Prof’s Choice

Marx, markets, modern economic thought and the economic theory of socialism.

BRUS, WLODZIMIERZ, AND KAZIMIERZ LASKI, FromMarx to the Market (Oxford University Press, 1991) A thoughtful and balanced account of the failures and successes of socialism in Eastern and Central Europe by two Polish economists, who conclude with obvious reluctance that reformed, or market, socialism is not the solution to the failure of central planning. Difficult but rewarding reading.

GOLDFARB, JEFFREY, Afterthe Fall (Basic Books, 1992)-A basically optimistic study of the problems of transition and prospects for success by a long-time observer of Central and Eastern Europe. Goldarb argues against too rapid an imposition of a market economy on the grounds that economic reform must be accompanied by the development of effective political institutions and the resolution of ethnic, religious, and regional conflicts.

HEILBRONER, ROBERT, "Analysis and Vision in theHistory of Modern EonomicThoughtin Journal of Economic Literature, (September 1990, pp. 1097-1114)— A lucid account of the ongoing debate between socialist and free-market economic thought over the 50-year period from 1939 to 1989. It focuses on theoretical issues, but is not difficult reading for the non-specialist.

KORNAI, JANOS, The Roadto a Free Economy (Norton, 1990)—A recent bestseller by Hungary's best known economist, strongly advocating immediate and sweeping free-market reforms in his nation, although warning against premature privatisation of large. monopolistic state-owned enterprises.

LANGE, OSKAR, AND FRED M. TAYLOR, On the EconomicTheoiy of Socialism (University of Minnesota Press, 1938)—The classic statement of the theoretical case for the feasibility of welfare-enhancing central planning. The model and argument are based on elementary microeconomic theory, but the logic is easy to follow.

SCHUMPETER, JOSEPH A., Capitalism, Socialism, andDemocracy (Harper, 1942)— A book written for the archetypical "intelligent layman," rather than the economic specialist, by a distinguished conservative economist. Schumpeter's basic argument, that capitalism will be succeeded by socialism as a result of the success rather than failure of the former, is obsolete today, but his discussion of whether socialism is compatible with political democracy and his appreciation and critique of Marx are as compelling and relevant today as when first written.