Economic Policy

Abstract

To understand the collapse of the socialist system, it is not enough to discuss the systemic reasons for its failure; it is also necessary to shed light on the economic policy followed by the CPs. In the literature, the two terms, systemic and economic policy reasons or changes, are sometimes mixed up. Considering the very thin line dividing them and the fact that in some cases the two coalesce, it is no wonder that it is often difficult to distinguish between them. This is so because both were the work of the communist leaders: systemic changes — on a general level — were changes aimed at altering the institutional framework within which economic units as well as the authorities were to work — it could be said that they were economic policy changes on a more general level — whereas economic policy changes were usually, or more precisely should be, changes within the institutional framework and as such could be called economic policy changes in the narrow sense. When talking about economic policy in my book, I always have that policy in the narrow sense in mind.