Economic Reform in Socialist Countries: The Experiences of China, Hungary, Romania, and Yugoslavia
- ISBN-10
- 0821302299
- ISBN-13
- 9780821302293
- Category
- Central planning
- Pages
- 123
- Language
- English
- Published
- 1983
- Author
- Peter T. Knight
Description
Since the early 1950s, most countries that adopted Soviet-style central planning have attempted to reform this system. Certain commonalities stand out: a thrust toward increasing the autonomy of enterprises or subnational entitites in determining investments, wages, hiring, input purchase, product mix, and the conduct of foreign trade; reliance on the price system and financial mechanisms to guide enterprise decision making; linking earnings of managers and workers more closely to enterprise and individual performance; and recognition of a constructive role for the private sector. At the same time they have considered reform, however, these centrally planned economies have been remarkably resistant to change. Experience suggests that the success of reform depends largely on the strength of political support, the comprehensiveness and internal consistency of the reforms, the length of time they are pursued without interruption, and the availability of some economic slack. Case histories of reform in Romania, China, Hungary, and Yugoslavia are included.
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