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The System Paradigm Revisited. Clarification and Additions in the Light of Experiences in the Post-Socialist Region

Author

Listed:
  • János Kornai

    (Harvard University
    Corvinus University of Budapest)

Abstract

The term paradigm was introduced to the philosophy of science by Thomas Kuhn – he used this term to denote the specific approach applied by a school of reasearch to examine its subject matter. Researchers using the same paradigm seek answers to similar questions, and employ similar methods and concepts. In an article published in 2000, the author of this essay introduced the term system paradigm, which focuses on the systems functioning in a society. This study develops the theoretical considerations outlined in that earlier article on the basis of experience on post-socialist transition. The first part compares the socialist and capitalist systems, describing their main characteristics, and concludes that the capitalist system has become established in former socialist countries, except for North Korea and Cuba. The second part analyzes varieties of capitalism within a typology which classifies prevailing forms of politics and government. Three markedly different types are identified: democracy, autocracy, and dictatorship. Huntington wrote about the “third wave” of democratization. This study concludes the third wave has dried up: for the 47 post-socialist countries, only a tenth of the population live in democracy, while autocracy or dictatorship prevails in all other countries in this group. The third part of this essay applies the conceptual and analytical apparatus to Hungary, where capitalism exists, and autocracy is the prevailing politico-governmental form – here we can find important characteristics common to other capitalist countries or other autocracies. This finding is compatible with the observation that there are some, less fundamental, characteristics unique to Hungary, or “Hungarica”, which differ from the characteristics of all other countries.

Suggested Citation

  • János Kornai, 2016. "The System Paradigm Revisited. Clarification and Additions in the Light of Experiences in the Post-Socialist Region," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 66(4), pages 547-596, December.
  • Handle: RePEc:aka:aoecon:v:66:y:2016:i:4:p:547-596
    Note: Let me express my gratitude here first of all to my wife, Zsuzsa Dániel, who encouraged me to write this study despite all hardships; she was the first reader of several earlier drafts, supporting my progress with several thoughtful suggestions. I also owe my thanks to all the people who read the manuscript and supported me with their recommendations, helped me to collect data and explore the literature. I would like to emphasize Ádám Kerényi’s role, who helped me most with his initiatives and exceptional working capacity. It would be really hard to compare the invaluable support from the other contributors, therefore I simply list their names: Dóra Andrics, Réka Branyiczki, Rita Fancsovits, Péter Gedeon, Péter Mihályi, Quang A. Nguyen, Ildikó Pető, Andrea Reményi, Eszter Rékasi, Miklós Rosta, András Simonovits, Ádám Szajkó, Zoltán Sz. Bíró, Judit Ványai and Chenggang Xu. I am grateful to Brian McLean, my friend and permanent translator for many decades, for the faithful and well readable translation. I would also like to thank Corvinus University of Budapest for providing me the conditions of undisturbed work and “By Force of Thought” Foundation for its contribution to research funding.
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    Citations

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    Cited by:

    1. Pierre-Yves Hénin & Ahmet Insel, 2021. "Hungary's U-turn in Kornai's system paradigm perspective: a case for national authoritarian capitalism," Public Choice, Springer, vol. 187(1), pages 235-245, April.
    2. Mihaela Iacob & Rodica Gherghina & Georgiana Camelia Cre?an, 2019. "„Comparative (Bio)Economic Systems” in Terms of Social Responsibility: The Natural Environment – Between Ideal Capitalism, Utopian Socialism and Real-World Interventionism," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(52), pages 707-707, August.
    3. Mehrdad Vahabi, 2021. "Socialism and Kornai’s revolutionary perspective," Public Choice, Springer, vol. 187(1), pages 37-54, April.
    4. Yuriy Gorodnichenko & Gerard Roland, 2021. "Culture, institutions and democratization," Public Choice, Springer, vol. 187(1), pages 165-195, April.
    5. Mehrdad Vahabi, 2018. "János Kornai and General Equilibrium Theory," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 68(supplemen), pages 27-52, January.
    6. Karsten Staehr, 2017. "The Choice of Reforms and Economic System in the Baltic States," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(4), pages 498-519, December.
    7. Mehrdad Vahabi, 2021. "Introduction: a special issue in honoring Janos Kornai," Public Choice, Springer, vol. 187(1), pages 1-13, April.
    8. Péter Mihályi & Iván Szelényi, 2021. "Kornai on the affinity of systems: Is China today an illiberal capitalist system or a communist dictatorship?," Public Choice, Springer, vol. 187(1), pages 197-216, April.
    9. Júlia Király, 2020. "Hungary and Other Emerging EU Countries in the Financial Storm," Financial and Monetary Policy Studies, Springer, number 978-3-030-49544-2, July.
    10. Miklós Rosta & László Tóth, 2021. "Is there a demand for autocracies in Europe? Comparing the attitudes of Hungarian and Italian university students toward liberal democratic values inspired by János Kornai," Public Choice, Springer, vol. 187(1), pages 217-233, April.
    11. Maria Csanádi & Ferenc Gyuris, 2020. "Uneven Economic Overheating in a Transforming Party-State During the Global Crisis: The Case of China," CERS-IE WORKING PAPERS 2036, Institute of Economics, Centre for Economic and Regional Studies.
    12. Judit Ricz, 2018. "New developmentalism in the 21st century - towards a new research agenda," IWE Working Papers 245, Institute for World Economics - Centre for Economic and Regional Studies.
    13. Miklós Szanyi, 2018. "Varieties Of State Capitalism," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 6(2), pages 140-146, December.
    14. Bruno Dallago & Sara Casagrande, 2020. "The ''New Comparative Economics''. A critical review," DEM Working Papers 2020/4, Department of Economics and Management.

    More about this item

    Keywords

    autocracy; democracy; capitalist system; socialist system; post-socialist transition; Hungary;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems

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