The Structure and Development of Centrally Planned Economies in Eastern Europe

Abstract

A distinctive feature of the state socialist societies of Eastern Europe is that, with the partial exception of Yugoslavia (and to some extent, Hungary since 1968), they are all centrally planned economies. The level of output of manufacturing industry is the most frequently cited yardstick of successful economic performance. This level of performance is, along with the pattern of distribution of national product, an important element of the claim to legitimate rule of the Marxist—Leninist parties. We start this chapter with a brief consideration of the performance of the East European centrally planned economies (CPEs) in comparison with the West. While mindful of the great difficulties they face, we should also not forget that their achievements are impressive. We shall then outline the distinctive features of the communist pattern of industrialisation, which produced the Stalinist model of economic planning and management. A summary of the debates on economic reform of industry along with a more detailed country-by-country description of the experience of implementing reform and current problems of economic policy will be left to Chapter 5.