Collective Consumption in Socialist Countries: A Theoretical Approach

In spite of the considerably growing interest in problems of collective consumption in both socialist and capitalist countries, there is no unanimous definition of that category. Moreover, it is extremely difficult to devise a definition that is equally suitable to different socio-economic systems. In order to avoid unnecessary argument about terminology I accept the suggestion of Professor Matthews, as responsible for the programme of this conference, that collective consumption should be defined to include: (i) pure collective consumption (e. g. expenditure on environment, on justice, on defence) and (ii) distribution of free or substantially subsidised goods and services (such as medical care, education, culture and science), but not transfers of money (such as pensions). What distinguishes collective consumption defined as above is the way goods are distributed and not the manner of consumption.1 Thus the so-defined collective consumption includes on one hand some goods which are individually consumed (e. g. free medicine for old age pensioners in Poland) and, on the other hand, it does not cover services which are indeed collectively consumed but are sold at normal prices (e. g. passenger transport). The simplest thing would be to say that the objective of collective consumption ‘concerns the steps taken by the Government to meet those needs of the population which they cannot, or prefer not to, satisfy themselves individually, in the open market’.2 This definition is clear enough. The explanation as to why the population cannot or does not prefer to satisfy some needs on the open market is much more complex.