This major book presents an objective and penetrating economic analysis of stabilization and reform in Eastern Europe, combined with a compassionate plea for individual rights and solidarity. Janos Kornai - one of the most famous Hungarian economists of his generation - focuses on two main issues: first, the problems of stabilization and adjustment, which are painful but necessary conditions of sustainable growth and second, the reform of the 'premature welfare state' of Eastern European countries, which is disproportionately large in relation to the resources available and which was hitherto managed in a highly centralized, bureaucratic and paternalistic way. Struggle and Hope goes beyond most other books on the transition process by placing considerable emphasis on the understanding of the ethical implications and the historical roots of each problem, and also the political conditions and consequences of change. Although economic efficiency is extremely important, it is not the exclusive criterion; ethical principles of individual sovereignty and solidarity must also receive particular attention. Professor Kornai's insightful analysis will become required reading for all those concerned with the process of post-socialist transition.

This book provides a comprehensive account of the structure, conduct, and performance of the centrally planned economies of Eastern Europe, the USSR, Communist China and the Marxist LDCs, looking at 26 nations in all. The author focuses on reform, perhaps the most important issue facing countries such as the USSR, Poland, Hungary, and China. Bureaucracy, soft budget constraints, markets, and the nature of the socialist state are the central issues that arise in the course of reforming a socialist economy. The first half of the book deals with 'classical socialism' and provides a theoretical summary of the main features of a now closed period of history. The second half deals with the processes of reform and concludes that the reform of classical socialist systems is doomed to failure as they are unable to renew themselves internally.

This major book presents an objective and penetrating economic analysis of stabilization and reform in Eastern Europe, combined with a compassionate plea for individual rights and solidarity. Janos Kornai - one of the most famous Hungarian economists of his generation - focuses on two main issues: first, the problems of stabilization and adjustment, which are painful but necessary conditions of sustainable growth and second, the reform of the 'premature welfare state' of Eastern European countries, which is disproportionately large in relation to the resources available and which was hitherto managed in a highly centralized, bureaucratic and paternalistic way. Struggle and Hope goes beyond most other books on the transition process by placing considerable emphasis on the understanding of the ethical implications and the historical roots of each problem, and also the political conditions and consequences of change. Although economic efficiency is extremely important, it is not the exclusive criterion; ethical principles of individual sovereignty and solidarity must also receive particular attention. Professor Kornai's insightful analysis will become required reading for all those concerned with the process of post-socialist transition.

This title contains eight essays that are connected by various common strands. The most important one is the community of the main subject-matter: socialism, capitalism, democracy, change of system. These four expressions cover four phenomena of great and comprehensive importance. Each piece in the book deals with these and the connections between them. One of the Leitmotifs is the 'capitalism/socialism' pair of opposites. Capitalism has a history of several hundred years, while the socialist regime existed only for a few decades. But this pair of opposites was central to the history of the twentieth century. This antagonism put its stamp on political thinking, on the foreign policy and military preparedness of every country, and on some appallingly destructive armed conflicts.All these had great secondary influence on each country's economic development and the standard of living and disposition of its inhabitants. None of the studies is confined to one country - not to Hungary or to any other. Each tries to embrace the problems common to greater units. However, the greater unit comprehended is not the same in each study. One may deal with the capitalist or socialist system in general, another will all the post-socialist countries, and a third the Central East European region. But all extend the analysis beyond the borders of one country.

In Dynamism, Rivalry, and the Surplus Economy, Janos Kornai examines capitalism as an economic system and in comparison to socialism. Kornai explains his view of capitalism as an economy of surplus-a chronic excess of supply of goods and labor. This environment breeds rivalry among producers, which in turn encourages innovation. Socialism, on the other hand, is defined by a shortage of goods and labor and excess of demand. Whereas socialism is slothful and imitative, capitalism is dynamic and progressive. The two essays of this book will explore these differing ideologies on macro and micro levels, ending with definitive explanations of how the systems work and how they develop.

To understand the dramatic collapse of the socialist order and the current turmoil in the formerly communist world, this comprehensive work examines the most important common properties of all socialist societies. JNBnos Kornai brings a life-long study of the problems of the socialist system to his explanation of why inherent attributes of socialism inevitably produced in-efficiency. In his past work he has focused on the economic sphere, maintaining consistently that the weak economic performance of socialist countries resulted from the system itself, not from the personalities of top leaders or mistakes made by leading organizations and planners. This book synthesizes themes from his earlier investigations, while broadening the discussion to include the role of the political power structure and of communist ideology. Kornai distinguishes between two types, or historical phases, of socialism. The "classical socialism" of Stalin, Mao, and their followers is totalitarian and brutally repressive, but its components fit together and make up a coherent edifice. Associated with names like Tito, KNBdar, Deng-Xiaoping, and Gorbachev, "reform socialism" relaxes repression, but brings about a sharpening of inner contradictions and the eventual dissolution of the system. Kornai examines the classical system in the first half of the book, and moves on to explore the complex process of reform in the second half. The Socialist System is addressed to economists in the first place, but also to political scientists, sociologists, and historians. In addition, it will appeal to policymakers, business analysts, and government officials who need to understand either formerly or presently communist countries.

Reform of the welfare sector is an important yet difficult challenge for all countries in transition from socialist central planning to market-oriented democracies. Here a scholar of the economics of socialism and post-socialist transition and a health economist take on this challenge. This 2001 book offers health sector reform recommendations for ten countries of Eastern Europe, drawn consistently from a set of explicit guiding principles. After discussing sector-specific characteristics, lessons of international experience, and the main set of initial conditions, the authors advocate reforms based on organized public financing for basic care, private financing for supplementary care, pluralistic delivery of services, and managed competition. Policymakers need to achieve a balance, both assuring social solidarity through universal access to basic health services and expanding individual choice and responsibility through voluntary supplemental insurance. The authors also consider the problems that undermine effectiveness of market-based competition in the health sector.

Reform of the welfare sector is an important yet difficult challenge for countries in transition from socialist central planning to market-oriented democracies. Here a scholar of the economics of socialism and post-socialist transition, and a health economist take on this challenge. They offer health sector reform recommendations for ten countries of Eastern Europe, drawn from nine guiding principles. The authors conclude that policymakers need to achieve a balance, both assuring social solidarity through universal access to basic health services and expanding individual choice and responsibility through voluntary supplemental insurance.

Countries of the former Soviet Union and Eastern Europe are entering the second decade of political transformation and economic reform. The new policy challenges center on the nature of the social contract between citizens and their governments. The essays in this volume focus on two interrelated issues: the making of fiscal policy and the provision of citizens' welfare, particularly regarding pensions and health care. The essays emphasize that there is no single model of a market economy; rather, governments and publics face a range of options for restructuring the socialist welfare state.

Mein Buch ist ein Halbfabrikat: eine Kombination aus einer theoretischen Studie und einem Arbeitsplan.l Wenngleich ich davon iiberzeugt bin, daB auf- grund ihrer AktualWit die hier mehr oder weniger in der Entwicklung befindlichen Gedanken diskutiert werden miissen, ist mir dennoch gleichzeitig bewuBt, daB die vollkommene Ausarbeitung und Darstellung meiner Gedanken noch eines betrachtlichen F orschungsaufwandes bedarf. Nachdem der Leser sich mit meinen Gedankengangen vertraut gemacht hat, werde ich im Nachwort naher darlegen, weshalb ich mich dennoch zur Veroffent- lichung eines Halbfabrikates entschlossen habe. Einleitend mochte ich nur ein einziges Motiv erwahnen. 1968 vollzog man in Ungarn eine weitgehende Reform der wichtigsten Metho- den zur Verwaltung und Fiihrung der Wirtschaft. Das Planungssystem, die Form der Unternehmensleitung, materielle Anreize sowie das Preis- und Einkommens- system wurden von Grund auf verandert. Zahlreiche Wirtschaftsprozesse, die friiher einer streng zentralisierten Lenkung und Kontrolle unterlagen, wurden nun weitgehend dezentralisiert. Dabei gewann die Rolle des Profits als materi- eller Anreiz erheblich an Bedeutung. Die Vorbereitungen fUr diese Reform lag in den Handen eines groBeren Teams von Wirtschaftstheoretikern und leitenden Experten der Wirtschaft. Es war eine einzigartige, interessante und neue Aufgabe, einerseits das Wirtschaftssystem als ganzes sowie seine wichtigsten Komponenten zu analysieren und zu iiberschauen, andererseits die erwarteten globalen Auswirkungen der Reformen vorauszusagen.

Kornai presents an assessment of Hungary's transition from a socialist to a market economy. In a comprehensive critique of socialist economy reform, Kornai explains how the system's ideological and political attributes deny the idea of "market socialism." Although this reformist socialism ensured Hungary its transition to a market economy, macroeconomic disequalibria and financial crisis posed constant threats. Finally, Kornai provides examples of Hungary's economic stabilization and conditions for its sustainable growth into the present era.

Countries of the former Soviet Union and Eastern Europe are entering the second decade of political transformation and economic reform. The new policy challenges center on the nature of the social contract between citizens and their governments. The essays in this volume focus on two interrelated issues: the making of fiscal policy and the provision of citizens' welfare, particularly regarding pensions and health care. The essays emphasize that there is no single model of a market economy; rather, governments and publics face a range of options for restructuring the socialist welfare state.

This volume is a major contribution to Hungarian economic history since the middle of the nineteenth century. In this first volume of three on the evolution of that economy, the authors focus on the beginnings of the modern capitalist economy (1848-1914), on economic nationalism (1918-1944) and on the socialist attempt at modernization (1945-1989).