Reviews

Pekka Sutela, Economic Thought and Economic Reform in the Soviet Union. Cambridge: Cambridge University Press, 1991, 197 pp., £30.00 h/b, £10.95 p/b.

Stephen White, Gorbachev and After. Cambridge: Cambridge University Press, 1991, ix+310 pp., £27.95 h/b, £8.95 p/b.

Catherine Merridale & Chris Ward, eds, Perestroika. The Historical Perspective. London, New York, Melbourne, Auckland: Edward Arnold, 1991, xiii+253 pp., £12.95 p/b.

Guy Standing, ed., The New Soviet Labour Market. In Search of Flexibility. Geneva: ILO, 1991, xiv+440 pp., SF45.00.

Leonard Geron, Soviet Foreign Economic Policy under Perestroika. London: Chatham House Papers, The Royal Institute of International Affairs, Pinter Publishers, 1990, 126 pp., £19.50, h/b, £7.95 p/b.

Malcolm R. Hill, Soviet Advanced Manufacturing Technology and Western Export Controls. Aldershot: Avebury, 1991, xv+256 pp., £35.00.

Gerhard Simon, Nationalism and Policy toward the Nationalities in the Soviet Union: From Totalitarian Dictatorship to Post‐Stalinist Society, translated by K. and O. Forster. Boulder, CO, and Oxford: Westview Press, 1991, xvii+483 pp., £22.50 p/b.

A. Kemp‐Welch, Stalin and the Literary Intelligentsia 1928–39. London: Macmillan, 1991, vi + 338 pp., £45.00.

Jelena Milojkovic‐Djuric, Aspects of Soviet Culture: Voices of glasnosf, 1960–1990. New York: East European Monographs, Columbia University Press, 1991, iv+190 pp., $29.00.

Landon Pearson, Children of Glasnost. Growing up Soviet. Seattle, WA: University of Washington Press, 1991, xv+505 pp., $16.95, p/b.

Robert Rand, Comrade Lawyer. Inside Soviet Justice in an Era of Reform. Oxford: Westview Press, 1991, x+166 pp., £9.50 p/b.

Sheila Fitzpatrick, Alexander Rabinowitch & Richard Stites, eds, Russia in the Era of NEP: Explorations in Soviet Society and Culture. Bloomington and Indianapolis, IN: Indiana University Press, 1991, viii+344 pp., £22.50 h/b, £9.50 p/b.

Efraim Karsh, Soviet Policy towards Syria since 1970. Basingstoke and London: Macmillan, 1991, 229 pp.+index, £35.00.

Ronald D. Bachman, ed., Romania: A Country Study, 2nd edition. Washington, DC: US Library of Congress Federal Research Division, 1991, xxxvi+356 pp.     

Janos Kornai: a non-mainstream pathway from economic planning to disequilibrium economics

This paper first positions Janos Kornai in the controversies about the feasibility of socialist planning (Lange, Hayek). Kornai has leant in favor of Hayek’s thesis contending that, without an actual market price system for conveying information to those who can beneficially use it, a socialist economy is impracticable. The paradox is that Kornai worked at the Computer Centre of the Hungarian Academy of Sciences in relation with the Planning Institute of the National Planning Office and conceived an algorithm for decentralized two-level planning, i.e., the best improvement ever brought into Lange’s model of market socialism. This is due to Kornai being also involved in actual dysfunctions of central planning in Hungary (shortages) that he eventually theorized with disequilibrium modelling in his Economics of shortage. However, the latter departs from standard disequilibrium economics (Barro–Grossman) which has been joined by most former planometricians (such as Malinvaud for instance). Eventually Kornai adopted a more institutional approach for his recommendations as regards post-communist transformation into a market economy with a Hayekian flavor, in particular his support to an organic development of a privately-owned sector within a gradualist process instead of mainstream-supported overnight privatisation. His recent analysis of capitalism as a surplus economy shows the continuity of his non-mainstream view of disequilibrium over five decades. All this makes Kornai an original front-running researcher and breaking-through analyst, though somewhat paradoxical, and a quasi-heterodox economist, one foot in and one foot out of the mainstream.