TY - JOUR
AU - Nuti, Domenico Mario
AB - SummaryPerestroikaDomenico Mario NutiReform is almost as old as the history of socialist economies. Indeed the typical pattern is one of reform followed by reversals and recentralization, with pressure for reform mounting again as the system's shortcomings re-emerge. Is the current wave any different from the others? Many signs indicate that Perestroika is deeper if not outright revolutionary.The need for reform is intimately linked to the systemic difficulties of socialist economies. These difficulties are primarily due to a generalized failure to provide the incentives required to operate an otherwise quite perfected planning process. Neither enterprises, nor workers, nor planners have the incentive to offer the best response. As a result, centrally planned economies are typically good at achieving a single objective, but have failed at pursuing multiple targets and more balanced growth. Indeed, the overall economic performance of the last two decades is seriously disappointing.What distinguishes perestroika from previous reforms is its radical nature, a change apparently designed to move several countries away from the visible fist of the command economy to the invisible hand of markets and quasi-markets. This includes a serious dismantling of central planning, and a concerted effort to introduce competition and to increase individual economic and political responsibilities. It is too early to tell whether this reform will succeed. This article provides markers for early detection of how perestroika will fare.
TI - Perestroika: transition from central planning to market socialism
JF - Economic Policy
DO - 10.2307/1344490
DA - 1988-10-01
UR - https://www.deepdyve.com/lp/oxford-university-press/perestroika-transition-from-central-planning-to-market-socialism-NdludlngyT
SP - 353
EP - 389
VL - 3
IS - 7
DP - DeepDyve
ER -