ZAŠTO JE PROPAO KOMUNIZAM?
WHY COMMUNISM COLLAPSED?
Author(s): Miroslav ProkopijevićSubject(s): National Economy, Economic history, Political history, Economic policy, Government/Political systems, Evaluation research, History of Communism, Financial Markets
Published by: Српско социолошко друштво
Keywords: communism; command economy; input driven growth; economic inefficiency; collapse of communism;
Summary/Abstract: Economists failed not only to predict the collapse of communism, but they are in trouble about the cause of this past event. Earlier parts of this article review and discuss some of the better known explanations related to reasons for the collapse of communism (G. Brennan, P. Bernholz, M. Olson, P. Krugman). Final chapter offers an explanation, according to which, communism collapsed due to a combination of two factors. First, communism relied on a wrong kind of growth (input-driven growth); since the raise of investment raises the level of capital and not the level of growth, it is impossible to base the long term growth on investment. Secondly, the investments and complete economic activity were very inefficient, due to the absence of relevant market institutions, which were removed by revolution.
Journal: Социолошки преглед
- Issue Year: 30/1996
- Issue No: 1
- Page Range: 3-23
- Page Count: 21
- Language: Serbian