and Radicalism of the Changes, and the Main Line of Causality
• p. 565

• 24.2
• The Incoherence of the Tendencies to Reform
• p. 570

• 24.3
• Reforms and Public Sentiment
• p. 575

• 24.4
• Preview: The Socialist System's Legacy and Postsocialism
• p. 577

• References
• p. 581

• Appendix
• Bibliography on Postsocialist Transition
• p. 627

• Author Index
• p. 631

• Subject Index
• p. 636