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The autonomous sector in a society of shortage

In: Privatization and Entrepreneurship in Post-Socialist Countries

Author

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  • Horst Brezinski

Abstract

It has become conventional wisdom that Soviet-type economies (i.e. socialist economies prior to decentralizing reforms), inevitably create shortages.1 It has also been recognized that in socialist systems there is an autonomous sector that grows in the shadow of the centrally planned system.2 This raises the question of the relationship between the autonomous sector and the socialist sector. I shall pay particular attention to whether the increasing inefficiency of a shortage economy also necessitates a growing autonomous sector. At the same time, my analysis will seek to illustrate the impact of the autonomous sector on a shortage economy. Before concentrating on these issues, I shall describe the characteristics of the autonomous sector in socialist economies and also the features of the shortage economy. I shall attempt to identify the principal determinants of the very existence and development of the autonomous sector in socialist economies. A general model will show how these determinants may influence the size and the structure of that specific sector.

Suggested Citation

  • Horst Brezinski, 1992. "The autonomous sector in a society of shortage," Palgrave Macmillan Books, in: Bruno Dallago & Gianmaria Ajani & Bruno Grancelli (ed.), Privatization and Entrepreneurship in Post-Socialist Countries, pages 31-45, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-12393-3_2
    DOI: 10.1007/978-1-349-12393-3_2
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