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.