Traditional market socialist

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Traditional market socialist
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Traditional market socialist model

• Traditional market socialist model refers to the
  socialist countries in Eastern Europe to explore
  the compatible theory and practice between
  traditional socialism and market economy coming
  with beginning of the "Lange model" for
• Yugoslavia and Hungary, mainly represented by the
  socialist countries of Eastern Europe to explore
  the theory
• Western countries call it "market socialism",
  which is the source of the concept ----- "market
  socialism".
• The main features of this model the introduction
  of the socialist market economy, planned economy
  dominated the market system is subordinate to or
  supplement of the "binary" coexistence model.

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First the Lange's " competitive socialism" model

• "Lange model" core idea is "Contrast balanced
  decision on the competitive market conditions,
  analyzes the competitive equilibrium conditions
  of the socialist society,
• the use of" trial and error approach "to solve
  the socialist economic accounting, rational
  distribution of resources.

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First the Lange's " competitive socialism" model

• The main features of the model .
• (A) public ownership of production-based and
  multiple forms of ownership coexist
• (B) the planning system and market system,
  economic system being co-exist

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First the Lange's " competitive socialism" model

• First, through trial and error method,
  determining the price based on consumer
  preferences to simulate the role of the market,
  the rational allocation of resources
• Second, the Central Planning Bureau of the
  Central's preference, using the planning means to
  achieve the society interests as a whole to
  avoid the capitalist private economy drawbacks.

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First the Lange's " competitive socialism" model

• 2. Business decisions feature. Business
  decisions must be given by the Central Planning
  Bureau of the price system to develop its own
  rules, accept the supervision of the Central
  Planning Bureau,
• business managers are no longer the goal of
  maximizing profits, but to meet consumer
  preferences in accordance with the purpose of
  business production.
• 3. Personal decision-making function. Consumers
  have choice freedom, but the consumer is not able
  to determine production.

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First the Lange's " competitive socialism" model

• (C) the diversification of the income
  distribution system
• Lange model" adheres to the dividend
  distribution according to work and social
  integration as the main multi-distribution
  system. He designed a best solution for social
  dividends

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Second Eastern Europe"decentralized market
socialism" in practice mode

• (A) the Yugoslav self-governing market
  socialism
• 1. Autonomy market socialism theory . Autonomy
  market socialism theory of and Kader,(???).
  mainly Titos (??)"self-government socialism"
  basis.
• national economic theory and the self-government
  theory and so on.
• the core of political autonomy the abolition of
  national centralization "advocated
  decentralization, the implementation of
  non-state, non-centralized, non-bureaucratization
  and decentralization of power.
• the core of the economy Autonomy, "the
  combination of labor and production, the
  producers manage the production and social
  affairs.

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Second Eastern Europe"decentralized market
socialism" in practice mode

• 2. Autonomy characteristics of the market
  socialist model.
• First, the abolition of the national economy
  functions.
• Second, the implementation of social ownership of
  production.
• Third, workers self-management model. (First, the
  joint labor organization. Second, the role of the
  joint labor regime )
• Fourth, the use of market mechanisms. (Yugoslavia
  adhere to the "commodity production and market
  economy is insurmountable stage of socialism,"
  the view that social development must adhere to
  the principles and rules of market economy).

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Second Eastern Europe"decentralized market
socialism" in practice mode

• (B) the Hungarian "adjustable" decentralized
  model of market socialism
• First, the ownership structure adhere to public
  ownership dominant and diverse economy sectors .
  
• Second, the economic mechanisms the combination
  of the planning mechanism and the market
  mechanism.
• Third, the distribution of income the wage
  income and profit-sharing combination --------
  the two-tier distribution system.

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Second Eastern Europe"decentralized market
socialism" in practice mode

• Fourth, the government functionsthe government
  economic functions transformation , the
  expansion of enterprise autonomy.
• Fifth, the management system social agricultural
  management system and the industrial system with
  workers management.
• Sixth, the development of foreign trade, foreign
  investment, exports of technology.

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Three Eastern Europe"decentralized market
socialism" in theory mode

• Third, Eastern Europe,---decentralized market
  socialism -----the theoretical model (A)
  Bruces (???)the planned economy with the
  controlled market mechanism " model------
  "decentralized decision-making" mode
• the essential characteristics of socialism
  should be a specific separation form ------the
  socialist economic system reflects the socialist
  nature .
• the pattern of economic performance reflects the
  socialist economic mechanism, not hinder the
  nature of socialism .
• all suitable development for socialist economic
  mechanism can be used, socialism must take a
  different economic development model .

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Three Eastern Europe"decentralized market
socialism" in theory mode

• (B) Kornais (???)a macro-control market " mode
  or "coordinated decentralization" mode
• Kornai further divided into direct and indirect
  administrative coordination
• market coordination is divided into a free market
  with control or coordination without control .
• Kornai advocates the market coordination with
  control " mode.