C:\Akotz Files\Econ\Econ. 773 S12\E773 Syllabus S12 Posted.Wpd

$C:\Akotz Files\Econ\Econ. 773 S12\E773 Syllabus S12 Posted.Wpd$

Economics 773 Prof. David Kotz Comparative Economic Systems Spring, 2012

Office: 1026 Thompson Telephone: 545-0739 Email address: [email protected]

Class Meeting Time: Mondays 6:15 P.M. to 8:45 P.M. Class Location: Thompson Hall 9th Floor Seminar Room (919)

Texts

1. Kotz, David M., and Fred Weir, Russia's Path from Gorbachev to Putin: The Demise of the Soviet System and the New Russia, Routledge, 2007. [Note: An alternative is Revolution from Above, 1997, by the same authors -- it is cheaper but lacks 3 chapters.] 2. Roemer, John E., A Future for Socialism, Harvard, 1994. 3. Wilpert, Gregory, Changing Venezuela by Taking Power: The History and Policies of the Chavez Government, Verso, 2007.

The above books should be available at Food For Thought Books, 106 N. Pleasant St., Amherst.

Readings

An asterisk (*) means that a reading is optional. Required readings (those without an asterisk) are accessible in one of three ways: 1) in the 3 books listed above; 2) on electronic reserve in the library; 3) on the course website on the password protected "Readings" page. Readings marked with an "ER" in the left margin are on electronic reserve at the library. Readings marked with "CW" in the left margin are on the course website Readings page.

Access to Readings on Websites

Electronic Reserves at the library: http://ereserves.library.umass.edu/ password: see instructor

Course Website Readings page: http://courses.umass.edu/econ773/ username: see instructor password: see instructor

Requirements

Students will do two papers and a take-home final exam. One or both of the papers (depending on enrollment) will be presented in class. One paper will be on Section 4 (Case Studies of Soviet-type Systems) or Section 6 (Case Studies of Market Socialist and Self-Management Systems) and the second on Section 9 (Socialist Possibilities in Light of Historical Experience). A term paper can be substituted for the final exam with the permission of the instructor. Economics 773, Spring 2012 2

1. Introduction (January 23)

CW Engels, F., "Socialism: Utopian and Scientific," in Tucker, R., The Marx-Engels Reader, 2nd Edition, pp. 683-717. CW Cohen, G.A., Karl Marx's Theory of History, ch. 3. CW Gardner, Comparative Economic System, 2nd Edition, ch. 1-3. ER Polanyi, K., The Great Transformation, ch. 6 ER Bowles, "What Markets Can and Cannot Do," Challenge, July 1991. ER Nove, Alec, "Planned Economy," in Eatwell, J., et. al., The New Palgrave: Problems of the Planned Economy, 186-197. ER Maddison, A., Dynamic Forces in Capitalist Development, ch. 1. *Kohler, H., Economic Systems and Human Welfare, ch. 1, 3 *Montias, J., Avner, B., and Neuberger, Comparative Economics, ch. 2. *Zimbalist et. al., Comparing Economic Systems, 2nd Ed., ch. 3. *Heilbroner, Robert, Twenty-First Century Capitalism.

2. Early Conceptions of and Debates about Socialism (January 30)

CW Gardner, Comparative Economic System, 2nd Edition, ch. 4. CW Marx and Engels, The Communist Manifesto, in Tucker, R., The Marx-Engels Reader, 2nd Edition, pp. 469-500. CW Marx, "Critique of the Gotha Program," in Tucker, The Marx-Engels Reader, 2nd Edition. pp. 525-541. ER London, Jack, "Revolution," in Revolution and Other Essays, 1905, pp. 11-41. ER Einstein, Albert., "Why Socialism?" Monthly Review 50(1) May 1998 (1948), 1-7. ER Adaman, Fikret, and Devine, Pat, "The Economic Calculation Debate: Lessons for Socialists," Cambridge Journal of Economics 20, 1996, 523-537. CW Lange, "On the Economic Theory of Socialism," in Lange and Taylor, On the Economic Theory of Socialism, 1964 (1938), pp. 55-142. *Lenin, V.I., State and Revolution, ch. 5. *Bukharin, N., and Preobrazhensky, E., The ABC of Communism, ch. 12-16. *Brus, W., and Laski, K., From Marx to the Market, ch. 1. *Mises, Ludwig von, "Economic Calculation in the Socialist Commonwealth," in Hayek, Collectivist Economic Planning, 1975 (1935), 87-130. *Barone, E. "The Ministry of Production in the Collectivist State," in Hayek, Collectivist Economic Planning, 245-290. *Hayek, F., "The Present State of the Debate," in Collectivist Economic Planning, 201-243. *Hayek, F., "The Uses of Knowledge in Society," in Hayek, Individualism and Economic Order, 1969 (1948), 77-91. *Dobb, M., "A Review of the Discussion Concerning Economic Calculation in a Socialist Economy," in Dobb, On Economic Theory and Socialism, 55-92. *Dobb, M., Welfare Economics and the Economics of Socialism, ch. 1-2, 4-6. *Schumpeter, Joseph, Capitalism, Socialism, and Democracy, 3rd Edition, 1950, ch. 16. *Stiglitz, J., Whither Socialism?, ch. 1-10. Economics 773, Spring 2012 3

3. The Soviet-Type System (February 6, 13)

A. Origins of the Soviet Model

Kotz and Weir, Russia's Path from Gorabachev to Putin, ch. 2, 3. CW Nove, Alec, An Economic History of the USSR, ch. 1-8. *Dobb, M., Soviet Economic Development Since 1917, ch. 1-10. *Erlich, A. The Soviet Industrialization Debate, 1924-28. *Cohen, S., Bukharin and the Bolshevik Revolution.

B. Main Features of the Soviet Model

CW Gardner, Comparative Economic System, 2nd Edition, ch. 15 CW Gregory, Paul, and Stuart, Robert, Soviet Economic Structure and Performance, 3rd Ed., ch. 7-9, 13. *Nove, Alex, The Soviet Economic System, ch. 1-7. *Berliner, Joseph, The Innovation Decision in Soviet Industry. *Hough, Jerry, and Fainsod, Merle, How the Soviet Union is Governed

C. Performance

CW Gregory, Paul, and Stuart, Robert, Soviet Economic Structure and Performance, 3rd Ed., ch. 11- 12. CW Ellman, Michael, Socialist Planning, 2nd Edition, ch. 2, 5, 8, 10. *Sherman, H., The Soviet Economy, ch. 5, 7, 9 11-12. *Bergson, A., Planning and Performance in Socialist Economies, 1989. *Burkett, John, "Systemic Influences on the Physical Quality of Life," Journal of Comparative Economics 9, 1985, 145-163. *Nove, A., The Economics of Feasible Socialism, part 2. *Mao, Z., Critique of Soviet Economics, 1977. *Stiglitz, J., Whither Socialism?, ch. 11.

D. What Was the Soviet-Type System?

CW Sweezy, Paul M., and Bettelheim, Charles, On the Transition to Socialism, pp. 3-76. ER Nove, Alec, "Is there a Ruling Class in the USSR?" Soviet Studies 27(4), Oct. 1975, 615-38. ER Lane, David, "Ruling Class and Political Elites: Paradigms of Socialist Societies," in Lane, Elites and Political Power in the USSR, 1988, pp. 3-18. ER Sweezy, Paul M., "Post-Revolutionary Society," Monthly Review 32(6), November 1980, 1-13. *Cliff, Tony, State Capitalism in Russia. *Bettelheim, C., Class Struggles in the USSR, volumes 1 and 2. *Tichton, Hillel, Origins of the Crisis in the USSR. *Resnick, S., and Wolff, R., Class Theory and History.

4. Case Studies of Soviet-type Systems (February 27) Student reports. Economics 773, Spring 2012 4

5. Market Socialist and Self-Management Systems (March 5)

CW Gardner, Comparative Economic System, 2nd Edition, ch. 16 pp. 485-510, ch. 20 pp. 667-691. CW Horvat, Branko, The Yugoslav Economic System, ch. 1, 4, 7. ER Flaherty, D., Self-Management and Socialism: Lessons from Yugoslavia," Science and Society 56(1), spring 1992, 92-108. ER Gordon, M.J., "China's Path to Market Socialism," Challenge Jan.-Feb. 1992, 53-56. ER Naughton, Barry, "What is Distinctive about China's Economic Transition? State Enterprise Reform and Overall System Transformation," Journal of Comparative Econ. 18, 1994, 470-490. *Ward, Ben, The Socialist Economy, ch. 8-10. *Horvat, Branko, The Political Economy of Socialism, part 3. *Vanek, J., The General Theory of Labor Managed Market Economies *Jones, D., and Svenjnar, J., Participatory and Self-Managed Firms *E. Perry and C. Wong, The Political Economy of Reform in Post-Mao China, ch. 1, 2, 8-10. *Riskin, Carl, China's Political Economy, ch. 8-11. *Perkins, Dwight, "Completing China's Move to the Market," Journal of Economic Perspectives 8(2), spring 1992, 23-46.

6. Case Studies of Market Socialist and Self-Management Systems (March 12) Student reports.

7. Demise of the Soviet-Type System (March 26, April 4)

Kotz and Weir, Russia's Path from Gorabachev to Putin, ch. 4-8. ER Ellman and Kontorovich, The Destruction of the Soviet Economic System, 1998, ch. 1-2. ER Kontorovich, V., "The Economic Fallacy," The National Interest, special issue on "The Strange Death of Soviet Communism," No. 31, 1993, 35-45. ER Reddaway, P., "The Role of Popular Discontent," The National Interest, special issue on "The Strange Death of Soviet Communism," No. 31, 1993, 57-63. ER Dallin, A., "Causes of the Collapse of the USSR," Post-Soviet Affairs 8(4), 1992, 279-302. ER Malia, M. The Soviet Tragedy: A History of Socialism in Russia, 1917-1991, ch. 13. CW Hough, Jerry, Democratization and Revolution in the USSR, 1985-91, 1997, ch. 1, 15. ER Meisner, M., The Deng Xiaoping Era: An Inquiry into the Fate of Chinese Socialism 1978-1994, 1996, ch. 16. *Murrell, Peter, and Olson, Mancur, "The Devolution of Centrally Planned Economies," Journal of Comparative Economics 15, 1991, 239-265. *Karklins, Rasma, "Explaining Regime Change in the Soviet Union," Europe-Asia Studies 4(1), 1994, 29-45. *Millar, J., et. al., "Survey Article: An Evaluation of the CIA's Analysis of Soviet Economic Performance, 1970-90," Comp. Econ. Studies 35(2), summer 1993, 33-57. *Becker, A., "Intelligence Fiasco or Reasoned Accounting?: CIA Estimates of Soviet GNP," Post- Soviet Affairs 10(4), 1994, 291-329. *Kagarlitsky, B., The Disintegration of the Monolith, 1992. *Hinton, William, The Great Reversal: The Privatization of China 1978-89. Economics 773, Spring 2012 5

8. Transition from Soviet-Type Systems to Capitalism (April 9)

A. Introduction

Kotz and Weir, Russia's Path from Gorabachev to Putin, ch. 9.

B. The Washington Consensus

ER Lipton, David, and Sachs, Jeffrey, "Creating a Market Economy in Eastern Europe: The Case of Poland," Brookings Papers on Economic Activity 1, 1990, only pp. 75-89, 99-103, 125-131 required (the rest optional). ER Fischer, Stanley, and Gelb, Alan, "Issues in the Reform of Socialist Economies," in Corbo et. al., Reforming Central and Eastern European Economies, a World Bank symposium, 1991, 67- 82. ER Camdessus, Michel, "Economic Transformation in the 15 Republics of the former Soviet Union – A Challenge or an Opportunity for the World?" address at Georgetown University School of Foreign Service, April 15, 1992. ER Lipton, David, and Sachs, Jeffrey, "Prospects for Russia's Reforms," Brookings Papers on Economic Activity, vol. 2, 1992, 213-265. *Sachs, Jeffrey, "Poland and Eastern Europe: What is to Be Done?" Foreign Economic Liberalization: Transformation in Socialist and Market Economies, edited by Koves and Maere, 1991, 235-246. *Brada, Josef, "The Transition from Communism to Capitalism: How Far? How Fast?," Post-Soviet Affairs 9:2, 1993, 87-110. *Boycko, Maxim, Andrei Shleifer, and Robert Vishny, "Privatizing Russia," Brookings Papers on Economic Activity 2: 1993, 139-192. *Blanchard, Oliver, Kenneth Froot, and Jeffrey Sachs (eds.), The Transition in Eastern Europe, 2 volumes, 1994. *Aslund and Millar, "Shock Therapy in Russia: Success or Failure?" a debate on shock therapy in Russia, in Problems of Post-Communism, vol. 41, Fall 1994, 16-26. *World Bank, World Development Report: From Plan to Market, 1996. *Aslund, Anders, Building Capitalism: The Transformation of the Former Soviet Bloc, 2002. *World Bank, Transition: The First Ten Years, 2002.

[Section 8 continued on next page] Economics 773, Spring 2012 6

C. Alternative Analyses of Transition

Kotz and Weir, Russia's Path from Gorabachev to Putin, ch. 10, 12-13; *11, *14 [chapters 12-14 are not in the earlier book Revolution from Above] ER Murrell, Peter, "Can Neoclassical Economics Underpin the Reform of Centrally Planned Economies," Journal of Economic Perspectives, 5, Fall 1991, 59-76. ER Kregel, J., and Matzner, E. Agenda for Reconstruction of Central and Eastern Europe, Challenge, Sept.-Oct. 1992, 33-40. ER Weisskopf, Thomas, "Russia in the Fast Track," Challenge Nov.-Dec. 1992. ER Murrell, "What is Shock Therapy? What Did it Do in Poland and Russia?" Post-Soviet Affairs, 9:2, 1993, 111-140. ER Kotz, David, "Lessons from Economic Transition in Russia and China," in Baiman et.al., Political Economy and Contemporary Capitalism, 2000, 210-217. ER Stiglitz, Joseph, "Preface" to The New Russia: Transition Gone Awry, edited by Klein and Pomer, 2001, xvii-xxii. *Kotz, David, "An Alternative to Shock Therapy for Transforming the Russian Economy," UMass Economics Department Working Paper 1992-11, October, 1992. *Kotz, David, "The Role of the State in Economic Transformation: Comparing the Transition Experiences of Russia and China," in Chinese in Issues of Contemporary World Socialism, No. 3, September 2005, 3-14; in English at http://people.umass.edu/dmkotz/State_and_ec_transf_05_09.pdf *Goldman, Marshall, Lost Opportunity: Why Economic Reforms in Russia Have Not Worked, 1994. *Murrell, Peter, "The Transition According to Cambridge, Mass.," Journal of Economic Literature, 33, March 1995, 164-178. *Kotz, David, "Is Russia Becoming Capitalist," Science and Society 65:2, summer 2001, 157-181. *Reddaway, Peter, and Glinski, Dmitri, The Tragedy of Russia's Reforms: Market Bolshevism Against Democracy, 2001. *Klein, Lawrence, and Pomer, Marshall (eds.), The New Russia: Transition Gone Awry, 2001. *Goldman, Marshall, The Piratization of Russia: Russian Reforms Goes Awry, 2003. *Kotz, David, "The 'Uzbek Growth Puzzle' and the Washington Consensus," January, 2004, available at http://people.umass.edu/dmkotz/Uzbek_Growth_Puzzle_04_01.pdf. Economics 773, Spring 2012 7

9. Socialist Possibilities in Light of Historical Experience (April 17 [Tuesday], 23, 30)

A. Introduction

Kotz and Weir, Russia's Path from Gorbachev to Putin, ch. 15 (or ch. 12 in the earlier book Revolution from Above) *Blackburn, Robin, "Fin de Siecle: Socialism after the Crash," New Left Review No. 185, January/February 1991, 5-66.

B. New Theories of Market Socialism

CW Nove, A., The Economics of Feasible Socialism, part 5. Roemer, John, A Future for Socialism, 1994. ER Weisskopf, Thomas E., "A Democratic Enterprise-Based Market Socialism," in Bardham and Roemer, Market Socialism: The Current Debate, ch. 6. ER Schweikart, D., "Socialism, Democracy, Market, Planning," RRPE 24(3,4), 1992, 29-45. ER Kotz, D., "What Economic Structure for Socialism," 2008, available at http://people.umass.edu/dmkotz/What_Ec_Struc_Soc_08_03.pdf *Bardhan, P., and Roemer, J., "Market Socialism: A Case for Rejuvenation," Journal of Economic Perspectives, Summer 1992. *Ollman, Bertell (ed.), Market Socialism: The Debate among Socialists. *Mandel, Ernest, "The Myth of Market Socialism," New Left Review 169, 1988. *Elson, Diane, "Market Socialism or the Socialization of the Market?" New Left Review 172, 1988, 3-44. *Devine, Pat, "Market Socialism or Participatory Planning?" Review of Radical Political Economics 24 (3&4), 1992, 67-89.

C. New Theories of a Planned Economy

ER Science and Society, special issue on "Building Socialism Theoretically: Alternatives to Capitalism and the Invisible Hand," 66(1), 2002, the following articles (along with the comments that follow the article): Devine, "Participatory Planning through Negotiated Coordination" Albert and Hahnel, "In Defense of Participatory Economics" Laibman, "Democratic Coordination: Towards a Working Socialism for the New Century" Kotz, "Socialism and Innovation" CW Devine, Pat, Democracy and Economic Planning, 1988, ch. 7-10. ER Albert, Michael, and Hahnel, Robin, "Participatory Planning," Science and Society 56(1), 1992, 39- 59. ER Kotz, D., "Lessons for a Future Socialism from the Soviet Collapse," RRPE 27(3), 1995, 1–11. *Lebowitz, Michael, Build It Now: Socialism for the Twenty-First Century, 2007, ch. 1-6. *Albert, Michael, and Hahnel, Robin, The Political Economy of Participatory Economics, 1991. *Cockshott, W. Paul, and Cottrell, Allin, Towards a New Socialism, 1993. *Cottrell, A., and Cockshott, W., "Calculation, Complexity, and Planning: The Socialist Calculation Debate Once Again," Review of Political Economy 5(1), 1993, 73-112. *Adaman, Fikret, and Devine, Pat, "On the Economic Theory of Socialism," New Left Review 221, 1997, 54-80. Economics 773, Spring 2012 8

D. Twenty-First Century Socialism in Venezuela?

Wilpert, Gregory, Changing Venezuela by Taking Power: The History and Policies of the Chavez Government, 2007, ch. 1-3. ER Lander, Edgardo, and Pablo Navarrete, The Economic Policy of the Latin American Left in Government: Venezuela, Transnational Institute 2007, especially pp 23-33. ER Lebowitz, Michael, Build It Now: Socialism for the Twenty-First Century, 2007, ch. 7. *Gott, Richard, "Venezuela under Hugo Chavez: The Originality of the Bolivarian Project," New Political Economy 13:4, December 2008. *Albo, Greg, "Venezuela under Chavez: The Bolivarian Revolution against Neoliberalism," in The Unexpected Revolution: The Venezuelan People Confront Neoliberalism, March 2005, pp. 60-72. Available at http://www.socialistproject.ca/documents/. *Schiavoni, Christina, and William Camacaro, "The Venezuelan Effort to Build a New Food and Agriculture System," Monthly Review 61:3, July-August, 129-141.