Articles The "Alternative" Socialism of Professor Alexander Tsankov

Pencho D. Penchev* country. His influence is determined mainly by two factors. First he held important Summary: positions in the executive, legislature and had a major role in the political life of the The paper presents the economic country as Prime Minister, Speaker of the views and political activities of one of National Assembly, Minister of Education the most influential Bulgarian political and leader of the National Social Movement. economists – Alexander Tsankov. They From these positions, he had the opportunity were strongly influenced by his socialist to control and determine some of the most worldview. The socialism of professor important trends in ’s economic Tsankov is alternative only if one accepts policy. He was also professor of political the self-definition of Marxism as the sole economy and Rector of University, scientific socialism. Then any deviation with a significant number of publications from orthodoxy should be considered as and thus he was able to influence the alternatives to scientifically based ideas. formation of part of the economic elite of In the context of what is seen as socialism Bulgaria. during the nineteenth and almost up to the The main thesis of this paper is that end of the twentieth century, the views of socialism is one of the main characteristics professor Tsankov are not a departure from, of economic views and had a strong impact but a variant of the socialism. He combined on the political activities of professor the elements which are characteristic of Tsankov. His socialism was not orthodox or social democracy and conservative statist "scientific" with respect to Marxist concepts, (and hence nationalistic) socialism. but that does not make it less socialist. Key words: Alexander Tsankov, Bulgaria, For this reason the definition alternative socialism in the title is in quotation marks. From the beginning to end of his scientific and JEL Classification: B30, P20, P26 public activities, while experiencing some fluctuations, Tsankov remained loyal to lexander Tsankov was among his socialist credo. It cannot be related to Athe most influential Bulgarian political parties and organizations of which economists, representative of the German he was a member or founder. The reasons Historical School of economic thought in the that account for for entering or leaving a

* Associate Professor, Ph.D., Department of Political Economy, University of National and World Economy, Sofia, e-mail: [email protected]

61 The "Alternative" Articles Socialism of Professor Alexander Tsankov political organization and the consequent The term socialism began to be used political career involve not only a given in the 1830s and from the beginning its ideology, but rather personal ambition and most important characteristic was the opportunism. ambition to eliminate the private ownership Binding the economic views of Al. of the means of production and to replace Tsankov with the theory and practice of it by public ownership. The process of socialism requires a brief clarification of the elimination of private property is defined as nature and content of that concept. socialization, nationalization, democratization of ownership, etc. However, it is difficult to 1. Theoretical framework or more on find any fundamental difference between the question - what is socialism and the content of these terms1. Ultimately what the Bulgarian Socialists are? hostility towards private property lies behind The temptation and over-confidence all of them. In 1848, in The Manifesto of the that the intellectual efforts of one man can Communist Party Karl Marx and Friedrich change the social structure in accordance Engels are more specific: "In this sense, the to his own views for good and bad, resulted theory of the Communists may be summed in the birth of the socialist idea. Its roots are up in the single sentence: Abolition of to be found in classical philosophy. In his private property."(Marx, K., Fr. Engels, 1999, "Republic" Plato hints at some of the basic p. 46). In that case, it is necessary to clarify th elements of socialist ideology, among which that in the middle of the 19 century, there were criticism of private property (which was no clear distinction between socialists and communists. is defined as the source of the corruption Since its inception, the socialist of morals) and traders, moneylenders, etc. movement was characterized by the (Platon, 1981). All these elements were not lack of agreement on a number of key developed in a complete system. Among issues. Contradictions were to be found the forerunners of socialism which worked with respect to several problems such as: respectively in the sixteenth and seventeenth atheism-religion, reforms-revolution, state- century were Thomas More and Tommaso anarchy etc. These contradictions were the Campanella. In their works "Utopia" and reason for the formation of different types of "The City of the Sun" they described their socialism: Christian, conservative, utopian, dreams of social order in which there is military, Marxist (claiming to be scientific), no private property. These authors did not Fabian and others. In the development of use the term socialism to characterize of the socialist movement the statist form of the new social order. The very concept of socialism gradually took the upper hand, socialism appeared at the beginning of the although it never became the only one. nineteenth century. Then the first serious Statist socialism relies on governmental attempts to define socialism were made, power and its apparatus of coercion to although the way in which a socialist was achieve its goals. All kinds of socialism, realized was not clarified. The first socialists however, albeit in varying degrees, share relied heavily on the individual efforts as a the negative attitude towards private method for building a socialist society. property and insist on its abolition. This

1 Among the various types of socialism there is some difference between these terms. According to Fr. Engels, for example, nationalization of private property is not yet socialism, but a step towards Socialism (Engels, 1950)

62 Economic Alternatives, Issue 2, 2014 Articles content of the concept is adopted by the Analysis" defines socialism as "policy which main reference books, regardless of their aims at constructing a society in which the ideological basis, or the time at which they means of production are socialized"(Mises, were written2. 1951, p. 20). In this study Mises proved A certain shift in the content of the that the socialist society is utopia, as in the concept of socialism emerged after the absence of private property and market end of World War Two. At the end of 1950s prices the rational economic calculation the social democrats in gradually becomes impossible. In another classic softened their views on the need for direct work J. Schumpeter defines socialism as and complete nationalization of the means an "institutional pattern in which the control of production and paid more attention to the over the means of production and over need of redistribution of income in favor of production itself is vested with a central the poor through tax system instead (Hoppe, authority" (Schumpeter, 2008, p. 167). The 2007, p. 43). It was only in the 1990s, main thesis of the author is that capitalism however, that the idea for the nationalization is doomed, because of its success and not of the means of production was no longer because of its inherent problems. among the socialist goals. This happened Still with the beginning of the socialist in the program of the British Labour Party. movement in Bulgaria at the end of the 19th Nationalization was replaced by the vague century the Bulgarian Socialists argued that desire for justice, which became the main "making public ownership all the means principle the socialists adhered to. A similar of production that make all people happy, evolution could be traced in Bulgaria. At the healthy and able to develop mentally and beginning of the 21st century the Bulgarian morally, that is the total content of the Socialist Party also rejected nationalization doctrine which is called socialism" [italics and perceived socialism as "more equitable D. Blagoev] (Blagoev, 1951, p. 448). In the social order, based on respect of labor early 20th century the Bulgarian Socialists and equitable distribution of its results" split. Although the controversial point was (Stanishev, 2008, p. 10). revolution or reforms, there were other The definition of socialism as a theory secondary reasons for the conflict. The so- and movement that seeks to remove called narrow socialists, led by D. Blagoev, the private ownership of the means of upheld the "integrity" of all Marxist principles, production is applied by many researchers in while the so-called broad socialists, grouped their analyses of the various economic and around Y. Sakazov, rejected some of the social aspects of socialism. The definition Marxist postulates. The revision of Marxism by of socialism remains the same even when Edward Bernstein in Germany, which proved the conclusions reached by the individual that the views of Marx on the concentration authors are completely divergent. Thus of capital, the growing rate of proletarization, Ludwig von Mises in his fundamental study the absorption of small businesses by the big "Socialism. An Economic and Sociological companies etc. cannot be proved to exist in

2 For more details see: Тhe New Encyclopaedia Britannica, vol. 27, 1993, p. 393; Большая Советская Энциклопе- дия, 24, кн. 1, Москва, 1976, с. 222 (according to the Marxist orthodoxy here socialism is presented as the first phase on the way to communism, but the definition of socialism is the same as in Britannica); Энциклопедический словарь, т. ХХХI, С. Петербург, 1900, с. 21-22.

63 The "Alternative" Articles Socialism of Professor Alexander Tsankov reality served as a conceptual basis of this The division into narrow and broad division. From the perspective of a Marxist, socialists in Bulgaria is among the typical ones Bernstein’s views were coming close to of the socialist movement in general. It stems classical liberalism (Berlin, 1901). from the fact that at the end of the 19th and On the issue of ownership the narrow the beginning of the 20th century in Bulgarian socialists dogmatically insisted on the society the proletariat was a negligible group socialization of all private property (class in Marxist definition). This "hampers" (Markowski, 1903), while the broad socialists the establishment of proletarian power in were against the socialization of petty private Bulgaria and requires that the Socialists seek property that does not exploit wage-earners strategic allies. On the other hand, espousing (Dzhidrov, 1902; Dimer, 1903). It is clear, revolutionary ideas and radicalizing the however, that in terms of the essence of socialist movement was typical of societies socialism there was no essential difference which lacked the basic democratic rights and between the narrow and broad socialists. freedoms such as universal suffrage, freedom The difference between them is rather of association, freedom of the press, etc. in terms of quantity not quality, because (Marks, Mbaye, Kim, 2009)3. In Bulgaria these both trends do not deny the necessity of rights and freedoms were guaranteed by the abolishing private property of the means Constitution and therefore radical socialist of production. In this respect, arguing that ideas remained isolated for a long time and the broad socialists are close to classical were not very popular. Since the early 20th liberalism and laissez faire capitalism can century the clashes between Blagoev and be done only from the sectarian perspective Sakazov became quite sharp, and went far of the orthodox Marxists. The broad also beyond the political and theoretical debate. believed that socialism could be achieved This had a long-term negative effect on the without revolution and violence, but by the relations between the narrow and broad means of democracy, through cooperation socialists, and later on between Communists with classes outside the proletariat and they (which suceeded the narrow socialists) and pushed forward the idea of the need for Social Democrats (which succeeded the social solidarity (Tsankov, 1933; Sakazov, broad socialists)4. 1991; Pastuhov, 1923). The question of 2. Biography and political activities the role of the state in the transition from of prof. Al. Tsankov - in the light socialism to capitalism was not among the of his socialist beliefs principal contradictions between the narrow and broad socialists. In fact, the two great Al. Tsankov was born in 1879, studied wings of the socialist movement in Bulgaria law at the University of Sofia, still in his remained statists. student years he participated in the political

3 AIn the early 20th century, as Lenin explained, the Russian Social Democrats were more radical than Western socialists because of the lack of Western parliamentary democracy in Russia (Lenin, 1945). 4 Interesting is the opinion of Al. Tsankov, who believes that as a result of the split between narrow and broad socialists, the socialism in general is "coming down" from the scene because it was "not timely" [emphasis added – P.P.] (Tsankov, 1933, p. 25). This statement was done at a time when Tsankov made increasingly clear his positive attitude towards and National Socialism. So it reveals that he is not principally in favour of a rejection of the fundamental tenets of socialism. Just in the first years of the 20th century there were no suitable conditions for socialism in Bulgaria.

64 Economic Alternatives, Issue 2, 2014 Articles life of the country as a sympathizer of the who enchants you with the originality of his party of the broad socialists which went thought and with his flawless epic, smooth into sharp ideological clashes with left-wing and logical presentation." (Tsankov, 2002, socialists. For Tsankov the socialist ideas p. 34). were not just an infatuation of the youth. In Germany, under the supervision Throughout his adult life as a scientist of L. Brentano, Tsankov began his first and politician he remained highly critical serious scientific pursuits. On Brentano’s of capitalism, especially in its laissez-faire recommendation he studied in details form. Tsankov adopted and implemented in the works of Alfred Marshall and E. his scientific and political pursuits some of Böhm-Bawerk. In Berlin, he began writing the basic theoretical postulates of Marx, but a doctorate "Capital and capitalistic did not regard them as a religious dogma. production process in Böhm-Bawerk" under The broad socialist’s negative attitude the guidance of W. Sombart. Al. Tsankov towards political parties, which claimed to failed to complete and defend his doctoral have utilized all Marxist ideas in economics dissertation because the Bulgarian Ministry and politics persisted to the end of his life. of Education stopped his funding. In 1904, Al. Tsankov went to Germany, In his memoirs Tsankov explains that his where he studied political economy. His education in Germany radically transformed stay in Germany played a major part in his theoretical and political views. He notes the shaping of his theoretical and political that he went to Germany as an "orthodox views. In Munich he attended the lectures Marxist", but gradually evolved to "the and seminars of L. Brentano, Georg von doctrine of Brentano and the Viennese Meyer and Walter Lotts. Later on Tsankov school and especially to the last" (Tsankov, moved to Breslau (1906), where W. 2002, p. 33). This statement, however, Sombart taught, and then he followed his should not be taken at face value. It was teacher to Berlin, where he also attended made in his memoirs, written after World the courses of G. Schmoller and A. Wagner War II. The main goal of the author was to (Tsankov, 2002). In his memoirs Tsankov emphasize the anti-communist element in depicts interesting details about the way of his beliefs and to hide his open sympathy teaching, he expresses his personal views for National Socialism, which he felt during about the relationship between professors World War Two. Tsankov was a student and between professors and students in of the famous German economist Werner the German universities in the early 20th Sombart, who early in his career was close century. He writes: "I have never heard to Marxism, and between the two world wars a better speaker among the university became the theorist of National Socialism. professors than Brentano. ... Of all the The representatives of the German historical German scholars-economists nobody school of economics, like L. Brentano, has exerted such an influence on me as W. Sombart, G. Schmoller, A. Wagner Brentano" (Tsankov, 2002, pp. 22-23). etc., are known as kathedersocialisten Tsankov writes for Sombart: "He had not the (socialists of the chair) and they supported charming speech of Brentano for example, the ideas of increased state intervention but he was speaking as a serious scholar in economy in order to solve the social

65 The "Alternative" Articles Socialism of Professor Alexander Tsankov problems caused by the industrialization of history of mankind. He was convinced that Germany. They could therefore be defined after the war "... capitalism steps down from as statist socialists, and they had a huge the historical scene, and that it had already impact on the economic views of Tsankov. completed its mission." (Tsankov, 2002, p. Unlike the Marxists, they do not accept the 112). He published similar thoughts in the concepts of class struggle and proletarian 1920s and 1930s (Tsankov, 1928; Tsankov, revolution, but their adherence to socialist 1931). In these cases Tsankov did not principles is beyond doubt. Their influences specify what economic and social structure in fact reinforced and clarified rather than would replace capitalism and whether the eliminated Tsankov’s socialist beliefs. So transition to the new social order would his evolution in Germany could be defined happen quickly or gradually. Nevertheless, as an evolution from Marxism to a statist the undisputed fact is that for him World mode of socialism5. As for the influence of War One put the end of capitalism, and this the Vienna (or Austrian) school on Tsankov view definitely was socialist. - based on his publications and his political In a public speech, which he gave in 1932, activity, it can be described as minimal. Tsankov said that capitalism will last for a Perhaps the rejection of the postulates long period - a statement which, at least at of Marxism and certain aspects of the first glance, clashes with his socialist views. explanation of the trade cycle could be A careful reading of the speech, however, traced to the Austrian influence. reveals that this was not in contradiction After his return to Bulgaria in 1911, with his socialist credo. Immediately after Tsankov was elected an associate these words Tsankov announced that professor of political economy at the capitalism must be reformed and reinforced. University of Sofia, and in 1919 became As a means of reforming he points out the rector of (Naumov, 2004). limitation of private profits through increased Meanwhile he participated actively in the taxation, nationalization and democratization institutions for government control over of capital. Tsankov explains that what he the Bulgarian economy during World War means when he insists on nationalization One (Katsarkova, 1996). Wartime economy and democratization is completely and the attempt of the state to regulate different from expropriation. His definition and control all the economic sectors were of nationalization and democratization is very close to the socialist-statist beliefs "penetration of capital into the bowels of the of Tsankov. We should not forget that the creative popular forces" (Tsankov, 1932 b, p. wartime economy of Germany during 45). In fact this is the old socialist idea of World War One became a model even for governmental restriction and control over of Lenin for the socialist organization of the the right of private property. economy, and he applied this model in His rapid academic career did not satisfy Soviet Russia. According to Tsankov World (Al. Tsankov`s) ambitions and he turned War One was a crucial watershed in the his attention towards а political career.

5 AIn his work "Capitalism, Socialism and Democracy" J. Schumpeter writes that the claims of Marxists that Marx had set the main objectives of the historical school in economics are not entirely without justification (Schumpeter, 2008, p. 44). In this sense, one can find a lot of similarities between Marxism and historicism. So in fact Al. Tsankov enriched his Marxist beliefs the ideas of the German historical school.

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After the traditional democratic then there is slavery, moral, and cultural parties lost their credibility in Bulgaria and decadence" (Tsankov, 1923, p. 21). The from 1920 to 1923, the country was ruled opportunist-socialist views of Al. Tsankov by the populist regime of BAPU (Bulgarian on the economic policy of his government Agrarian People’s Union). An important part were clearly evident from his words that of the ideology of BAPU was the so-called when the "necessities of life force me estates theory. According to it society is I would nationalize certain enterprises, divided into estates (but not classes in the when the necessities of life do not force Marxian sense), and the Agricultural union me, I would not try to ... "(Tsankov, 1924, represents the largest estate in the country - p. 17). Apparently he accepts the idea that agriculturalists. This caused the discontent at some point the necessities of life will be of various other social and professional beneficial for the transition to socialism by groups and clashed with Tsankov’s views eliminating private ownership of the means of for the need of social solidarity between of production, although it is not clear who different social groups. and how is going to define this point. On 9 June 1923 this regime was As Prime-minister the reputation of overthrown by a military coup. The leaders Tsankov was too bad because there was of the coup appointed Prof. Al. Tsankov as a civil war in the country. The communists Prime Minister, for he had no connections and the members of BAPU were subject with the influential pre-war political parties. to serious repressions. This was the result He remained in this position until the of many factors, but in some ways the beginning of 1926. A month after the coup repressions against communists were a Tsankov gave a public speech in Sofia, which continuation of the confrontation between reveals a summary of his worldview and narrow and broad socialists of the early years intentions in the economic and social policy. of the 20th century. Al. Tsankov initiated the His visions were typical of a socialist-statist. implementation of a number of economic Tsankov said that the state has the right to measures which reinforced government control and manage the financial capital, to intervention and control over the economy. introduce measures to regulate the working The main slogan of his government was to hours and wages of workers, to ensure that establish a strong state power. Among the the land belongs to those who cultivate it, most important were: the establishment of a etc. Each of these ideas essentially violates foreign exchange control, the prohibition of the right of private ownership of certain the importation of goods that are not basic means of production and in this sense the necessities, the increase of export duties speech could be defined as socialist. The on certain goods, and the establishment statist and collectivist views of Tsankov were of full governmental control over internal revealed in his words that the Bulgarian trade (Stoyanov, 1992). Certain measures citizens have to get used to wanting less were introduced in favour of the workers; from the state and to give it more. He firmly cooperatives were encouraged in order to believes that the state is a prerequisite for combat monopolies (Spassov, 1996). The prosperity: "If there is no state, then there is regime of Tsankov resembled that of World no progress of people; If there is no state War One and completely clashed with the

67 The "Alternative" Articles Socialism of Professor Alexander Tsankov principles of economic liberalism. It is not National Assembly should continue with by chance that he retained and perfected the development of the system of the many economic reforms conducted by Bulgarian National Socialism (Shorthand the authoritarian BAPU (Penchev, 2005). records, 25 ONS, III RS, 13, November Tsankov’s economic policy is consistent 18, 1941, p. 184). In order finance military with the old idea of broad socialists of class expenditures Tsankov advocated the idea collaboration, so he abolished only those of J. Maynard Keynes for forced saving. reforms of BAPU that were an expression Despite the fact that the author of the idea of their estate theory. The question of the is an English economist (i.e. in terms of restoration of the principle of the inviolability Bulgarian alliance with Germany during the of private property was not among his main WWII – Keynes was an "enemy"), according goals. Apart from the social-democratic to the Bulgarian author it was best applied principles, one could find in the Tsankov’s in Germany (Tsankov, 1942b)7. Tsankov did economic policy features that are typical not share the anti-Semitism of the German of the so-called conservative socialism, National Socialists and participated in the namely, price controls, restrictions on free campaign to save the Bulgarian Jews in trade, restrictions on private initiative, the 1943 (Petrova, 2011). With the withdrawal desire to achieve price stability etc.6 of German troops from the Balkans Tsankov After being forced to resign as Prime- emigrated from Bulgaria to , where minister, Tsankov remained actively involved he died in 1959. in politics as Speaker of the National 3. Scientific and theoretical views Assembly, and then for a short time in 1930- 1931, he became Minister of Education The scientific and theoretical works of (Bulgarian state institutions, 1987). He Al. Tsankov in general are not well-known made an attempt to return as a professor even among the Bulgarian specialists at Sofia University, but due to protests by in the history of economic thought. The students was forced to resign as a full-time assessments about their characteristics professor of political economy. In 1932 he are based on a limited number of his founded his own political party, which later works and/or are ideologically stained. on was called the National Social Movement On one hand, in earlier studies his works and which was heavily influenced by the were defined as (and not National ideology of and National Socialist or Socialist), and on the other Socialism. In the context of World War II hand - in more recent publications the Alexander Tsankov was among the most implication is about the contrast between ardent supporters and propagandists of his liberal economic views (or residual of National Socialist ideas especially in the liberalism) and the strong statism while he social and economic spheres. He insisted was in power (Grigorov, 1960; Avramov, that the Bulgarian Government and the 2007). The presence of liberalism in the

6 AFor more details on economic policy that characterized the so-called conservative socialism see: Hoppe, Hans- Hermann, 2007, A Theory of Socialism and Capitalism. Ludwig von Mises Institute, pp. 65-94. 7 The sympathies of Tsankov to ideas whose author is Keynes is not contradictory to his socialist (during WWII National Socialist) his ideas and beliefs. Overall Keynes's ideas were well accepted in and, if we again refer to Schumpeter - between Keynes and Marx there was not a big gap (Schumpeter, 2008, p. 142).

68 Economic Alternatives, Issue 2, 2014 Articles scientific texts of Tsankov is more than justification of the ideas of social solidarity. controversial. Defining some of his views And these are the topics and motifs that belong as liberal is possible on the basis of their entirely to the arsenal of socialist economic analysis in the light of Marxism. Statism and theory. In his first scientific publication proximity to fascism and National Socialism Tsankov supported the broad socialists’ that are an indisputable fact were part of his views on cooperatives. He announced that in socialist beliefs8. a market economy the masses are forced to The research activity of Al. Tsankov covers sell their labor and thus they are exploited a period of about four decades from 1904 to by "parasites such as shopkeepers, artisans, 1943. During these years he published many moneylenders, etc. who "suck their vital papers, studies, books, a textbook (lectures) forces" (Tsankov, 1904, p. 171). According on political economy (Tsankov, 1932), co- to Tsankov, the cooperative movement is authored a study in the history of joint-stock promoted by the socialists, because they companies in Bulgaria (Tsankov and others, regard it as the germ of the future socialist 1926), etc. Apart from that, as a political activist society. Tsankov maintained his positive Tsankov delivered and published a large attitude towards the cooperative movement number of keynote speeches, propaganda after World War I, when he became president brochures, worked out political programs of the Union of Popular Banks. Fully in line (see eg. Tsankov, 1933). After his emigration with the views of a broad socialist about the he wrote two volumes of memoirs (Tsankov, need of class collaboration was his proposal 1998; Tsankov, 2002). The thematic scope whereby labor disputes should be resolved of his publications is wide. Among these are not through strikes, but following the German papers on current issues related to Bulgaria’s model of conciliation committees (within the economic and foreign trade policy (Tsankov, enterprises), with conciliation courts, and by 1909, 1915), research in Political Economy collective agreements (Tsankov, 1907). (Tsankov, 1942), on the consequences of the In some of his relatively early papers World War One (Tsankov, 1916, 1917; 1919), Tsankov made attempts for making an original on the financing of wars (Tsankov, 1942b), contribution to the field of economic theory. on the status and role of cooperatives in the In 1910 he published his study "The capital Bulgarian economy (Tsankov, 1904), on the and profit from it" (Tsankov, 1910). Probably nature and impact of the Depression of the this is part of his doctoral thesis. In this study 1930s (Tsankov, 1932), and others. Tsankov analyzed and criticized Adam Smith’s It is difficult to find original analyses or views on the nature of capital. According to some specific theoretical contributions to the Bulgarian author, the fundamental error the economic science in all of his studies. of Adam Smith in defining the essence of Common characteristic features of all the capital consists in confusing the concepts publications are: criticism of capitalism and of property and capital. The representative especially of economic liberalism, positive of the Austrian School of E. Böhm - Bawerk9 assessment of state intervention in the is also subjected to such criticism. The economy, and the pursuit of a scientific criticism of Tsankov stemmed primarily from

8 For more details on economic policy that characterized the so-called conservative socialism see: Hoppe, Hans- Hermann, 2007, A Theory of Socialism and Capitalism. Ludwig von Mises Institute, pp. 65-94.

69 The "Alternative" Articles Socialism of Professor Alexander Tsankov the postulates of the German Historical p. 16). Definitely socialist in nature were his School and Marxism. Tsankov was convinced words that "if the capital is publicly owned that private capital is a historical and legal then the whole society will benefit from the phenomenon and that the main prerequisite profit and the income from it; incomes will for the origin of capital and the capitalist mode be more equally distributed and the profit, of production is the emergence of the market in the course of constantly increasing and exchange economy. He considers the capital diversification of social needs, will accrue of the state social capital, which he said is the to the social capital, which will inevitably most perfect cultural unit, and when explaining increase gradually" (Tsankov, 1910, p. 54). the nature of capital he based his view on Such is the meaning of his statement that Marx’s concepts (Tsankov, 1910). Apart in the organization of the mortgage loans from the Marxist postulates in his theoretical market in Bulgaria it "should not be placed reflections, Tsankov widely utilized the ideas in private and even less in foreign banks." of other socialist writers such as K. Rodbertus This requires the creation of a special and F. Lassalle. Particularly strong is the state-owned credit institution because "all influence of the theories of the conservative the observations are in favour of the thesis and statist Rodbertus, whose views largely that the mortgage loans market in Bulgaria coincided with those of Tsankov9. should be in the hands of a government Probably under the influence of W. agency as the State through BN [bank] Sombart, but mostly under the influence of and Agricultural banks, have nationalized his own socialist beliefs, Tsankov combines all other types of loans [emphasis added socialist concepts with those of the German P.P.]" (Tsankov , 1912, pp. 197, 198)10. Historical School. According to Tsankov, During the World War One Tsankov "only as a means of obtaining larger and wrote and published several studies in more values does ​​money become capital" which the analysis is based on a direct (Tsankov, 1910, p. 41). Marx’s theory of borrowing of socialist concepts. For exploitation of workers by capitalists was example, he explains the foreign policy of also espoused by Tsankov. He is convinced individual countries before and during the that the employees do not receive the full war as a consequence of their economic price of the products they have produced, interests. In his opinion, England joined the i.e. they are exploited. In his view, the Entente, because Germany had threatened source of profits for the capitalists is the its monopoly on the world markets. The unpaid work of the working class (a Marxist War broke out as a result of competition concept). However, Tsankov thought that between the great powers in the struggle this concept is not the only explanation for colonies, for control of the open seas of profits. Therefore he added that profits and over world markets. Without claiming depend on "market conditions, on the as Lenin that imperialism is the last situation, and on the speculative abilities of stage of capitalism, Tsankov thinks that the capitalist entrepreneur" (Tsankov, 1915b, imperialism is a form of modern capitalism

9 For more information on the economic views of Karl Rodbertus look at: Andrews, E. B., 1892, Rodbertus's Socialism. Journal of Political Economy, Vol.1, N 1, pp. 56-97. 10 These words are another evidence that the statement that during his stay in Germany Tsankov had abandoned Marxism should not be accepted as true.

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(Tsankov, 1916). In analyzing the Bulgarian depression it increases. The main reasons economic interests during the war he for alternating periods of boom periods advocates the establishment of a state- and depression are two. The first is the owned Danube shipping company. He was so-called capitalization of profits, i.e. the convinced that only such a company would tendency of capitalists to invest their profits be able to guarantee lower tariffs to the in a continuous expansion and increased Bulgarian exporters for the transportation production, which leads to overproduction. of their goods along the Danube (Tsankov, The second, and in a sense more important, 1917). The establishment of state-owned reason for the booms and busts, is the credit enterprises was not a new practice in expansion in the banking system. Tsankov Bulgaria before the war (Railways, Posts, writes: "Transmission of these new capitals mines Pernik, etc. were state-owned). The to the capitalist production increases it and expansion of the public sector, however, opens new and wide vistas, but the expanded could certainly be defined as a tendency individual companies further increased towards socialism according to the adopted imbalances in the distribution of economic definition of this concept. forces" (Tsankov, 1919b , p. 16). After the In 1919 Al. Tsankov delivered a speech depletion of this free capital and the end of on the occasion of his election as the Rector credit expansion the economy goes into a of Sofia University, which was published state of depression. Tsankov’s explanation under the title "Money and its Devaluation" of the cyclical capitalist economy does not (Tsankov, 1919b). It was one of his most differ in principle from Tugan-Baranovsky’s serious attempts to contribute to the field concept (Barnett, 2001). of economic theory. First he gives his In his studies Tsankov demonstrated interpretation of the theory of Fr. G. Knapp profound knowledge of the basic economic about money as a legal tender. Tsankov theories, however, his preference for believes that under Knapp’s definition the principles of the German historical of the legal tender it can be concluded school and statist socialism is apparent. that the value of money is "something In the 1920s, probably because of his nominal, fictitious, invented by man and involvement in political life, the number of established by the authority." Unlike Knapp, his scientific publications is limited. In the Tsankov believes that the value of money 1930s Tsankov more clearly manifests his is something real, "the unit value of money affinity to ideas that are close to fascism is an objective measure of our income and National Socialism. However, this was or, in general, of what we deserve as an not a shift in his beliefs. In fact he considers economic unit" (Tsankov, 1919b, p. 6). The these two theories as an acievement of Bulgarian author widely used the theory of the socialist ideals which he clings to the Ukrainian socialist-economist Mikhail from his earliest years. In 1930, Tsankov Tugan - Baranovsky about the cyclical published his lectures on political economy development of the capitalist system. as a textbook. In it he criticized certain Tsankov accepts the statement that during aspects of Marxism such as the negative the economic growth the purchasing attitude towards the state, the criticism power of money decreases, while during and rejection of the Malthusian theory of

71 The "Alternative" Articles Socialism of Professor Alexander Tsankov population and the lack of definition of the capitalism, while the prototype of socialism nature of the class. On the other hand, is Germany. In Tsankov’s views, the key Marx’s views on the capital remained at features of the socialist society in Germany the core of its analytical tools (Tsankov, are: the introduction of four-year plans, 1930). The Marxist concepts that capitalism subsidies of agricultural production, the increases social inequality, causes restriction of private interests and aligning anarchy in the economy and that there is a them with the public interests, distribution continuous trend towards concentration of of wealth based on participation and merit, production, which leads to the emergence regulation of profits by the state etc. He of monopolies and the robbing of small declares that private enterprises will not be producers, also remained an essential part eliminated from economic life and that private of his economic views (Tsankov, 1933). property will be "illuminated" in the principle During the Great Depression of the 1930s of the new socialist society. These words Tsankov prophesied that "the old is gone were in fact invalidated by the statement and that a new social and economic world that private property will be placed in the will inevitably follow" (Tsankov, 1932, p. 2). service of public interest and public welfare. At this point he refrained from characterizing Ultimately Tsankov is clear that the state is this "new" world. With the outbreak of World a paramount factor in the economic life, War II, however, Tsankov clearly defined it. which in turn "will be under the regime of In 1940 he wrote that the war was guided and directed economy". On the "a grandiose revolutionary era, perhaps basis of the German National Socialism more spectacular than the English and Tsankov Tsankov forsees the construction French revolution". The essence of the of New Europe in which socialism will not be new revolution that took place lies in the international, but national (Tsankov, 1942). departure of capitalism – up to this point in The propaganda of the ideas of National his statements there was nothing that he had Socialism discredited Tsankov as a scientist not said or written before. The difference is and as a politician as well. that now Tsankov is clear about the future: 4. Concluding remarks "As a new social order that comes, I think it’s the socialist system, socialism, not Marxism, Alexander Tsankov definitely is not not Bolshevism" (Tsankov, 1940, p. 571, 577). among the personalities that modern As an example of such a new socialist order socialists would gladly define as socialist. Tsankov points to Nazi Germany and Fascist However, it is clear that his economic views Italy. Similar were the ideas Al. Tsankov and his political activities associate him with presented in a parliamentary speech this powerful and diverse socio-economic delivered in November 1941 (The shorthand and political movement. The socialism of records, 25 ONS, III RS, 13 zas.). Later professor Tsankov is alternative only if one on in a special book entitled "The Three accepts the self-determination of Marxism Economic Systems. Capitalism, Communism as the sole scientific socialism. Then and National Socialism" published in 1942, any deviation from orthodoxy should be he writes that the economic system in the considered as alternatives to scientifically USSR is essentially a bureaucratic state based ideas. Placed in the light of what during

72 Economic Alternatives, Issue 2, 2014 Articles the 19th and almost up to the end of the 20th Barnett, V. (2001), Tugan-Baranovsky as a century is seen as socialism, the views of Pioneer of Trade Cycle Analysis. Journal of the professor Tsankov are not a departure from, History of Economic Thought, 23, pp. 443-466. but a variant of the socialism. He combined the elements which are characteristic of Berlin, P., (1901), Bernshtenianstvoto. Novo social democracy and conservative statist vreme, 3, V,. 276-290. (and hence nationalistic) socialism. Blagoev, D., (1957), Shto e sotsializam i ima li In this sense, these views raise a toy pochva u nas. Sachineniya, 1, 439-532. number of more general issues. Are there "right" and "wrong" types of socialism and Balgarskite darzhavni institutsii 1879-1986. what are the criteria to draw a distinction Entsiklopedichen spravochnik. Sastaviteli V. between them? Do the declared and Metodiev i L. Stoyanov. S., 1987 planned by the socialist theorists social Grigorov, K., (1960), Razvitie na burzhoaznata order aspirations to improve the lives of all or at least the majority of the ikonomicheska misal v Balgariya mezhdu population always ends with dictatorship, dvete svetovni voyni. crimes against humanity, abolition of the Grancharov, St., (1999), Razmisli za democratic rights and freedoms, and the balgarskata ikonomicheska misal. Istoricheski establishment of ? Whether pregled, 5-6, 160-189. the present state of society with its typical social legislation (promoted as an idea and Dzhidrov, P., (1902), Sotsialnata demokratsiya as a practice introduced in Bulgaria by Al. i chastnata sobstvenost. Obshto delo, III, 2-3, Tsankov), state control over monopolies 35-43. (the first such attempt was made by Al. Dimer, (1903), Kam polemikata v nashiya Tsankov), price controls and restrictions on private property (implemented and lager. II Sotsialnata demokratsiya i drebnata maintained by Tsankov) etc. is not an chastna sobstvenost. Obshto delo, III, 12, expression of the inevitable victory of 363-371. the statist socialism envisaged by J. Engels, Fr. (1950), Anti-Dyuring. Prevratat Schumpeter? The answer to these and to v naukata izvarshen ot gospodin Oygen other similar questions could be given on Dyuring, Sofiya, Izdatelstvo na Balgarskata the basis of more and deeper research on komunisticheska partiya. the theory and practice of socialism. Katsarkova, V. (1996), Ikonomikata na Bibliography Balgariya i stopanskata politika prez Avramov, R. (2007). Komunalniyat kapitalizam. godinita na Parvata svetovna vayna (1914- Iz balgarskoto stopansko minalo. T. ІІІ. Tsentar 1918). Problemi ot stopanskata istoriya za liberalni strategii. na Balgariya. Universitetsko izdatelstvo Andrews, E. B. (1892), Rodbertus’s „Stopanstvo". Socialism. Journal of Political Economy, Lenin, Vl. (1945), Kakvo da se pravi? Nay- Vol.1, N 1, pp. 56-97. bolnite vaprosi na nasheto dvizhenie. Vtoro

73 The "Alternative" Articles Socialism of Professor Alexander Tsankov popalneno izdanie. Izdatelstvo na Balgarskata Spasov, L. (1996), Ikonomicheskata rabotnicheska partiya (komunisti), Sofiya politika na parvoto i vtoro Sgovoristko pravitelstvo. Problemi ot stopanskata Marks, K. (1975), Kapitalat. Kritika na istoriya na Balgariya. Universitetsko politicheskata ikonomiya. Tom І. izdatelstvo „Stopanstvo". Marks, K., Fr. Engels, (1999), Manifest Stanishev, S. (2008), Zashtoto sme na Komunisticheskata partiya. Sofiya, sotsialisti. Sofiya, IK „Duma". Izdatelstvo „GAL-IKO". Stenografski dnevnitsi, 25 ONS, III RS, 13 Marks, G., Heather A. D. Mbaye, Hyung zas., 18 noemvri 1941 g. Min Kim (2009). Radicalism or Reformism? Socialist Parties before World War I. Schumpeter, Joseph A. 2008. Capitalism, American Sociological Review, vol. 74, №4, Socialism and Democracy. Harper Perennial pp. 615-635. Modern Thought Edition. (Originally published in 1942 by Harper&Brothers). Markovski, E., (1903), Sotsialnata demokratsiya i chastnata sobstvenost. Stoyanov, V., V. Tepavicharov (1992), Novo vreme, 1903, 3, 473-485. Politicheskata alternativa na Balgariya (9 yuni 1923 – 4 yanuari 1926). Sofiya, Mises, Ludwig von. (1951), Socialism. An Universitetsko izdatelstvo „Sv. Kliment Economic and Sociological Analysis. New Ohridski". Heaven Yale University Press. Hoppe, Hans-Hermann, (2007), A Theory Naumov, G., (2004), i of Socialism and Capitalism. Ludwig von v politikata i darzhavnata Mises Institute (first published by Kluwer upravlenie. Academic Publishers, 1989) Pastuhov, Kr. (1923), Sotsializma na parva Tsankov, Al. (1904), Kooperatsiite v liniya. Balgariya. Spisanie na Balgarskoto Penchev, P., (2005), Ikonomicheskite ikonomichesko druzhestvo, VІІІ, 3, 170-188. posleditsi ot Devetoyunskiya prevrat 1923 g. Tsankov, Al. (1907), Rabotnicheskite stachki Istoricheski pregled, LXI, 3-4, 34-59. i sredstvata za tyahnoto uregulirvane. Petrova, D., (2011), Aleksandar Tsankov i Spisanie na Balgarskoto ikonomichesko negovata partiya (1932-1944). Sofiya, Izd. druzhestvo, XІ, 4-5, 248-263. Dio Mira Tsankov, Al. (1909), Nashata industrialna Platon, (1981, vtoro izdanie), Darzhavata. politika. Spisanie na Balgarskoto Sofiya, Izd. Nauka i izkustvo. ikonomichesko druzhestvo, XІІІ, 1, 1-26. Sakazov, Ya. (1991, vtoro izdanie), Trevoga Tsankov, Al. (1910), Kapitalat i pechalbata za prizratsi (nasheto otstapnichestvo i ot nego. Chast І. Sofiya, Darzhavna tyahnoto nedomislie). pechatnitsa.

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Tsankov, Al. (1912), Organizatsiya na Tsankov, Al. (1930), Politicheska ikonomiya. ipotekarniya kredit u nas. Spisanie na Sofiya, Pechatnitsa „Knipegraf" A. D. Balgarskoto ikonomichesko druzhestvo, XVІ, 4-5, 191-206. Tsankov, Al. (1931), Demokratizam i liberalizam v obshtestveniya zhivot. Sofiya, Tsankov, Al. (1915a), Srabsko-balgarskite Pechatnitsa „Knipegraf". targovsko-politicheski otnosheniya. Sofiya, Tsarska pridvorna pechatnitsa. Tsankov, Al. (1932a), Stopanskata i sotsialna kriza. Spisanie na Balgarskoto Tsankov, Al. (1915b), Pechalbata ot kapitala. ikonomichesko druzhestvo, XXXІ, 1, 1-24. Sofiya, Tsarska pridvorna pechatnitsa. Tsankov, Al. (1916), Voynata na narodite. Tsankov, Al. (1932b), Nashiyat pat. Ikonomicheska studiya. Sofiya, Tsarska Programna rech proiznesena na 12.VІ. 1932 pridvorna pechatnitsa. g. v Sofiya – teatar „Renesans". Sofiya, Pechatnitsa „Knipegraf". Tsankov, Al. (1917), Nashite ikonomicheski interesi na Dunava i moreto. Sofiya. Tsankov, Al. (1933), Kapitalizam i komunizam. Rabotnitsi i rabotodateli. Tsankov, Al. (1919a), Posledstviyata ot voynata. Sofiya. Sofiya, Pechatnitsa „Knipegraf". Tsankov, Al. (1919b), Parite i tyahnoto Tsankov, Al. (1940). Noviyat svetoven obeztsenenie. Sofiya. stopanski stroy. Spisanie na Balgarskoto ikonomichesko druzhestvo, XXXІX, 9, 561- Tsankov, Al. (1923), Rech proiznesena ot 601. ministar-predsedatelya prof. Aleksandar Tsankov pred publichnoto sabranie v gr. Tsankov, Al. (1942a), Trite stopanski Sofiya na 8 yuliy 1923 godina. Sofiya, sistemi. Kapitalizam, komunizam i Pridvorna pechatnitsa. natsionalsotsializam. Tsankov, Al. (1924), Postopanskata ni Tsankov, Al. (1942b), Finansirane na politika. Yuridicheski pregled, XXV, 1, 17-21. voynata i narodnoto stopanstvo. Spisanie Tsankov, Al., D. Mishaykov i St. Bochev, (1926), na Balgarskoto ikonomichesko druzhestvo, Aktsionernoto delo v stranstvo i u nas. XLI, 2, 73-93 Tsankov, Al. (1928). Politikata i nasokite Tsankov, Al. (1998), Balgariya v burno vreme. na Demokraticheskiya sgovor. Rech na Spomeni. Sofiya, Izd. kashta „Prozorets". prof. Aleksandar Tsankov, predsedatel na Narodnoto sabranie. Izdanie na Plevenskoto Tsankov, Al. (2002), Moeto vreme. Memoari. okoliysko byuro na Demokraticheskiya sgovor. Sofiya, Izd. kashta „Prozorets".

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