class 2 - ECON 3808 The economics of transition The Sot...

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Unformatted text preview: ECON 3808 The economics of transition The Sot System Outline Marxism System prototypes Common attributes before revolution Power ideology Centrally planned economy Criticism Costs and benefits of central planning Failures of market system Marxism Developed in the 19 th century by Karl Marx and Friedrich Engels The foundation of communism A political, economic and social philosophy based on: Materialistic interpretation of history; Critique of capitalism; Theory of social change. System prototypes Three prototypes: The revolutionary-transitional system; The classical system; The reform system. Are those prototypes consecutive historical periods? A forth stage would follow: the postsot system. Actual course of history more complicated: different order or alternation of stages. Before Sot Revolution How similar the internal conditions were in various sot countries when each society embarked on building a sot system? Distinction: sot revolution brought by: Internal forces (Soviet Union); External forces. Majority of cases: combination of internal and external forces. Main common attributes for internally revolutionized countries Poor and economically undeveloped; Proportion of industry low; Small modern industrial sector; Precapitalist features in their social relations and property forms; Inequality in the distribution of income; Political systems: no political liberties, brutal dictatorships; Partial or total dependencies of other states; Before the revolution, events that shook up the institutions of society. Main common attributes for externally revolutionized countries Very heterogeneous; Previous list: Mongolia, Afghanistan; Majority of Eastern European countries: higher level of development The Revolutionary Transition toward the Classical System Common features of transition period (own efforts): Public atmosphere and political climate: Enthusiasm for great masses of people, triumph, ready to sacrifice more, working for community is self-evident obligation (heroic age of som) Actions? Expropriation: state or collective ownership; centralizing production and distribution; Confiscate great estates and divide them among poor peasants; Redistribution of property and income; Revolution during war: food distributed fairly; rationing; harassment and prosecution for the black marketers; Public education, free basic health care, vacations for children; Persecution of previous nobility, wealthy, old regimes leading politicians and officials; Physical violence and merciless terror; No laws and order or legal security in society: symptoms of anarchy; Appearance of active resisters of the revolutionary change (more violence, retaliation); Structure of power 1. The Party- Fundamental institution in the power structure;...
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This note was uploaded on 03/21/2011 for the course ECON 6120 taught by Professor Crabbe during the Spring '11 term at University of Ottawa.

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class 2 - ECON 3808 The economics of transition The Sot...

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