The political developments in post-socialist countries are taken as a general frame for discussing rural development in the transition from centrally planned to market economies. Rural communities and agriculture in post-socialist countries are facing major problems related to decollectivization of property, the stimulation of effective private agricultural units, and the building up of integrated rural communities and their local autonomy. After presenting the developments in Slovenia in detail, the author comes to the conclusion that no foreign/western development model (...) can be literally applied to any post-socialist state. These nations must define their own goals and formulate the strategies to reach them based on the analysis of their specific situations, and in doing this they must engage their own scientists/professionals and take foreign experts only as occasional advisors. (shrink)

Interest in computerised central economic planning (CCEP) has seen a resurgence, as there is strong demand for an alternative vision to modern free (or not so free) market liberal capitalism. Given the close links of CCEP with what we would now broadly call artificial intelligence (AI)—e.g. optimisation, game theory, function approximation, machine learning, automated reasoning—it is reasonable to draw direct analogues and perform an analysis that would help identify what commodities and institutions we should see for a CCEP programme to (...) become successful. Following this analysis, we conclude that a CCEP economy would need to have a very different outlook from current market practices, with a focus on producing basic “interlinking” commodities (e.g. tools, processed materials, instruction videos) that consumers can use as a form of collective R &D. On an institutional level, CCEP should strive for the release of basic commodities that empower consumers by having as many alternative uses as possible, but also making sure that a baseline of basic necessities is widely available. (shrink)

The Soviet Union had a long and complex relationship with cybernetics, especially in the domain of planning. This article looks at Soviet postwar efforts to draw up plans for the rapidly developing, industrializing, and urbanizing Siberia, where cybernetic models were used to develop a vision of cybernetic socialism. Removed from Moscow bureaucracy and politics, the various planning institutes of the Siberian Academy of Sciences became a key frontier for exploring the potential of cybernetic thinking to offer a necessary corrective to (...) Soviet planning. Researchers there put forth a vision of a dynamic Soviet economy managed through partially automated subsystems, which, while decentralized, would grant the central planning apparatus flexibility, a capacity for emergence, and overall solvency in the face of increasingly complex factors that required consideration. (shrink)

Polarization in Western democracies and the collapse of centrally planned economies have led to calls for a redefinition of the state's core functions. This volume explores shifting conceptions of constitutional political economy anchoring the state from the viewpoints of theory, systems, and applications. It suggests why changes may be desirable and how these might be implemented. Part I addresses the writing of constitutions, the dynamic between constitutional order and civil society, the struggle between competitive and protectionist interests, (...) the conflict between protecting expectations and moral evolution, and the role of cultural explanations of constitutional development patterns. Part II explores the interplay between electoral systems and constitutional engineering, the internal costs of political coalitions, and campaigns in pluralistic elections. Part III investigates the quest for stable, dynamic federal states with particular attention to opportunities and pitfalls in Europe. With a foreword and contributions from Nobel Laureate James M. Buchanan. (shrink)

The centrally-planned Soviet command economy was one of the twentieth century’s most radical and complex economic, political and social experiments. Its establishment did not coincide with the onset of Soviet power across the former Russian Empire in 1917-1918, but instead resulted from fifteen years of shifts, readjustments and breaks, and through experiments with both quasi-socialist market economics and centralised administrative command practices. The present article surveys the conflictual relationship between Soviet planning and Marxism in this period. It (...) demonstrates how the Stalinist command economy contradicted much of the theory and practice that the Bolsheviks themselves had thought ought to characterise the new economic system. (shrink)

If we defend planned economies not only on the basis of efficiency but also on the basis of freedom, we have to be able to address authoritarian tendencies of planned economies on the one hand and argue against liberals for the value of collective freedom in planned economies on the other. First, I trace the problematic theorization of the relationship between collective and individual freedom in the historical debates of liberalism and real socialism. Then I examine whether (...) the republican concept of freedom as non-domination can avoid the pitfalls of negative and positive freedom. Subsequently I explore collective freedom through collective action theory, arguing for its inherent value and its potential existence independent of individual freedom. Genuine collective freedom relies on voluntary individual contributions and collective decisions that reflect individual will. Finally I argue that while democracy can help balance collective and individual freedoms, it cannot fully resolve the inherent tension. Alternative conflict resolution strategies may prove more effective. Ultimately, planned economies offer a unique form of collective freedom, though potentially at the expense of individual freedom. Minimizing this tension remains a key challenge. In this paper, I will first defend the idea of collective freedom through planning against liberal, republican and anarchist criticism. Subsequently, I will not develop concrete solutions for the mediation of collective freedom and individual freedom in a planned economy, but I will present approaches and concepts that can be used to deal with the problem of mediation. Democracy plays a central role here, but is not the only solution. (shrink)

Spatial developments contribute to climate change through greenhouse gas emissions and disordered land use. At the same time, climate change impacts have spatial implications, influencing the land uses and settlements development, and damaging habitats, ecosystems, infrastructure and other assets. Considering its regulatory character and multi-sectorial approach, spatial planning is gaining an increasingly important role in climate change management. As such, it could be better utilized in increasing climate resiliency and achieving decarbonization targets in Kosovo as well. While Kosovo is prone (...) to natural hazards such as floods, landslides, droughts, and wildfires, the future climate change could further impact the economy, infrastructure, buildings, energy, health and wellbeing of its communities. Assuming that climate change considerations are not sufficiently integrated in spatial planning policies at the national level in Kosovo, this research assesses the extent that the Law on Spatial Planning and the Spatial Plan of Kosovo (also referred as the Spatial Planning Strategy) address those considerations. Upon the identified gaps, this research provides recommendations for better climate change management, risk reduction and resiliency building. Considering that the Spatial Plan of Kosovo has expired, and the Kosovo’s institutions are currently reviewing and considering the updating of the Law on Spatial Planning, the findings of this research could better inform and orient climate change mainstreaming in spatial planning at the central level. (shrink)

Before the Doi Moi reforms in 1986, Viet Nam’s economy was devastated by 30 years of warfare with two major military powers, France and the US, ending in 1975. In the subsequent 10 years, Viet Nam suffered from failing economic experiments, including agricultural cooperatization, “industry-commerce rehabilitation,” price-wage-currency reform, among others, under the centrally planned mechanism (Wood 1989), as well as the international isolation and a US trade embargo when its troops entered Cambodia to overthrow the Khmer Rouge (...) (Riedel and Turley 1999). Its per-capita gross domestic product (GDP) declined to USD 97 in 1989 whereas the ratio of external debt to GDP reached 330%. 1 The economy languished and became one of the poorest in the world (VGP 2016). (shrink)

Many worry that global warming may produce dire consequences not just for humankind, but for many other living organisms on the planetEarth. This has raised concerns about the desirability of the political and economic policies that brought us to this point in history, a period of markedly higher levels of consumptionConsumption that produce higher levels of CO2. That, in turn, has raised new concerns about the ideologies and theoretical paradigms upon which such political and economic policies are based. Many now (...) call for a rejection of free marketFree Market economies to make room for more centrally planned economic systems. Even the idea of Homo EconomicusHomo Economicus – the primary actor in the modern free marketFree Market economy – is under fire in favor of a new conceptualization of the primary actor: Homo CuratorHomo Curator. This essay explains why these changes are both unnecessary and dangerous. I argue they are unnecessary by showing: (1) Homo Economicus and excessive consumptionConsumption are not the root of the problem, and (2) how the theory of market failure already gives us proven means to address problems like global warming. I argue that abandoning Homo Economicus and the free marketFree Market economy is dangerous because it will inevitably lead to a world that is far less likely to support individual and collective human flourishing; one that poorer, less free, and less respectful of the sanctity of the individual. (shrink)

The participatory economics model (ParEcon) of Michael Albert and Robin Hahnel represents an important contribution to the debate about feasible alternatives to capitalism. What distinguishes the model from other proposals, like market socialism or cybersocialism, is the central role given to the participation of citizens in economic planning. Citizens form workers’ and neighbourhood consumers’ councils which develop production and consumption proposals. These councils form federations responsible for the coordination of planning. An Iteration Facilitation Board plays a mere perfunctory role in (...) the facilitation of the planning process. This way, economic planning is done entirely by the citizens themselves rather than planners at a central planning agency. The ParEcon model is thereby supposed to be more democratic than historical central planning.In this paper, I consider whether three possible justifications for democracy can also be used to support this kind of participatory economy. These justifications can be referred to as (1) the protection of citizens’ interests, (2) the revealing of preferences and (3) liberty. In my paper, I show that these three justifications of democracy do not in fact support democratic participation in concrete economic plans in the way envisaged by Albert and Hahnel. Instead of individual plans, citizens should choose general planning procedures. This prevents citizens from being subjected to the arbitrary power of their co-workers or neighbours. Such an algorithmic planning process also prevents central planners from holding arbitrary power since, much like the Iteration Facilitation Board in the ParEcon model, they simply facilitate the prescribed planning process without retaining significant discretion. As I elaborate in the case of consumption planning, citizens can still participate in planning, however they do so through their individual choices rather than a democratic vote. Individual citizens should not require the approval of their neighbours for their personal consumption. (shrink)

Mises’ and Hayek’s arguments against central economic planning have long been taken as definitive proof that a centrally planned economy managed by the government would be impossible. Today, however, the exponential rise in the capacities of AI has opened up the possibility that supercomputers could have what it takes to plan the national economy. The ‘economic calculation debate’ has thus reignited. Arguably, this is because neither Mises nor Hayek have given a clear and conclusive argument why (...) central planning of the economy is impossible in principle. The paper frames the problem of economic planning as an agent–environment interaction, offering a taxonomy of the different sets of agents at play a) in a market economy and b) in a centrally planned economy equipped with the most sophisticated AI technology. The argument is that public institutions as planning bodies cannot replace the market order, no matter the AI technology behind them, for the elimination of the market entails the elimination of crucial kinds of agents that cannot be recreated or emulated through AI or careful social planning: the proactive action of entrepreneurs driving market allocation. (shrink)

In China, the transformation from a centrally planned economy to one dominated by market forces has been characterized by the devolution of authority from the center to localities. This is as true of the enormous state bureaucracy associated with the control of fertility as it is with the economic bureaucracies more often studied in transitional societies. Using observations from several field sites, the authors document how county-, township-and village-level family planning cadres have gone from being agents of (...) the state to autonomous actors who must negotiate between the ongoing demands of the central bureaucracy and the new opportunities available in the locales in which they work and dwell. They suggest that any serious change in the draconian restrictions on fertility that have obtained in China for almost thirty years is likely to derive from initiatives at the local level. Local actors have already begun to adjust to the tensions between responsibilities and available resources that have tended to induce paralysis in the upper levels of this long-standing state bureaucracy. (shrink)

Although the history of centrally planned economies has been widely studied, the development of socialist thinking on the subject has remained largely uncharted. In this 1991 work, Pekka Sutela presents a detailed analysis of Soviet economic thought and theory. Dr Sutela traces the competing currents in the Marxist tradition of socialist economies from the Revolution to the present day. In particular he shows how the Gorbachev economic reform programme of 1987 rose from the work of Nobel Prize economist (...) L. V. Kantorovich and his followers. However, this programme failed and the author explains in some detail why this happened. Since then, Soviet economists have tried to abandon their traditional theory of central planning and move along the path and long established contacts with leading Soviet economists, Pekka Sutela is able to show how Soviet economic thinking has moved from dogmatism through reformism to pragmatism. (shrink)

An axiomatic analysis of the concept of unequal exchange (UE) between countries is developed in a dynamic general equilibrium model that generalises John Roemer’s (Central Planning and the Soviet Economy, MIT Press, Cambridge, 1983) economy with a global capital market. The class of UE definitions that satisfy three fundamental properties—including a correspondence between wealth, class and UE exploitation status—is completely characterised. It is shown that this class is nonempty and a definition of UE exploitation between countries is proposed, (...) which is theoretically robust and firmly anchored to empirically observable data. The full class and UE exploitation structure of the international economy is derived in equilibrium. (shrink)

"Of all the economic bubbles that have been pricked," the editors of The Economist recently observed, "few have burst more spectacularly than the reputation of economics itself." Indeed, the financial crisis that crested in 2008 destroyed the credibility of the economic thinking that had guided policymakers for a generation. But what will take its place? In How the Economy Works, one of our leading economists provides a jargon-free exploration of the current crisis, offering a powerful argument for how economics (...) must change to get us out of it. Roger E. A. Farmer traces the swings between classical and Keynesian economics since the early twentieth century, gracefully explaining the elements of both theories. During the Great Depression, Keynes challenged the longstanding idea that an economy was a self-correcting mechanism; but his school gave way to a resurgence of classical economics in the 1970s-a rise that ended with the current crisis. Rather than simply allowing the pendulum to swing back, Farmer writes, we must synthesize the two. From classical economics, he takes the idea that a sound theory must explain how individuals behave-how our collective choices shape the economy. From Keynesian economics, he adopts the principle that markets do not always work well, that capitalism needs some guidance. The goal, he writes, is to correct the excesses of a free-market economy without stifling entrepreneurship and instituting central planning.Recent events have shown that we cannot afford to treat economics as an ivory-tower abstraction. It has a direct impact on our lives by guiding regulators and policymakers as they make decisions with far-reaching practical consequences. Written in clear, accessible language, How the Economy Works makes an argument that no one should ignore. (shrink)

This essay is a literature review journey of ancient Chinese texts, including Confucius' Analects, Sima Qian's Records of the Grand Historians of China, Pan Ku's The History of the Former Han Dynasty, and official historical texts of subsequent dynasties. Confucius is not against the accumulation of wealth as long as it is acquired through moral means. Sima Qian, the greatest Chinese historian, appreciates the contribution of successful private enterprises towards the betterment of economy by its efficient usage of resources (...) and his opinion is strikingly similar to modern economic theories such as F. A. Hakey's ideas on free market economy. Their standpoints are, however, rejected by all later official view which emphasizes "All land and resources belong to the King." Starting from Pan Ku' proposal on the classification of social hierarchy, businessmen belong to the bottom stratum of the social ladder. The money-making businessmen of the common people is portrayed as "immoral" or even "illegal," but when the profit goes to the King or when the business is state-owned, it is taken as reasonable and highly acceptable. The Chinese King is the controller of most profitable and important businesses in major industries and mining as well as the distributor of most valuable resources. All official view emphasizes the stability of the state, for then the control of the country can be ensured and the power of the King can be consolidated. (shrink)

The fall of the former Soviet Union and the opening of the countries of Eastern Europe has prompted examination of why central planning failed, why capitalism with all its faults is succeeding, and what actions and institutions are necessary to move command economies toward successful, sustainable market economic systems. As they privatize State Owned Enterprises (SOE's) expectations are that the companies will function with the success experienced by western companies. Governments hope to derive tax revenue from company profits and expect (...) companies to provide jobs. Effecting the change is, however, far greater than changing the name plate on the door. Transition success will hinge upon institutional and infrastructure changes that need to be wide-spread. The ethical quagmire is that without changes in the infrastructure of the command economy system private enterprise is doomed to fail. Governments will then be deprived of the anticipated revenue streams emanating from businesses. Governments may then not be able to fulfill the economic and social expectations of their citizens. This would be not only counter-productive for businesses and government but also confusing and bewildering to the general populous. This paper explores structural impediments in transition economies and discusses how each blocks and distorts the formation of a true market economy. (shrink)

Group process methods for problem solving and planning are now widely used in organizations in the United States. Such methods, which involve active participation by employees, are not often used in Russia. We believe these methods would help Russia move from a centrally planned, authoritarian style of management to a more participatory, information-sharing style of management. Accordingly, two training sessions were held with faculty members at universities in Irkutsk and Novosibirsk. This article describes how these meetings were arranged, (...) the results of the planning activities, and the implications of participatory methods of decision making for organizations in Russia and in other transitional economies. (shrink)

Crisis, sometimes associated with historically distant times or centrally planned economies, has turned out to be one of the main contemporary issues. Hence different systems like socialism and capitalism become similar in their inability to reply to expectations for a safe, peaceful and abundant life. It means that economic problems are more complex in their nature. Thorough analysis of the roots of different crises should therefore reach deeper than just economic explanations. This is the point where ethical and (...) cultural explanations may be useful because they strive to explore the socio-cultural fabric at its foundations in the hierarchy of values and vision of human beings and society. When it comes to contemporary crisis the problem is twofold: firstly, there is the threat that the crisis will be treated inadequately and not realistically in consequence. Secondly, the roots ofthe crisis may not be diagnosed properly, which may lead to false ‘treatment’. This article is an attempt to highlight the above issues and analyse them in the context ofthe common good approach, which seems to offer valuable potential to understand the difficulties properly and offer a reasonable plan for recovery. (shrink)

_Something that has been needed for decades: a leftist foreign policy with a clear moral basis_ Foreign policy, for leftists, used to be relatively simple. They were for the breakdown of capitalism and its replacement with a centrally planned economy. They were for the workers against the moneyed interests and for colonized peoples against imperial powers. But these easy substitutes for thought are becoming increasingly difficult. Neo-liberal capitalism is triumphant, and the workers’ movement is in radical decline. (...) National liberation movements have produced new oppressions. A reflexive anti-imperialist politics can turn leftists into apologists for morally abhorrent groups. In Michael Walzer’s view, the left can no longer take automatic positions but must proceed from clearly articulated moral principles. In this book, adapted from essays published in _Dissent_, Walzer asks how leftists should think about the international scene—about humanitarian intervention and world government, about global inequality and religious extremism—in light of a coherent set of underlying political values. (shrink)

This book is a completely rewritten version of the author's earlier Capitalism or Worker Control?. Its central thesis is that, despite the collapse of communism in Eastern Europe and the break-up of the Soviet Union, capitalism cannot be justified on either economic or ethical grounds. There is in fact an alternative to capitalism that promises greater efficiency, and equality, and more rational growth, democracy and meaningful work. This alternative, Economic Democracy, is market socialism with decentralised investment planning and workplace democracy. (...) Professor Schweickart compares this model with other models – laissez-faire conservatism, the Keynesian welfare state, and 'neo-liberalism' – and argues that it is really superior on every count. He also sketches out a possible transition from advanced capitalism, from what is left of the centrally planned economies, and from Third World underdevelopment, to Economic Democracy. The author concludes with some reflections on Marx's communism, as historical materialism, and on the future of Marxism. (shrink)

The technology in use in a country is determined less by the "supply push" of technologically oriented programs than by the "demand pull" from users. In a market economy, the latter is strong ly influenced by the level and structure of prices, wages, and exchange rates, by the price and avail abitity of credit, raw materials, and energy, by patterns of income distribution, and by the degree of competition among different producers. All of these are strongly influenced by government (...) policies. In a centrally planned economy, the demand for improved technology depends on the incentives facing decision-makers in factories and ministries. In both kinds of economies, the orientation and content of engineering education and general education, influence the values that engineers, entrepreneurs, and other decision-makers bring to the technological aspects of their development. (shrink)

In this paper, I will argue that the current discussions about regulating certain activities concerning the pharmaceutical industry do miss a crucial point. The Pharmaceutical Industry is a story of success, providing a wealth of new discoveries and applied technologies, which have greatly enhanced our lives. The current call for strict regulation of the Pharmaceutical Industry makes the unwarranted assumption that such regulation will not disturb the mechanisms of the Industry’s success. I will claim that a centralised regulation profoundly transforms (...) the direction of travel. I will also claim that the role of the executive in bypassing regulations creates a parallel industry of subsidiary regulations to counter such bypassing. The predictable consequence is the increasing role of central regulatory control and the progressive slowing down of the success of the Pharmaceutical Industry leading towards an undesirable mediocrity. The conclusion I wish to advance is that our choices are not limited to ‘a wild open market’ and ‘a regulated open market’ scenarios, and the strategy to avoid a robustly regulated but mediocre Pharmaceutical Industry may involve ‘non-open market scenarios’ which have so far been absent from the alternatives discussed. (shrink)

The nationwide economic reform in 1986 transformed Vietnam from a centrally planned economy to a socialist-oriented market economy. Entrepreneurs and entrepreneurial spirits within the populace are suggested to fuel the structural changes. Despite the importance of entrepreneurship in Vietnam’s economy, studies in Vietnam mainly pay attention to the practical aspects of entrepreneurial activities and neglect the cognitive and theoretical aspects of entrepreneurship. Thus, the current study employs the information-processing perspective of the Mindsponge Theory to explore (...) how entrepreneurs’ knowledge accumulation can affect their perceived likelihood of business success. Bayesian analysis indicates that business-related experience positively affects entrepreneurs’ business success likelihood. Greater willingness/readiness to transform thinking, acting, and beliefs can improve the business success of entrepreneurs who study others’ failures carefully. However, for entrepreneurs who perceive learning from others’ failures as unnecessary, higher willingness/readiness to transform diminishes their chance of success. Based on these findings, we recommend Vietnamese entrepreneurs accumulate knowledge through experience, learning, and an open mind for better decision-making and innovation creation capabilities. However, the learning process should be selective. (shrink)

More than perhaps any other major social theorist, Niklas Luhmann adopted a perspective on society at the opposite end of the atomistic-holistic spectrum to that of mainstream economics. While the position of mainstream economics is that society is nothing more than a collection of individuals, so that it can be understood simply in terms of those individuals and their interactions, Luhmann abstracts from individuals entirely, understanding social phenomena as being produced by society itself, with individuals playing a merely peripheral or (...) “enabling” role. This radical reconceptualization of society and the relation of the individual to society allowed Luhmann to build from the ground up a highly systematic theory of society which allows one to formulate economic and social questions in new ways, freed from preconceptions that are poorly grounded or simply wrong. After providing a brief overview of Luhmann’s general social theory, this article considers two questions for which Luhmann’s theory can produce a fresh point of view. The first concerns what is the nature of markets. According to Luhmann, markets are not a kind of system, but collections of observations--the observations of market participants of other market participants. The second concerns the old question of what is the appropriate degree of intervention in the economy. Mainstream economics approaches this problem through the distinction between markets and planning. According to Luhmann, this is a false dichotomy, since all economies have markets and planning. The real question is who should do the planning: private organizations or the state. The former operate on the basis of competition, that is, rivalry; the latter operates on the basis of cooperation. The problem with “socialist” or “centrally planned” economies was not that they were planned or centrally organized, since “free market” economies have planning and centralization too; it was that they relied solely on cooperation, with there being no space for competition. The paper concludes with some reflections on whether freemarket economies with minimal intervention by the state are any more sustainable than are “socialist” economies.Niklas Luhmann, peut-être plus que les autres auteurs en théorie sociale, a adopté une approche de la société qui est à l’opposé du spectre individualismeholisme des économistes orthodoxes. Alors que l’économie orthodoxe considère que la société n’est rien d’autre que la somme des individus et qu’elle ne peut être appréhendée qu’en termes d’individus et de leurs interactions, Luhmann fait totalement abstraction des individus et comprend les phénomènes sociaux comme étant produits par la société elle-même dans laquelle les individus jouent un rôle périphérique ou un rôle “d’habilitation”. Cette radicale reconceptualization de la société ainsi que la relation des individus à la société a permis à Luhmann de construire une théorie très méthodique de la société qui permet d’appréhender de façon différente les questions économiques et sociales, sans préreprésentations fragiles ou erronées. Après avoir donné un aperçu général de la théorie sociale de Luhmann, l’article considère deux questions pour lesquelles la théorie de Luhmann peut apporter un nouveau point de vue. La première traite de la nature des marchés. D’après Luhmann, les marchés ne sont pas une sorte de système mais des sommes d’observations faites par les participants au marché sur les autres participants. La seconde question concerne l’éternel problème du degré d’interventionnisme dans l’économie. Les économistes orthodoxes abordent cette question à travers la distinction entre les marchés et la planification. D’après Luhmann cette dichotomie est erronée dans la mesure où toutes les économies connaissent à la fois le marché et la planification. La véritable question est: Qui devrait planifier: les organisations privées ou l’Etat?. Les premières agissent sur la base de la concurrence, i.e de la rivalité; l’Etat agit sur la base de la coopération. Le problème avec les économies “socialistes” ou “centralement planifiées” n’est pas qu’elles sont planifiées ou qu’elles relèvent d’une organisation centralisée puisque les économies de “marché libre” connaissent aussi la planification et la centralisation. Le problème vient du fait qu’elles reposent uniquement sur la coopération et n’accordent pas de place à la concurrence. Le papier conclut en s’interrogeant sur l’idée selon laquelle les économies de libre marché avec une intervention étatique minimale sont plus viables que les économies “socialistes”. (shrink)

“Carbon neutrality, carbon peaking” is China’s national commitment to the whole world about its plans to manage global climate change. China faces many severe challenges in fulfilling its commitments to reduce emissions. China’s digital economy is currently booming, and whether it can provide opportunities for reducing regional carbon emissions is worth exploring. This study constructed a comprehensive system to evaluate the development of its digital economy based on China’s regional data and empirically tested the direct, indirect, and spatial (...) effects of the comprehensive development of digital economy on regional carbon emissions. In addition, it examined the special stage characteristics using a Hansen threshold model. This study found the following: first, the digital economy significantly suppresses carbon emissions in general, notably with a spatial spillover effect to neighboring provinces. Secondly, an analysis of the mechanism shows that the comprehensive development of a digital economy can restrain regional carbon emissions through industrial progress and the optimization of energy consumption. Third, there are double thresholds, special driving trends and an “inverted N-type” relationship with development. Fourth, a spatial heterogeneity analysis revealed that significant “local” and “neighboring” impacts on the reduction of carbon emissions only exist in the central and eastern areas. This study has a reference value for releasing the dividend of digital economy development and reducing carbon emissions. (shrink)

A more ethical economic system is now possible, one that rectifies the crisis spots of our current downturn while balancing the injustices of extreme poverty and wealth. Adam Arvidsson and Nicolai Peitersen, a scholar and an entrepreneur, outline the shape such an economy might take, identifying its origins in innovations already existent in our production, valuation, and distribution systems. Much like nineteenth-century entrepreneurs, philosophers, bankers, artisans, and social organizers who planned a course for modern capitalism that was more (...) economically efficient and ethically desirable, we now have a chance to construct new instruments, institutions, and infrastructure to reverse the trajectory of a quickly deteriorating economic environment. Considering a multitude of emerging phenomena, Arvidsson and Peitersen show wealth creation can be the result of a new kind of social production, and the motivation of continuous capital accumulation can exist in tandem with a new desire to maximize our social impact. Arvidsson and Peitersen argue that financial markets could become a central arena in which diverse ethical concerns are integrated into tangible economic valuations. They suggest that such a common standard has already emerged and that this process is linked to the spread of social media, making it possible to capture the sentiment of value to most people. They ultimately recommend how to build upon these developments to initiate a radical democratization of economic systems and the value decisions they generate. (shrink)

Over the past decade, strategy and international business scholars have increasingly turned their attention to assessing how alterations in institutional arrangements in former centrally planned economies influence enterprise‐level strategies. Little is known about the strategic responses of organizations operating in countries going through institutional transformation related to social issues. Since the first democratic elections in 1994, the South African government has focused on addressing the inequalities of the past through what is known as Black Economic Empowerment (empowerment of (...) historically disadvantaged black people). In this paper, we investigate the approach used by the Amalgamated Banks of South Africa (ABSA) Group Limited, one of the top four banks and an important player in the South African financial services sector, in formulating and implementing strategy to ensure successful and sustainable organizational transformation. A key component of ABSA's Black Economic Empowerment strategy is incorporation of transformation as a business imperative and not merely as a compliance requirement. (shrink)

The centrally-planned Soviet command economy was one of the twentieth century’s most radical and complex economic, political and social experiments. Its establishment did not coincide with the onset of Soviet power across the former Russian Empire in 1917-1918, but instead resulted from fifteen years of shifts, readjustments and breaks, and through experiments with both quasi-socialist market economics and centralised administrative command practices. The present article surveys the conflictual relationship between Soviet planning and Marxism in this period. It (...) demonstrates how the Stalinist command economy contradicted much of the theory and practice that the Bolsheviks themselves had thought ought to characterise the new economic system. (shrink)

China has undergone a profound paradigm shift in its approach to economic development since its policy of 'opening and reform' was first implemented in 1978. It has shifted rapidly from a centrally planned economy to a market-oriented one, speeding up its economic development through foreign investment, a more open market, access to advanced technologies and management experience. It is notable that its economic growth, marked by annual double-digit rises in GDP over two decades, has lifted more than (...) 400 million people out of extreme poverty. Today, the number of Chinese billionaires has ballooned, but so has the rich-poor gap. China's 'development' has to address this urgent issue. This article examines, based on the experience of Amity Foundation, one of China's largest faith-based organisations, how religious organisations are being harnessed by the state to redress the wealth gap arising from 'development'. The process of social engagement has empowered FBOs, made their presence more accepted and appreciated in Chinese society and contributed to the creation of more social and political space for a nascent civil society. The author argues that FBOs must provide visible, viable and replicable alternatives in their social practices that are firmly rooted in their faith, if they are to make any sustainable impact on the development debate. (shrink)

What is typical of Hayek's challenge concerning socialism is that he always maintained that this question was for economic theory to decide. Sketching the historical background of what has come to be known as the "socialist calculation debate" (section 1), I try to link this debate with the Menger-Wieser Zurechnungsproblem and show that the Pareto-Barone approach has determined the theoretical form of this economic controversy. I then go on to explore Hayek's 'inapplicability' argument (section 2) and try to show how (...) it is related to Mises' 'logical impossibility’ argument. This is followed by an examination of Hayek's second argument (section 3), which I refer to as 'the evolutionary argument'. I display what is the specific gist of this argument and connect it tightly to the first one. I then discuss certain methodological issues (section 4) pertaining to the allegedly radical difference between Mises' arguments and Hayek's tentative refutation of socialism. Here I challenge the received view that Mises' based his case on the 'impossibility in principle' of socialism, whereas Hayek's own position was to challenge the 'possibility in practice' of a centrally planned economy. This reading (especially by Willem Keizer) of Hayek's contribution to the debate seems to me misguided and unwarranted. I attempt to propose, on the contrary, that both lines of reasoning involve the same kind as arguments since both of them should be interpreted as impossibility theorems. Finally (section 5) I try to give an appropriate and adequate answer to the question raised in the title of this paper. (shrink)

The essays in this provocative collection survey and assess institutional arrangements that offer possible alternatives to capitalism as it exists today. The point of departure agreed upon by the contributors is that on the one hand, capitalism produces unemployment, a lack of autonomy in the workplace, and massive income inequalities; while on the other, central socialist planning is characterized by underemployment, inefficiency, and bureaucracy. In Part I of the volume, various alternatives are proposed: profit-sharing systems, capitalism combined with some central (...) planning, worker-owned firms in a market economy into a centrally planned economy, as has occurred recently in Hungary. Part II provides a theoretical analysis and assessment of these systems. This book is the first to cover such a wide range of subjects as central planning, market socialism, and profit sharing. It will prove indispensable to political and social scientists, and economists. (shrink)

Inspired by Max Weber's thesis on the Protestant ethic, this volume sets out to understand the role and influence of Christianity on overseas Chinese entrepreneurs working in China during its transition from a centrally-planned economy ...

In the new debate about economic planning, the question of whether new forms of comprehensive planning might inadvertently encourage a relapse into authoritarianism must be central. The article analyzes the proposal of a “Participatory Economy” because it is the most sophisticated model for comprehensive planning without the need for centralized institutions. Planning is carried out in a participatory manner, enabling worker and consumer councils to coordinate their interrelated economic activities themselves. The danger of a relapse into authoritarianism appears to (...) be averted. However, the paper argues that the Participatory Economy doesn’t live up to the goal it set for itself to a satisfying degree, because it requires more centralized institutions than it initially suggests. Centralization tendencies arise for strong normative reasons and are therefore difficult to avoid. Even worse, council-democratic remedies to centralization tendencies don’t offer an easy answer, as these remedies come with their own set of problems. (shrink)

Abstract:For decades, education has been inundated with neoliberal policies described as enabling its structures to adjust to a global knowledge economy. Located at the intersection of such "reform" language and classical liberal economic theory is a troubling paradox–the idea that knowledge should be centrally concentrated in order to "liberalize" education along free market lines. This essay considers implications of centralized knowledge for music education in light of this contradiction and the rhetoric that obscures it. To raise awareness of (...) this paradox, I briefly summarize some of the literature on neoliberalism and state intervention before examining the ideas of an individual skeptical of central knowledge planning despite his pivotal role in the birth of modern educational "reform": Peter Drucker. The ideological collapsing of Drucker's nuanced views by neoliberal interests stands in stark contrast with what could be a less instrumental argument for the development of problem-solving skills for lifelong benefit. Finally, I ask whether we reinforce this contradiction if we champion music's curricular legitimacy and relevance, yet fail to teach students to think musically for themselves as evidenced by prescriptive instructional methods or participation in standardizing musical knowledge through failure to resist the totalizing ideology of the audit culture. (shrink)

In almost all countries, the transition from a centrally planned economy to a market economy caused high unemployment. The governments attempted to ease the changeover to a market economy for the unemployed by introducing several passive and active labour market policies. This paper first points out which effects were to be expected of such policies from the perspective of Austrian Economics. These theoretical hypotheses are then tested empirically. It turns out that the hypotheses deducted from (...) Austrian Economics theory are impressively corroborated by the empirical evidence.Dans presque tous les pays, la transition d’une économie centralement planifiée vers une économie de marché ont provoqué un chômage élevé. Les gouvernements ont essayé d’adoucir la transition vers une économie de marché pour les chômeurs en introduisant plusieurs politiques passives et actives sur le marché du travail. Tout d’abord, cet article souligne quels étaient les effets attendus de telles politiques à la lumière de l’économie autrichienne. Ces hypothèses théoriques sont ensuite testées de manière empirique. Il en ressort que les hypothèses déduites de la théorie économique autrichienne sont corroborées de manière significative par les preuves empiriques. (shrink)

All our previous political experience, and especially, of course, the experience of Eastern Europe and Central Asia, offers little hope that democracy can coexist with the centralized allocation of economic resources. Indeed, simple observation suggests that a market economy with private property rights is a necessary, although not sufficient, condition for the existence of a democratic political regime. And this accords fully with the political theory of liberalism, which emphasizes that private rights, both civil and economic, be protected and (...) secure. At the same time, our previous experience also indicates that market economies are more successful than centrally planned economies not only in producing, but also in distributing, both private and collective goods. This economic experienee is supported by neoclassical economic theory, which treats clearly defined and secure rights to private property as essential to a market economy. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Investment, Profit, and Tenancy: The Jurists and the Roman Agrarian EconomyDaniel J. GargolaDennis P. Kehoe. Investment, Profit, and Tenancy: The Jurists and the Roman Agrarian Economy. Ann Arbor: University of Michigan Press, 1997. xiv 1 269 pp. Cloth, $42.50, £29.95 (UK, Europe).This book is more than an investigation into an aspect of Roman law and legal thought. At the very beginning, Dennis Kehoe clearly identifies his goal: (...) “My purpose in this study is to clarify the basic relationships characterizing the agrarian economy of the early Roman Empire by analyzing the economic mentality that guided upper-class Romans in managing their wealth. My conviction is that the type of agrarian planning based on upper-class conceptions of investment and profit played a fundamental role in shaping the Roman economy as a whole.... In this study, I propose to address this problem by analyzing the assumptions that the Roman jurists in the Digest of Justinian and in other classical sources made about investment and profit in agriculture as they addressed legal issues involving private property. I base my analysis on the legal sources because, as I shall demonstrate, they offer a more comprehensive picture of the economic interests of upper-class Romans than we can gain from other types of evidence, including literary evidence, documentary papyri, and inscriptions” (vii).The author’s awareness of the problems in using legal evidence to shed light on larger issues and his openness about his own assumptions and about the limitations of the methods and the sources he has chosen to employ are among the work’s great strengths. In marked contrast with some other investigations of such matters, Kehoe does not assume that laws provide a simple, straightforward, and transparent entry into the structure and organization of economy and society. The work opens with an examination of the legal sources as evidence. Their condition offers one problem. The writings of the late Republican and early Imperial jurists are preserved largely in relatively brief citations included in the great collections of the sixth-century a.d.: Justinian’s Digest and Code. As Kehoe notes, this presents a major problem for investigators: to what extent do these passages represent the original—that is, was obsolete material removed systematically, and were the passages adjusted to fit the compilers’ concerns? Following authorities such as M. Kaser and F. Wieacker, the author takes an optimistic view of the matter, suggesting that “contemporary scholarship is justified in moving away from the suspicion that the Digest is so thoroughly interpolated that the opinions of the classical jurists can only be recovered after exhaustive reconstruction of the texts” (9). While accepting the possibility of interpolation in individual cases, he has based his study on the “belief that the existing collections of legal texts do allow us to trace the thinking, in particular the economic thinking, of the classical Roman legal authorities” (10).Having declared his intention to regard the citations as reasonably accurate reflections of their originals, Kehoe then turns to a more central question: the extent to which juristic writings reflect actual conditions. One school of [End Page 323] thought, represented by scholars such as Alan Watson (The Spirit of Roman Law [Athens, Ga., 1995]), suggests that Roman jurists operated within a system of traditional representations, maintained as if fossilized long after the conditions that had given rise to them had changed, and that legal writers largely wrote about internal problems in interpretation that had arisen within this system. The jurists, then, did not address problems of their own day, nor were they interested in adapting the law to new circumstances, and their opinions need bear little resemblance to actual arrangements in their own time and place. Others, however, are more convinced of the timeliness of Roman legal writing. Scholars such as B. W. Frier (Landlords and Tenants in Imperial Rome [Princeton 1980]) and S. D. Martin (The Roman Jurists and the Organization of Private Building in the Late Republic and Early Empire [Brussels 1989]) maintain that Roman jurists consciously and directly addressed in their writings the social and economic concerns of their contemporaries in the governing elite.Once again, Kehoe takes care to situate... (shrink)

John Stuart Mill has several good claims to be considered as one of the founders of modern social and political thought, particularly given his central role in the foundations of liberalism, and thus, though a good deal has been written about him already, a book on Mill in this ‘Founders’ series should be welcomed. Frederick Rosen brings his wealth of scholarship on both Mill and Jeremy Bentham to play, giving a fresh and informative perspective. The book is structured around Mill’s (...) two largest compositions, the texts which made him famous in his own age—namely, the System of Logic Ratiocinative and Inductive (1843) and Principles of Political Economy (1848)—which Rosen follows Alexander Bain in describing as being where ‘Mill’s creative energy was mainly confined’ (7). It is refreshing to find a book on Mill which is not centred around On Liberty or Utilitarianism as being the only works of interest in Mill’s canon, though Bain’s remarks seem a little harsh.Rosen’s avouched plan is to .. (shrink)

Extreme impacts from climate change are already being felt around the world. The policy choices that we make now will affect not only how high global temperatures rise but also how well-equipped future economies and infrastructures are to cope with these changes. The interests of future generations must therefore be central to climate policy and practice. This raises the questions:Whoshould represent the interests of future generations with respect to climate change? And according to whichcriteriashould we judge whether a particular candidate (...) would make an appropriate representative for future generations? In this essay, we argue that potential representatives of future generations should satisfy what we call a “hypothetical acceptance criterion,” which requires that the representative could reasonably be expected to be accepted by future generations. This overarching criterion in turn gives rise to two derivative criteria. These are, first, the representative'sepistemic and experiential similarity to future generations, and second, his or hermotivation to act on behalf of future generations. We conclude that communities already adversely affected by climate change best satisfy these criteria and are therefore able to command the hypothetical acceptance of future generations. (shrink)

This book is a completely rewritten version of the author's earlier Capitalism or Worker Control?. Its central thesis is that, despite the collapse of communism in Eastern Europe and the break-up of the Soviet Union, capitalism cannot be justified on either economic or ethical grounds. There is in fact an alternative to capitalism that promises greater efficiency, and equality, and more rational growth, democracy and meaningful work. This alternative, Economic Democracy, is market socialism with decentralised investment planning and workplace democracy. (...) Professor Schweickart compares this model with other models – laissez-faire conservatism, the Keynesian welfare state, and 'neo-liberalism' – and argues that it is really superior on every count. He also sketches out a possible transition from advanced capitalism, from what is left of the centrally planned economies, and from Third World underdevelopment, to Economic Democracy. The author concludes with some reflections on Marx's communism, as historical materialism, and on the future of Marxism. (shrink)

The Austrian school tends to associate the morality of the market with its efficient operation. Consequently, it criticizes attempts to offer an ethical evaluation of the market for not understanding how the market works. This criticism proves correct with regard to those who would seek to run an economy according to a set of predetermined moral criteria, such as socialist advocates of central planning or Victorian moralists who regarded the market as the embodiment of the desert ethic. However, if (...) the market trades on moral resources it does not create, this may justify placing it within a more substantive moral framework that establishes its ethical basis and limits. (shrink)

The body of measures promulgated to deal with the emergency of the depression is frequently linked up with the idea of a planned economy. That emergency measures have little or no essential connection with planning is the central thesis of this essay.The author discusses the four most important premises of the emergency measures : the intensity of the depression, the degree of organization reached by the country in depression, its social stratification, and its political set-up. Two emergency methods (...) are distinguished. On the one hand, an attempt is made to set the price mechanism in operation by lowering production costs, principally wages but also interest rates, rents, etc. The same adaption is aimed at by measures of state intervention which try to boost prices particularly by restriction of production and of imports. The second method, which has been used in an unprecedented manner during the present depression, attempts to stop the cumulative deflationary process by credit and monetary measures, as well as by public works.The effects of the emergency measures in some of the more important countries are discussed briefly. The author believes that a major part of these measures was necessitated by the course of events, but that their effect will be conflicting and of only short duration.Le but du travail est d'indiquer les idées les plus importantes pour comprendre et juger la politique de crise et de montrer qu'il ne saurait être question de considérer aucune des mesures prises comme un véritable plan. Par politique de crise, on entend les mesures destinées à atténuer ou surmonter une crise économique existante, par opposition à une „politique de conjoncture“ qui tend à une économie sans crise.L'auteur analyse les quatre prémisses fondamentales d'une politique de crise : profondeur de la dépression, degré d'organisation économique, structure sociale et organisation politique du pays atteint par la crise. On distingue deux méthodes employées pour combattre la crise. La politique d'adaptation, sous sa forme libérale, cherche à renforcer l'automatisme du marché, en diminuant les frais de production, etc. Les procédés d'intervention, dans la politique d'adaptation, ont pour objet l'augmentation des prix, avant tout à l'aide de restrictions de production et d'importation. La deuxième méthode, appliquée dans la crise actuelle avec une ampleur jamais encore connue, tâche d'arrêter le processus de déflation par des mouvements contraires. Les moyens principaux sont des mesures qui concernent le crédit et la monnaie, et des travaux publics. L'action d'ensemble de la politique de crise dans quelques pays importants est rapidement étudiée, à la fin de l'article. Encore que l'auteur considère une grande partie des mesures prises contre la crise comme inévitables, il tient leur action pour contradictoire et à courte échéance. (shrink)

Alfred Müller-Armack was one of the very important policy-makers who initiated the West-German economic recovery after WWII. He devised the underlying economic program of the so-called “German Miracle”, which was not a miracle at all. It was the outcome of a rigorous rule transformation from the bankrupt central planning of the Nazi- regime to a market economic order based on the principles of classical liberalism combined with a social safety net for all who suffered from the terrible consequences of war (...) destruction. He called his program “Social Market Economy”, thereby expressing that the risky game of the market needs a social safety net to make his program acceptable for the majority of the German citizens.Müller-Armack was not only the Head of the Central Policy Unit at the Federal Economic Ministry under Ludwig Erhard for twelve years but also a well-known university teacher of economics. In the tradition of Max Weber he combined this subject with the theory of economic sociology, and especially, the sociology of religion. In this respect he was an early author in the field which nowadays is named “cultural economics”. His publications on the impact of religious beliefs of greek-orthodox societies on the economic performance of South-East European countries are still of great interest for the present debates about the economic consequences of Islam.Alfred Müller-Armack fut l’un des très importants politiciens qui initièrent l’économie de l’ Allemagne de l’Ouest après la 2ème Guerre Mondiale. Il conçut dans ses grandes lignes le programme économique du soi disant « Miracle Allemand ». Ce fut le résultat d’une règle rigoureuse de transformation à partir de la faillite de la planification centrale du régime Nazi vers un ordre marchand fondé sur les principes du libéralisme classique combiné à un filet de sécurité sociale pour tous ceux qui avaient souffert des conséquences terribles des destructions de la guerre. Il appela son programme « Economie sociale de marché », exprimant ainsi que le jeu risqué du marché nécessite un filet de sécurité sociale pour rendre son programme acceptable par la majorité des citoyens allemands. Müller-Armack n’était pas seulement le chef de l’unité politique centrale au ministère fédéral de l’économie sous la direction de Ludwig Erhard pendant 12 ans, mais également un professeur très réputé d’économie à l’université. Dans la tradition de Max Weber, il associe ses sujets avec la théorie économique de la sociologie et plus particulièrement, la sociologie de la religion. Dans cette mesure, il fut un pionnier dans le champ de ce que l’on appelle aujourd’hui « l’économie de la culture ». Ses publications sur l’impact des croyances religieuses des sociétés grecques orthodoxes sur la performance économique des pays du Sud-Est Européen restent d’un grand intérêt pour les débats actuels au sujet des conséquences économiques de l’Islam. (shrink)

The last forty years have produced a dramatic reversal in leading accounts of science. Once thought necessary to (explain) scientific progress, a rigid method of science is now widely considered impossible. Study of products yields to study of processes and practices, .unity gives way to diversity, generality to particularity, logic to luck, and final justification to heuristic scaffolding. I sketch the story, from Bacon and Descartes to the present, of the decline and fall of traditional scientific method, conceived as The (...) Central Planning Bureau for Science or as Rationality Czar. I defend a deflationary account of method and of rational judgment,. with emphasis on heuristic appraisal and cognitive economy. (shrink)

The author of the article studies the activities of the Executive Committee of the Leningrad City Council on the development of the city and its infrastructure in the first half of the 50s of the 20th century. Particular attention is paid to prevention of attempts made by various departments to violate the existing layout of the city and cause damage to monuments of historical and cultural heritage. By the beginning of the 1950s, the tasks of restoring the municipal economy (...) in Leningrad and liquidating the damage caused by the war and the enemy blockade of the city were basically solved. In these years, the most acute task for Leningrad was to ensure a steady increase in the volume of housing construction and to reconstruct ‘under-repaired‘ residential buildings. In addition, it was necessary to build and start up the first stage of the subway, i.e. to fulfill the task set in the Fourth Five-Year Plan. To ensure the solution of these problems, the General Plan for the Development of Leningrad in 1951-1960 was developed. The most important part of the plan was the implementation of new housing construction along with the restoration and renovation of existing houses and buildings. Particular attention was paid to the development of social infrastructure. The plan provided for the construction of schools, hospitals, and other public facilities. The Executive Committee of the Leningrad City Council constantly kept under control the problems that arose with land allocation for organizations and enterprises located in the city. Sometimes the solution of these issues acquired the all-Union character, and the city’s leadership protected the interests of the residents and preserved the architectural and historical integrity of the city territories. Thanks to the principled and uncompromising position of the Leningrad City Council, it was possible to save many monuments of culture and architecture of the city, to ensure its development in strict accordance with the General Plan. (shrink)

Economies making a transition from centrally planned socialism to market capitalism can experience chaotic hysteresis. This can arise from elements of the previous system persisting even as institutions are transformed with the system possibly experiencing chaos during this conflict. A model of investment cycles accompanied by technological stagnation shows this phenomenon which can be viewed from a cusp catastrophe perspective. Empirical tests of Soviet investment and construction data provide incomplete support for the cusp structure with chaos. Nonlinear structures (...) are found with bifurcation effects for all cases and possibly chaotic dynamics for five-year lagged construction data. (shrink)

A. Two conceptions of moral legitimacy Socialism, understood as the rejection of markets based on private property in favor of comprehensive centralized economic planning, is no longer a serious political option. If the core of capitalism is the organization of the economy primarily through market competition based on private property, then capitalism has certainly defeated socialism. Markets have been accepted—and central planning abandoned—throughout most of the “third world” and the formerly Communist states. In the advanced industrial states of the (...) West, Labor and “democratic socialist” parties have rejected socialism, having deregulated markets and privatized industries, utilities, and transport. The United Kingdom Labour Party’s 1945 manifesto declared it to be a “Socialist Party, and proud of it. Its ultimate aim is the establishment of the Socialist Commonwealth of Great Britain.”1 Today it insists that markets are a given. (shrink)