Understanding Economic Transitions: Plan and Market Under the New Globalization

Description

Understanding Economic Transitions explains the genesis, operation, and transformation of the centrally-planned socialist economy, which figured prominently in the lives of billions of people in twentieth-century Europe and Asia.  Just as importantly, the centrally-planned socialist economy’s demise coincided with the shift from nonindustrial to industrial economy (and de-industrialization in some cases) and the onset of ICT-driven globalization. Using theory, empirics, and selected country case studies, this book teases out the enduring lessons from the myriad and fraught pathways of transition from socialism to capitalism.  Understanding Economic Transitions provides a self-contained, comprehensive, and authoritative treatment of modern economic systems.  This textbook has four features of particular use to students:  (i) Using the prism of comparative institutionalism, it melds theory and evidence to revisit the varieties of planned and market-driven systems today; (ii) It takes economic planning seriously in theory and practice (central, cooperative, or indicative) as the most prominent marker of the ever-changing boundaries between state and market; (iii) It focuses on the dynamics of systemic transition in formerly socialist countries by contextualizing them in terms of the whence (central planning), the how (modalities of transition), and the whither (illiberal or liberal capitalism) of politico-economic transformation; and (iv) It examines the profound impact on these structural processes of the post-1990 phase of economic globalization. With its clear, comprehensive content and useful pedagogical features, this textbook will prepare students to understand how economies transition and why. Preface Introduction Contents About the Author Abbreviations List of Figures List of Tables List of Boxes Part ITheories of Comparative Economic Systems 1 Economic Systems 1.1 Institutions and Economic Order Comparative Economic Analysis The Institutions Hypothesis 1.2 Property Rights: Ownership Versus Control The Static Approach to Comparing Economic Systems The Dynamic Approach to Comparing Economic Systems 1.3 The Neoclassical Theory of Economic Systems 1.4 The Emergence of the Centrally Planned Economy 1.5 A Synopsis of the Country Case Studies References 2 Economic Planning in Various Settings 2.1 Why Do For-Profit Firms Exist and in What Form? 2.2 Varieties of Capitalism: Liberal Versus Statist 2.3 Intellectual History: The Socialist Controversies 2.4 Varieties of Socialism: Stalinist Versus Market Socialist Cooperatives 2.5 Varieties of Self-Management: Yugoslav Versus Mondragon The Yugoslav Model of Self-management The Mondragon Model of Self-Management 2.6 Theories of Economic Planning The LAH Price-Guided Planning Procedure The Malinvaud Price-Guided Procedure Quantity-Guided Planning Procedures References Part IITwo Canonical State Socialisms 3 The Soviet CPE I: The Planning Process in an Industrialized Economy 3.1 The Transition from Peripheral Capitalism to Autarkic Socialism The Leninist State The Stalinist State The Post-Stalinist State The Gorbachevian State The Yeltsin-Putin State 3.2 The Institutional Architecture of the Soviet Economy 3.3 Economic Ministries and State Committees 3.4 The Tech-Prom-Fin-Plan: Five-Year and Annual Plans The Organizational Structure of Soviet Planning The Method of Material Balancing Input–Output Analysis Financial Balances: Money and Credit Financial Balances: Fiscal and Macro Labor Balances Investment Balances The Five-Year Plans in a Nutshell References 4 The Soviet CPE II: Plan Implementation 4.1 The Shortage Economy Redux 4.2 The Khozraschet Enterprise and Plan Execution Behavioral Rules Motivation and Success Indicators Incentive Funds and Bonus Functions 4.3 The Second Economy 4.4 Economic Outcomes References 5 The Chinese CPE: Planning in a Semi-industrial Economy 5.1 China’s Initial Conditions and Peculiarities 5.2 The Chinese Model of Socialism: Commune, GLF, and CR 5.3 Chinese Economic Planning References Part IIISystemic Transition in Theory and Practice 6 The Nature of Post-socialist Transitions 6.1 CPE Economic Performance: Growth and Inequality Economic Growth Economic Inequality 6.2 Reform Versus Transformation The Failure of Bureaucratic Perfectionism Transition: Reformation Versus Transformation 6.3 Initial Conditions and Circumstances 6.4 The Modalities of Systemic Transformation Macroeconomic Stabilization (S) Market Liberalization (L) State-Assets Privatization (P) Sequencing the Pillars of Transition Speed of Transition 6.5 Corruption in Hybrid Economies References 7 The Autarkic Russian Road to Capitalism 7.1 The Autarkic, Nationalist, and Integration Roads 7.2 The Gorbachev Reforms 7.3 The Yeltsin Reforms Russian Stabilization (S) Russian Liberalization (L) Russian Privatization (P) 7.4 Putin’s Political Capitalism References 8 The Nationalist Chinese Road to Capitalism 8.1 The Nationalist Road 8.2 De-collectivization Begets TVEs 8.3 Urban Collectives and SEZs 8.4 The Third Phase: Middle-Income Trap 8.5 The Bear and the Panda References 9 Two Integrationist Variants: Poland and Vietnam 9.1 The Baltic, CEE, and SEE Countries 9.2 The Modalities of EU Accession 9.3 The Peculiarities of Polish Socialism 9.4 Polish Shock Therapy 9.5 The Peculiarities of Vietnamese Socialism 9.6 Vietnam’s Doi Moi Reforms References Part IVTransition under the New Globalization 10 Pathways of Integration in the Age of Global Value Chains 10.1 Late Industrialization 10.2 The New Globalization 10.3 China, Poland, and Vietnam as GVC Hubs 10.4 Global Integration Under the Developmental State References 11 Comparative Economics Redux 11.1 Economic Planning Under the Two Capitalisms 11.2 Post-socialist Comparative Economics References Data Appendix Glossary Index