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Socialism and Kornai’s revolutionary perspective

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  • Mehrdad Vahabi

    (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this paper, I argue that the principal message of Janos Kornai’s work was to underscore that the dysfunctional properties of socialism are endemic and systemic, and cannot be “reformed”. In a sense, Kornai’s role was similar to the French Encyclopedists in preparing the ground for France’s 1789 revolution. Kornai’s intellectual contribution was to formulate a revolutionary discourse emphasizing the sterility of half-measure, cosmetic changes, and reform packages. His conclusion was based on two foundations: (1) the unity or what Kornai calls the ‘coherence’ of socialism as a system, and (2) rejection of market socialism as hopelessly confused. Accordingly, reforms would introduce inconsistencies at best, without solving socialism’s chronic problems. Moreover, the inconsistences of the half-measures would erode socialist systems, inevitably leading to revolution. This paper will examine Kornai’s two tenets of revolutionary discourse and his final conclusion in light of Hungarian economic reforms that started on January 1, 1968.
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Suggested Citation

  • Mehrdad Vahabi, 2019. "Socialism and Kornai’s revolutionary perspective," Post-Print hal-02293666, HAL.
    • Handle: RePEc:hal:journl:hal-02293666
    DOI: 10.1007/s11127-019-00720-5
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    1. Jànos Kornai, 2000. "What the Change of System from Socialism to Capitalism Does and Does Not Mean," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 27-42, Winter.
    2. Mehrdad Vahabi, 1998. "The Relevance of the Marshallian Concept of Normality in Interior and in Inertial Dynamics as Revisited by G. SHACKLE and J. KORNAI," Post-Print hal-00629181, HAL.
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    6. János Kornai, 2016. "The System Paradigm Revisited. Clarification and Additions in the Light of Experiences in the Post-Socialist Region," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 66(4), pages 547-596, December.
    7. Mehrdad Vahabi, 2016. "A positive theory of the predatory state," Public Choice, Springer, vol. 168(3), pages 153-175, September.
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    9. Vahabi, Mehrdad, 1998. "The Relevance of the Marshallian Concept of Normality in Interior and Inertial Dynamics as Revisited by Shackle and Kornai," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 22(5), pages 547-572, September.
    10. Mehrdad Vahabi, 2018. "János Kornai and General Equilibrium Theory," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 68(supplemen), pages 27-52, January.
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    16. Mehrdad Vahabi, 2014. "Soft Budget Constraint Reconsidered," Bulletin of Economic Research, Wiley Blackwell, vol. 66(1), pages 1-19, January.
    17. Eric Maskin, 2018. "Salute to János Kornai," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 68(supplemen), pages 1-2, January.
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    19. Kornai, Janos, 1986. "The Hungarian Reform Process: Visions, Hopes, and Reality," Journal of Economic Literature, American Economic Association, vol. 24(4), pages 1687-1737, December.
    20. Mehrdad Vahabi, 2009. "An Introduction to Destructive Coordination," American Journal of Economics and Sociology, Wiley Blackwell, vol. 68(2), pages 353-386, April.
    21. Mehrdad VAHABI, 2001. "The Soft Budget Constraint : A Theoretical Clarification," Discussion Papers (REL - Recherches Economiques de Louvain) 2001024, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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    Cited by:

    1. Peter J. Boettke & Rosolino A. Candela, 2021. "János Kornai, the Austrians, and the political and economic analysis of socialism," Public Choice, Springer, vol. 187(1), pages 85-97, April.
    2. Emilio Carnevali & André Pedersen Ystehede, 2023. "Is socialism back? A review of contemporary economic literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 239-270, April.
    3. Mehrdad Vahabi, 2021. "Introduction: a special issue in honoring Janos Kornai," Public Choice, Springer, vol. 187(1), pages 1-13, April.
    4. Mehrdad Vahabi, 2022. "In Janos Kornai’s memory," Public Choice, Springer, vol. 190(3), pages 265-271, March.
    5. Boettke, Peter J. & Candela, Rosolino A. & Zhukov, Konstantin, 2023. "The morality of illicit markets: “Greasing the wheels” or “greasing the palm”?," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 411-422.

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    More about this item

    JEL classification:

    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E14 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Austrian; Evolutionary; Institutional
    • H82 - Public Economics - - Miscellaneous Issues - - - Governmental Property
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions
    • P4 - Political Economy and Comparative Economic Systems - - Other Economic Systems

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