Unemployment In Capitalist Communist And Post Communist Economies

No modern economy can escape open unemployment as long as free labour and a free labour market exist. In any modern economy, there exists a tension between economic individualism and economic collectivism, but market forces cannot forever be denied. While Part 1 examines open and hidden unemployment in capitalist market economies and socialist command economies prior to 1989, Part 2 concentrates on the issue of unemployment in post-communist economies between 1989 and the end of 1993. Finally, Part 3 summarizes, re- examines, and expands on those selected dimensions of the issue of unemployment that are deemed currently to be relevant to both Western and post-communist economies. Although the book is primarily about unemployment, open as well as hidden, it also is about economic systems and their transformation and, hence, about the role of the state in the economy.

Transition in Central and Eastern Europe has led to a U-shaped response of output: a sharp decline in output followed by recovery. Most of the countries of Central Europe seem now firmly on the upside; most of the countries of Eastern Europe are still close to the bottom of the U: an optimistic view is that they are now negotiating the turn. Olivier Blanchard, a distinguished economist who has worked on transition since its beginning, is one of the first to present a unified analysis of the process of transition. The U-shaped response of output, its causes and its implications, are the subject of this book. The text is split into four chapters. The first reviews the facts; the second focuses on the two basic mechanisms underlying transition: reallocation and restructuring; the third looks more closely at a number of issues, from the interactions between restructuring and privatization to the nature of the labour market in transition; the fourth chapter pulls the material together in an analytical model of transition. This model is then used to discuss policy issues, from the design of privatization to the role of fiscal policy in transition.

As the longest economic boom in history has given way to leaner times, unemployment has re-emerged as a major issue. This theoretically and empirically sophisticated book examines how unemployment takes on widely different political meanings and explores the ways in which governments act to change their own accountability for unemployment. It contributes to the comparative political economy literature that analyzes political responses to economic problems. Baxandall reverses a conventional application of comparative research by using an Eastern European case to reveal political dynamics that are mirrored in the West - as demonstrated with American and Western European cases. Using interviews and previously unexplored archives to consider a dramatic transformation in the meaning of unemployment in Hungary, he demonstrates how the politics of economic change depend crucially on the political re-crafting of economic categories.

Early transition was characterized by debate over shock therapy and gradualism as alternative reform strategies. Other important debates concerned the nature of the former USSR. Was it ever Socialist and what were its laws of motion? What implications does the old system have for the course of post-communist reforms? These are among the key issues analysed in this book, through a mix of conceptual analysis and an interesting selection of country studies.

Seminar paper from the year 2016 in the subject Economics - Other, grade: 2,00, University of Applied Sciences Vorarlberg, language: English, abstract: This paper compares and contrasts communist party and economic planning in a socialist system with the prices and the market in a capitalist economy. It discusses the successes, failures, effectiveness and flaws of each system in terms of economic and social aspects. Is shock therapy the right approach for a stable long term transition?

Hungarian economist Janos Kornai first used the metaphor of a single path to postsocialist transition in his earlier book, The Road to a Free Economy. The new metaphor that frames this collection of eight recent studies reflects a broader perspective and understanding of the complexities of transition: every highway and byway leads eventually to capitalism, Kornai observes, but to what kind, how fast, and at what cost? Who wins and who loses? Kornai draws from his experiences of Hungarian reform as well as from countries of the former Soviet Union to make several major points. The first three studies describe what went wrong in countries that tried to mix elements of planned and market economies. Efforts made by communist countries to introduce market socialism (the "middle road") contained an inherent contradiction between the logic of socialism and the logic of a free enterprise system, and were doomed to failure. In the studies that follow, Kornai analyzes the on-going dilemmas. The transition from communism to free enterprise is filled with daunting hurdles; it requires no less than redefining ownership, changing values concerning the distribution of wealth, transferring the control of political power, creating financial institutions and enforcing financial discipline, and making deep economic sacrifice. Kornai closes with an overall survey of postsocialist transition, describing the stages that countries tend to go through, that will be particularly useful to scholars of comparative economic systems.

The author argues that with the collapse of communism, world leaders must now answer the question about the kind of capitalism that is going to replace bankrupt economies. This book highlights the success of a mixed economy that combines a free market with state responsibility for infrastructure.