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Socialism and Kornai’s revolutionary perspective

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  • Mehrdad Vahabi

    (University of Paris 13)

Abstract

In this paper, I argue that the principal message of Janos Kornai’s work was to underscore that the dysfunctional properties of socialism are endemic and systemic, and cannot be “reformed”. In a sense, Kornai’s role was similar to the French Encyclopedists in preparing the ground for France’s 1789 revolution. Kornai’s intellectual contribution was to formulate a revolutionary discourse emphasizing the sterility of half-measure, cosmetic changes, and reform packages. His conclusion was based on two foundations: (1) the unity or what Kornai calls the ‘coherence’ of socialism as a system, and (2) rejection of market socialism as hopelessly confused. Accordingly, reforms would introduce inconsistencies at best, without solving socialism’s chronic problems. Moreover, the inconsistences of the half-measures would erode socialist systems, inevitably leading to revolution. This paper will examine Kornai’s two tenets of revolutionary discourse and his final conclusion in light of Hungarian economic reforms that started on January 1, 1968.

Suggested Citation

  • Mehrdad Vahabi, 2021. "Socialism and Kornai’s revolutionary perspective," Public Choice, Springer, vol. 187(1), pages 37-54, April.
    • Handle: RePEc:kap:pubcho:v:187:y:2021:i:1:d:10.1007_s11127-019-00720-5
    DOI: 10.1007/s11127-019-00720-5
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    1. Jànos Kornai, 2000. "What the Change of System from Socialism to Capitalism Does and Does Not Mean," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 27-42, Winter.
    2. Mehrdad Vahabi, 2025. "Soft Budget Constraint Reconsidered," Palgrave Studies in the History of Economic Thought,, Palgrave Macmillan.
    3. 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.
    4. Mehrdad Vahabi, 2025. "The Relevance of the Marshallian Concept of Normality in Interior and Inertial Dynamics as Revisited by Shackle and Kornai," Palgrave Studies in the History of Economic Thought,, Palgrave Macmillan.
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    10. Kornai, Janos, 1986. "The Hungarian Reform Process: Visions, Hopes, and Reality," Journal of Economic Literature, American Economic Association, vol. 24(4), pages 1687-1737, December.
    11. Mehrdad Vahabi, 1998. "The Relevance of the Marshallian Concept of Normality in Interior and in Inertial Dynamics as Revisited by G. SHACKLE and J. KORNAI," Post-Print hal-00629181, HAL.
    12. M. Dewatripont & E. Maskin, 1995. "Credit and Efficiency in Centralized and Decentralized Economies," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(4), pages 541-555.
    13. Mehrdad Vahabi, 2025. "Janos Kornai and General Equilibrium Theory," Palgrave Studies in the History of Economic Thought,, Palgrave Macmillan.
    14. Mehrdad Vahabi, 2016. "A positive theory of the predatory state," Public Choice, Springer, vol. 168(3), pages 153-175, September.
    15. J. Kornai & E. Maskin & G. Roland, 2004. "Understanding the Soft Budget Constraint," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 11.
    16. Mehrdad Vahabi, 2009. "An Introduction to Destructive Coordination," American Journal of Economics and Sociology, Wiley Blackwell, vol. 68(2), pages 353-386, April.
    17. Mehrdad Vahabi, 2025. "Janos Kornai and General Equilibrium Theory," Palgrave Studies in the History of Economic Thought,, Palgrave Macmillan.
    18. János Kornai, 1983. "The Health of Nations: Reflections on the Analogy Between the Medical Science and Economics," Kyklos, Wiley Blackwell, vol. 36(2), pages 191-212, May.
    19. Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766, Decembrie.
    20. Mehrdad Vahabi, 2014. "Soft Budget Constraint Reconsidered," Bulletin of Economic Research, Wiley Blackwell, vol. 66(1), pages 1-19, January.
    21. Mehrdad Vahabi, 2025. "The Soft Budget Constraint: A Theoretical Clarification," Palgrave Studies in the History of Economic Thought,, Palgrave Macmillan.
    22. Oskar Lange, 1936. "On the Economic Theory of Socialism," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 4(1), pages 53-71.
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    24. Oskar Lange, 1937. "On the Economic Theory of Socialism: Part Two," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 4(2), pages 123-142.
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    Cited by:

    1. Peter J. Boettke & Rosolino A. Candela, 2021. "János Kornai, the Austrians, and the political and economic analysis of socialism," Public Choice, Springer, vol. 187(1), pages 85-97, April.
    2. Mehrdad Vahabi, 2025. "Introduction: A Special Issue in Honouring Janos Kornai," Palgrave Studies in the History of Economic Thought,, Palgrave Macmillan.
    3. Emilio Carnevali & André Pedersen Ystehede, 2023. "Is socialism back? A review of contemporary economic literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 239-270, April.
    4. Mehrdad Vahabi, 2021. "Introduction: a special issue in honoring Janos Kornai," Public Choice, Springer, vol. 187(1), pages 1-13, April.
    5. Mehrdad Vahabi, 2022. "In Janos Kornai’s memory," Public Choice, Springer, vol. 190(3), pages 265-271, March.
    6. Mehrdad Vahabi, 2025. "In Janos Kornai’s Memory," Palgrave Studies in the History of Economic Thought,, Palgrave Macmillan.
    7. Boettke, Peter J. & Candela, Rosolino A. & Zhukov, Konstantin, 2023. "The morality of illicit markets: “Greasing the wheels” or “greasing the palm”?," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 411-422.

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    More about this item

    Keywords

    Classical socialism; Market socialism; Reform socialism; Revolution; Socialist institutions; System paradigm; Transformation;
    All these keywords.

    JEL classification:

    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E14 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Austrian; Evolutionary; Institutional
    • H82 - Public Economics - - Miscellaneous Issues - - - Governmental Property
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions
    • P4 - Political Economy and Comparative Economic Systems - - Other Economic Systems
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems

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