IDEAS home Printed from https://ideas.repec.org/a/eip/journl/y2018i1p7-36.html
   My bibliography  Save this article

Socialism or capitalism? Tertium Datur

Author

Listed:
  • Grzegorz W. Kolodko

Abstract

Two centuries ago, Asia delivered over 60 percent of world production; in the middle of the 20th century it was less than 20 percent. Currently, it is twice as large and this share is still increasing, above all but not only, because of China whose production is still growing at a rate twice as fast as the world average. China is trying to maintain high economic dynamics, inter alia, through investment external expansion. This aim is to be served, among others, by the infrastructure project, drawn up with enormous verve, known as the New Silk Road, which the Middle Kingdom addresses to 65 countries on three continents. While some hope for accelerating their own economic growth, others warn against the risk of becoming dependent on China. The article analyzes these challenges, pointing to the desired directions of irreversible evolution globalization by giving it a more inclusive character, which is also strongly emphasized by the Chinese authorities in their official enunciations. Is China still building socialism or has it already built capitalism? Or maybe both? And maybe none of those two systems as, with the market reforms that deviate from the traditional socialism, it has created something different from the classical types of political and socio-economic regimes known from the 20th century? Some authors have proclaimed that there's been capitalism in China for some time, others claim that socialism has developed there, of course one with a Chinese characteristic. Shortages have been successfully eliminated, but the economic system is unbalanced, showing surpluses this time. So is it socialism, as the official Chinese authorities claim, or capitalism, as asserted by other economists? Tertium non datur? Not at all, as there are yet other possibilities of regime interpretations, and the most fascinating one is being offered by the present-day China, where a unique internal convergence has taken place during the last generation. Elements of socialism intermingle with elements of capitalism and vice versa, creating a new, different quality. Tertium datur.

Suggested Citation

  • Grzegorz W. Kolodko, 2018. "Socialism or capitalism? Tertium Datur," Economy and Forecasting, Valeriy Heyets, issue 1, pages 7-36.
    • Handle: RePEc:eip:journl:y:2018:i:1:p:7-36
    as

    Download full text from publisher

    File URL: http://eip.org.ua/docs/EP_18_1_07_uk.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kolodko, Grzegorz W., 2000. "From Shock to Therapy: The Political Economy of Postsocialist Transformation," OUP Catalogue, Oxford University Press, number 9780198297437.
    2. Huang, Yukon, 2017. "Cracking the China Conundrum: Why Conventional Economic Wisdom is Often Wrong," OUP Catalogue, Oxford University Press, number 9780190630034.
    3. Kolodko, Grzegorz W & McMahon, Walter W, 1987. "Stagflation and Shortageflation: A Comparative Approach," Kyklos, Wiley Blackwell, vol. 40(2), pages 176-197.
    4. Grzegorz W. Kolodko, 2014. "The New Pragmatism, or economics and policy for the future," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 64(2), pages 139-160, June.
    5. János Kornai, 2014. "The soft budget constraint," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 64(supplemen), pages 25-79, November.
    6. Stanislaw Gomulka & Paul Johnson, 1991. "The Causes of Recession following Stabilization," CEP Discussion Papers dp0033, Centre for Economic Performance, LSE.
    7. G. Kolodko., 2004. "Institutions, Policies and Growth," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.
    8. Nicholas R. Lardy, 2014. "Markets over Mao: The Rise of Private Business in China," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6932, October.
    9. G. Kolodko, 2004. "Institutions, Policies and Growth," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 7.
    10. Anton Cheremukhin & Mikhail Golosov & Sergei Guriev & Aleh Tsyvinski, 2015. "The Economy of People’s Republic of China from 1953," NBER Working Papers 21397, National Bureau of Economic Research, Inc.
    11. Gomulka, Stanislaw & Johnson, Paul, 1991. "The causes of recession following stabilization," Economic History Working Papers 21107, London School of Economics and Political Science, Department of Economic History.
    12. Edmund Phelps, 2015. "Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change," Economics Books, Princeton University Press, edition 1, number 10058-2.
    13. Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766.
    14. D. M. Nuti, 1986. "Hidden And Repressed Inflation In Soviet-Type Economies: Definitions, Measurements And Stabilisation," Contributions to Political Economy, Oxford University Press, vol. 5(1), pages 37-82.
    15. Grzegorz W. Kolodko & Walter W. Mcmahon, 1987. "Stagflation and Shortageflation: A Comparative Approach," Kyklos, Wiley Blackwell, vol. 40(2), pages 176-197, May.
    16. Grzegorz W. Kolodko, 2004. "Institutions, Policies and Growth," Rivista di Politica Economica, SIPI Spa, vol. 94(3), pages 45-79, May-June.
    17. Frydman, R. & Wellisz, S. & Kolodko, G.W., 1991. "Stabilization in Poland: A Progress Report," Papers 4, United Nations World Employment Programme-.
    18. Stanislaw Gomulka, 1991. "The Causes of Recession Following Stabilization," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 33(2), pages 71-90, July.
    19. Guriev, Sergei & Cheremukhin, Anton & Golosov, Mikhail & Tsyvinski, Aleh, 2015. "The Economy of People’s Republic of China from 1953," CEPR Discussion Papers 10764, C.E.P.R. Discussion Papers.
    20. Ron Berger & Chong Ju Choi & Ram Herstein, 2013. "China’s Social Market Economy: The Leverage of Economic Growth," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 4(1), pages 21-30, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Grzegorz W. Kołodko, 2022. "Jedna trzecia wieku posocjalistycznej transformacji ustrojowej," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 2, pages 151-171.
    2. Raiser, Martin, 1993. "Governing the transition to a market economy," Kiel Working Papers 592, Kiel Institute for the World Economy (IfW Kiel).
    3. Martin Raiser, 1995. "“Transition is a bridge, therefore do not dwell upon it”1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 3(2), pages 215-246, June.
    4. Raiser, Martin, 1992. "Soft budget constraints: An institutional interpretation of stylised facts in economic transformation in Central Eastern Europe," Kiel Working Papers 549, Kiel Institute for the World Economy (IfW Kiel).
    5. Jan Winiecki, 2002. "An Inquiry into the Early Drastic Fall of Output in Post-communist Transition: An Unsolved Puzzle," Post-Communist Economies, Taylor & Francis Journals, vol. 14(1), pages 5-29.
    6. Perkins, Frances C., 1994. "State enterprise reform and macro-economic stability in transition economies," Kiel Working Papers 665, Kiel Institute for the World Economy (IfW Kiel).
    7. Grzegorz W. Kołodko, 2019. "Uwarunkowania i długookresowe implikacje Strategii dla Polski," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 65-93.
    8. Herzog, Bodo, 2006. "Coordination of fiscal and monetary policy in CIS-countries: A theory of optimum fiscal area?," Research in International Business and Finance, Elsevier, vol. 20(2), pages 256-274, June.
    9. Ariane Tichit, 1998. "Reprise économique dans les pays post-communistes : application d'un modèle de durée," Économie et Prévision, Programme National Persée, vol. 136(5), pages 73-92.
    10. Kolodko, Grzegorz W., 2010. "The Great Transformation 1989-2029: Could It Have Been Better? Will It Be Better?," WIDER Working Paper Series 040, World Institute for Development Economic Research (UNU-WIDER).
    11. Stanislaw Gomulka & Danny Quah, 1994. "Lessons from Economic Transformation and the Road Forward," CEP Occasional Papers 05, Centre for Economic Performance, LSE.
    12. ter Horst, H.A.F., 1996. "Socialism, Capitalism, and Transition with Special Reference to Poland," Other publications TiSEM 58e2e881-80c1-45a0-8ce8-7, Tilburg University, School of Economics and Management.
    13. Gomulka, S. & Lane, J., 1997. "Recession dynamics following an external price shock in a transition economy," Structural Change and Economic Dynamics, Elsevier, vol. 8(2), pages 177-203, June.
    14. Justin Yifu Lin, 2007. "Development and Transition : Idea, Strategy, and Viability," Development Economics Working Papers 22709, East Asian Bureau of Economic Research.
    15. Mr. Garbis Iradian, 2007. "Rapid Growth in the CIS: Panel Regression Approach," IMF Working Papers 2007/170, International Monetary Fund.
    16. János Kornai & Collegium Budapést, 1995. "Eliminating the shortage economy: a general analysis and examination of the dévelopments in Hungary: Part," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 3(2), pages 149-168, June.
    17. Raiser, Martin & Nunnenkamp, Peter, 1993. "Output decline and recovery in Central Europe: the role of incentives before, during and after privatisation," Kiel Working Papers 601, Kiel Institute for the World Economy (IfW Kiel).
    18. Grzegorz W. Kolodko & Marian Ostrowski & Dariusz Rosati, 1990. "Stabilization Policy in Poland: Challenges and Constraints," WIDER Working Paper Series wp-1990-081, World Institute for Development Economic Research (UNU-WIDER).
    19. Grzegorz W. Kołodko, 2020. "Wielka chińska transformacja: ze świata trzeciego do pierwszego," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 53-80.
    20. Raiser, Martin, 1994. "Lessons for whom, from whom? The transition from socialism in China and Central Eastern Europe compared," Kiel Working Papers 630, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eip:journl:y:2018:i:1:p:7-36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iryna Bazhal (email available below). General contact details of provider: http://eip.org.ua/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.