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Ownership of the Means of Production

In: Privatization and its Limits in Central and Eastern Europe

Author

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  • Hella Engerer

    (German Institute for Economic Research)

Abstract

Even if so-called socialist property was regarded as the primary form of property during the planned economic phase, there still existed private property of the means of production in all Central and Eastern European countries. Private property was not only created illegally in the black economy, but was also allowed by the state on a limited scale, as can be demonstrated on the basis of the Soviet Constitution of 1977 (Brunner/Meissner (1980:390)): Art. 17 Within the USSR, individual work in the field of trade, agriculture and the rendering of services to the population, as well as other activities which are based on the personal labor of the citizens and of their family members are allowed according to the law. This formally granted right to establish and run a family business was interpreted differently by the individual countries and over the course of time. The attitude towards the private sector changed with the economic reforms particularly during the 1980s. This point will be taken up again later. In order to gain an impression about the extent of the private and socialist sectors, the development during the 1980s will first be portrayed on the basis of statistical information.

Suggested Citation

  • Hella Engerer, 2001. "Ownership of the Means of Production," Studies in Economic Transition, in: Privatization and its Limits in Central and Eastern Europe, chapter 7, pages 114-135, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-0-230-52300-5_8
    DOI: 10.1057/9780230523005_8
    as

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