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Studies in Comparative International Development

, Volume 23, Issue 3, pp 51–77 | Cite as

The economics of surplus squeeze under peripheral socialism: An Ethiopian illustration

  • Berhanu Abegaz
Article

Abstract

The article explores the question of appropriate development strategy for the so-called peripheral socialist countries using Ethiopia as an example. Based on the economics of surplus and the nature of industrialization in late-socializing countries, the Ethiopian regime's “surplus squeeze” strategy is critically examined. It is shown that such a strategy, whatever its short-term goals, is detrimental to the long-term generation of sizable economic surplus and the provisioning of basic needs. It is then argued that a viable alternative is the New Economic Policy (NEP) model of a mixed economy where the state, cooperative, and private sectors grow side by side for a while on the basis of labor accumulation. NEP will eventually have to be phased out as it exhausts its economic potential and threatens the goal of building a self-reliant, egalitarian society.

Keywords

Comparative International Development Land Reform Marketable Surplus Economic Surplus Early Socializer 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer 1989

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  • Berhanu Abegaz

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