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The evolution of law under communism and post-communism: a system-theory analysis in the spirit of Luhmann

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  • Bruno Schönfelder

    (Technical University Bergakademie Freiberg, Faculty 6, Freiberg, Germany)

Abstract

The paper suggests that Luhmann’s theory of social systems and evolution offers a powerful approach for analyzing law and the economy. It considers Yugoslavia and some Central European countries before and after 1990. Luhmann’s concept of evolution stands in stark contrast to mainstream economic theory. It enables us to clarify the concept of transformation. A transformation became necessary because communism was an evolutionary dead end. According to this view, in postcommunism the primacy of functional differentiation needs to be reestablished because it was partially reversed under communist rule. In these circumstances, the popular call for “sufficient†public control over the market is asking for the impossible. Post-communist law is bound to fall behind the evolution of markets. This causes economic problems and retards financial deepening.

Suggested Citation

  • Bruno Schönfelder, 2016. "The evolution of law under communism and post-communism: a system-theory analysis in the spirit of Luhmann," Financial Theory and Practice, Institute of Public Finance, vol. 40(3), pages 293-318.
    • Handle: RePEc:ipf:finteo:v:40:y:2016:i:3:p:293-318
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    More about this item

    Keywords

    evolution; function systems; re-stabilization; operation closure; judge-made law;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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