Anda di halaman 1dari 264

Charles Bettelheim

The Transition to Socialist Economy


[ Part 1 -- Preface, Forward, Chs.1 and 2 ]

Translated from the French y Brian Pearce

The !ar"ester Press #imited $ 1%&'

First published in France as La transition vers l'conomie socialiste by Franois Maspero, 1968

Prepared for the Internet by David J. Romagnolo, djr@marx2mao.org (August 2002)

Contents

[ - Part 1 - ] Preface to the ngli!h dition "or#ard hapter !ne The (ro lematic of the economy of transition # $resent state o% theory& 9 11 1" 1'

## $roposals on ter(inology& ### A %unda(ental %eature o% the transition period& hapter )*o The socio-economic framewor) and the or*anisation of social (lannin* # A general sur,ey o% the (ode o% organisation o% present-day ## planned econo(ies& ### .o(e passages %ro( Mar/ and 0ngels& #+ )he nature o% the proble(s to be studied& + )he di,ersity o% %or(s o% property in the (eans o% production& )he co((odity categories *ithin the state sector& 1 )he co((odity character o% part o% the production o% the state sector& 2 )he re2uire(ents o% calculation& " )he conditions %or the disappearance o% co((odity categories, according to .talin3s conomic Problem! . . . ' 4iscussion o% the preceding theses& +# .tatisation, socialisation and ta5ing o,er o% the (eans o% production by society& 1 )he social i(plications o% state o*nership& 2 .tatisation, socialisation, do(ination o% the producti,e %orces by society& " Adaptation o% property %or(s to the le,el o% de,elop(ent and the character o% the producti,e %orces& (a) )he (ore or less social nature o% the producti,e %orces& (b) )he degree o% socialisation o% the producti,e %orces and the le,els and %or(s o% o*nership o% the (eans o% production& ' )he production-relations *ithin the state sector o% the socialist econo(y& (a) $lanned obligations to buy and sell&
(a*e +

19 2' "1 "1 "2 "" "' "1 "1 "8 "9 '0 '2 '" '' '1 '8 60 66 66

entralised econo(ic (anage(ent o% certain branches o% production& (c) +ertical integration o% econo(ic acti,ities& 6 0cono(ic sub7ect and 7uridical sub7ect& (a) 4eter(ining the econo(ic sub7ects& (1) #nternal structuring o% econo(ic sub7ects and *or5ing groups& (2) 0cono(ic hierarchy and ad(inistrati,e or political subordination& (") 0cono(ic sub7ects, planning authorities and ad(inistrati,e orders& (b) ontractual relations& (1) ontracts %or buying and selling& (2) 8abour contracts& (") redit contracts& (') o-operation contracts& (c) )he nature o% the decisions to be ta5en by the di%%erent econo(ic sub7ects and social authorities& (d) )he di%%erent types o% hierarchy& 6 .o(e proble(s o% planning connected *ith the e/istence o% econo(ic sub7ects (a) )he role played by econo(ic sub7ects in the dra*ing up o% plans& (1) $rocedures %or consultation and participation& (2) .o(e %actors in%luencing the content o% the dra%t plan

(b)

60 66 11 12 16 82 8" 86 86 81 81 88 88 9' 9' 96

prepared by an enterprise& (b) .o(e contradictions or *ea5nesses in the present practice o% business accounting and planning at enterprise le,el& (c) )he degree o% e/actness and the (ore or less obligatory character o% enterprise plans& (1) #n,est(ents *ithout security& (2) )he annual character o% the plans& (") )he 2uantitati,e indices& (d) Methods used by the planning organs to lay do*n production targets& (e) Methods o% crrying out the plans& onclusion

91 98 101 101 10" 10" 10' 106 101

(a*e , 9blan5:

(a*e %

Preface to the En*lish Edition

# ha,e already (entioned, in the pre%ace to the French edition o% this boo5, that the reader *ill %ind in it %or(ulations *hich re%lect stages in the e,olution o% (y ideas about the proble(s dealt *ith in the %ollo*ing pages& # re%erred at the sa(e ti(e to (y intention to carry through a critical analysis o% so(e o% the concepts e(ployed here& )he reader o% this 0nglish ,ersion o% (y boo5 should be in%or(ed that during the last %e* years # ha,e tried to %ul%il this plan, but that the results ha,e not ta5en the %or( # originally intended to gi,e the(& #n %act # sought, on the one hand, to de%ine (ore precisely the nature o% econo(ic calculation, so as to bring out (ore clearly the point that *hat is usually (eant by this ter( is in reality only a (onetary calculation, o% li(ited signi%icance; and, on the other, to elucidate the nature o% the social relations *hich (a5e possible a (onetary calculation o% this sort&91: At the sa(e ti(e, in a discussion *ith $aul .*ee<y, # ga,e greater precision to (y thin5ing about the proble(s o% the transition to socialis( and about the e/istence o% a struggle bet*een a socialist tendency and a capitalist tendency *ithin the social %or(ations in transition&92: .ubse2uently, # ha,e underta5en a %resh critical e,aluation o% the econo(ic, social and political changes that the =&.&.&>& has e/perienced since the re,olution o% 1911,9": *ith a ,ie* to de%ining the li(itations o% these changes and the nature o% the (odi%ications undergone by the changes the(sel,es in

the course o% ti(e, as a result o% class struggles& )hereby # ha,e sought to identi%y (ore e/actly the social %oundations o% present-day .o,iet policy and its increasing subordination to the interests o% a pri,ileged (inority *hich has de facto control o% the (eans o% production& Further(ore, the e/perience o% the hinese >e,olution, and especially the lessons o% the ultural >e,olution has led (e to gi,e greater e(phasis to changes in the superstructure o% society as a condition %or progress to*ards socialis(, and to stress that only a certain type o% de,elop(ent o% the producti,e %orces can ensure genuinely socialist planning&9': )hese di%%erent concrete analyses ha,e conse2uently caused (e to de%ine (ore precisely and correct a nu(ber o% (y theoretical concepts& #n ,ie* o% all this, the %ollo*ing pages need to be read today not *ithout ta5ing account o% the critical de,elop(ents that # ha,e (entioned& C!-.#ES BETTE#!E/0 $aris, February, 191'&
(a*e 11

23TES T3 P.EF-CE
%& harles ?ettelhei(, $alc%l &conomi'%e et forme! de propri&t&, $aris, Maspero, 1910& )o be published in =&@& by >outledge and @egan $aul and in the =&.&A& by Monthly >e,ie* $ress& 9(ran!criber)! *oteA .ee conomic $alc%lation and "orm! of Property& -- DJR: 2 %& $aul .*ee<y and harles ?ettelhei(, +n the (ran!ition to ,ociali!m, Be* Cor5, Monthly >e,ie* $ress, 1911 (122 pp&)& " )his in,estigation has resulted in the publication o% a *or5 entitled -e! -%tte! de $la!!e! en .R,,. )he %irst ,olu(e, co,ering the period 1911-2", *as published 7ointly, in 191', by Maspero and 0ditions du .euil& 9(ran!criber)! *oteA .ee $la!! ,tr%ggle! in the .,,R, "ir!t Period/ 010230124 and then $la!! ,tr%ggle! in the .,,R, ,econd Period/ 012430145& -- DJR: ' %& harles ?ettelhei(, R&vol%tion c%lt%relle et organi!ation ind%!trielle en $hine, $aris, Maspero, #91"&
1

T.-2S#-T3.4S 23TE .ince this boo5 *as translated and set in type ready %or press, so(e boo5s *hich are re%erred to in the original French editions ha,e appeared in 0nglish& )hese areA harles ?ettelhei(, $%lt%ral Revol%tion and Ind%!trial +rgani!ation in $hina, 8ondon, 191'& 8& Althusser, 0& ?alibar, >& 0stablet, Reading 3$apital 3, 8ondon, 1910& B& #& ?u5harin, (he conomy of the (ran!ition Period, Be* Cor5, 1911& @& Mar/, $ontrib%tion to the $riti'%e of Political conomy, 8ondon, 1911& 8& Althusser, "or 6arx, 8ondon, 1910& @& Mar/, 7r%ndri!!e, 8ondon, #91"&

(a*e 11

Foreword

)his *or5 is de,oted to a group o% theoretical and practical 2uestions the i(portance o% *hich increases %ro( year to year but studies o% *hich are ne,ertheless e/tre(ely rare& Dhat is published here is, in essentials, a synthesis o% lectures gi,en at the Ecole $rati2ue des Fautes Etudes (.orbonne), a nu(ber o% articles, and thoughts %or(ulated in the course o% the se(inar %or *hich # a( responsible at the Ecole Bor(ale .upGrieure& )he proble(s e/a(ined are a(ong those *hich are at the heart o% the (ost topical concerns o% the day in econo(ic, social and political (atters& )he theoretical analyses to *hich these proble(s can gi,e rise (ust there%ore necessarily be enriched and di,ersi%ied as a result o% the real development! on the basis o% *hich these analyses can be *or5ed out& )his e/plains the evol%tion in certain %or(ulations *hich the reader *ill be able to obser,e in these papers, the *riting o% *hich has been spread o,er a period o% about %our years& Dhat gi,es unity to the chapters that %ollo* is that they %or( the beginning o% a %resh critical consideration o% the proble(s *hich are currently spo5en o% as those o% Hthe transition to socialis(H& #t *ill be seen that this e/pression is %ar %ro( ade2uate as a description o% the reality it is supposed to describe& #t suggests a H%or*ard (archH at the end o% *hich there is in so(e sense guaranteed to be socialis(& Fo*e,er, *hat in %act is so described is an historical period that can (ore properly be called that o% Htransition bet*een capitalis( and socialis(H& .uch a period does not lead in single-line %ashion to socialis(; it (ay lead to that, but it (ay also lead to rene*ed %or(s o% capitalis(, in particular to state capitalis(& )hat this possibility is a real one e(erges *ith increasing clarity in the course o% the %ollo*ing chapters, though it is not e/plicitly %or(ulated until hapter 6 (see especially page 22"), so that the ter(inology # ha,e used still re%lects only to a li(ited e/tent the conclusion that # e,entually reach& )he co((ent # ha,e 7ust (ade has a general bearing& #t relates also to other e/pressions *hich suggest a certain Hsingle-line de,elop(ent o% historyH& )o ad(it this is, o% course, as # ha,e already said, to beco(e dra*n into a %resh critical consideration (*hich is barely outlined in these pages) that (ust %ocus

upon a nu(ber o% notions in current use such as Hsocialist econo(yH, Hsocialist planningH, Hsocialist propertyH, and so on& .o(e results o% such an analysis *ill be presented in another *or5, no* being
(a*e 12

prepared, dealing *ith Hthe structures o% transitional econo(iesH (this tide is probably not de%initi,e)&91: #t is *orth stressing at the outset that the critical analyses de(anded by the realities described belo*, and the concepts by (eans o% *hich # ha,e endea,oured to grasp these realities, cannot be restricted (erely to the econo(ic plane o% the ,arious social %or(ations, but (ust also deal *ith the political and ideological planes and *ith the relations bet*een these t*o and bet*een the( both and the econo(y& A *ay o% proceeding such as this (ust, (oreo,er, lead to critical analysis o% certain generalisations that ha,e been (ade at certain (o(ents, on the basis o% so(e aspect or other o% .o,iet econo(ic reality or .o,iet econo(ic policy; %or instance, so(e generalisations o% the argu(ents put %or*ard by 8enin in %a,our o% the Be* 0cono(ic $olicy& Dhat *ill be %ound here is thus (erely the beginning o% such an approach& 0/cept in hapter 6, the reader *ill %ind here no analyses dealing *ith econo(ic calculation, and (ore especially *ith econo(ic calculation on the scale o% society& )hese analyses *ill not be (ade public until a%ter critical consideration o% the structures o% econo(ies in transition bet*een capitalis( and socialis(& Bor *ill any analyses dealing *ith the $eople3s >epublic o% hina be %ound here; such an analysis has already been o%%ered in another *or5 -- a boo5 containing contributions by other econo(ists *ho also ta5e part in the *or5 o% the $entre d)8t%de! de Planification ,ociali!te ( entre %or .tudy o% .ocialist $lanning) and *hich appeared in the conomie et ,ociali!me series&92: )hese papers thus constitute only a %irst collection o% thoughts aroused by the progress and di%%iculties o% planning, and the political and ideological de,elop(ents e/perienced by the socialist countries& )hese thoughts are put %or*ard %or discussion, *hich is indispensable i% research and analysis are to be use%ully carried on, so that, by an e/a(ination o% the current phases o% de,elop(ent, theoretical lessons and practical results (ay be dra*n %ro( the(& C!-.#ES BETTE#!E/0 (August 1961) 23TES T3 F3.E53.6
Bo* published as -e! -%tte! de $la!!e! en .R,,, +ol& #, 1911-2", $aris, .enilIMaspero, 191'& 2 h& ?ettelhei(, J& harriKre, F& Marchisio, -a $on!tr%ction d% !ociali!me en $hine (?uilding .ocialis( in hina), series conomie et ,ociali!me, $aris, Maspero, 1966& >eissued in the Petite $ollection 6a!pero, March 1968&
1

(a*e 17

/8

The (ro lematic of the economy of transition

)he basic purpose o% this chapter is to study the econo(ies o% transition, and thereby the proble(s posed by their structure and e,olution& My ai( is to arri,e, i% possible, at the scienti%ic establish(ent o% a certain nu(ber o% concepts essential to 5no*ledge o% the econo(ies o% transition and o% the la*s o% de,elop(ent to *hich they are sub7ect& #t is clearly i(possible to say *hether this ai( can be realised, since, %or the (o(ent, *e possess, in this %ield, (ainly descriptions and Hpractical conceptsH& ?y Hpractical conceptsH # (ean, li5e 8ouis Althusser, concepts *hich still deri,e, in the *ay they are %or(ulated, %ro( a pre,ious *ay o% seeing the proble(s, a *ay that it is our ,ery tas5 to replace, because it is still uncertain o% itsel%, being uncertain *hat its scienti%ic ob7ect actually consists o%&

.uch practical concepts point out to us *here the proble(s are that *e ha,e to sol,e, *ithin the old *ays o% seeing the proble(s and on the plane o% theoretical practice& #% *e do not ta5e care, these practical concepts can see( to be solutions o% proble(s *hich in %act they (erely describe& )he ob7ects described by the ter( Hecono(y o% transitionH are ob,iously a(ong those a scienti%ic a*areness o% *hich is essential to the understanding o% our epoch, since this appears to us precisely as an age of tran!ition. 0(pirically, this transition, or rather these transitions, appear to us in t*o %or(s& !ne is a %or( o% radical transitionA transition %ro( the capitalist (ode o% production to the socialist (ode o% production, that is, a country3s passage %ro( one period o% the history o% (an5ind to another, through an uphea,al in production-relations and class relations and the replace(ent o% one state (achine by another *ith a di%%erent class nature& )here is another, (ore li(ited, %or( o% transition, *ith a (uch (ore uncertain content, na(ely, that o% the econo(ies and societies that *ere %or(erly under colonial do(ination and ha,e no* entered a post-colonial period& )his second type o% transition itsel% thro*s up the proble(s described by those other practical concepts, the ter(s Hneo-i(perialis(H, Hneo-colonialis(H and Hspeci%ic %or( o% socialis(H& )he last-(entioned e/pression is co((only used both %or certain social realities and %or the ideological concepts that describe the(, such as, %or instance, H#sla(ic socialis(H or H?uddhistH socialis(H, etc& Dhere this %or( o% transition is concerned it is essential to underta5e an analysis
(a*e 19

*hich is not con%ined to the ideological sphere but *hich re,eals the nature o% the trans%or(ations that are actually ta5ing place in class relations and production-relations& )his also brings up the 2uestion o% the class nature o% the state& / Present state of theory !ur 7oint tas5 *ill be, %irst, to set to *or5 the practical concepts *e possess in order to 2uestion *ith their aid a certain nu(ber o% the realities o% today, *ith the ai( o% getting to 5no* these realities better and thereby trans%or(ing these concepts o% ours into scienti%ic concepts& ?y this # (ean concepts *hich connect together into a theory *hich enables us to grasp the interconne/ions o% the social realities on *hich our researches are %ocused& !ur %irst duty is thus to ascertain *hat the theoretical situation is that *e are at present in, as regards the proble(s # ha,e 7ust re%erred to& #n order to do this *e (ust e/a(ine the state o% the Mar/ist proble(atic& #n (y ,ie*, it is than5s to Mar/3s theory that the transition can be the ob7ect o% a scienti%ic analysis& #t is by applying the conceptual tools and scienti%ic

(ethods that Mar/ *or5ed out that the proble(s o% transition can be %or(ulated and can be sol,ed correctly& At this point # (ust, o% course, reply directly to the ob7ection that says that Mar/ did not (erely %or(ulate the proble(s o% transition and pro,ide the conceptual tools by (eans o% *hich the transition can be thought about, but that he also sol,ed theoretically all this group o% proble(s and thus has already supplied us *ith the scienti%ic theory o% the transition& )he best *ay o% deter(ining the scienti%ic state o% our proble(s *ill be to try to ans*er this ob7ection& #n doing this, # shall start %ro( a te/t *hich relates directly to our proble(s, na(ely, 8ouis Althusser3s ,%r la Hmoyenne id&ale H et le! forme! de tran!ition (!n the Hideal a,erageH and the %or(s o% transition)&91: Fere Althusser %or(ulates so(e propositions *hich are o% the greatest i(portance %or our sub7ect& # *ill set the( out in the order that see(s to (e to be signi%icant %ro( the point o% ,ie* o% the proble( *ith *hich *e are concerned, an order *hich is a little di%%erent %ro( that in *hich Althusser presents the(A "ir!t propo!ition Althusser recalls that, in $apital, Mar/ sets hi(sel% the tas5 o% studying the Hconcept o% the speci%ic di%%erence o% the capitalist (ode o% productionH and that he is able to do this only Hon condition that he studies at the sa(e ti(e the other mode! of prod%ction, as types o% speci%ic unity o% 9erbind%ng (i&e& o% co(bination, &?&) bet*een the %actors o% production, and also the relation! bet#een the different mode! of prod%ction in the process o% constituting (odes o% production&H92: ,econd propo!ition Althusser %urther stresses that Mar/3s passages on pri(iti,e accu(ulation o% capital %or( at least the (aterials, i% not already the outline, o% the theory o% the process *hereby the capitalist (ode o% production is consti(a*e 1'

tuted, that is to say, o% the %or(s o% transition %ro( the %eudal (ode o% production to the capitalist (ode o% production& )his proposition e,idently (eans, a(ong other things, that these passages in Mar/ (together *ith those dealing *ith pre-capitalist (odes o% production) gi,e us the o%tline of a theory (of tran!ition ), but not yet -- since this *as not the (ain purpose o% Mar/3s scienti%ic *or5 -- the theory itsel%& )his situation o% the theory is illu(inated by 0tienne ?alibar3s contribution to the sa(e ,olu(e&9": (hird propo!ition

)his third proposition is closely lin5ed *ith the %irst t*o& Mar/3s theoretical ob7ect is the capitalist (ode o% production in its :ernge!talt (i&e&, in its Hnuclear structureH or Hinner structureH, &?&) and the deter(inations o% this :ernge!talt. )his (eans that *hat Mar/ is studying is not, %or e/a(ple, capitalist 0ngland, *hich he o%ten ta5es as an ill%!tration, but an ideal object, de%ined in ter(s o% cognition, in the abstraction o% a concept& )his is *hat Mar/ is saying *hen he *rites that the Hspeci%ic characterH o% the capitalist syste( His re,ealed in all its inner essenceH&9': #t is this speci%ic di%%erence that is Mar/3s theoretical ob7ect& )his is *hy the capitalist (ode o% production he studies is a (ode o% production *ith t*o classes, di%%ering %ro( *hat *e see in the 0nglish HillustrationH, or any other such HillustrationH *e (ight %ind, in *hich there are actually a (uch larger nu(ber o% classes& )he speci%ic di%%erence studied by Mar/ is thus not an e(pirical a,erage but the concept o% the capitalist (ode o% production, *hich constitutes that *hich is essential to it& "o%rth propo!ition )here is thus a HgapH bet*een the capitalist (ode o% production in the reality o% its concept and the actual econo(ic syste( o% ?ritish capitalis(, %or e/a(ple& )his HgapH constitutes *hat Althusser calls a Hreal residueH,96: an Hi(purityH96: or, as he also says, *hat one (ay Hpro,isionally call a sur,i,alH in the (idst o% the capitalist (ode o% production *hich is do(inant in Lreat ?ritain&96: "ifth propo!ition )his %i%th proposition is ,ery directly concerned *ith our sub7ect o% study& H)his alleged 3i(purity3 is an ob7ect belonging to the sphere o% the theory o% (odes o% productionA in particular, the theory o% the transition %ro( one (ode o% production to another, *hich (erges *ith the theory o% the process *hereby a certain (ode o% production is %or(ed& & & &H96: # should no* li5e to o%%er so(e obser,ations concerning the content o% the %ourth and %i%th o% these propositionsA (1) Dhile it see(s to (e correct to say that the alleged Hi(puritiesH, Hsur,i,alsH, etc&, %or( an ob7ect belonging to the sphere o% the theory o% (odes o% production, # do not thin5 that they can be the !pecific object o% the theory o% the transition %ro( one (ode o% production to another& #n %act, these Hi(puritiesH are al*ays present in reality& )hey there%ore cannot be considered as the pec%liarity of a !tage of tran!ition, or other*ise *e should ha,e to say that the real econo(ic *orld is al*ays (ade up o% econo(ies in
(a*e 1+

transition, and conse2uently the concept o% Hecono(y o% transitionH *ould be depri,ed o% any speci%ic (eaning& #% *e *ish to gi,e the ter( Hecono(y o% transitionH a speci%ic (eaning -and this see(s to (e to be essential -- *e (ust as5 oursel,es *hat these HresiduesH are that *e %ind so di%%icult to describe, since *e re%er to the( by (eans o% all sorts o% metaphor!, li5e Hi(puritiesH, Hsur,i,alsH, and so on, *hich is a sign that there is as yet no scienti%ic concept *ith *hich to thin5 these ob7ects& Abo,e all, *e (ust, in particular, as5 oursel,es the %ollo*ing 2uestionA is it not rather a speci%ic %or( o% coe/istence, or si(ultaneous presence and interaction o% se,eral (odes o% production, that characterises an econo(y o% transitionM And this leads to another 2uestionA do not these speci%ic %or(s o% coe/istence and interaction o% se,eral (odes o% production constitute speci%ic (odes o% productionM #t is not necessary to *or5 out %orth*ith the scienti%ic concepts de(anded by this *ay o% seeing the proble(, but only to o%%er so(e considerations *hich (ay perhaps help us to %ind a road that *ill lead to the establish(ent o% these concepts& )his leads (e to (a5e a second obser,ation& (2) Dhat *e *ill %or the (o(ent call Hsur,i,alsH (an e/pression *hich (a5es one thin5 o% so(e legacy %ro( a past *hich history has not had the ti(e to *ipe out) represent, in %act, the prod%ct! o% the structures in *hich these alleged Hi(puritiesH are not Hsur,i,alsH, because they are not alien to the real structures in *hich they e/ist& !n the contrary, they are the result o% the totality o% the relations *hich (a5e up these structures, that is to say, o% the particular le,el o% de,elop(ent o% the producti,e %orces, o% the une,ennesses o% de,elop(ent *hich characterise these %orces, and o%, the relations o% production lin5ed *ith these une,ennesses o% de,elop(ent& #% *e thin5 o% these Hi(puritiesH as being Hsur,i,alsH this is because *e ha,e not grasped thoroughly enough the interconne/ions o% the structures that produce the(& Dhen, indeed, *e set about studying an actual econo(y -- independently o% the ,ery idea o% transition -- *e ha,e to thin5 o% this econo(y as a complex !tr%ct%re #hich i! H!tr%ct%red in dominance H& De (entally grasp a structure li5e this as a speci%ic co(bination o% se,eral (odes o% production o% *hich one is dominant. #t is this do(inant (ode o% production that per(eates the entire syste( and modifie! the conditions in *hich the subordinate (odes o% production %unction and de,elop& #n other *ords, by ,irtue o% their ,ery subordination, these H(odes o% productionH are different %ro( *hat they are in their HpurityH& Mar/ spea5s in this conne/ion o% the HetiolationH o% these (odes o% production& Dhat is true, ho*e,er, o% the subordinate (odes o% production is reciprocally true o% the do(inant (ode o% production, the %eatures o% *hich are also to so(e e/tent (odi%ied by the (ere %act o% its Hdo(inantH role&

Finally, each o% these co(ple/ structures constitutes not a si(ple 7u/taposition o% (odes o% production, but a co(ple/ structure *hich is uni2ue, endo*ed *ith its o*n structural causality; At the sa(e ti(e, this uni2ue
(a*e 1&

structure is sub7ect, in general, to the do(inance o% a speci%ic structure *hich corresponds to that o% a gi,en (ode o% production; %or e/a(ple, the capitalist (ode o% production& )his is *hy it is that *hile, in a co(ple/ structure o% this type, li5e nineteenth-century France, say, *e %ind nu(erous structural ele(ents belonging to (odes o% production other than the do(inant (ode, *e are ne,ertheless 7usti%ied in saying that this structure corresponds to that o% a capitalist econo(y& #% the si(ultaneous presence and interaction o% se,eral (odes o% production is a %eature o% any actual econo(ic structure *hatsoe,er, then it is, o% course, a %eature o% an econo(y in transition; but an additional ele(ent enters in here, na(ely, the (ode o% do(inance and the (ethods o% eli(inating the nondo(inant structures& )his is one o% the proble(s *e shall ha,e to e/a(ine& # should li5e to illustrate the obser,ation # ha,e 7ust put %or*ard by ta5ing the e/a(ple o% the situation in the .o,iet =nion in 1918 and in 1921& #n his report on the ta/ in 5ind, dated 9 April, 1921, 8enin saidA H)a5e a close loo5 at the actual econo(ic relations in >ussia& De %ind at least %i,e di%%erent econo(ic syste(s, or structures, *hich, %ro( botto( to top, areA %irst, the patriarchal econo(y, *hen the peasant %ar(s produce only %or their o*n needs, or are in a no(adic or se(ino(adic state, and *e happen to ha,e any nu(ber o% these; second, s(all co((odity production, *hen goods are sold on the (ar5et; third, capitalist production, the e(ergence o% capitalists, s(all pri,ate capital; %ourth, state capitalis(; and %i%th, socialis(&H91: Fere *e ha,e a typical instance o% a co(ple/ econo(ic structure, but also an e/a(ple o% an econo(y in transition to socialis(, because, as 8enin stresses in this sa(e report, the *or5ing class holds state po*er and also Hthe %actories, transport and %oreign tradeH&98: =nder these conditions, e,en a certain de,elop(ent o% capitalis(, *hether in the %or( o% concessions to %oreign capital, li(ited in scope and strictly regulated, or in that o% a certain gro*th o% internal capitalis(, is incapable o% changing the predo(inant orientation, o*ing to the *or5ing-class nature o% the state and o% the latter3s grasp o% *hat 8enin calls the Hco((anding heights o% the econo(yH& # no* return to the proble(s set by the analysis o% any co(ple/ econo(ic structure& #n order to analyse such a structure, and especially in order to %oresee ho* it *ill de,elop, *e can apply the 5no*ledge a,ailable to us

concerning the *ay each o% these Hele(entary structuresH %unctions and de,elops& De (ust appreciate, ho*e,er, that this (ethod is only appro/i(ati,e& #ts *ea5ness is that it treats as independent (odes o% production ele(entary structures *hich possess no Hautono(ousH e/istence e/cept in the idea that *e %or( o% the( as distinct (odes o% production, that is, as (odes o% production *hich, in their ,ery concepts, are pure structures& )his is *hy the conclusions *e can dra* %ro( such proceedings are still only appro/i(ate& >ecognition o% the di,ergences bet*een these conclusions and reality (ust in the end lead to the conceptual construction o% a
(a*e 1,

co(ple/ structure, structured in do(inance, the structural causality o% *hich correspond better to that o% the actual econo(ic syste(& )o this # should li5e to add that the H(i/edH character o% the actual structures and syste(s is not (erely an HinternalH %eature o% the ,arious national econo(ies but is also, and to an e,en greater e/tent, a %eature characteristic o% the *orld econo(y& For the de,elop(ent o% the producti,e %orces in e,ery country is to so(e e/tent conditioned by #orld prod%ction3 relation!. )his can be seen especially in the countries do(inated by i(perialis( but it is also true in the do(inating countries& )his there%ore (eans that the *orld econo(y itsel% is a co(ple/ structure o% co(ple/ structures& Bo*, the *orld econo(y is the ulti(ate econo(ic reality& #t is in the *orld econo(y that are Hco(binedH (in se,eral di(ensions) the (ost di,erse mode! and !y!tem! of prod%ction and the vario%! national economie! *hich %or( parts o% this co(ple/ totality& )hus, *hen *e study the *or5ing o% a particular national econo(y in *hich a certain (ode o% production see(s to be Hdo(inantH -- %or e/a(ple, the econo(y o% so(e country in 8atin A(erica in *hich large-scale lando*nership is do(inant on the spot -- *e ought not, i% *e *ant to arri,e at (eaning%ul conclusions, consider this econo(y other*ise than in its mode of relation! #ith the mode! of prod%ction #hich are dominant on the #orld !cale ; because *e cannot understand this national econo(y i% *e do not grasp that it is a part o% *orld production-relations& #t is thus as an integrated structure, %or e/a(ple, as a structure do(inated by the A(erican econo(y, that the speci%icity o% de,elop(ent o% this econo(y can be understood& .i(ilarly, the trans%or(ations o% structures and the di%%erent stages o% transition that a national econo(y can undergo cannot be analysed in a ,alid *ay e/cept by putting these trans%or(ations bac5 into the *orld structural totality& #n this *ay *e can understand ho* it is that the stages o% transition o% each econo(y that carries out its socialist re,olution can be 2ualitati,ely di%%erent %ro( the Happarently analogousH stages passed through by the countries *hich ha,e preceded it on the sa(e road& )his is so not (erely %or reasons internal to each econo(y, that is, because o% the particular le,el o% de,elop(ent o% its producti,e %orces and the une,ennesses o% this le,el o% de,elop(ent, the class characteristics peculiar to this econo(y, and so on, but

also because the *orld totality has itsel% been trans%or(ed& Fro( this standpoint, the !ctober >e,olution (ar5s the beginning o% a ne* age, not only %or the >ussian econo(y but also %or the *orld econo(y, the structure o% *hich *as pro%oundly trans%or(ed& )his leads (e to %or(ulate the %ollo*ing propositionA *ith the di,iding up o% the *orld by i(perialis(, a *orld econo(ic syste( *as established& )he brea5-up o% the unity o% this syste( began *ith the !ctober >e,olution& .ince then, *orld econo(y has entered a period o% transition& )he characteristics o% this transition, its speci%ic phases, need to be studied as an ob7ecti,e pheno(enon *ith both national and international aspects& .uch a study re2uires the elaboration o% speci%ic concepts& For the (o(ent, *e possess only practical concepts, and ,ery poor ones at that, such as Hco(a*e 1%

e/istence on the *orld scaleH or Hthe *orld struggle bet*een the t*o syste(sH& .uch concepts (erely point to the e/istence o% a proble(, na(ely, that o% the %or(s and phases o% transition on the *orld scale; they do not as yet enable us to set this proble( on the scienti%ic plane& Dhat constitutes the di%%iculty o% the proble( is not (erely its si<e or its no,elty, it is also the speci%icity o% this *orld transition *hich i(plies political and ideological trans%or(ations at the le,el o% the di%%erent states, %or these are the trans%or(ations that, *ithin each state, alter the do(inance o% a (ode o% production& )hese, %or e/a(ple, are *hat ha,e brought it about that, in the course o% a %e* (onths, the econo(y o% uba ceased to be do(inated by A(erican capital and beca(e integrated into the *orld socialist econo(y and has ta5en the road to*ards the building o% socialis(& )he i((ediately national character o% such trans%or(ations o%ten (a5es us lose sight o% the international nature o% the process o% transition& A%ter (a5ing these general obser,ations, # should li5e to d*ell upon so(e points o% ter(inology, %or through an e%%ort to clari%y ter(inology *e (ay be able to (a5e our *ay to a (ore rigorous %or(ulation o% the concepts& // Pro(osals on terminolo*y Dhen *e spea5 o% the proble(s o% transition, this e/pression calls up the ideas o% passing %ro( one (ode o% production to another, o% the constitution o% a (ode o% production, o% the trans%or(ation o% an econo(ic syste(, and so on& 0ach o% these e/pressions in turn (ay describe di%%erent proble(s& #t is there%ore necessary to lin5 these concepts together in order to %ind the road to a theoretical elaboration o% the the(e& )o this end # propose the %ollo*ing ter(inologyA First o% all, # propose that *e spea5 o% the theory o% the Hcon!tit%tion H o% a particular (ode o% production, in order to designate the theory o% the %or(ation o% certain o% the condition! %or a ne* (ode o% production, and so the theory o% the origins o% this (ode o% production& #t is such a theory that Mar/ sets %orth *hen, in his analysis o% the pri(iti,e accu(ulation o% capital,

he sho*s ho*, #ithin the #omb of the fe%dal mode of prod%ction, the condition! %or the capitalist (ode o% production *ere %or(ed, and this through the speci%ic *or5ing not only o% the econo(ic structures but also through that o% the political structures, as, %or e/a(ple, the inter,ention o% the political authority to pro(ulgate and put into e%%ect the enclosure acts in 0ngland& )he sa(e theoretical necessity de(ands today that *e disco,er the conditions %or the socialist (ode o% production *hich are in process o% %or(ation *ithin the *o(b o% the capitalist (ode o% production (in the sense in *hich 8enin said, %or e/a(ple, that Hsocialis( loo5s out o% all the *indo*s o% present-day capitalis(H)& )he theory o% the constitution, *ithin one (ode o% production, o% so(e o% the conditions o% another (ode o% production, is thus also that o% the trans%or(ation and dissolution o% the e/isting production-relations& )his dissolution a%%ects the *hole social structure, and not (erely the structure
(a*e 21

o% production& #t is (ar5ed by speci%ic %or(s o% inter,ention in the in%rastructure by the superstructure& #n contrast to the theory o% the constitution o% the conditions %or a ne* (ode o% production, it (ust be said that the theory o% the passage %ro( one to the other is on a di%%erent le,el o% abstraction, because it is speci%ically concerned *ith the ideal passage %ro( one production-structure to another, and there%ore not *ith an hi!torical passage& )his brings us bac5 to the actual theoretical nature o% the (ode o% production, as a ,aried co(bination o% the constituent ele(ents o% e,ery possible (ode (the *or5ing people, the (eans o% production), a co(bination *hich ta5es place in accordance *ith the t*o relationships (o% property and o% real appropriation) *hich are %eatures o% the structure o% e,ery (ode o% production& )he ideal nature o% the (odes o% production concei,ed at this le,el o% abstraction has as its conse2uence that their succession in the real( o% ideas (ay be di%%erent %ro( the real transition %ro( one econo(ic syste( to another& )his transition is, indeed, ne,er the succession o% one (ode o% production to another, but al*ays a transition %ro( one co(ple/ (ode o% production, structured in do(inance, to another co(ple/ (ode o% production, structured in do(inance& )his 5ind o% succession is not sub7ect to any single-line de,elop(ent because here the di%%erent le,els o% the entire !ocial !tr%ct%re react on each other and (ay create the conditions %or a direct transition %ro( one do(inant (ode o% production to another, *here as, in the ideal series, these (odes o% production do not succeed one another& De see that the ,ery co(ple/ity o% the social structures rules out any unilinear de,elop(ent&

As # recalled 7ust no*, this co(ple/ity e/tends to the *orld scale, since each national econo(y, *hich is itsel% a co(ple/ o% structures, constitutes a lin;, either do(inated or do(inating, *ithin *orld econo(y, and the contradictions that de,elop in a gi,en country are not (erely HinternalH contradictions, but result also %ro( the (ode o% insertion o% the country in 2uestion into the *orld econo(ic and political co(ple/ (hence the concept o% Hthe *ea5est lin5H)& Accordingly, *hile *e can concei,e o% abstract la*s o% passage %ro( one (ode o% production to another, *e cannot state that any la* o% linear succession is historically necessary, as bet*een the do(inant (odes o% production o% the co(ple/ social syste(s& De 5no*, %urther(ore, that the dissolution o% a (ode o% production creates (erely the condition! %or the appearance o% another deter(inate (ode o% production& #t does not establish the nece!!ity o% this (ode, %or this necessity is deter(ined by the conditions o% trans%or(ation o% a structure that is (uch (ore co(ple/ than the econo(ic structure alone, na(ely, the conditions o% trans%or(ation o% the totality o% the social structure and the political and ideological superstructures& )hus, the dissolution o% the capitalist (ode o% production does not create all the conditions %or its succession by the socialist (ode o% production
(a*e 21

unless the political and ideological conditions %or this succession are present as *ell& )his (ay there%ore ta5e place either sooner or later, depending on the !tr%ct%re of conj%nct%re! through *hich e,ery historical social %or(ation passes& .o, in the *orld totality o% today, countries *hich ha,e not de,eloped internally the capitalist (ode o% production, or ha,e hardly de,eloped it, are able, o*ing to internal and international contradictions, to e/perience a conj%nct%re *hich enables the( to do *ithout the de,elop(ent o% this (ode o% production so %ar as they are concerned, and to pass directly to the building o% socialis(; the 4e(ocratic >epublic o% +ietna( is an e/a(ple o% such a process& Fere *e see that, in addition to a theory of the origin! o% a gi,en (ode o% production, *e need not (erely a theory of (ideal ) pa!!age but also a theory o% the !tr%ct%re of conj%nct%re that opens the *ay to a transition& )his con7uncture is usually one (ar5ed by the collision o% a nu(ber o% contradictions, *hich gi,es a certain (o(ent o% history a re,olutionary 2uality and pro,o5es the re-structuring o% a social %or(ation, that is, the replace(ent o% one social %or(ation by another& #t is then that there opens a period o% transition *hich can itsel% be the ob7ect o% the theory of tran!ition. #% *e loo5 at these (atters on the plane o% the national econo(ies, *e can say that the current period sho*s us t#o main type! o% transitionA (1) )hat %ro( an econo(y pre,iously do(inated by capitalis( (e,en i% internal capitalis( *as *ea5 or practically non-e/istent there) to an econo(y

e,ol,ing to*ards socialis(; this transition-in-the-strict-sense i(plies a preli(inary condition -- the passing o% !tate po#er to the *or5ing class, or to a coalition o% %or(erly-e/ploited classes *ithin *hich the *or5ing class plays the do(inant role& (2) )he second type o% transition (transition in the broader sense) is that e/perienced by an econo(y *hich, ha,ing been sub7ected to direct colonial do(ination, no* enters a post-colonial period& )his second type o% transition, *hich does not eli(inate the internal %or(s o% e/ploitation o% (an by (an, i(plies a (uch less thoroughgoing breach *ith the past than occurs in the %irst type, since, at botto(, the pre,ious do(ination is not abolished but (erely (odi%ied& #t is not abolished because a syste( *hich preser,es the e/ploitation o% (an by (an and in *hich the state is not in the hands o% the *or5ing people but in those o% the e/ploiting classes (ust, in the last resort, see5 bac5ing in that part o% the *orld econo(ic and political syste( *hich stri,es to uphold class pri,ileges and is there%ore in political solidarity *ith any and e,ery syste( o% e/ploitation& )hese are, ulti(ately, the internal econo(ic, social and political conditions that deter(ine the integration o% a country either in the *orld capitalist syste( or in the *orld socialist syste(& )here%ore, the e/pression Hecono(y o% transitionH, *hen it is used %or the post-colonial econo(ies, see(s to be capable o% t*o di%%erent (eaningsA (1) )he e/pression (ay si(ply (ean that the pre,ious %or( o% do(ination has been (odi%ied *ithout the nature o% this do(ination being altered&
(a*e 22

)his is the case *ith a country li5e #ndia, *here state capitalis( has been used by the #ndian bourgeoisie to rein%orce its o*n po*er& ?ut the ,ery li(its *hich the e/isting econo(ic syste( sets to the de,elop(ent o% the #ndian econo(y ha,e in the end obliged the #ndian bourgeoisie to stay under the do(ination o% %oreign capital& (2) )he e/pression Hecono(y o% transitionH, *hen applied to a post-colonial econo(y in *hich po*er has not passed into the hands o% the *or5ing people, see(s capable o% being used also to describe a situation o% (o(entary e2uilibriu( bet*een the social classes con%ronting each other& .uch an e2uilibriu(, *hich (ay lead to the %or(ation o% class coalitions (*hether %or(al or not) is e(inently unstable& #t cannot pro,ide the social %oundation %or an econo(ic situation *ith speci%ic la*s o% de,elop(ent& .uch a situation o% unstable e2uilibriu( *as that *hich #ndonesia 5ne* do*n to .epte(ber 1966& # consider that in cases li5e this one ought not to spea5 o% an Hecono(y o% transitionH, but rather o% a Hsituation o% transitionHA a situation o% this 5ind is, (oreo,er, usually (ar5ed, in the econo(ic sphere, by an al(ost total absence o% de,elop(ent&

#% *e accept, pro,isionally at any rate, the ter(inology *hich has 7ust been suggested, *e shall say that, at the le,el o% a single country, the theoretical proble( o% the econo(y o% transition concerns the theory o% a co(ple/ (ode o% production #hich ha! j%!t replaced another complex mode of prod%ction, %ollo*ing a rupture in the %or(erly e/isting structured totality& )he econo(y o% the transition period is thus the econo(y o% the period directly after a brea;, and this is *hy the theory o% the transition is not a theory o% origins but a theory o% beginning!. #n the strict sense o% the *ord it is the theory o% the beginning! of a ne# mode of prod%ction. !ne o% its ob7ects consists o% the initial stage, or rather o% the proble(s o% the period o% initial instability, o% the period preceding *hat Mar/ calls the Hsocial stabilityH o% the (ode o% production&99: )he initial stage is that in *hich the %ate o% the ne* social %or(ation has not bet been sealed, or in *hich this %ate is still uncertain& #n both cases this stage corresponds to the H(orning a%terH a brea5 *ith a (ode o% production that *as pre,iously do(inant, or to a serious shoc5 to the %or(er do(ination (the case o% the period i((ediately %ollo*ing Hde-colonisationH in a %or(erly colonial country)& )his H(orning a%terH (ay, o% course, e/tend in so(e cases o,er a nu(ber o% years& Fo*e,er, the proble(s o% the econo(y o% transition, as # propose to deal *ith the( here, go beyond this phase o% initial instability& )hey concern, as # ha,e said, not (erely the initial stage, as the %irst stage o% the transition period, but the *hole o% the transition period as the %irst phase o% a period o% history& For e/a(ple, in the case o% the .o,iet =nion, # shall interest (ysel% both in the period i((ediately %ollo*ing the !ctober >e,olution and in the present period& Dhat, then, constitutes the Htran!ition pha!e H (in the sense o% the phase o% transition bet*een capitalis( and socialis(, %or e/a(ple) is no longer the %act o% instability or the absence o% do(ination, but the %act o% a still
(a*e 27

relati,ely great lac; of conformity bet*een the essentials o% the ne* social relations *hich are hence%orth do(inant and the producti,e %orces, a state o% a%%airs *hich also (eans a certain type o% contradiction bet*een the %or( o% property and the real (ode o% appropriation& =nder these conditions, the ne* social relations do not yet do(inate by their o*n strength; in other *ords, the conditions %or e/panded reproduction o% these social relations are not yet gi,en&910: Dhen such a situation o% lac5 o% con%or(ity bet*een the ne* social relations and the producti,e %orces e/ists, the do(inance o% the ne* social relations can be ensured only through (ediations, %or e/a(ple, in the case o% the econo(y in transition to socialis(, by ha,ing recourse to those t*o e/tre(e types o% (ediation, use o% the (ar5et (as in the e/a(ple o% the

B&0&$&), or ad(inistrati,e centralisation (as in the e/a(ple o% the %irst Fi,eCear $lans)& )hese (ediations testi%y to the still ,ery great depth o% the internal contradictions& )he latter can only be resol,ed through a de,elop(ent o% the producti,e %orces *hich *ill bring about con%or(ity bet*een the ne* social relations and the producti,e %orces the(sel,esA in the case o% the socialist econo(y, this de,elop(ent (ust lead to an integration and interdependence o% the producti,e %orces %ar-reaching enough %or the (echanis( o% the (ar5et and the (echanis( o% ad(inistrati,e centralisation to be ali5e discarded and replaced by a co-ordinated (anage(ent o% the econo(y through original (echanis(s, at the centre o% *hich there *ill be a planning center o% a ne* type& )he abo,e obser,ations call %or additional ter(inological de%initions& #t see(s right to reser,e the ter( Hpha!e H to indicate the t*o great (o(ents in the development of a !ocial formation, na(elyA (1) that o% its beginning!, i&e&, the transition phase in the strict sense *hich is also that o% a speci%ic non-correspondence bet*een producti,e %orces and production-relations (this is a point to *hich # shall co(e bac5)A and, (2) the phase o% expanded reprod%ction of the prod%ction3!tr%ct%re, *hich can be sub7ected to a synchronic analysis and is (ar5ed by a dyna(is( o% its o*n& 0ach o% these phases is distinguished by a speci%ic interconne/ion bet*een the le,els o% the social %or(ation and bet*een their contradictions, and so by a certain type o% une,en de,elop(ent o% these contradictions& #n the course o% one and the sa(e phase, that *hich at one (o(ent is a principal contradiction beco(es a secondary one, or else a secondary aspect o% this contradiction beco(es a principal aspect& )hese shi%ts in contradictions sho* the pace o% de,elop(ent o% the di%%erent !tage! o% a gi,en phase; they are (ar5ed by changes in relations bet*een classes or bet*een the di%%erent strata o% the sa(e class& #t *as thus that the @ronstadt re,olt and the econo(ic crisis preceding it indicated such a shi%t and co(pelled the ?olshe,i5 $arty to change its econo(ic policy& 8enin *rote at that ti(eA H0cono(ics in the spring o% 1921 *as trans%or(ed into politics& 3@ronstadt&3H911:
(a*e 29

Fa,ing arri,ed at this point, *e %ind t*o 5inds o% proble( co(ing upA (1) #s there a typical *ay o% di,iding up the transition period into stages, *ith speci%ic %eaturesM #% so,

(2) *hat are the relations bet*een these typical stages and the historical periods through *hich the econo(ies o% the socialist countries ha,e passedM )hese are the 2uestions *hich *e (ust try to ans*er& /// - f:ndamental feat:re of the transition (eriod De (ust, ho*e,er, begin by o%%ering at least the beginning o% an ans*er to the %ollo*ing theoretical 2uestionA i% *e are to consider the transition phase as a *hole, at the le,el o% a national econo(y, is there any %eature co((on to the *hole o% the phase *hich 7usti%ies us in regarding it as one phaseM #% this 2uestion be ans*ered in the a%%ir(ati,e, a %urther 2uestion then arisesA i% there is a %eature common to the #hole o% the phase o% transition %ro( one (ode o% production to another (in the strict sense o% the *ord), can di%%erent transition phases also ha,e %eatures in co((onM #n other *ords, i% there is a %unda(ental %eature o% the phase o% transition %ro( the %eudal (ode o% production to the capitalist (ode o% production, is a si(ilar %eature to be %ound, in a di%%erent %or(, that is, *ith other ter(s, in the phase o% transition %ro( the capitalist (ode o% production to the socialist (ode o% productionM )he point o% departure %or ans*ering this 2uestion is ob,iously pro,ided by analyses relating to the transition %ro( the %eudal (ode o% production to the capitalist (ode o% production& As 0tienne ?alibar has sho*n, the phase o% tran!ition to capitali!m *as (ar5ed by a certain %or( o% non3corre!pondence bet*een the %or(al (ode o% appropriation and the real (ode& )he formal (ode o% appropriation in the phase o% transition to capitalis( *as already the capitalist %or( o% property, that is, the separation o% the *or5er %ro( his (eans o% production; ho*e,er, the real (ode o% appropriation *as not yet the (ode o% appropriation speci%ic to capitalis(, na(ely, large-scale industry& Mar/ *rote on this sub7ectA HAt %irst, capital subordinates labour on the bases o% the technical conditions in *hich it historically %inds it& #t does not, there%ore, change i((ediately the (ode o% production&H912: )his %irst phase, this phase o% the transition to capitalis( is that o% man%fact%re. Manu%acture thus appears as the mode of prod%ction o% the phase o% transition to capitalis(& Dhat is characteristic o% this (ode o% production is that (anu%acture (erely radicalises to an e/tre(e degree *hat *as the distincti,e %eature o% handicra%t *or5, na(ely, the unity o% labour-po*er *ith the (eans o% labour&

)hus, *hereas social production-relations bring about a formal di!!ociation bet*een the *or5er and his (eans o% production, the labour-process (aintains their %nity. *on3corre!pondence bet*een social production-relations and
(a*e 2'

the labour-process is thus characteristic o% the period o% transition to capitalis(& )his non-correspondence is abolished later on, through the industrial re,olution, the de,elop(ent o% *hich *as (ade possible by the %or(al sub7ection o% labour to capital& )he industrial re,olution, that is to say, the de,elop(ent o% the producti,e %orces *hich this change i(plies, brea5s up the %nity o% the *or5er *ith his (eans o% production& )he latter cease to be individ%al and beco(e collective. )hence%orth there is !eparation o% the *or5er %ro( his (eans o% *or5 on the plane o% the *or5-process no less than on that o% social production-relations& )here thus co(es about a correspondence, *hat 0tienne ?alibar calls an homology, bet*een the t*o %or(s o% appropriation& Dith large-scale industry, the sub7ection o% labour to capital is no longer (erely %or(al, it is real, as-Mar/ puts it&91": As *e 5no*, this homology has at the sa(e ti(e an underlying contradiction, na(ely, that *hich counterposes the private o*nership o% the (eans o% production to the !ocial character o% the producti,e %orces& )o return to the period o% transition to capitalis(, *e see, then, that this is (ar5ed by a certain form of non3corre!pondence. )he latter also %inds e/pression as a chronological gap, bet*een the %or(ation o% the di%%erent ele(ents in the structureA capital as a Hsocial relationH e/ists pre,ious to and independent o% the HrealH sub7ection o% the *or5er, that is, o% the speci%ic %or( o% real appropriation *hich corresponds to the capitalist (ode o% production&
91':

)he 2uestion *e no* ha,e to ans*er is the %ollo*ingA is the period o% transition to socialis( also (ar5ed by non-correspondence and a Hchronological gapH, this gap being itsel% destined to be closed by the triu(ph o% a ne* type o% industrial re,olution, that is, by the predo(inance o% producti,e %orces *ith characteristics corresponding to the ne* socialproduction relationsM; and this predo(inance itsel% being (ade possible as a result o% the prere2uisite appearance o% socialist production-relations, that is, as a result o% a certain type o% Hchronological gapHM # thin5 this 2uestion can be ans*ered, in the a%%ir(ati,e, by putting %or*ard the %ollo*ing propositions, *hich, o% course, need to be elaborated& #t see(s that the %or( o% Hnon-correspondenceH speci%ic to the phase o% transition to socialis( is the %ollo*ingA the (ode o% property is %or(ally -- so %ar as the chie% (eans o% production are concerned -- that o% o*nership by society as a *hole, *hereas the real (ode o% appropriation is still by li(ited groups o% *or5ing people, since it is only at the le,el o% these groups that real appropriation o% nature ta5es place&916:

)he chronological gap peculiar to the (ode o% production o% transition to socialis( *ould thus also (ean the constitution o% a (ode o% %or(al appropriation HprecedingH the corresponding (ode o% real appropriation& )he (aterial basis o% this non-correspondence thence%orth appears as being constituted by the nature o% the producti,e %orces that are set to *or5
(a*e 2+

*ithin the %ra(e*or5 o% *hat is still called the socialist HenterpriseH, or H%ir(H, that is, o% HenterprisesH or H%ir(sH *hich ha,e to be allo*ed a certain degree o% autono(y precisely because they %or( the %ra(e*or5 in *hich the real appropriation o% nature ta5es place& Fro( no* on, ho*e,er, the de,elop(ent o% the producti,e %orces in certain branches, e&g&, in the production o% electricity and in the large-scale che(ical industry (in the %or( o% big co(bines) re,eals the appearance o% a (ode o% real appropriation *hich can still be do(inated at the le,el o% society as a *hole& Dhen this e,olution is co(plete in essentials, that is, *hen these producti,e %orces o% a ne* type are the do(inant producti,e %orces, there *ill be a state o% homology bet*een the (ode o% appropriation and the (ode o% property, there *ill be coincidence bet*een 7uridical po*er and e%%ecti,e capacity, and the transition phase *ill be o,er& #t *ould see( that it can be said straighta*ay that this presupposes a ,ery %ar-reaching de,elop(ent o% auto(ation, technical integration and re(ote control (ethods o% (anage(ent& !n the basis o% the %oregoing, *e see that *hat (ar5s the transition phase as a *hole is not (ainly the instability o% the ne* social order, nor is it the absence o% do(ination by the ne* production-relations, it is the %act that there is still a relati,ely large degree o% non-correspondence bet*een the ne* production-relations, hence%orth do(inant, and the nature o% the essential producti,e %orces& )he lo*er the local le,el o% de,elop(ent o% the producti,e %orces in a gi,en country, the higher the degree o% non-concordance o% *hich *e spea5& #t *as in this sense that 8enin *rote in 1921 thatA H(he economic ba!i! of !ociali!m i! not yet there &H916: A gap li5e this has i(portant conse2uences as regards the articulation o% the di%%erent le,els o% the social structure& )his non-correspondence i(plies, in %act, a speci%ic e%%icacity o% the political le,el& .o long as there is nonconcordance bet*een the ne* production-relations and the nature o% the producti,e %orces, the %unctioning o% the econo(ic syste( can be ensured only by speci%ic (ediations& For e/a(ple, in the case o% the econo(y in transition to socialis(, recourse has to be had to such (ediations as state capitalis(, use o% the (ar5et (as *ith the B&0&$&) and strong ad(inistrati,e centralisation (as in the %irst Fi,e-Cear $lans)&

)his see(s to (e ,ery i(portant in relation to the study o% the political superstructures o% the transition period, in particular the %or(s o% de(ocracy and the role o% the ad(inistrati,e apparatus& )his is precisely *hy 8enin insisted on the idea o% the Hecono(ic %oundationsH %or the H*ithering a*ay o% bureaucracyH and the proble(s o% *hat he called Hco(bating the e,ils o% bureaucracyH&916: # thin5 that it is by starting %ro( the idea o% non3corre!pondence bet*een the %or(al and the real (odes o% appropriation, and by ta5ing into account the extent and the !pecific form! o% this non-correspondence, that *e ha,e to proceed in tac5ling the proble(s that arise at the di%%erent stages o% the econo(y in transition to socialis(, and that *e can try to construct a theory
(a*e 2&

o% these stages& )hat *ill enable us to see that, depending on the countries concerned, that is, on the initial extent o% the non-correspondence and the !pecific form! o% this non-correspondence, this transition period can be longer or shorter, and, abo,e all, can be (ar5ed by the playing o% a radically di%%erent role, as bet*een one country and another, by the bureaucratic apparatus, and so by di%%erent %or(s o% socialist de(ocracy& !n the econo(ic plane, it is the e/tent and the speci%ic %or(s o% noncorrespondence that (ust be ta5en into account in correctly setting the proble(s o% the role played by the (ar5et and by (oney, o% the role (no* being so (uch discussed in the .o,iet =nion) o% direct relations bet*een socialist enterprises, o% organisational %or(s in agriculture, o% changes to be (ade in the actual (echanis( o% planning, and so on& All these proble(s are both econo(ic and political& .ol,ing the( calls into 2uestion the relations bet*een classes or the relations bet*een the di%%erent strata o% one and the sa(e class, the relations bet*een the Htop sectionH and the Hlo*er ran5sH, and so on& & & &911: #n other *ords, it is a (atter o% bringing to light the contradictions engendered by a certain type o% non-correspondence& .uch contradictions, i% not properly dealt *ith, (ay ta5e on an antagonistic character, or %ro( contradictions o% the secondary order beco(e principal contradictions& For e/a(ple, i% the proble( o% s(all-scale peasant production is not handled correctly, this (ay lead either to a setbac5 in the producti,e %orces o% agriculture (*hich had occurred be%ore the introduction o% B&0&$&) or to such an increased role being played by the (ar5et that the de,elop(ent o% socialist production relations (ay be seriously co(pro(ised (as has happened in Cugosla,ia)& #n concluding these obser,ations regarding the period o% transition to socialis(, a point needs to be (ade about the di(ensions and the nature o% the brea5 separating the phase o% transition to socialis( %ro( the phase o% socialis(3s %urther de,elop(ent& #t is ob,ious that this brea5 *ill be e,en greater than that separating the transition phase %ro( the last phase o% capitalis(& De can see already that this brea5 *ill (ean the end o% the

separation bet*een (anual and (ental *or5 and bet*een operati,e *or5 and (anage(ent, that is to say, the end o% subdi,isions *hich are still i(portant *ithin the *or5ing class itsel%& A%ter these obser,ations regarding the transition to socialis(, # should li5e to go 2uic5ly o,er so(e proble(s relating to econo(ies *hich ha,e e(erged %ro( the colonial period& Fere it is i(portant to raise the 2uestion o% the speci%ic nature o% these econo(ies in transition& !ne o% the speci%ic %eatures o% this transition is that the principal aspect o% their present situation is not a result o% the internal de,elop(ent o% their past econo(ic structure, that is, o% an internal e,olution o% their producti,e %orces *hich caused the( to e,ol,e %ro( one stage to another& !n the contrary, the producti,e %orces o% these countries *ere generally in a stagnant condition& Further, their post-colonial situation is do(inated by the brea;do#n o% a political dependence& )his brea5do*n opens the *ay to
(a*e 2,

ne* possibilities, through speci%ic inter,entions %ro( the political plane into the plane o% production-structures& Just as the encounter bet*een these colonial societies and the Destern capitalist societies belonged, according to ?alibar3s analysis, to the diachrony o% these societies, because it brought about a trans%or(ation in their (ode o% production,918: so the brea5do*n o% their dependence tends to bring about (2uic5ly or slo*ly) a trans%or(ation in their (ode o% production& As *ith any transition o% this 5ind, *e see a speci%ic (ode o% inter,ention by the state, la* and political %orce in the (ode o% production& )he rapid de,elop(ent o% state inter,ention, the pro(ulgation o% de,elop(ent plans, the nationalisation o% producti,e enterprises and %oreign trade, are e/a(ples o% these nu(erous irruptions %ro( abo,e at the le,el o% the econo(ic structures& Dhat (ar5s o%% these inter,entions %ro( the transition to socialis( is that they do not e(anate %ro( a state (achine that belongs to the *or5ing class, or to an alliance o% classes led by the *or5ing class, but %ro( a state (achine that upholds and de%ends the pri,ileges o% the econo(ically do(inant classes; here, *hat plays the decisi,e role is the contradiction bet*een the (a5ing o% certain in,est(ents and certain o%t!ide interests, and not, directly, the contradictions *ithin the gi,en society& # *ould %urther add that, *here econo(ies that ha,e e(erged %ro( the colonial period are concerned *e shall ha,e to study essentially so(ething that, though it loo5s to us li5e an initial stage, is perhaps only the last stage o% the old (ode o% production, that is, a dissolution that should then lead on to a real transition; *here the socialist econo(ies are concerned, on the other hand, *e shall ha,e to study se,eral stages o% the transition period& )his *ill be the case, in particular, *ith the .o,iet econo(y, o% *hich the on-going transition phase can already be subdi,ided into a certain nu(ber o% speci%ic

stages, each *ith its o*n distinct social and econo(ic, and there%ore political, %eatures& Accordingly, *hat # propose to e/a(ine are essentially the proble(s o% these t*o types o% econo(y o% transition *hich are characteristic o% the *orld todayA (1) )he proble(s o% the economie! #hich have carried thro%gh a !ociali!t revol%tion, that is, in *hich the proble(s o% building socialis( are on the order o% the day& #t is not, o% course, (y ai( to e/a(ine all these proble(s& #t *ould certainly be (ore %ruit%ul to gi,e priority to those a(ong the( regarding *hich there is reason to belie,e that they present us *ith the (ost %unda(ental 2uestions o% theory& A(ong these there is, in particular, the place o% si(ple co((odity production, and e,en o% petty capitalist production, in the %irst stages o% an econo(y e,ol,ing to*ards socialis(& )his is one o% the 2uestions that *ere raised ,ery sharply at the ti(e *hen the B&0&$& *as %or(ulated& Another 2uestion is that o% the %or(s o% transition %ro( si(ple co((odity production to co-operation& Fere *e %ind, notably, the case o% the
(a*e 2%

collecti,isation o% agriculture in the .o,iet =nion, but it is necessary also to e/a(ine other procedures %or trans%or(ing agriculture, such as those that ha,e been e(ployed in hina& A %urther 2uestion is that o% the %or(s o% (ediation needed in order to do(inate e%%ecti,ely the contradictions that (ay arise %ro( the noncorrespondence bet*een the (odes o% %or(al and real appropriation& De (ust in,estigate, especially, the progressi,e role that these contradictions (ay be capable o% playing, that is, the *ay they can dri,e the producti,e %orces %or*ard, and the conditions that ha,e to be %ul%illed in order that this (ay actually occur& )he 2uestions raised by the lin5age o% proble(s o% planning and proble(s o% (anaging the econo(y *ill also ha,e to be loo5ed into, particularly through the e/perience o% uba and the discussions that ha,e ta5en place there& Dhen these 2uestions are gone into thoroughly, it beco(es apparent that they are %unda(entally theoretical in character, and it is this content that *e (ust endea,our to bring out, by analysing recent historical processes and the theoretical re%le/ions already %or(ulated regarding these processes& (2) )he proble(s o% the post-colonial econo(ies& A(ong the 2uestions raised by the e,olution o% these countries # *ill (ention that o% the role and signi%icance o% state capitalis(& )here is reason, %or instance, to analyse the

speci%ic di%%erences bet*een thi! state capitalis( %ro( that *hich is de,eloping, on the basis o% (onopoly capitalis(, in the big i(perialist countries& )here is reason, too, to consider the speci%ic di%%erences bet*een the state capitalis( o% countries *hich, li5e #ndia, are do(inated by a po*er%ul industrial bourgeoisie, and the state capitalis( established in countries *ith producti,e %orces that are ,ery little de,eloped or *here only a ,ery s(allscale bourgeoisie, essentially peasant and (ercantile in character, is to be %ound, as, %or instance, in Mali or a(bodia& Finally, it is essential to study the ne* structures o% capitalis(, %or the t*o%old reason that the study o% these structures is undoubtedly ,ery instructi,e %or our understanding o% certain proble(s that con%ront the socialist econo(ies the(sel,es and that on the other hand, the recent e,olution o% capitalis( entails %ar-reaching repercussions on the potential e,olution o% the post-colonial econo(ies& Fere there arises, especially, the proble( re%erred to by the practical concept o% Hneo-colonialis(H& )hese are, %or the (o(ent, the (ain the(es # propose to deal *ith& # ha,e others in (ind, too, but # thin5 it is better to begin *or5ing together on the(es that ha,e already been de%ined, be%ore trying to de%ine (ore precisely the the(es *hich *e shall tac5le later, or the order in *hich these *ill be tac5led& (#ntroductory state(ent to the se(inar at the Ecole Bor(ale .upGrieure, $aris, onA H)he $roble(s o% )ransitionH, 4ece(ber, 1966&)

(a*e 71

23TES T3 C!-PTE. /
8& Althusser, 0& ?alibar, >& 0stabletA -ire le $apital, $aris (Maspero), 1966, +ol&2, pp& 11986& (0ng& ednA Reading $apital, Be* 8e%t ?oo5s, 1910&) 9p& 1': 2 Ibid., +ol& 2, pp& 182-"& 9p& 1': " 0& ?alibarA ,%r le! concept! fondamenta%x d% mat&riali!me hi!tori'%e (!n the basic concepts o% historical (aterialis(), in ibid., +ol& 2, pp& 181-""2& 9p& 16: ' Mar/, -e $apital, )o(e +#, p& 261& (0ng& ,ersion %ro( $apital, ###, F&8&$&F& edn&, p& 2"9&)
1 9p& 16:

Althusser et al&, op. cit., p& 182& 9p& 16: Ibid., p& 18"& 9p& 16: 1 +& #& 8enin, +e%vre! complete!, 'th edn&, Mosco*, 1962, +ol& "2, p& "1" (0ng& ,ersion %ro( $ollected <or;!, +ol& "2, pp& 296-6& 9(ran!criber)! *oteA .ee 8enin3s H>eport on the )a/ in @indH& -- DJR:)& 9p& 11: 8 Ibid., p& "1' (0ng& ,ersion, p& 296)& 9p& 11: 9 Mar/, op. cit., )o(e +###, p& 11' (0ng& ,ersion %ro( $apital, ###, F&8&$&F& edition, p& 11')&
6 6 9p& 22:

#t is necessary to consider also an opposite situation, in *hich the old social relations can no longer do(inate by their o*n strength, because hence%orth the producti,e %orces o,er%lo*, in a sense, the production-relations *ithin *hich they are supposed to be con%ined& )his
10

situation is that o% i(perialis( in its last stage, co(pelled to ha,e recourse either to ,iolent (easures o% coercion or to rapid increase o% unproducti,e e/penditure ((ainly *ar e/penditure, but also any other %or( o% e/penditure ai(ed at di,erting part o% the accu(ulation %und %ro( producti,e use)& )his point *ill ha,e to be e/a(ined separately& 9p&
2": 11

8enin, op. cit., +ol& "2, p& "'1 (0ng& ,ersion, p& "21 9(ran!criber)! *oteA .ee 8enin3s H$lan o% the $a(phlet (he (ax in :ind H& -- DJR:)& 9p& 2": 12 Mar/, op. cit., )o(e #, p& "0" ($apital, #, 0ng& edn& o% 19"8, p& 291)& 9p& 2': 1" Mar/, op. cit., )o(e #, p& 6"6 ($apital, #, 0ng& edn& o% 19"8, p& 618)& 9p& 26: 1' 0& ?alibar, op. cit., +ol& 2, pp& 228-9& 9p& 26: 16 )hese are points *hich # ha,e endea,oured to analyse belo*, in hapter 2, H)he socioecono(ic %ra(e*or5 and the organisation o% social planningH, and in hapter ", HFor(s and (ethods o% socialist planning and the le,el o% de,elop(ent o% the producti,e %orcesH& 9p& 26: 16 8enin, op. cit., +ol& "2, p& "'6 (0ng& ,ersion, p& "26)& 9p& 26: 11 8enin, ibid. 9p& 21: 18 ?alibar, op. cit., +ol& 2, p& "1'& 9p& 28:

(a*e 71

28

The socio-economic framewor) and the or*anisation of social (lannin*


91:

/ - *eneral s:r"ey of the mode of or*anisation of (resent-day (lanned economies )he reality o% socialist planned econo(y is (ore co(ple/ than any picture it *as possible to try and %or( be%ore there had been actual e/perience o% it& )his 5ind o% econo(y does not (erely entail a central authority, the e/clusi,e centre *here social decisions are (ade, and *hich dra*s up a plan so highly detailed that the units o% production or distribution are reduced to a (erely technical %unction that consists in strictly carrying out the order! recei,ed %ro( the central authority, *hich has %oreseen e,erything and calculated e,erything&

#n %act, the plan *or5ed out at the centre, ho*e,er detailed it (ay be, lays upon the production units only a li(ited nu(ber o% tas5s o% an obligatory nature (*hat are o%ten called the obligatory HindicesH or HindicatorsH)& A (ore or less e/tensi,e (argin o% initiati,e is thus le%t to the production- and distribution-units& onse2uently, these units are not (ere technical subdi,isions o% *hat (ight ha,e been concei,ed as a Hsingle state trustH& )his e/pression, Ha single state trustH, *as, *e 5no*, used by ?u5harin in his boo5 (he conomy of the (ran!ition Period, in *hich he (aintained that, in an 3organised social econo(yH, there *as no place %or econo(ic science, but only %or direct ad(inistration o% things& De 5no*, too, that this ,ie* *as not accepted by the other .o,iet leadersA 8enin, in particular, regarded it as utopian and as e/pressing an Hultra-8e%tH attitude&92: #n the practice o% present-day planned econo(y, the units o% production are not (ere technical units, but economic !%bject!, *hich as such ta5e deci!ion!, and *hich ha,e had to be accorded a (argin o% initiati,e and responsibility that (a5es o% the( also j%ridical !%bject!. )hese 7uridical sub7ects are, as such, sources o% rights and obligations& )hey are sub7ect not only to the obligations i(posed on the( by the plan but also to the obligations *hich they the(sel,es underta5e& )he products that pass %ro( one econo(ic unit to another are, in general,
(a*e 72

not shared out by *ay o% admini!trative order!, but (ostly circulate by *ay o% p%rcha!e! and !ale!, *hich gi,e rise to payment!. )here is thus, in (ost cases, not a sharing-out o% products but a circulation o% commoditie! ; there is money and there are price!, that is to say (at least in appearance), there are commodity categorie!, *hich in turn (ean a syste( o% accounting in ter(s o% prices, a syste( o% calculation in (oney, and di%%erentiated *ages, together *ith a financial syste( and a syste( o% credit, *ith a state ban;ing net*or5 *hich can (a5e %airly long-ter( loans& )his is the description one can gi,e o% all the planned econo(ies at present in being, *hether those in *hich the producti,e %orces are (ost highly de,eloped, as in the .o,iet =nion or in <echoslo,a5ia, or those in *hich agriculture still plays a big part, and *here the producti,e %orces are co(parati,ely unde,eloped, as in hina or in the 4e(ocratic >epublic o% +ietna(& )his co(ple/ reality, this co(bination o% socialist state property and social planning, on the one hand, *ith co((odity categories (or at least the appearance o% the(), on the other, (ay see( to contradict so(e o% the descriptions o% socialist society gi,en in ad,ance by Mar/ or 0ngels&

// Some (assa*es from 0ar; and En*els # do not intend to spea5 here about the earliest *ritings o% Mar/ and 0ngels, such as 0ngels3s speech on 16th February 18'6, at 0lber%eld, *hen he declaredA H#n co((unist society it *ill be easy to 5no* *hat is being produced and *hat is being consu(ed& As *e 5no* *hat each indi,idual needs, on the a,erage, it *ill be easy to calculate *hat a de%inite nu(ber o% indi,iduals need, and since production *ill no longer be in the hands o% any pri,ate producers but in those o% the o((une and its ad(inistration, it *ill not be at all di%%icult to regulate production according to needs&H (M0LA, 0rste Abteilung, ?and ', p& "12&) .uch passages as these antedate the *or5ing out o% scienti%ic socialis(& # shall there%ore re%er only to certain later passages& # shall recall, in particular, that in the $riti'%e of the 7otha Programme (*ritten in 1816), Mar/ *rote, a(ong other thingsA HDithin the co-operati,e society based on co((on o*nership o% the (eans o% production, the producers do not e/change their products; 7ust as little does the labour e(ployed on the products appear here as the val%e o% these products, as a (aterial 2uality possessed by the(, since no*, in contrast to capitalist society, indi,idual labour no longer e/ists in an indirect %ashion but directly as a co(ponent part o% the total labour&H (Nuoted %ro( the 0ditions .ociales, $aris, 1960 edn&, p& 2"A 0ng& trans&, F&8&$&F& edn&, p& 20&) #n this sa(e $riti'%e of the 7otha Programme, Mar/ e/plains that he has in (ind not de,eloped co((unist society, but co((unist society as it has
(a*e 77

7ust e(erged %ro( capitalist society& #t is %or thi! society, that is, %or this econo(y o% transition, that he %oresees each *or5er recei,ing, instead o% *ages in (oney, Ha certi%icate %ro( society that he has %urnished such and such an a(ount o% labour (a%ter deducting his labour %or the co((on %unds), and *ith this certi%icate he dra*s %ro( the social stoc5 o% (eans o% consu(ption as (uch as costs the sa(e a(ount o% labour&H (Ibid., p& 2"; 0ng& trans&, p& 20&) According to this passage, there *ill be in socialist society, e,en at its beginning, neither co((odities, nor ,alue, nor (oney, nor, conse2uently, prices and *ages& )his is the sa(e idea *hich Mar/ had already %or(ulated in $apital and *hich about a year later 0ngels too5 up again in =nti3D>hring, especially *hen he *roteA

H)he sei<ure o% the (eans o% production by society puts an end to co((odity production& & & &H (Nuoted %ro( ostes edn&, +ol& ###, $aris, 19"", p& 61A 0ng& trans&, 19"' 8ondon edn&, p& "11&) )here is thus, at least see(ingly, a contradiction bet*een the actual *or5ing o% the socialist econo(ies *hich *e 5no* today9": and the analyses (ade by Mar/ and 0ngels& /// The nat:re of the (ro lems to e st:died #% *e accept that the present-day socialist econo(ies, as they really are, correspond to objective demand! i(posed by the *or5ing and de,elop(ent o% these social %or(ations9': and not to HdistortionsH o% an Hideal (odelH (*hich Mar/ and 0ngels al*ays re%used to pro,ide), *e ha,e to as5 oursel,es ho* to e/plain the contradiction *hich there at least !eem! to be bet*een this reality and so(e o% the analyses (ade by Mar/ and 0ngels& #t is all the (ore essential to do this because the good or bad *or5ing o% the planned econo(y is ob,iously a%%ected, in a decisi,e *ay, by the %or(s gi,en to the organisation o% this econo(y, and so by the role assigned to the production units, to e/change bet*een these units, to (oney, prices, and so on& !n another plane, the role played by co((odity categories in the planned econo(ies o% today is not *ithout %ar-reaching in%luence on beha,iour and attitudes, and, (ore generally, on the ideological superstructures& For this reason, too, one cannot o(it to in,estigate the reasons *hy co((odity categories ha,e been retained, at least in appearance& Further(ore, the %re2uent changes in organisation *hich ta5e place in the ,arious socialist countries (especially, in recent years, in the .o,iet =nion), the hesitations and %luctuations (to*ards a greater or lesser degree o% centralis(, or o% autono(y allo*ed to the enterprises) *hich these changes re%lect, (a5e it plain that the %inal achie,e(ent o% the best %or( o% organisation, that is, the best adapted to the le,el o% de,elop(ent and the nature o% the present producti,e %orces, as also to the re2uire(ents %or building socialist society, cannot be regarded as ha,ing already been %ully attained (though it is through such changes that these re2uire(ents (a5e the(sel,es %elt)&
(a*e 79

)he hesitations in the practical sphere the(sel,es sho* that *hat is being gone through at present is a stage o% research *hich in,ol,es a substantial ele(ent o% trial and error& )hat does not (ean, o% course, that theoretical considerations play no part in current researches, but the hesitations in the %ield o% practice sho* us that these theoretical considerations do not yet constitute a body o% thought strongly structured enough to be capable o% guiding *ith e/actitude the search %or the best %or(s o% organisation&

De (ust there%ore also loo5 into the theoretical considerations *hich are generally accepted, and see to *hat e/tent *e can carry a little %urther the analyses *hich underlie the(& )his thought is closely lin5ed *ith a thought about the structure o% the plans and about the (eans o% putting the( into e%%ect& ?y Hstructure o% the plansH # ha,e in (ind the order o% the di(ensions in *hich the ai(s o% the plan are laid do*n (both physical and non-physical di(ensions), the degree o% detail into *hich the planners go in laying do*n these ai(s, and the nature o% the plan-indicators that are (ade binding on each enterprise& ?y H(eans o% putting the plans into e%%ectH # (ean the respecti,e parts played by ad(inistrati,e orders, econo(ic calculation and the ,arious instru(ents that are a,ailable %or directing the econo(y& For the (o(ent, o% course, # shall deal *ith these di%%erent proble(s only in their (ost general aspect& )o begin *ith, # shall say a %e* *ords about the (ost ob,ious reasons %or the apparent contradiction bet*een the present (ode o% organisation and %unctioning o% the planned econo(ies and so(e o% the %or(ulations (ade by Mar/ and 0ngels, %or(ulations *hich they al*ays put %or*ard *ith the greatest caution and *hich they al*ays re%used to o%%er as anticipations& A(ong the (ost ob,ious reasons %or the retention o% co((odity categories *ithin the socialist econo(ies o% today *e (ust (ention the presence in these econo(ies o% se,eral di%%erent %or(s o% property& /< The di"ersity of forms of (ro(erty in the means of (rod:ction De 5no* that, in conomic Problem! of ,ociali!m in the .,,R, .talin put %or*ard a re%utation o% the ,ie* according to *hich there is a contradiction bet*een the e/istence o% co((odity production in the =..> and the passage *e ha,e 2uoted %ro( 0ngels, in *hich the latter declares that Hthe sei<ure o% the (eans o% production by society puts an end to co((odity productionH& .talin notes that, in this passage, 0ngels does not (a5e clear *hether *hat is in,ol,ed is the sei<ure by society o% all the (eans o% production, and he rightly obser,es that, in another passage in =nti3D>hring, 0ngels spea5s o% society3s ta5ing possession o% Hall (eans o% productionH& ( ostes edn&, +ol& ###, p& 68A 0ng& edn&, p& "26&) .talin dra*s the conclusion that, %or 0ngels, the disappearance o% co((a*e 7'

(odity production presupposed the e/propriation o% all the (eans o% production in a country (*hich has not ta5en place either in the =..> or in any other socialist country)& .talin does not see( sure, (oreo,er, that co((odity production *ould really disappear e,en i% all the (eans o% production *ere nationalised, at least in countries *here %oreign trade continues to play a big part& #ndeed, *e (ust ta5e note that, a%ter ha,ing re(ar5ed that it is only in ?ritain that, in his ,ie*, it *ould be possible, gi,en the high degree o% concentration o% agricultural production, to nationalise all the (eans o% production and so to eli(inate co((odity production, .talin adds, i((ediatelyA H# lea,e aside in this instance the 2uestion o% the i(portance o% %oreign trade to ?ritain and the ,ast part it plays in her national econo(y& # thin5 that only a%ter an in,estigation o% this 2uestion can it be %inally decided *hat *ould be the %uture o% co((odity production in ?ritain a%ter the proletariat had assu(ed po*er and all the (eans o% production had been nationali<ed&H (.talin, -e! Probl?me! economi'%e! d% !ociali!me en .R,,, French o((unist $arty edn&, $aris, 1962, p& 12A 0ng& edn&, F&8&$&F&, conomic Problem! of ,ociali!m in the .,,R, pp& 1'-16&) Fo*e,er that (ay be, .talin co((ents (op. cit., p& 1") that 0ngels did not ans*er, and (oreo,er did not try to ans*er, the 2uestion o% *hat happens to co((odity production in a country *here only part of the mean! of prod%ction is su%%iciently concentrated to be capable o% e/propriation, *hile another part, essentially in agriculture, is bro5en up to such a degree a(ong o*ner-producers that it is out o% the 2uestion to conte(plate the e/propriation o% the latter& A%ter putting this 2uestion, .talin points out that 8enin ans*ered it, in particular in t*o o% his *or5s, that on the ta/ in 5ind and that on co-operation& )his is true, e,en though, in these *or5s, 8enin did not ans*er the 2uestion in e/actly the sa(e ter(s as .talin& Fere # thin5 it is necessary to insert a parenthesis& #n the su((ary gi,en by .talin (op. cit., p& 1') o% 8enin3s theses on cooperation and on the introduction o% the ta/ in 5ind (8enin3s report to the 10th ongress o% the >& &$& (?), entitled H>eport on the substitution o% a ta/ in 5ind %or the surplus-grain appropriation syste(HO, 16th March 1921, the collecti,e %ar(s are indeed put in the centre o% the analysis& Fo*e,erA (1) Dhen 8enin de%ended the thesis o% co((odity e/change, he *as ob,iously not thin5ing o% the collecti,e %ar(s, *hich hardly e/isted at that ti(e, but o% the indi,idual peasants, and in particular the (iddle peasants& Fe says so e/pressly *hen he *ritesA HDe (ust try to satis%y the de(ands o% the (iddle peasantsH, and *hen he adds that this satis%action cannot be gi,en

*ithout Ha certain %reedo( o% e/changeH (8enin, -)alliance de la cla!!e o%vri?re et de la pay!annerie ()he alliance bet*een the *or5ing class
9O (ran!criber)! *oteA .ee ite( 6 in 8enin3s (enth $ongre!! of the R.$.P.@A.B. -- DJR:

(a*e 7+

and the peasantry), Mosco*, 1961, pp& 1'2-") (0ng& ,ersion, $ollected <or;!, 'th edn&, +ol& "2, pp& 211-18&) (2) Dhen 8enin spea5s o% co-operation, he has in (ind not only, or e,en (ainly, producer co-operati,es (i&e&, collecti,e %ar(s) but also, and especially, trading co-operati,es (%or buying and selling)& )his e(erges clearly %ro( *hat he says about co-operati,e stores, and %ro( his declaration that, in order to be a good co-operator one (ust be Ha cultured traderH& (Ibid., pp& 828 and 829A 0ng& ,ersion, $ollected <or;!, +ol& "", p& '10&)96: )hough the second o% these obser,ations is not o% %unda(ental i(portance %or the (ain sub7ect o% our present discussion, # thin5 it is necessary to (a5e it %or at least t*o reasonsA a) ?ecause, since the collecti,isation o% 1928-9, 8enin3s idea o% the de,elop(ent o% co-operati,es has been associated in a one-sided *ay *ith the idea o% the de,elop(ent o% collecti,e %ar(s, *hich *as not 8enin3s conception -- %or hi( the de,elop(ent o% co-operati,es e(braced all %or(s o% cooperation -- andA b) ?ecause 8enin ascribed ,ery great i(portance to co-operati,es in the %ra(e*or5 o% the building o% socialis(& De 5no* that he *roteA HAnd gi,en social o*nership o% the (eans o% production, gi,en the class ,ictory o% the proletariat o,er the bourgeoisie, the syste( o% ci,ilised co-operators is the syste( o% socialis(&H (Ibid., p& 8"0A 0ng& ,ersion, $ollected <or;!, +ol& "", p& '11&)96: A%ter this parenthesis, *e can return to the essentials o% .talin3s argu(entA i% co((odity production sur,i,es under the dictatorship o% the proletariat, this isA (1) ?ecause not all the (eans o% production ha,e been nationalised (and they ha,e not been nationalised because they are not all ripe %or this), and so (2) ?ecause there e/ists, alongside state property, collective3farm property, and the collecti,e %ar(s do not gi,e up their products other*ise than by *ay o% exchange, i&e&, as commoditie!. #t (ust be added, si(ilarly, that the e/istence o% pri,ate production carried on by indi,idual cra%ts(en, and especially by collecti,e-%ar( peasants on their indi,idual holdings, constitutes another rai!on d)Ctre %or co((odity production, e/change, (oney, etc&

All this a(ounts to saying that, in the planned econo(ies o% today, the state has not ta5en possession o% all the (eans o% production and this is *hy the co((odity categories sur,i,e& )his e/planation see(s to (e correct so %ar as it goes, but inade2uate& #t does indeed enable us to understand *hy there is commodity prod%ction o%t!ide the !tate !ector, and *hy there is commodity circ%lation on the periphery of thi! !ector, *hen the state sector sells its products to the other sectors or to the consu(ers, or *hen it buys products %ro( the other producers, but this e/planation does not enable us to understand the retention of commodity categorie! #ithin the !tate !ector. Dhy, *ithin the state sector, do the enterprises (a5e purchases and salesM Dhy do they dispose o% their products at certain pricesM Dhy do they carry
(a*e 7&

out transactions in (oneyM etc& #t is these 2uestions that the argu(ent about the co-e/istence o% se,eral %or(s o% property does not see( capable o% ans*ering& And this is the proble( *e (ust no* e/a(ine& < The commodity cate*ories within the state sector De *ill %irst consider the *ays in *hich the retention o% co((odity categories *ithin the state sector has been e/plained& Fere again *e shall %ind a particularly *ell-*or5ed-out %or(ulation o% these e/planations in .talin3s conomic Problem!. . . . )hey can be su((ed up li5e thisA 1 (he commodity character of part of the prod%ction of the !tate !ector )he state sector actually disposes o% so(e o% its products as co((odities, and so part o% its production continues to be commodity prod%ction, *hich continues to be reg%lated, at least *ithin certain li(its, by the la# of val%e. a) )he chie% and pri(ary category o% products *hich thus beco(e co((odities are the products intended %or personal consu(ption& .talin *ritesA HAs a (atter o% %act, consu(er goods, *hich are needed to co(pensate the labour po*er e/pended in the process o% production, are produced and realised in our country as co((odities co(ing under the operation o% the la* o% ,alue& #t is precisely here that the la* o% ,alue e/ercises its in%luence on production&H (+p. cit., p& 18A 0ng& edn&, p& 2"&) b) .econdly, e,en so(e (eans o% production continue to be disposed o% as co((odities, na(ely, those *hich are sold abroad (c%& ibid., p& '6)& )he (eans o% production thus e/ported actually beco(e co((odities&

# ha,e already (entioned that .talin e/pressed doubt *hether, in a country li5e ?ritain, *here %oreign trade plays a ,ery i(portant role, co((odity production (ight not be retained, e,en i% all the (eans o% production *ere nationalised& # *ill lea,e aside, %or the (o(ent, the proble( set by the in%luence o% %oreign trade on the retention o% co((odity production& )his is a proble( o% considerable theoretical i(portance, since, through it, the %ollo*ing 2uestion is being as5edA does not the co(plete disappearance o% co((odity production presuppose also the achie,e(ent o% socialis( throughout the *orld, and real international planningM For the (o(ent it is the co((odity character o% the production o% consu(er goods that *ill occupy our attention& 8et (e recall, %irst, that a%ter ha,ing (entioned that ob7ects %or personal use are disposed o% as co((odities, .talin goes on to sayA H#n this conne/ion, such things as cost accounting and pro%itableness, production costs, prices, etc&, are o% actual i(portance in our enterprises& onse2uently, our enterprises cannot, and (ust not, %unction *ithout ta5ing the la* o% ,alue into account&H (Ibid., p& 18A 0ng& edn&, p& 2"&) )his argu(ent see(s to (e to be a *ea5 one& )he *ea5ness sho*s itsel% in at least t*o *aysA (1) First o% all one ought to e/plain *hy consu(er goods are !old %or
(a*e 7,

(oney, and not distributed in e/change %or labour-certi%icates, as Mar/ %oresa* in his $riti'%e of the 7otha Programme. .o long as this is not e/plained, the proble( is (erely shi%ted else*here, not sol,ed& (2) .econdly, e,en i% %or the ti(e being *e accept the e/planation gi,en %or the retention o% co((odity production by the %act that ob7ects o% personal consu(ption are sold, this does not see( to help us to understand *hy, *ithin the state sector, the (eans o% production are bought and sold and bear a price, etc& .talin percei,ed this di%%iculty, and %or(ulated a second e/planation& 2 (he re'%irement! of calc%lation )his second e/planation is %ound in the section o% conomic Problem! & & & entitled H>eply to o(rade Ale5sandr #lyich Bot5inH& #n this section, .talin as5sA

HDhy & & & do *e spea5 o% the ,alue o% (eans o% production, their cost o% production, their price, etc&MH And ans*ersA H& & & )his is needed %or purposes o% calculation and settle(ent, %or deter(ining *hether enterprises are paying or running at a loss, %or chec5ing and controlling the enterprises&H (+p. cit., p& ''A 0ng& edn&, pp& 68-9&) #t is clear that this second e/planation is not satis%actory, either, for the real '%e!tion i!, preci!ely, #hy calc%lation! have to be made by mean! of commodity categorie! and *hy they are not (ade directly in ter(s o% labo%r3 time. #% calculations ha,e to be (ade in co((odity categories, then this (ust surely be because these categories possess a certain reality& Dhat, indeed, *ould be the use o% calculations carried out *ith categories that did not e/press a certain realityM )his is the heart o% the 2uestion, and it is not ans*ered by (erely re(ar5ing, as .talin does, that the content o% the co((odity categories is not the sa(e as under the %ra(e*or5 o% capitalis(& #t is indeed ob,ious that these categories do not relate to the sa(e social relations, but they e/ist ne,ertheless, they possess reality, they are not 7ust a Hpure %or(H o% accountancy, and it is this %act that they e/ist that has to be e/plained& All the (ore necessary is it to e/plain their e/istence because, on the one hand, this does not see( to ha,e been %oreseen by theory, and, on the other, the e/planation gi,en *ill be help%ul, as regards principle, in dealing *ith these categories as the e/pression o% real pheno(ena, *ith an ob7ecti,e e/istence (%ro( *hich li5e*ise %ollo* ob7ecti,e re2uire(ents) and not as Hcon,eniences %or calculationH *hich could there%ore be (anipulated in an arbitrary %ashion& )here is so(ething e,en (ore i(portantA disco,ery o% the rai!on d)Ctre o% co((odity categories in the planned econo(y o% today is a nece!!ary !tage in the e!tabli!hment of effective condition! for the di!appearance of the!e
(a*e 7%

commodity categorie! at a later !tage, the stage regarded as the ulti(ate ai( to*ards *hich conte(porary econo(ic plans ha,e the tas5 o% carrying the planned econo(ies& ?e%ore e/a(ining *hat see(s to (e to %or( the bases %or the e/istence o% co((odity categories in the planned econo(ies o% today, including their presence *ithin the state sector, # thin5 it *ill be use%ul to recall brie%ly so(e

o% the conclusions that ha,e been dra*n, or *hich could be dra*n, %ro( the analyses in .talin3s conomic Problem!. & & & # thin5 it *ill also be o% use to note certain thoughts that are to be %ound in this *or5 and *hich (ay be help%ul to us in %or(ulating a reply to the 2uestion be%ore us& " (he condition! for the di!appearance of commodity categorie!, according to ,talin)! H conomic Problem! & & &H First o% all, as regards the conditions %or the disappearance o% co((odity categories, *e (ust note that in .talin3s *or5 the e(phasis is laid on the need %or the preli(inary disappearance o% the t*o (ain sectors o% the present-day socialist econo(y& .talin *ritesA H!% course, *hen instead o% the t*o basic production sectors, the state sector and the collecti,e-%ar( sector, there *ill be only one alle(bracing production sector, *ith the right to dispose o% all the consu(er goods produced in the country, co((odity circulation, *ith its 3(oney econo(y3, *ill disappear, as being an unnecessary ele(ent in the national econo(y&H (+p. cit., p& 16A 0ng& edn&, p& 20&) Fro( this .talin dra*s the %ollo*ing conclusion, *hich coincides *ith that o% the %ounders o% Mar/is(A H#n the second phase o% co((unist society, the a(ount o% labour e/pended on the production o% goods *ill be (easured not in a round about *ay, not through ,alue and its %or(s, as is the case under co((odity production, but directly and i((ediately -- by the a(ount o% ti(e, the nu(ber o% hours, e/pended on the production o% goods& As to the distribution o% labour, its distribution a(ong the branches o% production *ill be regulated not by the la* o% ,alue, *hich *ill ha,e ceased to %unction by that ti(e, but by the gro*th o% society3s de(and %or goods& #t *ill be a society in *hich production *ill be regulated by the re2uire(ents o% society, and co(putation o% the re2uire(ents o% society *ill ac2uire para(ount i(portance %or the planning bodies&H (+p. cit., pp& 20-1A 0ng& edn&, pp& 26-1&) )o these t*o 2uotations # *ill add a third, ta5en %ro( the sa(e *or5& #n the chapter entitledA H oncerning the 0rrors o% o(rade 8& 4& Caroshen5oH, .talin sets out *hat he regards as the Hthree (ain preli(inary conditionsH %or the transition to co((unis(& )hese conditions are, he considers, a relati,ely higher rate o% e/pansion o% the production o% (eans o% production; such a cultural ad,ance(ent o% society as *ill secure %or all its (e(bers an all-round de,elop(ent o% their physical and (ental abilities, and *hich *ill put an end to the present di,ision o% labour; and the gradual disappearance o% collecti,e-%ar( property,
(a*e 91

*hich *ill be replaced by a %or( o% public property that *ill (a5e it possible, Hby (eans o% gradual transitions, to replace co((odity circulation by a syste( o% products-e/change, under *hich the central go,ern(ent, or so(e other social-econo(ic centre, (ight control the *hole product o% social production in the interests o% societyH& (+p. cit., p& 66A 0ng& edn&, p& 16&) ' Di!c%!!ion of the preceding the!e! Fro( these 2uotations there e(erge the %ollo*ing ideas concerning the conditions %or and conse2uences o% the disappearance o% co((odity categoriesA a) )his disappearance is conditional on the disappearance o% the di,ision o% production bet*een t*o sectors, the state sector and the collecti,e-%ar( sector, and the progressi,e raising o% collecti,e-%ar( property to the le,el o% public property& b) Be,ertheless, this condition, *hile necessary, is not in itsel% su%%icient; in addition, a Hsocial-econo(ic centreH (ust appear *hich can Hcontrol the *hole product o% social production in the interests o% societyH, so e%%ecti,ely that a syste( o% Hproducts e/changeH *ill replace Hco((odity circulationH& (Actually, it *ould see( pre%erable, in this conne/ion, to spea5 o% a !y!tem of prod%ct!3allotment rather than a syste( o% products e/change&) )hese conditions ha,ing been realised, the category o% ,alue disappears, %or Hthe a(ount o% labour e/pended on the production o% goods *ill be (easured not in a roundabout *ayH but directly and i((ediately& )he la* o% ,alue *ill thus ha,e Hceased to %unctionH, and production *ill be Hregulated by the re2uire(ents o% societyH& )his leads us to raise the %ollo*ing 2uestionsA "ir!t A i% the essential condition %or the disappearance o% co((odity categories is the establish(ent o% a Hsocial-econo(ic centreH capable o% disposing o% all the products in the interest o% society, the disappearance o% collecti,e-%ar( production, *hile constituting a nece!!ary condition %or the appearance o% such a centre, *ould not be a !%fficient condition %or this& !ne (ay indeed as5 *hether, in addition, certain conditions *ould not need to be realised relating to the f%nctioning of the !ingle p%blic !ector a! a #hole. ,econd A Dhat is the root o% the di%%iculty that pre,ents accounting in labour-ti(e %ro( being substituted %or accounting in ter(s o% ,alueM #s it a technical di%%icultyM !r is it a social oneM #n the latter case, is this di%%iculty bound up only *ith the e/istence o% t*o sectors o% production, or is it also, and (ore pro%oundly, bound up *ith the %act that, though the cognition or ,eri%ication o% needs is carried out to a ,ery great e/tent a priori, ne,ertheless a large proportion o% needs is not 5no*n e/cept a po!teriori, and then still ,ery inade2uatelyM

#% this is so, it *ill be appreciated that it is not possible at present to deter(ine a priori, in an accurate *ay, the labour-ti(e !ocially3nece!!ary %or the production o% ,arious goods&
(a*e 91

Dhat can be (easured, though not *ithout di%%iculty, is the labour-ti(e act%ally expended, but this is not auto(atically the sa(e as the socially necessary labour-ti(e& )he latter depends, on the one hand, on a correct e!timation of need! (other*ise, part o% the labour e/pended (ay not correspond to any need) and, on the other, on a correct choice of prod%ction3 techni'%e! (other*ise the labour-ti(e e/pended (ay not be socially necessary)& )hat see(s to be *here the real proble( lies& De are all the (ore disposed to thin5 so today because the techni2ues %or (easuring the labour ti(e actually e/pended in ,arious lines o% production ha,e (ade great progress, than5s to the use %or this purpose in recent years o% tables o% inter-sectoral relations& Fere (ust be (entioned, in particular, the pioneer *or5 o% the Fungarian econo(ist si5os-Bagy and, (ore recently, that o% the .o,iet econo(ist #,ano, (see his article, H$roble(s o% deter(ining the a(ount o% ,alueH, in 9e!tni; ,tati!ti;i, 196", Bo& 2, and the article translated into Ler(an in ,o#jet#i!!en!chaft, 196", Bo& 10)& #% one o% the ulti(ate and essential reasons %or the retention o% co((odity production lies not in the proble(s raised by (easuring the a(ount o% labour act%ally expended but in those raised by (easuring a priori the labour-ti(e !ocially3nece!!ary, then a social decision-(a5ing centre is undoubtedly necessary %or this (easure(ent to be e%%ectedA but *hat (a5es it possible %or such a centre to *or5 e%%ecti,ely is that the ob7ecti,e conditions ha,e been realised %or a priori esti(ation o% the needs o% society and the procedures *hereby these needs can best be satis%ied by society3s labour as a *hole& #% this is so, *e can say that it is *hen, and because, society has beco(e capable o% consciously regulating its production by re%erence to its needs (that is, o% e/pending social labour-po*er HconsciouslyH, as Mar/ puts it)96: that the co((odity categories *ill disappear, and not the other *ay round, *ith the disappearance o% co((odity categories enabling society to regulate production on the basis o% needs& ?y putting the proble( in this *ay *e are there%ore led to sayA a) )hat the root o% the retention o% co((odity production and co((odity categories is the absence o% a social-econo(ic centre e%%ecti,ely capable o% disposing o% all the products, and strictly regulating production in relation to the needs o% society; b) that the absence o% this centre is connected, in the %irst instance, *ith the e/istence o% se,eral %or(s o% property;

c) that, beyond this di,ersity o% %or(s o% property (and underlying it), it is the pre!ent level of development of the prod%ctive force!, *hich is still inade2uate, that pre,ents a social-econo(ic centre %ro( being able e%%ecti,ely to dispose, consciously, o% all the products, and really to regulate production according to the needs o% society& !bser,ation o% the ob7ecti,e conditions o% the %unctioning o% the state sector in the countries *ith planned econo(ies sho*s that, even in thi! !ector, a !ingle centre doe! not attain to !%ch po#er to di!po!e and reg%late,
(a*e 92

and it is %ro( this that %ollo*s the necessity %or a certain autono(y o% the enterprises, the need to endo* these enterprises *ith certain po*ers o% disposal, a certain %reedo( o% (anoeu,re, *hich in turn results in the rules o% business accounting, the (oney econo(y *ithin the state sector, the co((odity categories, etc& Fa,ing arri,ed at this point *e (ust, ho*e,er, raise t*o 2uestionsA a) #n the last %or(ulation *e ha,e reached, are *e not (ista5ing e%%ect %or causeM More concretely, is it not because the enterprises ha,e been gi,en certain po*ers that there is no social centre really capable o% regulating production by needsM b) 4oes not the preceding analysis a(ount to calling into 2uestion the ,ie* ta5en by Mar/ and 0ngels that, #hen !ociety ta;e! po!!e!!ion of an the mean! of prod%ction, commodity prod%ction #ill cea!e M )hese t*o 2uestions are closely lin5ed, and so the ans*ers # a( going to try and %or(ulate *ill li5e*ise be closely lin5ed& +# ,tati!ation, !ociali!ation and ta;ing over of the mean! of prod%ction by !ociety De (ust begin *ith the (ost %unda(ental 2uestion, *hich is ob,iously thisA (ust *e cease to accept that co((odity production *ill co(e to an end *hen society ta5es possession o% all the (eans o% productionM #t see(s to (e that this 2uestion (ust be ans*ered in the negati,e& o((odity production presupposes de%inite social conditions, na(ely, producers producing (ore or less independently o% each other& Dhen these social conditions no longer e/ist, that is, #hen !ociety ha! f%lly ta;en po!!e!!ion of all the mean! of prod%ction, there can no longer be any place for commodity prod%ction. ?ut in that case, it *ill be as5ed, ho* is this assertion to be reconciled *ith the %oregoing analysesM #s there then no lesson to be dra*n %ro( the

e/perience o% the planned econo(iesM 4oes no ne* conclusion e(erge %ro( this i((ense social praxi! constituted by se,eral decades o% planningM !% course there are conclusions to be dra*n %ro( this e/perience& ?ut these conclusions can only be dra*n i% the tools appropriate to the analysis o% this e/perience are used, that is to say, correctly *or5ed-out concepts& #t is precisely the con%rontation o% the practical e/perience o% planning *ith ideas *hich ha,e not al*ays been de%ined *ith su%%icient rigour91: that should enable us to re%ine our concepts (ore thoroughly, and thereby to understand better both the e/perience itsel% and the true signi%icance o% certain analyses (ade by Mar/ and 0ngels& #n the argu(ent *hich %ollo*s # shall not ta5e the e/cessi,ely long and pointlessly co(plicated line o% presenting %irst an analysis o% the e/perience o% the planned econo(ies and only then, on the basis o% this analysis, %or(ulating (ore rigorously the concepts enabling us to interpret this e/perience& # shall con%ine (ysel% to the second procedure, that is, # shall try to re%or(ulate certain concepts (ore precisely and then interpret certain
(a*e 97

passages on the basis o% this re%or(ulationA this is ho* # shall endea,our to ta5e account o% practical e/perience, i&e&, through a concrete analysis *hich # shall not de,elop here& 8et us begin then, by re-reading certain passages in the light o% e/perience, in order to try and clari%y the concepts and establish a uni%ied interpretation o% the(& 1 (he !ocial implication! of !tate o#ner!hip #t see(s to (e to be necessary, %irst and %ore(ost, to set in its conte/t the passage %ro( 0ngels about Hthe sei<ure by society o% the (eans o% productionH, and to illu(inate this passage both by (eans o% the conte/t and by re%erence to practical e/perience& ?e%ore e/pounding the idea that *ith Hthe sei<ure by society o% the (eans o% productionH co((odity production co(es to an end (op. cit., p& 61&) 0ngels has sho*nA a) that the social character o% the (odern producti,e %orces tends in e/orably to their socialisation, that is, to the appearance o% social %or(s o% o*nership o% these producti,e %orces& Fe notes that, *ithin capitalis( itsel%, these social form! o% o*nership are represented by 7oint-stoc5 co(panies and state o*nership& Li,en, ho*e,er, that the capitalist state, *hich o%%icially represents society, in %act represents only the ruling class, 0ngels says, in a passage # ha,e already 2uotedA

H.tate o*nership o% the producti,e %orces is not the solution o% the con%lict 9bet*een the social character o% the producti,e %orces and pri,ate o*nership:, but it contains *ithin itsel% the %or(al (eans, the 5ey to the solution&H (=nti3D>hring, +ol& ###, p& ''A 0ng& edn&, pp& "061&) b) 0ngels has also sho*n that *hen Hthe proletariat sei<es the state po*erH, it Htrans%or(s the (eans o% production in the %irst instance into state propertyH, and he adds (ibid., pp&'6-1A 0ng& edn&, pp& "08-9)A H)he %irst act in *hich the state really co(es %or*ard as the representati,e o% society as a *hole -- the ta5ing possession o% the (eans o% production in the name of !ociety ((y e(phasis, &?&) -- is at the sa(e ti(e its last independent act as a state& )he inter%erence o% the state po*er in social relations beco(es super%luous in one sphere a%ter another, and then ceases o% itsel%& )he go,ern(ent o% persons is replaced by the ad(inistration o% things, and the direction o% the processes o% production& )he state is not abolished, it #ither! a#ay &H #% *e thin5 about these passages and try to clari%y the( in the light o% the lessons o% social praxi!, *e see that *hat 0ngels is saying is that *hen the state controlled by the proletariat Hta5es possession o% the (eans o% productionH, it does this Hin the na(e o% societyH, #hich i! not the !ame thing a! !ociety)! ta;ing po!!e!!ion of them. #t is later, in proportion as the state *ithers a*ay and the ad(inistration o% things replaces the go,ern(ent o% persons, that there really occurs the ta5ing possession o% the (eans o% production by !ociety, *hich ad(inisters itsel%& #% *e read the passage %ro( 0ngels in this *ay *e can appreciate that
(a*e 99

co((odity production does not HceaseH abruptly, as (ight be suggested by the interpretation according to *hich ta5ing possession by the state is e2ui,alent to ta5ing possession by society, but that it *ithers a*ay as the process o% ta5ing possession by society ad,ances, since thi! ta;ing po!!e!!ion i! a phenomenon that i! reali!ed in the co%r!e of a period of hi!tory, !im%ltaneo%!ly #ith the #ithering a#ay of the !tate. Dhen *e put the proble( in these ter(s, *e see that o*nership o% the (eans o% production by the proletarian state is not yet direct ta5ing possession by society, but the stage that leads to this, on condition that other stages %ollo* (*hence the i(portance, %or an entire period o% history, o% the dictatorship o% the proletariat, in order to ensure that the state shall really act in the interests o% the *or5ing people, and that the retention o% the co((odity categories, (oney, and so on, shall not bring about the rebirth, in ne* %or(s, o% the e/ploitation o% (an by (an)& )his leads us to (a5e a distinction bet*een statisation (e,en by a *or5ers3 state) and socialisation& )his is the point # shall no* consider&

2 ,tati!ation, !ociali!ation, domination of the prod%ctive force! by !ociety )he distinction bet*een statisation and socialisation has not al*ays been (ade *ith su%%icient strictness, and there are a nu(ber o% passages *here one o% these *ords is used instead o% the other& Be,ertheless, a distinction is needed bet*een, on the one hand, statisation or nationalisation (*hich are j%ridical act! ) and, on the other, socialisation, *hich i(plies a capacity on the part of !ociety to account %or and allot the (eans o% production and their products& 8enin specially insisted on this distinction in a *ell-5no*n *or5, H8e%t *ingH childishness and petty-bourgeois ideas (see +e%vre! compl?te!, +ol& 21, pp& ""1 et se2&)& #n this *or5 8enin launches a ,igorous attac5 on those o((unists *ho, in May 1918, de(anded *hat they called Ha (ost deter(ined policy o% socialisationH& )his is *hat 8enin *rote in this conne/ionA H4ear 38e%t o((unists3, ho* deter(ined they are, but ho* little thin5ing they display& Dhat do they (ean by pursuing 3a (ost deter(ined policy o% socialisationM3 !ne (ay or (ay not be deter(ined on the 2uestion o% nationalisation or con%iscation, but the *hole point is that e,en the greatest possible 3deter(ination3 in the *orld is not enough to pass from nationalisation and con%iscation to socialisation& )he (is%ortune o% our 38e%ts3 is that by their nai,e, childish co(bination o% the *ords 3(ost deter(ined policy o% socialisation3 they re,eal their utter %ailure to understand the cru/ o% the 2uestion, the cru/ o% the 3present3 situation& )he (is%ortune o% our 38e%ts3 is that they ha,e (issed the ,ery essence o% the 3present situation3, the transition %ro( con%iscation (the carrying out o% *hich re2uires abo,e all deter(ination in a politician) to socialisation (the carrying out o% *hich re2uires a different 2uality in the re,olutionary)& Cesterday, the (ain tas5 o% the (o(ent *as, as deter(inedly as
(a*e 9'

possible, to nationalise, con%iscate, beat do*n and crush the bourgeoisie, and put do*n sabotage& )oday, only a blind (an could %ail to see that *e ha,e nationalised, con%iscated, beaten do*n and put do*n (ore than #e have had time to co%nt. )he di%%erence bet*een socialisation and si(ple con%iscation is that con%iscation can be carried out by 3deter(ination3 alone, *ithout the ability to calculate and distribute properly, *hereas socialisation cannot be brought about *ithout this ability&H (+p. cit., pp& "'8-9A 0ng& edn&, +ol& 21, pp& """'&)9O: #n this passage 8enin contrasts the 7uridical %or( (o*nership, property) *ith the concrete production-relations, *hich are social relations& #t is these relations that (ay or (ay not (a5e it possible to pass %ro( statisation to

socialisation, depending on *hether or not they enable society or its organs to account %or and allot in a rational *ay, that is, e%%iciently, the (eans o% production and their products& .tate o*nership is a nece!!ary condition %or socialisation on the plane of the !tate (*hich is not yet socialisation directly on the plane o% society), but it is not by itsel% a su%%icient condition& #n order that there (ay be socialisation on the plane o% the state, the latter (ust ha,e the capacity to di!po!e effectively and efficiently of the mean! of prod%ction and their prod%ct!. Dithout this capacity, *e ha,e nationalisation *ithout socialisation& .uch a capacity results %ro( an hi!torical development, it is connected *ith the actual de,elop(ent o% the producti,e %orces (*hich include (en the(sel,es, and the le,el o% their 5no*ledge) and *ith the correlati,e trans%or(ation o% production-relations& # shall ha,e to co(e bac5 later to ,arious aspects o% the proble( o% the greater or lesser correspondence bet*een 7uridical a%thority to dispose o% certain (eans o% production and e%%ecti,e capacity to dispose o% these (eans o% production& De 5no* that *hat (atters, in the last resort, is concrete capacity and not abstract HauthorityH& #t is 2uite ob,ious that, on the basis o% one and the sa(e state o*nership o% the (eans o% production (i&e&, on the basis o% the sa(e 7uridical %or(), (any degrees o% concrete capacity to set these (eans o% production to *or5 are possible& #t is there%ore only i% there is a su%%icient le,el o% capacity that there is real do(ination by society, or by the state acting in the na(e o% society, o,er the (eans o% production, and thus e%%ecti,e ta5ing possession by society& !nly *hen the ta5ing possession by society o% *hich 0ngels spea5s attains a su%%icient degree and le,el can society allot social labour in a conscious *ay, and the co((odity categories disappear& )he building o% socialist society is thus an historical process during *hich planning begins by being !ocial direction o% the producti,e %orces (through a -- (ore or less co(plete -- e%%ecti,e socialisation o% these %orces), and beco(es !ocial domination o% the( (*hich leads to the co(plete disappearance o% co((odity production)& )he %act, e/plicitly recognised by 8enin, that statisation does not auto(atically coincide *ith socialisation, in the sense o% e%%ecti,e Hsocial directionH o% the statised (eans o% production (and, so, a fortiori, in the sense o%
9O (ran!criber)! *oteA .ee 8enin3s H38e%t-Ding3 hildishness and the $etty-?ourgeois MentalityH& -- DJR:

(a*e 9+

social do(ination o% these (eans o% production) is %ully con%ir(ed by the di%%iculties encountered in putting plans into application e,en *ithin the state sectors o% the socialist econo(ies o% today& )he successes achie,ed in this

e%%ecti,e planning, and the di%%iculties encountered, sho* precisely that the ob7ecti,e conditions %or real social do(ination o,er the %orces o% production are only in the process o% co(ing into being, and this is *hy it is necessary to allo* a relati,e %reedo( o% (anoeu,re either to the production units o% the state sector or to certain Hecono(ic groupsH *hich can be called econo(ic !%bject!. #t (ust be e(phasised at this point that the non-coincidence bet*een nationalisation and e%%ecti,e social direction stands out ,ery clearly *hen one considers the nationalisation o% the land %ro( the standpoint o% its conse2uences in respect o% the social direction o% the producti,e %orces o% agriculture& #n the .o,iet =nion, %or e/a(ple, the land *as nationalised at the ti(e o% the !ctober >e,olution, but exploitation of the land (that is, the practical setting to *or5 o% the producti,e %orces o% agriculture) *as %or a long ti(e a%ter that e,ent (ainly underta5en by indi,idual peasants&98: )*el,e years a%ter the !ctober >e,olution (on the (orro* o% the collecti,isation carried out during the First Fi,e-Cear $lan), the e/ploitation o% the greater part o% the land *as the responsibility o% the collecti,e %ar(s, that is, not o% the state or o% organs directly dependent on the state, but o% groups o% *or5ing peasants& )he e%%orts o% the .o,iet state to direct the producti,e %orces o% agriculture ha,e ta5en, successi,ely or si(ultaneously, a ,ariety o% %or(sA productionplans o% the collecti,e %ar(s, rati%ied by the state organs, directing role o% the Machine and )ractor .tations, plans %or co((ercialisation o% agricultural production, use o% Hecono(ic le,ersH (i&e&, especially, the price syste()& At present the state uses essentially indirect (ethods to direct collecti,e-%ar( agriculture& # shall return to this point in a (o(ent& Further(ore, e,en today, the production realised on the peasants3 indi,idual holdings is only indirectly or ,ery i(per%ectly the ob7ect o% social direction, though the land o% these indi,idual holdings is also state property& #% this is so, it is not, o% course, because the production o% the indi,idual holdings is o% slight econo(ic interest -- on the contrary, the contribution (ade by these holdings to total consu(ption is %ar %ro( negligible -- but because the very nat%re of the prod%ctive force! p%t to #or; on these holdings does not allo* o% e%%ecti,e and direct social direction o% their use& )o a lesser e/tent (that is, *ith a greater possibility o% social direction), this is also true o% the producti,e %orces o% the collecti,e %ar(sA this is *hat accounts %or the abandon(ent o% atte(pts, ne,er cro*ned *ith success, at direct planning o% collecti,e-%ar( production and the atte(pt to direct it indirectly, through plans %or co((ercialisation and the co(bination o% technical and ad(inistrati,e (anage(ent (to *hich corresponded the creation, in March 1962 o% collecti,e-%ar(-and-state-%ar( production (anage(ents)99: and the increasing use o% Hecono(ic le,ersH

(a*e 9&

through the re,ision o% the syste( o% agricultural prices, carried out se,eral ti(es since 196")& )hus *e see that *hat, besides state o*nership (*hich is the starting point and basis o% real planning), is e2ually necessary %or direct social direction o% the producti,e %orces is a !%fficient development of the!e force!, re!%lting in their having a !%fficiently !ocial character. .o long as this de,elop(ent is inade2uate, state o*nership (ay re(ain partly an e(pty 7uridical %ra(e*or5& As Mar/ puts it in the $riti'%e of the 7otha Programme A H>ight can ne,er be higher than the econo(ic structure o% society, and its cultural de,elop(ent conditioned thereby&H (+p. cit., p& 26A 0ng& edn&, p& 22&) )his (eans that i% the legal regulations pro(ulgated do not correspond to the econo(ic state o% society, these regulations re(ain, partially or te(porarily, *ithout e%%ect, or else their actual e%%ect is not *hat *as e/pected& De percei,e here an aspect o% the la* o% necessary correspondence or non-correspondence bet*een the production-relations and the character o% the producti,e %orces& #% this correspondence is ensured, the production-relations do not i(pede the de,elop(ent o% the producti,e %orces& #% it is not ensured, i% there is a contradiction bet*een the production-relations and the character o% the producti,e %orces, the latter do not de,elop as %ast as they technically could, they de,elop irregularly, through a succession o% periods o% slo* de,elop(ent and other periods o% (ore or less rapid de,elop(ent, and perhaps e,en periods o% stagnation& !ne o% the essential proble(s o% the de,elop(ent o% the planned econo(y is to ensure the %ullest possible correspondence bet*een the production relations and the character o% the producti,e %orces& #t is by *ay o% this correspondence, consciously sought %or, that the socialist state, *hich is (aster o% the Hco((anding heightsH o% the econo(y -- that is to say, *hich has eli(inated pri,ate o*nership o% the social (eans o% production -- is able to ensure the o,erall direction o% the producti,e %orces, e/panded reproduction on the scale desired, and preparation o% the conditions %or complete !ocial domination o% the producti,e %orces, a do(ination *hich *ill be %inally ensured by the disappearance o% the co((odity categories and o% the state itsel%& " =daptation of property form! to the level of development and the character of the prod%ctive force! #% socialist planning is possible, this is because, basically the producti,e %orces o% (odern ti(es are social in character and the socialist state deals *ith the( in accordance *ith their nature& #t *as in this sense that 0ngels *roteA

H)his treat(ent o% the producti,e %orces o% the present day, on the basis o% their real nature at last recognised by society, opens the *ay to the replace(ent o% the anarchy o% social production by a socially planned regulation o% production in accordance *ith the needs both o% society
(a*e 9,

and o% each indi,idual&H (=nti3D>hring, +ol& ###, p& '6A 0ng& edn&, pp& "01-8&) a) (he more or le!! !ocial nat%re of the prod%ctive force!. )reating the producti,e %orces in accordance *ith their nature (eans, %irst, recognising the degree of act%al !ociali!ation o% the ,arious producti,e %orces, and then adapting property-%or(s and production-relations (i&e&, the %or(s ta5en by relations bet*een the producers, indi,idually and collecti,ely) to the degree o% socialisation, *hich is constantly increasing, o% the producti,e %orces& #t thus signi%ies recogni!ing certain objective re'%irement! and con%or(ing to the(& Dithout con%or(ing to the( it is not possible to gi,e social direction to the de,elop(ent and utilisation o% the producti,e )he %irst re2uire(ent that has to be (et i% social planning is to be ensured, the (ost %unda(ental re2uire(ent o% all, is that the state should ta5e possession, in the na(e o% society, o% all the (eans o% production and e/change *hich are really social in character& )he (ore or less social character o% a production process and, there%ore, o% the (eans o% production e(ployed in it, is essentially lin5ed *ith t*o types o% e,olutionA (1))he increasingly social origin o% the (eans o% production *hich are set to *or5 in the gi,en production-process; (2) )he increasingly social destination o% the products *hich e(erge %ro( the gi,en production-process& ?y the Hincreasingly social originH o% the (eans o% production set to *or5 in a gi,en production-process is (eant the %act that these (eans o% production co(e %ro( an increasingly large nu(ber o% branches o% the econo(y& )hus, in the beginning, agriculture, %or e/a(ple, is (ore or less sel%-su%%icient; that is, the nu(ber o% (eans o% production o% e/tra-agricultural origin (or, at the le,el o% the agricultural unit o% e/ploitation, co(ing %ro( outside this unit) *hich are e(ployed is ,ery li(ited& #ncreasingly, ho*e,er, agricultural production co(es to depend on (eans o% (ore and (ore di,erse originA tools, (achinery, %uel, electrical e2uip(ent, electric po*er, %ertiliser, insecticides, herbicides, etc& )he sa(e is true in e,ery branch o% industry, starting *ith the e/tracti,e industries and going on to e(brace the trans%or(ati,e industries, and in e,ery unit o% production&

)he increasing socialisation o% the producti,e %orces is thus sho*n in the %act that e,ery branch has recourse to (eans o% production %ro( an e,ergreater ,ariety o% sources& )his process is the other aspect o% the increasing di,ision o% labour and the increasing specialisation o% econo(ic acti,ities& #t is this socialisation o% labour that %or(s the ob7ecti,e basis %or planning and renders it both possible and necessary, o*ing to the increasing interdependence o% the ,arious ele(entary processes o% production& De are no* able to (easure, (ore or less accurately, by (eans o% certain coe%%icients, the degree o% socialisation (%ro( the standpoint 7ust e/plained) o% di%%erent branches o% production in a nu(ber o% countries& For e/a(ple, i% *e consider the use, direct and indirect, o% industrial
(a*e 9%

products by agriculture, *e see that %or a ,alue o% gross production e2ui,alent to 1,000 the consu(ption o% industrial products by agriculture is 61 in #taly, 18&" in France, 88&8 in the =..>, 89&9 in ?ritain and 108&1 in the =.A&910: #n the case o% ,ery ad,anced agricultural units the industrial in-put coe%%icients *ould, o% course, be ,ery (uch higher& )hese percentages are, naturally, a%%ected by the co(parati,e le,els o% industrial and agricultural prices; they are none the less signi%icant, ho*e,er& More detailed analysis o% the industries that contribute to agriculture3s producti,e consu(ption also gi,es interesting results& #t e(erges that, %or a gross production ,alue o% 1,000, A(erican agriculture consu(es '&' products o% the engineering industry, *hile .o,iet agriculture consu(es 21&8; on the other hand, consu(ption o% products o% the che(ical industry is 21&1 in the =nited .tates, and 1&1 in the .o,iet =nion, on the sa(e basis& ?y Hincreasingly social destination o% the productsH is (eant the %act that the products arising %ro( a production-process are destined, generally spea5ing, to be sold to an increasing nu(ber o% users, either directly or indirectly& )his pheno(enon has ,arious aspectsA A& 0ach branch o% production *or5s, either directly or indirectly, %or an increasing nu(ber o% other branches& )his is (erely another side o% the increasing social di,ision o% labour& )hus, the che(ical industry *hich, *hen it appeared as a distinct sphere o% production, *or5ed in the %irst place only %or a s(all nu(ber o% other industries, has progressi,ely e/panded the %ield in *hich its products are used& )oday this %ield is practically uni,ersal& #t ranges %ro( agriculture through the e/tracti,e industries, to the (etal-*or5ing industries (especially in the treat(ent o% (etals), etc& #% *e ta5e indirect %!e! into account, *e see that at the present ti(e e,ery branch o% production is ,irtually *or5ing %or e,ery other branch, and conse2uently %eels the i(pact o% e,ery %luctuation that (ay occur in any sector o% the econo(y&

)o illustrate the e/tent to *hich the products o% one branch o% industry are distributed through the others, it is possible to use other coe%%icients besides the %oregoing& For e/a(ple, one (ay use %or this purpose the coe%%icient o% producti,e utilisationH (in the sense o% inter(ediate consu(ption) o% the products o% the di%%erent branches& #n ter(s o% prices at the point o% production, *e %ind that 6"&6 per cent o% .o,iet agricultural production is destined %or inter(ediate consu(ption, as against 11&" per cent o% A(erican, 6'&6 per cent o% Fungarian and '6&2 per cent o% Cugosla,& For the sa(e purpose o% disco,ering the degree o% socialisation o% production (in the sense o% this *ord no* being considered) *e can e/a(ine the %igures relating to the degree o% utilisation by ,arious industries o% the products o% each industry (see on this point the table on page 8"2 o% the Ler(an translation o% the article (entioned in note 10)& As ?erri and .h,i5o, *rite in this articleA HA co(parison o% the structures o% production, using inter-sectoral balances, enables us to disco,er
(a*e '1

i(portant %eatures in the production-structures o% di%%erent countries, %eatures *hich are deter(ined abo,e all by the degree o% de,elop(ent o% techni2ue and o% the social di,ision o% labour& & & &H (Ibid., pp& 8"2-"&) ?& )he increasingly social destination o% the products is also sho*n in another *ay, *hen *e e/a(ine the !iDe of the comm%nity !erved by a prod%ction3%nit. Dith the ad,ance o% the producti,e %orces this si<e usually (though not necessarily) gro*s larger& )hus, it (ay successi,ely be local, (icro-regional, regional, national or international& )he need %or state o*nership o% certain (eans o% production is all the greater because these (eans o% production are used in acti,ities (or in econo(ic units) *hich are (ore thoroughly integrated in the social di,ision o% labour, either through the ,ery nature o% the (eans o% production e(ployed or through the destination o% the products& b) (he degree of !ociali!ation of the prod%ctive force! and the level! and form! of o#ner!hip of the mean! of prod%ction. Dhile state o*nership or nationalisation is necessary %or social direction o% the producti,e %orces, *here all those (eans o% production are concerned *hich are *ell integrated into the social di,ision o% labour, or *hich ser,e the needs o% a nation-*ide or international co((unity, on the other hand, as a general rule, social o*nership needs to be established at a lo*er le,el in the case o% (eans o% production that are less integrated in the social di,ision o% labour or *hich ser,e the needs o% a co((unity less than nation-*ide in its scope&

Analysis o% the great e/periences o% the building o% socialis( sho*s that these Hlo*er le,els o% social o*nershipH o% certain (eans o% production (ay consist o% o*nership by regional or local organs o% the state po*er, o*nership by local politico-ad(inistrati,e authorities ((unicipal councils, %or instance), or, at a still lo*er le,el, ,arious %or(s o% co-operati,e o*nership& Dhen the socialisation o% the producti,e %orces is ,ery slight, as in s(all peasant holdings *hich are not (echanised, and in handicra%t production, going o,er to social %or(s o% o*nership (nationalisation, establish(ent o% cra%ts(en3s co-operati,es, etc&) (ay, i% it is carried through *ithout substantial technical changes, correspond to no ob7ecti,e econo(ic necessity& Dhen this is so, a decision to (a5e this change cannot help the producti,e %orces to progress, or e,en pro,ide a better (anage(ent or a better current utilisation o% the( (so(eti(es, indeed, as a result o% going o,er to %or(s o% o*nership that do not correspond to the degree o% actual socialisation o% the (eans o% production, a setbac5 *ill be gi,en to the econo(ic e%%iciency *ith *hich these (eans o% production are used)& Dhen decisions ha,e to be ta5en on changes in property-relations, economic criteria are not, of co%r!e, the only one! that have to be ta;en into con!ideration, especially in periods *hen class contradictions are assu(ing acute %or(s& #t (ay be necessary, %or instance, in order to consolidate the social %oundations o% the socialist state, to nationalise (eans o% production *hich, %ro( a strictly econo(ic standpoint, do not call %or nationalisation&
(a*e '1

$olitical needs then ta5e precedence o% econo(ic ones, since the consolidation o% the po*er o% the socialist state is, indeed, the essential condition %or %urther econo(ic achie,e(ents and the guarantee that these achie,e(ents *ill be socialist in character& !n the other hand, it (ust be stressed that nationalisation, or lo*er %or(s o% social o*nership, (ay be indispensable, despite the slight degree to *hich certain (eans o% production are socialised, i% the re'%irement! for f%rther development of the !ociali!t economy are to be met. )his applies in relation to the %ollo*ing proble(sA A& (he problem of rapid introd%ction of ne# techni'%e!, especially in agriculture& $easant holdings do not as a rule o%%er a %a,ourable %ra(e*or5 %or (echanisation or the introduction o% ne* (easures o% agricultural techni2ue& onse2uently, the transition to (odern agriculture (ay re2uire as a preli(inary (easure the introduction o% collecti,e %or(s o% o*nership; these then %or( the indispensable %ra(e*or5 %or the %uture progress o% the producti,e %orces in the direction o% socialis(& De (ust, o% course, e/a(ine closely the concrete %or(s o% collecti,e o*nership *hich are in %act needed in order that certain techni2ues (ay be introduced& )hus, # do not say that collecti,isation o% the land is in e,ery case

the best *ay o% ensuring collective %tili!ation of mechanical mean! of prod%ction. Also in need o% close e/a(ination is the proble( o% the pace o% transition to collecti,e %or(s o% propertyA i% this pace is (uch %aster than that at *hich ne* techni2ues can act%ally be introduced, there is a ris5 o% establishing a 7uridical %ra(e*or5 that *ill long re(ain inappropriate to the nature o% the producti,e %orces& )he negati,e econo(ic conse2uences o% such non-correspondence (ay be nu(erous& ?esides these econo(ic considerations, social and political considerations are ob,iously o% decisi,e i(portance in *hat (ay be seen as the right pace %or going o,er to collecti,e %or(s o% o*nership& A(ong such considerations (ust be (entioned, in particular, the e/tent to *hich these ne* %or(s are accepted by the persons concerned, the e%%ect that a certain pace o% change in propertyrelations *ill ha,e on the balance o% strength bet*een the classes o% society, and so on& )o co(e bac5 to the (ore directly econo(ic aspects o% the proble(, it *ill be obser,ed that better use o% the e/isting (eans o% production, through specialisation and regrouping o% production-units, (ay also be a deter(ining reason %or %ar-reaching changes in %or(s o% o*nership& )his can happen, %or instance, in the case o% transition %ro( indi,idual to co-operati,e production in handicra%ts, or o% replace(ent o% s(all-scale pri,ate capitalist production by (i/ed enterprises, in *hich (eans o% production contributed by the state are associated *ith (eans o% production contributed by pri,ate capitalists& #n other situations, nationalisation (ay be the only *ay to ensure that e/isting (eans o% production are used to the best ad,antage& #n all these cases, the concrete %or(s that (ust be assu(ed by the ne*
(a*e '2

property-relations, and also the procedures %or changing %ro( one %or( o% o*nership to another, and the pace at *hich these ne* property-relations *ill ha,e to be introduced, can only be decided as a result o% ,ery care%ul consideration o% a nu(ber o% econo(ic, social and political %actors& De 5no* that transition %ro( private %or(s o% o*nership to collective %or(s can be ensured by other (ethods besides nationalisation, on the one hand, or %or(ing co-operati,es, on the other& #n %act, the (ethods by *hich the pri,ate sector, and abo,e all the capitalist sector, can, o,er a certain period, be progressi,ely tran!formed into a socialist sector, or absorbed by this sector, are e/tre(ely nu(erous& )he ,arious historical e/periences that ha,e no* been undergone, especially those relating to the di%%erent %or(s o% !tate capitali!m established in hina bet*een 19'9 and 1961, are especially rich, and the cycle o% such e/periences is certainly %ar %ro( co(plete&

#n general, one (ay suppose that the increasing role played by the econo(y o% the socialist countries in *orld econo(y *ill (a5e it possible to %ind %resh and increasingly %le/ible *ays o% trans%or(ing the pri,ate and capitalist sectors and absorbing the( into the socialist sector& ?& (he mobili!ation of a !%fficiently large acc%m%lation f%nd to ensure the %urther de,elop(ent o% the socialist econo(y (ay constitute another reason deter(ining transition at a relati,ely rapid pace to %or(s o% social o*nership that are HaheadH o% the social character o% the (eans o% production& #n a certain nu(ber o% instances, nationalisation or collecti,isation are the only po!!ible #ay! of mobili!ing the economic !%rpl%! that is %or(ed in so(e sectors o% the econo(y& Be,ertheless, i% these changes in property-relations *ould go too %ar beyond the degree to *hich the producti,e %orces are actually social, and i% other *ays o% (obilising the surplus are possible and *ould be (ore e%%icient (such as ta/es, the use o% prices %or redistributing the net product, and e,en loans, etc&), it (ay not be ad,isable to change the propertyrelations too pre(aturely, since, by so doing, one (ay so(eti(es reduce the e%%iciency *ith *hich the (eans o% production are used and so, in the end, reduce the absolute a(ount o% the econo(ic surplus (to such an e/tent that, e,en i% a larger proportion o% it is (obilised, the ab!ol%te amo%nt a,ailable %or social purposes (ay be no greater than be%ore, or (ay e,en be s(aller, despite a possible reduction in the a(ount consu(ed by certain social strata)& & "%ll employment of the labo%r3force (ay also de(and a transition to social %or(s o% o*nership, since this is so(eti(es the only possible %ra(e*or5 %or the de,elop(ent o% collecti,e *or5 and redistribution o% current inco(e in accordance *ith *or5 done& )his *as the reason, on the econo(ic plane, %or the rapid de,elop(ent o% the co-operati,es in hina in 1966-1, and then that o% the people3s co((unes in 1968& #n this *ay the conditions *ere established %or a technical di,ision o% labour that *as (ade both necessary and possible by the presence o% a relative surplus o% agricultural labour-po*er&
(a*e '7

)o conclude these re(ar5s on changes in property-relations, # thin5 it is ,ery i(portant to stress again the %ollo*ing t*o pointsA (1) .ince the producti,e %orces are destined to beco(e (ore and (ore social in character as they progress, it is essential that property-relations and the totality o% society3s 7uridical rules be such as to ensure that it *ill be po!!ible to appropriate the!e prod%ctive force! on an ever higher !ocial plane. Fro( this %ollo*s the great i(portance there (ay be in possibilities %or the (erging o% co-operati,e econo(ic units or the %or(ation o% inter-co-operati,e units (such as, %or e/a(ple, (ergers bet*een collecti,e %ar(s) *hich, %ro( a certain point on*ard, are alone capable o% putting to use the (odern (eans o% production *hich the co-operati,es ha,e in their charge&

Fro( this %ollo*s, abo,e all, the decisi,e i(portance that can attach to state o*nership, e,en o% (eans o% production *hich are not yet %ully social in character, because, as already (entioned, this o*nership prepares the %ra(e*or5 *ithin *hich this social character *ill be able to de,elop %ully, under conditions (uch better adapted than the co-operati,e %ra(e*or5 to the progress o% planning and the e,entual *ithering-a*ay o% the co((odity categories& )he co-operati,e %ra(e*or5, indeed, per(its the sur,i,al, or e,en the strengthening, o% o*nership in certain (eans o% production by relatively !mall gro%p! A and these groups (ay co(e to %or( an obstacle to respect %or overall !ocial intere!t! -- all the (ore seriously the (ore these groups are (ainly econo(ic in character, and the larger they are, controlling considerable resources& )hus, the 2uestion o% progressi,ely raising co-operati,e property to the le,el o% public property, or o% *hat has been called Hproperty o% the people as a *holeH, is a 2uestion that (ust ine,itably arise at a certain stage o% de,elop(ent o% the producti,e %orces& )he *ay this 2uestion can best be handled, *ithout arousing useless social contradictions, is not yet clearly settled& #t is not certain that the (erging together o% collecti,e %ar(s, e,en i% this is desirable at the present ti(e, pro,ides a co(plete ans*er& )he progressi,e (erging o% state organisations and co-operati,e ones in a single production complex (ay, perhaps, be (ore li5ely to %urnish the solution& )he setting-up in the .o,iet =nion o% collecti,e-%ar(-and-state %ar( directorates (ay (ar5 a stage to*ards a solution o% this sort, but it (ust at once be said that this (easure *as not adopted *ith that prospect in (ind, but (erely in order to sol,e certain urgent proble(s o% .o,iet agriculture& Another line along *hich the transition (ay be e%%ected %ro( o*nership by li(ited groups o% producers to public property is perhaps that o% the hinese people3s co((unes& Actually, the people3s co((unes are not e/panded cooperati,es but political and admini!trative organ!, that is, local organ! of the !tate po#er *hich are thus able to trans%or( the(sel,es into local organs o% the national admini!tration of the prod%ctive force!. #n any case, # do not propose, %or the ti(e being, to d*ell at length on the 2uestions *hich arise in this conne/ion& Dhat # *ant to do is to stress
(a*e '9

that contradictions are possible, and in so(e instances ine,itable, bet*een o*nership by a s(all group o% producers and the interests o% the national econo(y as a *hole& A current (ani%estation o% these contradictions can be obser,ed in the sphere o% the state organs3 policy regarding prices to be paid %or the products o% the co-operati,es& )his is a point to *hich # shall ha,e to return&

A parenthesis can be inserted here, pointing out that a proble( si(ilar to that 7ust (entioned (ay also arise *hen right! of di!po!al or control, of a certain !cope, are accorded to econo(ic groups o% li(ited si<e (%or e/a(ple, to the group (ade up o% the *or5ers in a particular %actory), o,er mean! of prod%ction #hich are entirely !ocial or are de!tined to become !%ch fairly '%ic;ly. #n %act, *hen rights o% disposal and control are institutionalised in %a,our o% a li(ited group o% producers (as, %or e/a(ple, *hen a group li5e this is gi,en po*er to decide *hat it *ill produce, *hat it *ill in,est, the prices at *hich it *ill sell, the a(ount o% inco(e it *ill consu(e, and so on), such rights can gi,e rise to the e'%ivalent o% a 5ind o% o*nership by this li(ited group, e,en though, in theory, the (eans o% production o,er *hich these rights are e/ercised are public property& De (ust 5eep this proble( in (ind *hen *e approach the 2uestion o% councils o% (anage(ent (notably as these e/ist in Cugosla,ia) or other %or(s o% organisation *hich (ay engender a ne* contradiction bet*een the social character o% certain (eans o% production (*hich result %ro( the *or5 o% (any branches o% social production and the products o% *hich are in turn destined %or a great ,ariety o% branches o% social production), and the rights o% disposal and control o,er these (eans o% production accorded to the *or5ers (that is to say, the li(ited groups) *ho ha,e to operate the(& #t (ust be obser,ed at this point that, *ith the progress o% auto(ation and o% electronic techni2ues, it can happen that (eans o% production *hich represent a substantial a(ount o% !ocial labour are operated by an e/tre(ely s(all group o% *or5ers& (2) !n the other hand (and this is the second point to *hich *e ha,e to return), *hile it is o%ten necessary to establish %or(s o% o*nership *hich HanticipateH to a substantial degree the co(pletely social character, not yet actually realised, o% certain producti,e %orces (in order to ensure the de,elop(ent o% these %orces, or to ensure the socialist character o% econo(ic de,elop(ent and thus to (a5e easier the (obilisation o% the econo(ic surplus, etc&), it re(ains none the less true that the result o% doing this (ay be a certain non3corre!pondence bet#een the form! of property and their content, in so %ar as producti,e %orces *hich are still not %ully social ha,e been ta5en o,er either by a group or by the state, in the na(e o% society& )his last point alone re2uires a %airly detailed analysis& At %irst glance, at least, such an analysis (ust deal *ith the proble(s o% internal organisation o% the socialist sector belonging to the state& Actually, these 2uestions go beyond (ere proble(s o% organisation& )hey relate to the real prod%ction3relation!, to the nature o% the economic !%bject!
(a*e ''

*hich together (a5e up the socialist sector belonging to the state, and they thus oblige us to consider once (ore, %ro( a di%%erent angle, the proble( o% the role played by the co((odity categories *ithin socialist society, at a gi,en stage o% its construction or o% its de,elop(ent& De thus co(e bac5 to the proble(s *e raised earlier, about the nature o% the relations established bet*een the producers, or the groups o% producers (*hich constitutes the %unda(ental aspect o% the production-relations),911: and about the nature o% the econo(ic and 7uridical sub7ects *ithin the socialist sector belonging to the state& ' (he prod%ction3relation! #ithin the !tate !ector of the !ociali!t economy At a certain degree o% de,elop(ent o% the producti,e %orces and the (aturation o% their social character, the relations bet*een the di%%erent production-units cease to be capable o% establishing the(sel,es on a day-today basis, *ith the co(pletion o% certain production-operations (as still happens today in (any sectors o% production)& )hence%orth, these relations ha,e either to be predeter(ined, in essentials at least, and there%ore concei,ed in ad,ance and regulated by a plan, or else deter(ined currently by a !ocial deci!ion3ma;ing centre. #n either e,ent, it is no longer necessary or e,en possible %or the productionunits to establish (erely direct but irregular inter-relationships (through *hich the social character o% the labour per%or(ed *ithin each o% the( (ani%ests itsel%)& >elationships bet*een production-units (ust hence%orth be either predeter(ined, in *hich case they *ill be regulated in ad,ance by the plan, or else decided and progra((ed at so(e le,el *hich is higher than the production-units the(sel,es& )he latter thus beco(e cells in a technical divi!ion o% labour& 0ither *ay, the *or5 done *ithin each production-unit can assu(e a directly social character, in the sense that it corresponds, at the ,ery (o(ent *hen it is per%or(ed, to a social need the di(ensions o% *hich ha,e really been calculated in ad,ance& Dhen this is so, the de!tination of the prod%ct! i! predetermined in a !ocially3con!cio%! #ay. )he Hproduction-unitsH are no* no longer anything (ore than technical organs o% the di,ision o% labour; they are no longer centres o% econo(ic decision-(a5ing& #n other *ords, the technical di,ision o% labour has been raised to a higher le,el& Dhen, on the other hand, this is not so, the ,arious production-units continue to pro,ide products the destination and utilisation o% *hich are deter(ined in ad,ance only *ith a rather large ele(ent o% uncertainty& )his is *hat (a5es it necessary to allo* these production-units a certain a(ount o% %reedo( to (anoeu,re& )his H%reedo( o% (anoeu,reH is, in %act, only the other side o% an inade'%ate degree of !ocial foreca!ting. #t e/presses the de facto

inability o% society, or o% its organs, to regulate the #hole o% social production HconsciouslyH& As # ha,e already indicated, it is this situation that, in (y ,ie*, e/plains the necessary sur,i,al, throughout an entire period, o% the co((odity
(a*e '+

categories, and the e/istence o% di!tinct economic !%bject! e,en *ithin the state sector o% the socialist econo(y& ?e%ore analysing (ore closely the bearing o% the %acts (entioned abo,e, and the ob7ecti,e conditions %or the( to disappear, *e (ust thro* light on the e/istence, in the socialist econo(ies o% today, o% three categories o% pheno(ena *hich see(, as it *ere, to presage or announce be%orehand the *ays in *hich econo(ic sub7ects possessing a certain a(ount o% autono(y *ill ,anish %ro( the scene& a) Planned obligation! to b%y and to !ell. )he %irst o% these pheno(ena is to be %ound on the plane o% planning itsel%& #t (a5es its appearance *hen the econo(ic plan does not restrict itsel% to %i/ing the production target! *hich ha,e to be reached by the ,arious branches o% the econo(y or the ,arious production-units, but lays do*n %or each enterprise not (erely the 2uantitati,e and 2ualitati,e detail o% the production tas5s to be %ul%illed but also, and abo,e all, its sources o% supply and the destination o% its products& )his latter practice is ,ery *idespread in the .o,iet =nion and in the socialist countries o% 0urope& Dhere it pre,ails, it reduces the part played by contracts bet*een enterprises to that o% e/ecuti,e instru(ents o% a plan %or allotting products, or that o% gi,ing concrete %or( to certain (inor aspects o% the obligations laid do*n by the plan&912: #n reality, it see(s to (e, this practice can (ean t*o opposite thingsA (1) #n so(e instances, this practice results %ro( a situation o% co(parati,e shortage, i&e&, o% a poor ad7ust(ent bet*een resources and needs& #n that sort o% situation, the total a(ount o% de(and pressing upon current production, as e/pressed by the using enterprises (*hether producti,e or trading enterprises (atters little) at the gi,en price-le,el, and gi,en their %inancial resources and the tas5s they ha,e to carry out, *ould tend to e/ceed supply& Dhen this is so, and i%, %or so(e reason or other, no change is (ade in any o% the %actors (entioned abo,e (price-le,el, a(ount o% %inancial resources, scope o% tas5s to be carried out), an admini!trative !hare3o%t is una,oidable& )his sharing-out o% the products by ad(inistrati,e (ethods (ay be pro,ided %or in the plan or it (ay be e%%ected by ad(inistrati,e decisions *hich are distinct %ro( the plan in the strict sense, though ta5en in pursuance o% it&

Dhate,er the procedure %ollo*ed, the application o% an ad(inistrati,e share-out reduces to the (ini(u( the H%reedo( o% (anoeu,reH o% the production-units and also reduces to s(all i(portance the practical bearing o% the contracts (ade bet*een these units& Be,ertheless, a situation li5e this, *hich itsel% results %ro( a state o% co(parati,e shortage, cannot be seen as presaging the disappearance o% econo(ic sub7ects endo*ed *ith a certain degree o% autono(y and the correlati,e disappearance o% the co((odity categories& )his situation is not the conse2uence o% an abundant and har(onious increase in the producti,e %orces but, on the contrary, o% a still *ea5 and insu%%iciently har(onious de,elop(ent o% these %orces& (2) #n other instances, contrari*ise, centralised sharing-out o% certain
(a*e '&

products does not re%lect the inade2uacy o% the a(ount o% these products a,ailable, but results %ro( the %act that only one central authority is in a position to esti(ate ho# to en!%re the be!t !ocial %tili!ation of the prod%ct! %nder con!ideration. !ne can cite as e/a(ples o% such cases the centralised allocation o% in,est(ent resources and o% certain capital goods, *hen this allocation can be done opti(ally only by ta5ing into account a *ide range o% %actors, such as the f%t%re pace o% de,elop(ent o% the ,arious production-units (so(e o% *hich (ay belong to an e/tre(ely *ide ,ariety o% branches o% production)& Another e/a(ple is that o% the calculations re2uired %or the opti(u( !patial arrange(ent o% the production-units to be set up& )he part to be played by a central authority beco(es decisi,e as soon as it is necessary to ta5e into account %actors *hich are beyond the econo(ic Hhori<onH o% each productionunit ta5en separately and *hich there%ore cannot be included in econo(ic calculations carried out at the le,el o% one isolated unit& Dhen this is so, a situation really e/ists in *hich the co((odity categories and the relati,e autono(y o% the production-units ha,e ceased (at least so %ar as the operations under consideration are concerned) to be ade2uate instru(ents %or e/pressing !ocial need!, e,en indirectly& #n such a situation, the needs are, and can only be, grasped directly and e/pressed *ithout recourse to co((odity categories& All the sa(e, one (ay as5 *hether, in a case li5e this, recourse to the ad(inistrati,e share-out is really the (ost appropriate (ethod o% allot(ent, or *hether it (ay not rather (ean that practices dating %ro( a situation o% shortage are being applied to a di%%erent situation& )here are, in %act, other #ay! of effecting a centrali!ed allotment be!ide! the p%rely admini!trative #ay. )hese *ays are less rigid than the latter and they are, (oreo,er, o%ten actually used& Dithout *ishing to (a5e too (uch o% this aspect o% the (atter, # thin5 it (ay be use%ul to note the %ollo*ing pointsA

A centralised allot(ent o% certain (eans o% production can be acco(plished, %or e/a(ple, by setting up a central office for b%ying and !elling all products o% a certain 5ind& entralised allot(ent by this (ethod can be econo(ic rather than ad(inistrati,e& )hus, the central o%%ice %or buying and selling can be entrusted, under the plan, *ithA (1) on,eying orders to the ,arious production-units %or the goods *hich the central o%%ice has to HallotH, these orders being con,eyed in accordance *ith the plan, as regards both speci%ications and deli,ery dates; *hile, on the other hand, (2) )he production-units *hich, under the plan, *ill ha,e to use the products in 2uestion, send their orders %or these products to the central o%%ice& )he central o%%ice can thus 5eep a clear running account o% the actual allot(ent o% the products %or *hich it is responsible and, i% necessary, can (odi%y the priority in *hich the users *ill recei,e the goods they ha,e ordered, so as to allo* %or the actual *ay the situation is e,ol,ing, and
(a*e ',

especially %or the real capacity o% each particular user to instal a gi,en piece o% e2uip(ent at a gi,en (o(ent& #n this *ay the direct lin5 that *ould other*ise be established bet*een a particular supplier and a particular user can be bro5en& A direct lin5 o% this 5ind, though it o%%ers great ad,antages in so(e cases (%i/ing o% responsibility on de%inite persons, adaptation o% the 2uality o% the products to the users3 re2uire(ents, etc&), (ay also o%%er serious incon,eniences %ro( the standpoint o% social super,ision o% the allot(ent and use o% a certain nu(ber o% products& )his type o% direct lin5 (ay, in particular, result in a user *ho should ha,e been gi,en priority ha,ing to put up *ith delays due to the %act that his supplier has (ade a 2uic5er deli,ery to another user& .i(ilarly, this type o% direct lin5 (ay result in a supplier honouring his contract by despatching e2uip(ent to a user *ho is, in practice, not in a position to instal this e2uip(ent %orth*ith& )he e/istence o% central o%%ices %or buying and selling does not necessarily (ean, o% course, that these o%%ices the(sel,es ha,e to ta5e deli,ery o% the actual products they allotA so(eti(es this (ay occur, but so(eti(es the o%%ices (ay con%ine the(sel,es, at *hate,er ti(e they choose, and ta5ing all the circu(stances into account, to instructing a particular production unit *ith *hich a contract has been (ade to supply certain products to a particular using unit&91": +eri%ication o% the 2uality o% the goods deli,ered can then be ensured by the central o%%ice *hich is responsible to the user %or this 2uality as *ell as %or the honouring o% deli,ery-dates and speci%ications& Re!pect for the norm! of allotment #hich have been laid do#n centrally (ay also be ensured through the inter,ention o% the ban5ing syste(& )his is

done by assigning to each production-unit *hich uses certain products credit! that cannot be %!ed except for obtaining the!e prod%ct!. Dhen this is done, the using enterprises can obtain those goods co,ered by this credit3appropriation syste( only *ithin the li(its o% the credits assigned to the( %or this purpose& )his a(ounts to te(porarily depri,ing part o% the (oney in circulation o% its role as uni,ersal e2ui,alent& (#t is to be obser,ed that, in any case, the role o% (oney as uni,ersal e2ui,alent is played only to a greatly reduced e/tent inside the socialist state sector as it operates in the .o,iet =nion, o*ing to the %act that use o% the circulating %unds held in (oney %or( by the di%%erent enterprises is subordinated to the actual re2uire(ents o% the econo(ic plan&) )hrough the (echanis( o% Hcredit-appropriationsH the ban5ing syste( is used as an instru(ent %or carrying out in a relati,ely %le/ible *ay a plan %or the allot(ent o% certain products *hich has been dra*n up centrally& #n this case, ho*e,er, the using enterprise can choose its o*n supplier and %i/ the deli,ery date it *ants, and also, perhaps, speci%y so(e other points in conne/ion *ith the order it places& #n so(e circu(stances the e/istence o% such %reedo( o% choice %or the using enterprises (ay be essential %or e%%icient (anage(ent o% the econo(y& Dhen such %reedo( o% choice is needed, but a centralised (ethod o% allot(ent is arbitrarily i(posed instead (the producti,e %orces not yet
(a*e '%

ready %or such a (ethod), the conse2uence (ay be a ,eritable s2uandering o% resourcesA products arri,ing too soon or too late at the using enterprises (*hich ha,e no *ay o% either re%using to accept products sent the( by a central ad(inistration or hastening the despatch o% goods %ro( the centre), (ista5es in speci%ications, and so on& #t (ay be noted that the ban5ing syste( can be used as agent %or super,ising the e/ecution o% a plan o% allot(ent dra*n up centrally but carried out in a %le/ible (anner, e,en *hen relati,ely scarce products are being allotted& )his is a (ethod *hich can be ,ery (uch superior, through its ,ery %le/ibility, to a purely ad(inistrati,e (ethod& #t does in %act (a5e possible, *ithout recourse to price-(anipulations (*hich in so(e cases *ould be ine%%ecti,e), the ad7ust(ent o% total de(and to total supply& )o illustrate the %oregoing, let (e ta5e as an e/a(ple a country *here, o,er a certain period, the de(and %or %ertiliser has sho*n a spontaneous tendency to e/ceed supply (the latter being restricted by capacities %or production and i(port)& )he de(and could be restricted by se,eral di%%erent (ethodsA (1) ?y decisions ta5en on the plane o% the co((odity categories; %or e/a(ple, by raising the prices at *hich the %ertilisers are sold to the using units&

Fro( a *rongly abstract ,ie* o% things, this *ould Hal*aysH be the econo(ically (ost e%%ecti,e (ethod, %or it *ould restrict the use o% %ertilisers to those users alone *ho *ere capable o% getting the (a/i(u( increase o% production %ro( the( (i&e&, using pro%itably e,en ,ery e/pensi,e %ertilisers)& Actually, this is not necessarily so, %or the users are %ar %ro( al*ays capable o% foreca!ting in a serious *ay the increase in yield and receipts they can obtain through using a gi,en 2uantity o% %ertiliser& =nder these conditions, a rise in the price o% %ertilisers *ill restrict the de(and %ro( units (anaged by the (ost cautious or (ost ti(id ad(inistrators, *hile ha,ing little e%%ect on the de(and %ro( those *ho do not *orry (uch about pro%itability& A (ore e%%icient use o% %ertilisers *ill thus not ha,e been achie,ed, and, (oreo,er, it (ay pro,e necessary, in order to restrict de(and su%%iciently, to raise prices to le,els ha,ing no proportion any longer to production-costs& )his (ay happen at the beginning o% a period o% accelerated de,elop(ent, *hen a substantial section o% the HcadresH are still lac5ing in any ,ery precise notion o% econo(ic calculation and the conditions in *hich it can be underta5en& (2) ?y adopting a centralised allot(ent procedure *hich is nonad(inistrati,e, i&e&, *hich is technico-econo(ic in character& #n this case, %or e/a(ple, each production-unit *ill be assigned (on the basis o% a (ore or less *ell-%ounded esti(ate, econo(ic and technical, such as could be (ade by a regional (anage(ent centre or an agrotechnical ser,ice *hich had studied the increases in yield obtained during a recent period in di%%erent production-units as a result o% their use o% %ertiliser) credits specially HappropriatedH to the purchase o% %ertilisers, and this under conditions such that the total a(ount o% these credits is e2ual to the total ,alue o% the
(a*e +1

%ertilisers distributed, at the prices at *hich they are supplied to the using enterprises& (") ?y adopting an ad(inistrati,e (ethod o% allot(ent& #n this case, %or e/a(ple, each production-unit *ill be re2uired to present a de(and in ad,ance to an ad(inistrati,e authority& )he latter, a%ter e/a(ining these de(ands, *ill assign a gi,en a(ount o% %ertiliser to each production-unit& )his procedure can be e%%ecti,e only i% the ad(inistration in charge o% allot(ent possesses su%%icient technical 5no*ledge to ensure the opti(u( allot(ent and i% it is in a position to respond rapidly to the de(ands it recei,es& #%, ho*e,er, this is not the case, in other *ords, i% allot(ent is not ensured by a co(petent technical organ but by a bureaucratic apparatus, it is li5ely that ad(inistrati,e se(i-paralysis *ill result, *ith a (ultiplicity o% authorities bearing responsibility %or (a5ing decisions& )hus, in uba in 196", de(ands %or %ertiliser had to go through se,en or eight ad(inistrati,e authorities, and the latter (ight ta5e ele,en (onths to respond to the de(ands they recei,ed& Baturally, replies (ade in this *ay, a%ter consultation *ith ,arious authorities *hich *ere o%ten re(ote %ro( the using units, (ight, *hen they ca(e, no longer bear any relation to the ob7ecti,e needs o% these units&

#n the ,arious instances in *hich the allot(ent o% products no longer depends on the users3 choice, *hether because o% HshortageH or %or reasons connected *ith the stri,ing %or opti(u( social allot(ent o% certain products, 91': *e see, instead o% the allot(ent o% resources by *ay o% the (ar5et (a (ethod o% allot(ent *hich (ay sur,i,e, to a certain e/tent, e,en inside the socialist sector, *ithin the li(its laid do*n by the plan, so that this (ar5et is no longer a H%reeH (ar5et but one *hich is under social control), either a technico-econo(ic (ethod o% allot(ent or else an ad(inistrati,e one& #n either o% these t*o instances, the role played by the co((odity categories is blunted, together *ith that o% the relati,e autono(y o% the production-units& )he lin5 bet*een these t*o pheno(ena is thus once again con%ir(ed, *hile the conditions %or their departure %ro( history are (ade apparent, na(elyA the appearance o% the possibility and necessity o% e%%ecti,e social %orecasting calculations, that is, o% calculations *hich can co,er not (erely the total '%antitie! o% the ,arious products to be supplied during a certain period, but also the '%alitie! that these products (ust possess and the place and time %or their best utilisation& Fo*e,er, as already said, the cases # ha,e (entioned %or( only one o% the categories o% pheno(ena that presage the disappearance o% econo(ic sub7ects endo*ed *ith a certain degree o% autono(y, and so also the disappearance o% co((odity categories as these still (ani%est the(sel,es *ithin the state sector o% the socialist econo(y& b) $entrali!ed economic management of certain branche! of prod%ction. )he possibility o% e%%ecti,e econo(ic calculation on a relati,ely high social plane, as contrasted *ith econo(ic calculation on the plane o% a productionunit, is no* appearing in certain branches o% the econo(y& )his
(a*e +1

is true o% the branches that supply products that are ho(ogeneous or that can be brought under precise speci%ication, especially *here these products co(e from prod%ction3%nit! #hich are organically interlin;ed. #n such cases the ,arious production-units can be sub7ected to (anage(ent *hich is largely or e,en *holly centralised and e%%ected by electronic (eans& )his centralised (anage(ent, carried out on a technico-econo(ic (and so non-ad(inistrati,e) basis %or(s one o% the *ays in *hich the co((odity categories *ither a*ay& )he (ost substantial e/a(ples o% an e,olution o% this 5ind are pro,ided by the centralised (anage(ent o% a net*or5 o% interconnected electric po*er stations, li5e that *hich operates in the 0uropean part o% the .o,iet =nion, or that *hich has been organised bet*een the electric po*er stations o% $oland, the Ler(an 4e(ocratic >epublic, <echoslo,a5ia and Fungary& #n these t*o cases, a central electronic (achine operates in conne/ion *ith a dispatching (echanis( *hich regulates the acti,ity o% the ,arious stations& At any gi,en (o(ent the acti,ity o% each production-unit is thus directly deter(ined by

socially recognised needs, *ithin the %ra(e*or5 o% an opti(u( econo(ic (anage(ent o% the net*or5& =nder present-day conditions, this does not (ean that on the plane o% the (ode o% HrecognitionH o% social needs the co((odity categories ha,e already disappeared one hundred per cent& #n %act, the price! at *hich the po*er is sold to consu(ers, in particular to %actories using electricity, (ay be one o% the %actors deter(ining the de(and %or po*er& Fo*e,er, as these prices are the(sel,es %i/ed socially, they (ay, in principle, be such that de(and is deter(ined, as a *hole and in its structure, by socially recognised needs& Actually, the price (echanis( and the beha,iour o% the econo(ic agents and the consu(ers are not yet so thoroughly under control that the structure o% de(and is *holly identical *ith the structure o% *hat *ould be socially recognised needs& #t (ay be supposed that *hen a social authority is really in a position to decide *ith precision the di(ensions o% the ,arious social needs, it *ill no longer be necessary to e(ploy the price(echanis( in order to ensure that these needs are correctly satis%ied& )hough the case o% the centralised (anage(ent o% a group o% electric po*er stations %or(s the (ost substantial e/a(ple o% the disappearance o% the relati,e autono(y o% the separate technical production-units, it is not the only one& )he centralised econo(ic (anage(ent o% a group o% oil re%ineries or o% a par5 o% rail*ay-truc5s and loco(oti,es, on the scale o% an entire country, pro,ide other instances o% (anage(ent o% a large nu(ber o% technical units (re%ineries, rail*ay-stations, (arshalling-yards, etc&) *hich ha,e no econo(ic autono(y (precisely because this *ould pre,ent e%%icient (anage(ent) or *hich ha,e lost part o% this autono(y and so do not ta5e part, %ro( this point o% ,ie*, in co((odity e/change& )hese units cease, in %act, to participate in co((odity e/change as soon as the products they need are delivered to the( as a result o% calculations (ade centrally (e,en i%, be%ore a deli,ery is %inally decided on, the production-units are consulted
(a*e +2

by the central authority on the opportuneness o% this deli,ery) and the products they !%pply are also go,erned by allot(ent instructions& #n such cases there is no longer buying and selling but, instead, circulation o% products and currency to5ens&916: !% course, *hen products are supplied %ree o% charge by a central authority to production-units dependent upon it, but continue to be HpurchasedH by this central authority, it is only the le,el at *hich co((odity e/change is ta5ing place that has been shi%ted& .uch a change o% le,el (ay, ho*e,er, be o% considerable i(portance, and this %or se,eral reasons, o% *hich # *ill (ention here only those that see( to (e the (a7or onesA (1) )he change in the le,el at *hich co((odity e/change ta5es place can result in a reduction, so(eti(es a drastic one, in the nu(ber o% participants in

these e/changes *ithin the state sector o% the socialist econo(y& Dhen the '%antitative change reaches a certain scale, it has a '%alitative signi%icanceA it (eans, in %act, a considerable reduction in the social i(portance o% the co((odity categories& #n particular, #hen in a given branch of activity only one economic !%bject i! left, this can (ean that econo(ic calculation is hence%orth carried on only on the plane o% that branch, and no longer belo* that plane& (2) A change li5e this in the le,el o% participation in co((odity e/change can (a5e possible an e/tre(ely e/act ex po!t calculation o% the 2uantities o% labour act%ally e/pended per production-unit& )his calculation is then, indeed, (uch easier than that *hich can be carried out *hen there are a considerable nu(ber o% econo(ic sub7ects in being, all supplying the sa(e sort o% products, but the(sel,es supplied under conditions *hich are ,arious and hard to ascertain& (") A change o% le,el li5e this also (a5es it possible to cause the labour ti(e actually e/pended to coincide (ore and (ore closely *ith *hat is !ocially nece!!ary %or the satis%action o% social needs& Dhen, in %act, a gi,en product, or category o% products, is supplied by a !ingle economic !%bject and, on the other hand, the ob7ecti,e conditions are present %or this econo(ic sub7ect really to dominate the acti,ity o% the technical units *hich are subordinated to it, this econo(ic sub7ect can (a5e optim%m use o% the production-capacity o% the subordinate technical units, to such a degree that it can be said that the labour act%ally expended is ,irtually e2ual to that *hich is !ocially nece!!ary. )his presupposes, o% course, a de,elop(ent o% the producti,e %orces such that the do(ination o% a single econo(ic sub7ect o,er the ,arious technical units subordinate to it is a real and not (erely an apparent do(ination, li5e that, %or e/a(ple, *e see in the case o% a bureaucratic ad(inistrati,e Hdo(inationH& Actually, this latter type o% Hdo(inationH, 7ust because it is not %ounded upon genuine econo(ic integration, leads to the ta5ing o% arbitrary decisions *hich are the result o% una,oidable ignorance o% the concrete conditions in *hich the ,arious subordinate units operate and the re2uire(ents that %ollo* %ro( these&
(a*e +7

Any atte(pt by a purely ad(inistrati,e authority to Hdo(inateH the acti,ity o% production-units *hich are not really and organically inter-connected can result only in (isuse o% the producti,e %orces and there%ore in s2uandering the labour-ti(e re2uired in order to obtain a certain ,olu(e o% production& #n such cases the labour-ti(e actually e/pended is greater than *hat is sociallynecessary, in conse2uence o% bad organisation, that is, o% lac5 o% correspondence bet*een 7uridical relations and real production relations&

(') Finally, and (ost i(portant, the appearance o% a single econo(ic sub7ect at the le,el o% a certain nu(ber o% i(portant branches o% production (a5es possible !ocial foreca!ting calc%lation *hich is (uch (ore e/act than *hat can be acco(plished *hen a (ultitude o% production-units e/ist& )hrough a de,elop(ent li5e this *e can see the ob7ecti,e conditions co(ing about %or a 5ind o% planning *hich is no longer restricted to gi,ing social direction to the producti,e %orces (*hich *as already a decisi,e change as co(pared *ith a (ar5et econo(y, since it represented a leap %ro( the real( o% necessity into that o% %reedo(, as 0ngels puts it), but *hich a(ounts, to an e,er-increasing e/tent, to total social control o% the producti,e %orces& are (ust be ta5en, though, and this needs repeating, that the appearance o% a single econo(ic sub7ect at the le,el o% a branch o% the national econo(y is based upon the realisation o% 2uite de%inite objective conditions (to *hich # shall co(e bac5 again *hen # analyse the concept o% Hecono(ic sub7ectH)& #% one tried to anticipate these ob7ecti,e conditions by setting up a 7uridical sub7ect *hich does not correspond to an econo(ic sub7ect, then, %ar %ro( causing the conditions to arise %or control o% the producti,e %orces, the ris5 *ould be run o% losing e,en the (eans o% gi,ing the( direction& #n this case, indeed, one *ould be trying to establish the le,el at *hich econo(ic decisions are ta5en else*here than *here there is act%al ;no#ledge both o% the conditions under *hich these decisions can be applied and o% the concrete conse2uences *hich can result %ro( these decisions& )hus, instead o% establishing an organisation capable o% acting consciously, there *ould ha,e been established one doo(ed to act, to so(e e/tent at least, blindly& Fa,ing said this, it is ob,ious (as # ha,e already pointed out in another conte/t) that so(e 7uridical steps (ay, pro,ided they are acco(panied, or %ollo*ed, by ade'%ate technical change!, create conditions *hich can hasten, in a socially satis%actory *ay, a reduction in the nu(ber o% econo(ic sub7ects, and thus also in the sphere o% operation o% the co((odity categories& As a general rule, ho*e,er, the ta5ing o% 7uridical steps, *hich can speed up a reduction in the nu(ber o% econo(ic sub7ects does not (ean the establish(ent o% a single state enterprise at the le,el o% an entire branch o% production before the objective condition! for thi! are pre!ent. #n uba, %or e/a(ple, in the Ministry o% #ndustries, the setting-up o% H onsolidadosH, each (anaging an entire branch o% industry, has gi,en only indi%%erent
(a*e +9

results in e,ery case *here the conditions *ere not present %or a large nu(ber o% units to be (anaged %ro( a single decision-(a5ing centre o% an econo(ic 5ind& .i(ilarly, the po*ers o% intervention in the (anage(ent o% production units *hich *ere accorded at one ti(e to the ,oviet tr%!t! or to the hie% Ad(inistrations o% the Ministries (Lla,5i) ,ery o%ten had har(%ul conse2uences %or good econo(ic (anage(ent, at least *hene,er the objective

condition! *ere not ripe %or this centralised (anage(ent or this central inter,ention in the current (anage(ent o% the enterprises as a real possibility and an econo(ic necessity, and not a (ere ad(inistrati,e (easure&916: A (ethod *hich, in so(e cases, (ay lead to a progressi,e reduction in the nu(ber o% econo(ic sub7ects is the establish(ent, at the le,el o% each branch (on the national or the regional scale, depending on the particular case) o% a central o%%ice %or selling the products o% this branch&911: At an initial stage, an organ o% this 5ind (ay restrict itsel% to centralising all orders %or the products o% the gi,en branch and allotting the %ul%il(ent o% these orders a(ong di%%erent production-units, ta5ing into account their productioncapacity, their labour-costs, their costs o% production, their location, and so on& #n order to carry out a tas5 li5e this in a socially use%ul *ay, that is, nonbureaucratically, such a central o%%ice (ust not be set up until conditions are present *hich enable this central o%%ice really to ;no# the characteristics o% the di%%erent production-units to *hich it sends orders, and the circu(stances in *hich these orders *ill be %ul%illed& #n practice, this presupposes either that there are only a s(all nu(ber o% co(parati,ely ho(ogeneous units918: or that there are centralised (eans o% electronic recording and calculation, that is to say, generally spea5ing, a le,el o% de,elop(ent o% the producti,e %orces *hich is already high& Dhen this is not so, the pre(ature introduction o% a %or( o% integration, e,en o% the sort 7ust (entioned, instead o% playing a use%ul econo(ic role, is (erely ad(inistrati,e in signi%icance and, %ar %ro( contributing to the concentration of re!pon!ibilitie! and decisions, causes the( to be dissipated in a bureaucratic ad(inistration& )his (ay render econo(ic calculations ,ery di%%icult or e,en i(possible, as happens, %or e/a(ple, *hen the %inancial autono(y o% the production-units is arbitrarily abolished or restricted& !n the other hand, ho*e,er, *hen central sales o%%ices ha,e been set up on sound technical %oundations, they (ay beco(e, %ro( a certain (o(ent on*ard, that is, on the basis o% %urther progress o% the producti,e %orces, centres %or the supply o% ra* (aterials or inter(ediate products to the units *hose acti,ity they co-ordinate& )hey (ay then beco(e progressi,ely trans%or(ed into management centre!. )he production-units they (anage (ay e,entually cease to be econo(ic sub7ects and beco(e nothing (ore than Htechnical depart(entsH o% an integrated co(ple/ econo(ic group& #% this happens, *e ha,e be%ore us a type o% f%nctional centrali!ation *hich is pro%oundly di%%erent %ro( b%rea%cratic centrali!ation. )his %unctional centralisation (ay, ho*e,er, lea,e, so
(a*e +'

%ar as certain decisions are concerned, a relati,ely *ide sphere o% initiati,e to the ,arious H*or5ing groupsH or Htechnical depart(entsH that (a5e up this

integrated co(ple/ econo(ic group& )his too is a proble( to *hich # shall co(e bac5& )his, then, appears to be one o% the lines along *hich the disappearance o% the co((odity categories %ro( *ithin the state sector o% the socialist econo(y (ay be prepared& )his line is analogous to Hhori<ontal concentrationH in the capitalist econo(y&919: Another line along *hich the progressi,e disappearance o% the co((odity categories can ta5e place is that o% ,ertical integration, also so(eti(es called H,ertical concentrationH& c) 9ertical integration of economic activitie!. )he socialisation o% the producti,e %orces de,elops in a co(ple/ *ay& #t i(plies that e,ery branch o% acti,ity depends to an e,er-increasing e/tent on all the others %or its %unctioning and that, reciprocally, the products o% e,ery branch are destined (directly and indirectly) to an e,er-increasing e/tent %or all the other branches, or %or the national or international collecti,ity& 0ach o% the branches thus %inds itsel% in,ol,ed in a (ore and (ore e/tensi,e and di,ersi%ied H*ebH o% relations *ith other branches& =nderlying a course o% de,elop(ent li5e this is a constant intensi%ication o% the di,ision o% labour& )o this corresponds, (ore o%ten than not, an increasingly thorough !peciali!ation o% each production-unit& )his specialisation, ho*e,er, (ay entail, depending on its degree and %or(, t*o apparently contradictory types o% conse2uence& !ne o% these (ay be that an econo(ic sub7ect, or e,en a single physical production-unit (say, a %actory), e,entually co(es to (eet the needs o% a large collecti,ity o% consu(ers, *hether this is a (atter o% ulti(ate consu(ption or o% producti,e consu(ption (and it is abo,e all in the production o% e2uip(ent that specialisation can be carried so %ar that, e,en on the *orld scale, a !ingle prod%ction3%nit is able to supply all o% a certain type o% e2uip(entA this is so, %or e/a(ple, in the %ield o% the production o% certain electronic aggregates, certain rotary printing-presses, loco(oti,es, aeroplanes, etc&)& #n this case, a single econo(ic sub7ect thus supplies products to a large nu(ber o% consu(ers& Another conse2uence o% specialisation can be, on the contrary, that a physical production-unit specialises to the point that it is (eeting the needs o% a !ingle %!er only, that is, o% one other physical production-unit&920: Dhen this happens, *e ha,e integration of the activity of the fir!t %nit into the activity of the !econd. )hence%orth it *ill be the latter that *ill co(pletely decide the ,olu(e and characteristics o% the %or(er3s production, so that it tends no longer to be an autono(ous econo(ic sub7ect& #t beco(es increasingly a technical department o% an integrated gro%p *hich transcends it& At a certain (o(ent, *hen the integrated group belongs to a single o*ner, the products co(ing %ro( the units Hup-strea(H no longer ha,e to be sold, they %lo* do*n

to*ards the using depart(ent& )he sphere o% operation o% the co((odity categories is thus reduced&
(a*e ++

)he %or(ula o% the .o,iet Hco(bineH pro,ides an e/a(ple o% a process o% ,ertical integration li5e this& #n another %or(, the ,ovnar;hoDy tend to*ards %le/ible (ethods o% integration, *hen they achie,e organic co3operation bet*een co(ple(entary production-units under their authority& +ertical integration, as is *ell 5no*n, ta5es place on a large scale in capitalist econo(y& #t goes on in all branches o% industry ((otor-cars, steel*or5s integrated *ith (ining, che(icals, and so on)& )his process is no* spreading to agriculture, and is tending to trans%or( in a %ar-reaching *ay the relations bet*een agriculture and industry& #nside capitalist agriculture e/a(ples beco(e (ore and (ore plenti%ul o% stoc5-raising units (especially in poultry-%ar(ing) *hich, Hup-strea(H, integrate the breeding o% the ani(als or birds, the production o% %eeding-stu%%s %or the( and the industrial processing o% these %eeding-stu%%s, and, Hdo*nstrea(H, integrate the slaughterhouses and the treat(ent o% by-products (or else are the(sel,es integrated in these acti,ities)& )hese pheno(ena o% integration ha,e technical %oundations *hich deter(ine their %or(s and their li(its& )hus, %or the raising o% poultry it is the slaughterhouse that, at the (o(ent, is the Hproduction-unitH *hich integrates the other acti,ities and to *hich they are subordinate& #t is this unit, too, *hich by its si<e deter(ines that o% the integrated gro%p. )his Htechnical lin5H (ay itsel% be do(inated by a (ore decisi,e Hecono(ic lin5H& )his happens *hen a group o% slaughterhouses (and o% the stoc5raising units *hich they do(inate) is itsel% dependent on a co((ercial chain *hich deter(ines to so(e e/tent the ,olu(e o% consu(ption and production, by practising a certain policy as regards selling-prices to consu(ers and buyingprices to producers& )he geographical placing o% the ,arious Htechnical lin5sH *ill then be deter(ined by a particular econo(ic strategy, and *ill lead to the structuring o% the space round about on a technico-econo(ic basis, the distances bet*een each Htechnical lin5H and its suppliers being (ore or less progra((ed& $heno(ena co(parable to this appear also in the canning o% (il5, %ruit, ,egetables, and so on& #n these acti,ities, the tinning or bottling *or5s tends to structure and do(inate a large part o% the space surrounding it& )he concrete %or(s ta5en by such pheno(ena o% capitalist integration are ,ery di,erse& #n so(e cases the units producing Hra* (aterialsH belong to the %actory *here these are processed, *hich in turn (ay belong to a chain o% distributors& #n other cases (at present (ost %re2uent), the supply o% Hra*

(aterialsH continues to be ensured by agricultural entrepreneurs *ho re(ain 7uridically independent& 0,en in this case, though, the act%al management o% the agricultural units is progressi,ely integrated in that o% the industrial unit& #t is the latter that decides in ad,ance the 2uantity o% products that it is to recei,e, their 2uality, and the dates and inter,als %or deli,ery, and it is also the industrial unit that, ,ery o%ten, deli,ers to its suppliers the ra* (aterials that they are to process, and *hich, in general,
(a*e +&

pro,ides the technical leader!hip o% the agricultural units (or at least o% the sections o% these units *hich *or5 %or it)& )here is ob,iously need to in,estigate *hether the separation bet*een the o#ner!hip o% the agricultural enterprises and the o#ner!hip o% the %actory %or *hich they *or5 (a separation *hich (eans that *hat *e ha,e here is an integration of the contract%al type ) is a re%le/ion, on the basis o% pri,ate property, o% certain technical re2uire(ents (represented, %or instance, by the re2uire(ents o% crop-rotation), or *hether it (erely represents a (ethod used by industrial capital to relie,e itsel% o% the ris5s in,ol,ed in agriculture and to increase its pro%its by 5eeping do*n the prices paid to agricultural enterprises *hich are (ade (ore and (ore dependent on it& #t is also to be noted that in (any tropical countries the sugar re%ineries %or( an organic gro%ping *ith the cane-%ields, *hether the re%ineries are the o*ners o% all or part o% the %ields or *hether they are connected *ith the o*ners o% the cane-%ields by crop-contracts& Dhen such organic groups e/ist, this (a5es possible a detailed o,erall Hprogra((ingH o% the production operations&921: #t also happens, o% course (and the ulti(ate result is technically the sa(e) that a group o% agricultural entrepreneurs set up, in the %or( o% a co operati,e, an industrial unit %or processing their products& #n this case *e ha,e ,ertical integration proceeding %ro( Hup-strea(H& Although, %or the ti(e being, ,ertical integration (organically lin5ing agriculture and industry) has up to no* not gone ,ery %ar in the socialist countries (*here, ho*e,er, the %or(ula o% the Hagro-industrial co(bineH has been studied and e,en tried out in a nu(ber o% instances),922: this pheno(enon o% integration see(s to correspond to the re2uire(ents o% the de,elop(ent o% (odern producti,e %orces and there%ore (ust also constitute one o% the lines along *hich an increasing nu(ber o% econo(ic sub7ects *ill *ither a*ay, *ith a correlati,e *ithering-a*ay o% the sphere o% operation o% the co((odity categories& !n the other hand, as # ha,e already (entioned, the ,ovnar;hoDy are endea,ouring to pro(ote organic co3operation a(ong so(e o% the ind%!trial units operating under their authority& o-operation o% this sort (ay also lead to so(e %or( o% ,ertical integration&

.i(ilarly, in the =..> (and in other socialist countries), the hori<ontal or ,ertical integration o% econo(ic acti,ities can de,elop on the basis o% agreement! made directly bet#een different ind%!trial enterpri!e!. #t (ay e,en happen that in so(e cases such agree(ents can engender a ne* 7uridical personality (this is *hat has occurred *ith the so-called H.o,iet %ir(H)&92": .uch a 7uridical personality usually corresponds to a ne* econo(ic sub7ect *hich tends to re-structure, technically and econo(ically, the acti,ities o% the enterprises *hich ha,e %or(ed it& Altogether, *hate,er (ay be the (ethods by *hich the integration o% econo(ic acti,ities ta5es place, this corresponds to a group o% econo(ic and technical changes *hich tend to reduce progressi,ely the nu(ber o% eco(a*e +,

no(ic sub7ects, and, in correlation *ith this, the sphere o% operation o% the co((odity categories& $resented in sche(atic %ashion, these changes ta5e place essentially in three %or(s, *hich # shall callA (1) .nilinear integration, *hich (eans the entry o% a production-unit into a HseriesH *ithin *hich it loses all econo(ic autono(y& )he acti,ity o% this unit is then *holly dictated by the needs o% the HheadH unit (that is, the unit *hich realises or disposes o% the products o% the integrated unit)& (2) 6%ltilinear integration, *hich (eans the a%%iliation o% se,eral production-units to another econo(ic unit& )he latter (ay be responsible either %or processing operations, or transport, or distribution, and (ay be the only one in contact *ith the HrestH o% the econo(y, either %or disposing o% the products o% the integrated group or else %or both disposing o% the products and %or supplying the integrated group *ith the products it needs& )his can lead to the establish(ent o% conditions o% management o% the a%%iliated units based on the HheadH unit (or Hter(inalH unit), *hether these a%%iliated units all supply the sa(e 5ind o% products or *hether they each supply co(ple(entary products (as happens, %or e/a(ple, *ith (otor-car %actories *hich recei,e certain ite(s %ro( HsuppliersH *ho are attached to the( e/clusi,ely)& (") 6%lti3integration. )his (eans the regular a%%iliation o% a nu(ber o% production-units to a nu(ber o% user-units *hich absorb the *hole o% their production& )his can occur in the case o% agricultural units producing a ,ariety o% crops and disposing o% each category o% produce to a di%%erent processer, each processer controlling that section o% the producti,e acti,ity o% these producers *hich concerns it&92': >ather than tal5 o% H(ulti-integrationH, it *ould perhaps be pre%erable to use the e/pression Hra(i%ied integrationH or Hintegration by net*or5sH, so as to

bring out the %act that the integration in 2uestion ta5es place in !everal direction! and along lines *hich (ay inter!ect at a ,ariety o% le,els& #t is possible that this type o% integration Hby net*or5sH (ay be the one that best corresponds, %or the (o(ent, to the nature o% (odern producti,e %orces in certain sectors o% the econo(y& )he sector in *hich this type o% integration see(s, at the (o(ent, destined to ta5e an especially i(portant place is that o% the che(ical industry& #n this industry the di%%erent production-units necessarily ha,e to (aintain close and reciprocal inter-relations& )o con,ince onesel% o% this it is enough to see the di(ensions assu(ed, under capitalis(, by the big co(panies that produce che(icals& )here is the *ell-5no*n e/a(ple o% the 4u $ont de Be(ours co(pany, in the =&.&A& )he turno,er o% this co(pany is o% the order o% P2,000,000,000 and it e(ploys about 160,000 people&926: #n Ler(any, the three big che(ical %ir(s (?ayer, ?adische Anilin, Foechst) each ha,e a turno,er o% around P600-100,000,000& )hey each e(ploy about 60,000 people and in,est nearly P100,000,000 e,ery year&
(a*e +%

#n France this %or( o% concentration o% the che(ical industry is (uch less ad,anced, but ne,ertheless there are t*o po*er%ul che(ical %ir(sA >hQne$oulenc, *ith a turno,er o% (ore than P200,000,000 and H$roduits hi(i2ues $echiney-.aint-LobainH, *hich co(es ne/t, *ith 11 %actories and t*o research centres, the *hole e(ploying 11,600 people and supplying, in certain %ields (chlorine, sulphuric acid, superphosphates) t*o-%i%ths or (ore o% France3s total production -- e,en (ore than hal% in so(e branches (e&g&, poly,inyl chloride)& )he o%%ices and a%%iliates o% big co(panies o% this 5ind 5eep up regular relations a(ong the(sel,es and (aintain joint !ervice! %or (uch o% their buying and selling& Fro( the standpoint both o% the c%rrent #or;ing o% the production units and o% their %!e of re!earch !ervice! and their in,est(ent policy, this a(ounts to (a5ing a huge producti,e group into a !ingle economic !%bject. .o(e, o% course, o% the production-units a%%iliated to a group li5e this are less integrated *ith it than others, and conse2uently retain a distinct personality, econo(ic and 7uridical& )his is the case, %or instance, *ith the Hsubsidiary co(paniesH o% a certain nu(ber o% large trusts in the capitalist che(ical industry& )o so(e e/tent the retention o% these separate 7uridical personalities re%lects co(pro(ises reached bet*een %inancial groups, the sharing o% ris5s and the see5ing o% certain ad,antages in respect o% ta/ation& #n a socialist econo(y, the reasons %or sur,i,al o% the distinct 7uridical personality o% the production-units integrated in a technico-producti,e group are ob,iously less nu(erous than in a capitalist econo(y, but it (ay happen, ne,ertheless, that such reasons are present, and integration *ill then be only

partial, lea,ing a certain nu(ber o% econo(ic sub7ects each Htheir o*n personalityH, though *ith reduced %unctions& At a %urther stage o% integration, *ithin the %ra(e*or5 o% the socialist econo(y, a gro*ing proportion o% the production-units are bound to lose their character as economic !%bject!, *hile retaining a certain econo(ic or social per!onality *ithin the group& )his econo(ic or social personality (ay be (ar5ed by the capacity o% the production-units to ta5e certain subordinate econo(ic decisions (usually sub7ect to ratification by the responsible organs o% the o,erall (anage(ent o% the integrated complex )& )he ,arious %or(s o% integration, *hen these de,elop in a socialist econo(y, can thus gi,e rise to a relati,ely s(all nu(ber o% Hlarge producti,e econo(ic co(ple/esH o% international, national, regional or local signi%icance, the di%%erent sections o% *hich (ay be go,erned by internal technical planning. )his increasingly cuts do*n the nu(ber o% units *hich are in irregular or occasional contact *ith each other and (a5es increasingly easy the e%%ecting o% a priori ad7ust(ents o% production acti,ities& )his raises the plan %ro( the le,el o% direction o% the producti,e %orces (dealt *ith as branche! of activity regarded as !tati!tical or admini!trative gro%p! subdi,ided into a certain nu(ber o% economic !%bject! ) to the le,el o% domination o% the producti,e %orces, dealt *ith as large economic complexe! o% a f%nctional nature&
(a*e &1

)hese are the ob7ecti,e bases o% the %ar-reaching changes that ta5e place in production-relations, i&e&, in the relations established a(ong the producers& )he increasing integration o% producti,e acti,ities carries %urther the interdependence o% these acti,ities *hich is already de,eloping %ast under capitalis(, and *hich established the ob7ecti,e basis %or the %irst stage o% planning& Dithin the %ra(e*or5 o% socialis(, this integration goes %or*ard in the state sector and in the co-operati,e sector, *hile, little by little, in a ,ariety o% *ays, *hate,er o% the pri,ate sector has (anaged to sur,i,e %or a ti(e beco(es incorporated in these other sectors& )he 7uridical H%or(sH through *hich the integration o% econo(ic acti,ities occurs (ay be e/tre(ely ,arious& #t (ay happen through the %or(s already re%erred to, or through others, such as agree(ents bet*een co-operati,es, agree(ents bet*een co-operati,es and state enterprises, (ergers bet*een state enterprises, etc& # do not propose to e/a(ine these 7uridical %or(s in the(sel,es but (erely to consider the in%luence these changes ha,e on planning& #n short, it can be said that, as a result o% these changes, *hen they ha,e ta5en place on a su%%icient scale, econo(ic planning can really beco(e, on the plane o% production, the determining of the c%rrent need! of individ%al con!%mer!, comm%nitie! and Eprod%ctive economic complexe! H, and the

a!!ignment of preci!e ta!;! corre!ponding to the!e need! to each o% the production co(ple/es& )his assign(ent o% de%inite tas5s cannot, o% course, be %ully e%%ecti,e unless it is %ounded on 5no*ledge a,ailable centrally o% the capacities o% these co(ple/es and the conditions under *hich they *or5& Dhen this is present, the irregularity o% the relationship bet*een production and consu(ption (*hich necessitates un%oreseeable ad7ust(ents) can disappear co(pletely, and the proble( that %or(erly con%ronted each econo(ic sub7ect, o% %inding its HsuppliersH or those *ho *ould absorb its products, also disappears& ,ociali!ation o% the (eans o% production beco(es complete *hen the nu(ber o% econo(ic sub7ects is su%%iciently reduced %or their acti,ity and de,elop(ent to be really sub7ect to !ocial control, that is, *hen society can really use the producti,e %orces as a *hole in a conscious *ay, in order to satis%y needs o% *hich it is a*are& Auto(ation o% production and the production and introduction o% electronic tools o% (anage(ent pro,ide the (aterial %oundation *hich (a5es it possible to de%ine, *ith e,er-greater precision and e/actness, the mean! that ha,e to be set to *or5 in order to satis%y social needs, but the precise deter(ining o% these needs the(sel,es, in so %ar as they arise outside the sphere o% production, i(plies the attain(ent o% social and institutional conditions that are at present only in process o% %or(ation and *hich it *ould there%ore be pre(ature to try to de%ine in detail as o% no*& #t is at the (o(ent *hen society has achie,ed f%ll control o% its producti,e %orces, and can co(pletely deter(ine its needs, that the co((odity
(a*e &1

categories *ill lose all utilityA this can be concei,ed only as the end-result o% an historical process consciously conducted to*ards this cul(ination& #n the %oregoing passages, the ter(s Hecono(ic sub7ectsH and H7uridical sub7ectsH ha,e been used& )he conte/t itsel% in *hich they *ere used has e/plained *hat they (ean ade2uately %or the needs o% (y analysis& Bo*, ho*e,er, # (ust e/a(ine these e/pressions, in order to try and de%ine the( (ore precisely, so(ething that could not be done at an earlier stage& 6 conomic !%bject and j%ridical !%bject

#% *e accept the analyses (ade so %ar, *e ha,e to conclude that, at the present le,el o% de,elop(ent o% the producti,e %orces, *e are still ,ery %ar %ro( being in a situation in *hich Hthe central go,ern(ent or so(e other social-econo(ic centreH (as .talin puts it in conomic Problem! of ,ociali!m

in the .,,R, hence%orth re%erred to as .P., p& 66 90ng& edn&, p& 16:) H(ight control the *hole product o% social production in the interests o% society&H According to the %oregoing analyses, this is so not only because, as is *idely recognised, di%%erent %or(s o% property e/ist (state, collecti,e-%ar(s, indi,idual holdings, and so on), but because o% the %neven development o% the producti,e %orces in the di%%erent centres o% production, the heterogeneity of the condition! of prod%ction e/isting in each o% these centres, the !till only !light degree of integration o% these centres, the i(per%ect conditions %or the trans(ission o% in%or(ation %ro( the periphery to the central o%%ices, the co(ple/ proble(s o% in%or(ation, storage, and so on& #t is all these %acts that e/plain *hy it is that, even #ithin a !ingle !tate !ector, e%%icient and there%ore socially use%ul inter,ention in all decisions by a single Hsocial-econo(ic centreH is still inconcei,able& =nder these conditions *e can understand that, e,en *ithin the state sector, 7uridical sub7ects ha,e to be %or(ed *ith po*er to ta5e a certain nu(ber o% decisions the(sel,es& Dhat (a5es necessary and 7usti%ied the setting-up o% 7uridical sub7ects o% this 5ind is that it a(ounts, in reality, to ac;no#ledgment of an economic !%bject, i&e&, a centre of economic deci!ion3ma;ing !%ch that no other a%thority #o%ld be capable of ta;ing deci!ion! that #o%ld be !ocially more efficient than tho!e ta;en by thi! economic !%bject. !n the other hand, i% the 7uridical sub7ect (endo*ed *ith certain po*ers) is not really an econo(ic sub7ect, that is, does not correspond to an authority at *hose le,el e%%ecti,e econo(ic decisions can be ta5en, it is, as a rule, not socially 7usti%ied to set it up& Dhen this is the case, the inter,ention o% such a 7uridical sub7ect *ill (ore o%ten than not ha,e the e%%ect o% upsetting the process o% production, distribution and e/panded reproduction& Dhen econo(ic sub7ects and 7uridical sub7ects %ail to coincide, the ob7ecti,es sought by the econo(ic plan or by the econo(ic authorities in general either cannot be achie,ed or else can be achie,ed only under conditions o% relati,e ine%%iciency, that is, at a relati,ely high social cost and *ith delays& )he chie% proble(s that arise here are as %ollo*sA
(a*e &2

a) )he proble( o% deter(ining *hat the real econo(ic sub7ects are, so as to ensure that econo(ic sub7ects and 7uridical sub7ects corre!pond. b) )he per%ecting o% 7uridical relationships bet*een the econo(ico- 7uridical sub7ects so that they (atch the re2uire(ents o% the actual production relationships bet*een these sub7ects and those o% planned de,elop(ent o% the econo(y as a *hole&

c) )he deter(ining o% the nature o% the decisions that can and (ust be ta5en by the ,arious econo(ico-7uridical sub7ects or the di%%erent social authorities& # shall no* brie%ly e/a(ine so(e aspects o% these proble(s& a) Determining the economic !%bject!. !nly concrete analysis can deter(ine *hat the real econo(ic sub7ects are& #n the course o% such an analysis, the concepts the(sel,es can be (ade (ore precise, under the dual in%luence o% theoretical study and o% testing in the %ield o% social practice& Analysis (ust ai(, %irst and %ore(ost, at disco,ering the level at *hich current econo(ic decisions can be ta5en (ost e%%iciently %ro( the standpoint o% the national econo(y& At a ,ery lo* le,el o% de,elop(ent o% the social character o% the producti,e %orces, the econo(ic sub7ect in the sphere o% production (ay be a single *or5er -- an indi,idual peasant, cra%ts(an, etc& At a rather (ore ad,anced le,el o% de,elop(ent, corresponding to the stage o% si(ple co-operation and the earliest (ani%estations o% the technical di,ision o% labour, this lin5 *ill be deter(ined by the acti,ity o% a H*or5ing groupH *hich is still not ,ery nu(erous& Finally, at a higher le,el o% de,elop(ent, this lin5 (ay be deter(ined by the acti,ity o% a (ore or less e/tensi,e grouping o% *or5ers& #n the (odern econo(y, it can so(eti(es e(brace thousands or e,en tens o% thousands o% *or5ers, grouped in a single econo(ic co(ple/& As a rule, a grouping o% enor(ous si<e li5e this is (ar5ed by a *ell-de%ined internal !tr%ct%re. #n the %irst t*o cases it is %airly easy to deter(ine the le,el o% the econo(ic sub7ect& #t is a di%%erent (atter, ho*e,er, in the third case, especially *hen there are presentA (1) .tate o*nership o% a co(ple/ set o% (eans o% production operated by many gro%p! of #or;er! (%or then it is necessary to deter(ine *hat the combination! of gro%p! are that correspond to di%%erent econo(ic sub7ects; (2) A high degree o% internal HstructuringH o% so(e o% these groups, so that sections (ay appear to be distinct econo(ic sub7ects; (") A high degree o% interdependence in the acti,ity o% these groups& )his is indeed *here the proble( arisesA H*here are the real econo(ic sub7ects locatedMH #t is this co(ple/ case that # *ill e/a(ine&926: #% *e proceed %ro( the %oregoing analysis *e shall say that the le,el at *hich the econo(ic sub7ect is located ,aries according to the degree o%

development o% the producti,e %orces, the character o% the producti,e %orces set to *or5, in the di%%erent sectors or branches o% the econo(y, and the
(a*e &7

nat%re of the deci!ion! that ha,e to be ta5en, since it is the criterion o% the possible social e%%iciency o% decisions that *ill also (a5e it possible to deter(ine *hat the ,arious real econo(ic sub7ects are& #% *e ta5e once again the e/a(ple o% electric po*er production, *e see that this can ha,e a highly de,eloped structure, i&e&, can depend on a nu(ber o% po*er stations each o% *hich has its o*n Hphysical personalityH, but *e also see that centralised (anage(ent o% all the electric po*er stations o% a country, e,en a large one, can be ensured *hen these stations are lin5ed together and a syste( o% rapid trans(ission o% in%or(ation, bet*een the ,arious stations and the centre, has been established, together *ith a corresponding syste( o% trans(ission o% orders %ro( the centre to the stations& #n a case li5e this, the economic !%bject, i&e&, the Hproduction-co(ple/H at the le,el o% *hich the (ost e%%icient econo(ic decisions can be ta5en, is the branch a! a #hole *hich produces and distributes electric po*er& )he separate po*er-stations are, in relation to this econo(ic sub7ect, (erely technical department! at the le,el o% *hich no truly e%%icient econo(ic decision can be ta5en, since it is not there but at the centre that it can be decided, on the basis o% progra((ing and calculations carried out by electronic instru(ents, *hich *or5s should be set in operation at any gi,en (o(ent and *hich should ha,e their %unctioning slo*ed do*n or suspended& .i(ilarly, *e ha,e seen that the oil-re%ining industry can also, though to a lesser e/tent, be (anaged centrally (on the scale o% a large region or a s(all country)& Fere again, the (ost e%%icient (anage(ent o% the re%ineries as a *hole can be ensured by a centre *hich ta5es account o% the needs that ha,e to be (et in di%%erent parts o% the country and deter(ines, ta5ing the ,ariable %actors into account, the points to *hich the crude oil should be sent %or re%ining and those to *hich the re%ined oil should be distributed& #n this case, too, the econo(ic sub7ect (ay coincide *ith a gi,en branch o% industry& !n the other hand, in acti,ities lac5ing the characteristics (entioned, it is necessary to decide concretely the le,el at *hich the real econo(ic sub7ects are, that is, tho!e that are really in a po!ition to %!e efficiently the given mean! of prod%ction. 4epending on circu(stances, this le,el *ill correspond either to an industrial establish(ent (i&e&, a *or5s) or to a group o% *or5s *hich the(sel,es are either !peciali!ed or else interlin;ed in a relatively rigid and permanent #ay by the supplies they %urnish each other *ith& An especially i(portant case is that *here there is technical integration o% di%%erent production units and, conse2uently, the appearance, at the le,el o% the Hintegrated co(ple/H (*hich, as *e ha,e seen, (ay ta5e the %or( o% a co(bine, %or instance), o% a !pecific economic !%bject.

#n the case o% agricultural acti,ities, the le,el at *hich the real econo(ic sub7ect is located corresponds, in the present state o% the producti,e %orces, to a *or5ing group *hich is usually (uch less e/tensi,e than in industry, o*ing especially to the large nu(ber o% ,ariables that ha,e to be rec5oned
(a*e &9

*ith in carrying on e%%ecti,e agricultural production, the range o% %luctuations to *hich these ,ariables are sub7ect, and, last but not least, the still preponderant role played by direct individ%al hu(an action (including at the le,el o% obser,ation) in agricultural production& )he %oregoing re(ar5s are essentially intended to ill%!trate the *ay that the proble( presents itsel% -- the proble( o% deciding the econo(ic sub7ects on *hich, at a certain le,el o% de,elop(ent o% the producti,e %orces and *ith certain characteristics o% the latter, it is necessary to con%er a 7uridical personality so as to enable these sub7ects to utilise *ith (a/i(u( e%%iciency the (eans o% production at their disposal& Dhat *e ha,e to do in %act, is to #or; o%t a theory of the economic !%bject. .o %ar, *e are a long *ay %ro( ha,ing *or5ed out such a theory, and the decisions ta5en to endo* certain *or5ing groups *ith 7uridical personality include a large ele(ent o% e(piricis(& #n de%ault o% a %ully-*or5ed-out theory o% the econo(ic sub7ect in the production sphere o% a socialist econo(y, it is possible to say, %irst, that the econo(ic sub7ect constitutes the place #here m%ltiple and irreg%lar relation!hip! #ith a variety of %nit! of prod%ction, of di!trib%tion, and (or ) of con!%mption are bro%ght together. #t is the m%ltiplicity and irreg%larity o% these relations that calls %or economic choice! to be (ade, and *hich (a5es o% a group o% *or5ers an econo(ic sub7ect& #n other *ords, the econo(ic sub7ect %or(s one o% the %unda(ental lin5s in a di,ision o% labour *hich is not yet entirely organic& )hat is *hy it is at this le,el that current economic deci!ion! ha,e to be (ade and the corresponding obligation! underta5en& )hat is *hy it is necessary to endo* each econo(ic sub7ect *ith its o*n 7uridical personality and %inancial resources, so as to enable it to %it itsel% %le/ibly (*hich does not (ean independently o% the econo(ic plan) into the process o% the social di,ision o% labour& )he ,arious shortco(ings o% a syste( *hich m%tilate! the econo(ic sub7ect o% the %unctions *hich alone enable it to underta5e in a coherent *ay the tas5s o% production and o% e/panded reproduction in *hich it is in,ol,ed ha,e been a(ply re,ealed by all the negati,e e/periences resulting %ro( ad(inistrati,e (anage(ent o% the econo(y& Ad(inistrati,e (anage(ent leads to choices being (ade by an authority di%%erent %ro( the econo(ic sub7ect, an authority *hich lac5s the in%or(ation possessed by the econo(ic sub7ect and *hich is incapable o% assu(ing

e%%ecti,ely the responsibilities incu(bent on the latter& #t leads to the bureaucratisation o% the econo(y, to an increasingly %alsi%ied ,ie* o% reality& #t brings sub7ecti,e %actors into the dra*ing up o% plans, to an e/tent that increases *ith the distance bet*een the econo(ic sub7ects and the le,el at *hich choices are (ade, and this puts (ore and (ore obstacles in the *ay o% the %or(ulation o% a coherent o,erall econo(ic policy, let alone its e/ecution& #n the light o% these re(ar5s, it is clear that the attribution o% certain 7uridical po*ers to an econo(ic sub7ect, po*ers *hich (ay (a5e a 7uridical sub7ect o% it, and the nature o% these po*ers, (ust dependA
(a*e &'

(1) !n the nature o% the decisions to be ta5en, and, in particular, on the (ore or less e/tensi,e social area they a%%ect& (2) !n the nu(ber o% technical and econo(ic ,ariables that ha,e to be ta5en into consideration in order to secure a satis%actory econo(ic solution, %ro( the standpoint o% the national econo(y& )he nu(ber o% these ,ariables (ust be considered %ro( at least t*o aspectsA !n the one hand, the econo(ic co(ple/ to *hich 7uridical personality is assigned (ust not be so e/tensi,e that the nu(ber o% ,ariables or the a(ount o% in%or(ation that ha,e to be ta5en into account at the le,el o% this co(ple/ are such that, in practice, it is not possible to ta5e a decision based on a correct and ade2uate study o% these ,ariables or this in%or(ation& #t is, in particular, a consideration o% this order that (ay (a5e it necessary to deli(it an agricultural econo(ic unit as an econo(ic and 7uridical sub7ect at a le,el o% si<e that (ay be regarded as s(aller than the opti(u( %ro( the standpoint o% the use o% certain (aterial (eans o% production& Fence, %or e/a(ple, the situation *hich e/isted at one ti(e in the =..>, *here the co(parati,ely s(all collecti,e %ar(s had superi(posed upon the( the Machine and )ractor .tations each o% *hich ser,ed se,eral o% these %ar(s& !n the other hand the econo(ic co(ple/ to *hich po*ers o% decision (a5ing are assigned (ust be large enough %or it to ha,e e%%ecti,ely a,ailable a su%%icient a(ount o% in%or(ation and decision-(a5ing po*er,921: because only on this condition can it (anage e%%iciently, %ro( the standpoint o% the national econo(y, the producti,e %orces that %all *ithin its sphere o% action& #n this respect it can be said, %or e/a(ple, that to attribute a distinct decision-(a5ing po*er to each electric po*er station *ould create a situation in *hich the 7uridical sub7ect *ould not possess either the in%or(ation or the po*er needed %or it to use the producti,e %orces in the (ost e%%icient *ay, on the national scale& Be,ertheless, this aspect o% the (atter can only be ta5en into consideration i% the %act o% trans%erring the decision-(a5ing po*er to a higher le,el does not gi,e rise to a 7uridical sub7ect *hich is incapable o% controlling in practice all

the %actors on *hich it has to rely in ta5ing satis%actory decisions and in getting them applied in an e%%ecti,e *ay& <hat, in fact, !ignali!e! the exi!tence of an economic !%bject i! preci!ely it! capacity to control a gro%p of prod%ctive force!. )hese ,arious obser,ations are already bringing us to percei,e the need to accept, in certain cases, the e/istence o% a hierarchy of economico3j%ridical !%bject!, each endo#ed #ith di!tinct po#er!, depending on the nat%re of the deci!ion! to be ta;en. )hus, %or e/a(ple, the centralised (anage(ent o% a group o% electric po*er stations can deal only *ith the proble(s o% supplying these stations and *ith the scale o% their current operations& 4ecisions a%%ecting in,est(ent, ho*e,er, ha,e to be (ade at another, higher le,el, *here it is possible to ta5e account o% the di%%erent re2uire(ents o% general econo(ic and social
(a*e &+

de,elop(ent; *hile, contrari*ise, decisions regarding the internal organi!ation of labo%r, recruit(ent, (aintenance o% buildings, and the li5e, ha,e to be (ade at the le,el o% each po*er station ta5en indi,idually& )hese last-(entioned decisions *ill the(sel,es, o% course, ha,e to %it into the o,erall %ra(e*or5 o% directi,es and regulations& )his there%ore lea,es sur,i,ing at the le,el o% each po*er station either an Hecono(ic sub7ectH *ith ,ery li(ited %unctions or else a *or5ing group *ith a certain Hsocial personalityH&
1)

Internal !tr%ct%ring of economic !%bject! and #or;ing gro%p!.

)he concepts o% the Hinternal structuringH o% an econo(ic sub7ect and o% the H*or5ing group possessing a social personalityH also need to be loo5ed at (ore care%ully& )o atte(pt to do this here *ould di,ert (e %ro( the (ain purpose o% the present study& # *ill there%ore con%ine (ysel% to (entioning so(e o% the proble(s to *hich these concepts gi,e rise& )he proble( o% Hinternal structuringH is particularly that o% the e/istence, inside a gi,en econo(ic sub7ect, o% di%%erent *or5ing gro%p!. .o(e o% these groups ha,e a Hper(anentH technical basis (they retain their social personality so long as the technical process is not changed), as in the case o% the di%%erent *or5shops *ithin a %actory& !ther *or5ing groups ha,e a te(porary technical basis, as in the case o% tea(s entrusted *ith the carrying out o% a tas5 *hich is occasional, (o(entary or seasonal, and *hich brea5 up as soon as this tas5 has been acco(plished& )he social personality o% a group can assert itsel% only i% the tas5 it has to per%or( lasts %or at least a certain (ini(u( period o% ti(e& #n certain circu(stances, this social personality (ay e/pand into an Hecono(ic

personalityH& )his happens *hen this social personality constitutes a lin; in economic and !ocial initiative and control *hich is necessary i% there is to be e%%icient di,ision o% labour& )he %act that a *or5ing group has an Hecono(ic personalityH does not auto(atically (a5e o% it an Hecono(ic sub7ectH, and this is so, in particular, i% the group is not in a situation enabling it to e/ercise genuine control o,er certain producti,e %orces, and i% its operation (erely re2uires that it carry out !%bordinate or !econdary choice!, such as those called %or in order to realise certain ob7ecti,es %nder condition! determined by a higher a%thority. Dithout spending a lot o% ti(e on this 2uestion, # (ust ne,ertheless e(phasise that the proble( o% #or;ing gro%p!, their po*ers, their capacity %or initiati,e and the nature o% the econo(ic and social super,ision that can and (ust be e/ercised o,er the( %or the sa5e o% e%%ecti,e planning, is a proble( that is a great deal (ore co(ple/ than (ay appear at %irst sight& #n .o,iet agriculture, %or instance, this 2uestion is bound up *ith that o% the internal !tr%ct%ring of the collective farm!, and, in particular, *ith the role played by the #or;3brigade and its optim%m !iDe (a si<e *hich (ust ob,iously ,ary in accordance *ith the nat%re of the mean! of prod%ction at the brigade)! di!po!al and the general degree o% de,elop(ent o% the producti,e %orces)&
(a*e &&

)he technical basis o% the *or5 brigade (*hich, in certain cases, is organised around a group o% tractors) constitutes one o% the ele(ents *hich in%luence ,ery (ar5edly the actual si<e o% such a *or5ing group& ?ut the 2uestion also arises o% the conditions under *hich each brigade (ay ha,e a certain permanence, by being (as suggested by 4& Murato,) re!pon!ible for a #hole year %or certain tracts o% land&928: Finally, the %unda(ental proble( is, it *ould see(, that o% the conditions %or preci!e re!pon!ibility and collective initiative (on the basis o% a certain techni2ue); this proble( is located at the le,el o% the relation! bet#een the member! of the gro%p and the relations bet*een the group and other groups, that is, at the le,el o% concrete prod%ction3relation!. .i(ilar proble(s ob,iously arise *ithin the state %ar(s as *ell& )he latter (ay be di,ided into H*or5shopsH and HsectionsH *hich possess a certain per(anence and the Hopti(u(H si<e o% *hich also has to be deter(ined& Fere again *e %ind a proble( o% ,ery great co(ple/ity, especially in agriculture, na(ely, the proble( o% the Hoptim%m !iDe H of the #or;ing gro%p!. )heoretical analysis enables us to de%ine the nature o% the proble(s arising here, but the decisi,e instru(ent %or getting a concrete ans*er to a concrete 2uestion is the carrying out o% economic calc%lation. )he latter *ill, o% course, gi,e a correct ans*er only i% the proble( is %irst presented in (eaning%ul theoretical ter(s&

0cono(ic calculation li5e this (ust (a5e it possible to co(pare the efficiency o% di%%erent 5inds o% organisation& #t (ust be e(phasised that the e%%iciency o% a gi,en type o% organisation includes a ,ariety o% aspects& De (ust distinguish bet*een short-ter( e%%iciency (i&e&, e%%iciency at the le,el o% ho* econo(ically the a,ailable (eans o% production are c%rrently being used) and longer-ter( e%%iciency& #n agriculture, %or instance, the latter is sho*n in the in%luence e/erted by a certain type o% organisation on conser,ation or i(pro,e(ent o% soil characteristics& More generally, this e%%iciency is sho*n in the in%luence o% the type o% organisation on the capacity o% the *or5ing groups to adapt the(sel,es to inno,ations or e,en to pro(ote the(, and so on& )he proble( is thus (uch (ore co(ple/ than it see(s at %irst glance&929: )he proble( o% opti(u( si<e does not, o% course, concern only the *or5ing groups Hat the grass rootsH but also the econo(ic sub7ects (ade up o% se,eral *or5ing groups& )here too it is in agriculture that the proble( appears in its %ullest co(ple/ity& #n industry, the technical fo%ndation! %or the si<es o% *or5ing groups are deter(ined in a (uch (ore ob,ious *ay by certain (aterial %actorsA %or e/a(ple, the opti(u( si<e o% blast %urnaces or o% rolling(ills deter(ines ,ery largely the co(bination o% other (aterial %actors o% production *hich technically ha,e to be associated *ith the(, and, conse2uently, the si<e o% the economic !%bject! that *ill (anage a gi,en technical group& As # ha,e already re(ar5ed, ho*e,er, it can happen that *hat appears to be the opti(u( si<e at a purely (aterial le,el (ay cause problem! of co3ordination such that the economically optim%m si<e does not coincide *ith the technically optim%m si<e&
(a*e &,

#n agriculture the 2uestion is %urther co(plicated by the dispersal o% acti,ities in space, the proble(s o% crop-rotation, o% ade2uately intensi,e e(ploy(ent o% (achines in seasonal use, etc& )he 2uestion o% the HcadresH a,ailable (and this is ob,iously true %or industry as *ell, or any other econo(ic acti,ity) (ay also ha,e an in%luence on *hat, at a given moment, (ay constitute the opti(u( si<e o% certain econo(ic sub7ects& )his is an e/tre(ely i(portant aspect o% the (atter& )hus, in the .o,iet =nion, during the ploughing up o% the H,irgin landsH, it *as to so(e e/tent the proble( o% agricultural cadres that led to the %or(ation o% giant state %ar(s (109,000 hectares *as the a,erage in @a<a5hstan)& Accordingly, as the nu(ber o% agricultural cadres increased, it *as decided to reduce this a,erage si<e (c%& the discussion in the entral o((ittee o% the .o,iet o((unist $arty, February 196')& .i(ilarly, in uba, the si<e o% the 7ranja! del P%eblo, though too big %or e%%icient (anage(ent, *as dictated by the inade2uate nu(ber o% cadres a,ailable& )he sa(e reason *as in,o5ed %or not according %inancial autono(y to the 7ranja! del P%eblo and con%ir(ing it, in 196", to the =gr%pacione!

ba!ica! (*hich e(brace se,eral 7ranja! )& #t is intended e,entually to con%er 7uridical personality and %inancial autono(y on e,ery granja.9"0: )he proble(s o% the internal structuring o% the people)! comm%ne! in hina are clearly o% the sa(e order as those (entioned abo,e& De 5no* that econo(ic and 7uridical personality *as accorded to *or5-brigades (i&e&, the %or(er co-operati,es) and also to *or5-team! %or(ed *ithin the brigades& )hus, in an article in the People)! Daily o% 21 4ece(ber 1960, entitledA H$roperty on three le,els based on brigade property and the %unda(ental syste( o% the people3s co((unes at the present ti(eH, *e readA H#n order to de,elop the spirit o% initiati,e in production and to (a5e %ull and rational use o% land and ti(e, rights o% ad(inistration and (anage(ent should belong to the brigade& )he production plan o% the co((une (ust be based on the production plans o% the brigade and the tea(& )he allot(ent o% the di%%erent techni2ues, the targets o% production and the technical arrange(ents (ust be discussed by the (asses and dra*n up by the brigade and the tea( a%ter discussion in co((on& #n short, in this (atter the (e(bers o% the co((une are the (asters& )he co((une has only the right to (a5e proposals to the brigades and tea(s, in accordance *ith the state plan, and to balance and ad7ust their plans *here necessary& #t is %orbidden, ho*e,er, to decide sub7ecti,ely the areas to be so*n to the di%%erent crops, to increase the production targets or to %i/ rigidly the technical arrange(ents *ithout ta5ing account o% the real conditions and as5ing the brigades and tea(s %or their ,ie*s&H o((enting on this paragraph %ro( the People)! Daily, 8iu Jo-chin, in a study published in the re,ie* Jingli Fanji%, organ o% the 0cono(ic #nstitute o% the hinese Acade(y o% .ciences, *rites that this passageA H& & & has clari%ied the relations e/isting bet*een the plans o% the di%%erent le,els in the people3s co((une& #n other *ords, the production plan o% the people3s co((une (ust be based on the brigade plan and the
(a*e &%

brigade plan (ust be based on the tea( plan&H 9#&e&, on the s(allest *or5ing group, *hich is closest to concrete and practical proble(s&: )he plan (ust be decided on by the member! of the comm%ne and not by the higher le,els, %ro( abo,e and rigidly& )he author adds that the passageA H& & & enables us also to understand that, no*, the agricultural plan can be only an indirect plan and not a direct one& .ince the co((une le,el

can only (a5e proposals to the brigades and (ust not deter(ine production targets rigidly, it is clear that e,en less can the state lay do*n directly %or the people3s co((unes a production plan and technical arrange(ents *hich are uni%ied and concrete, as it does in the case o% enterprises *hich belong to the *hole people& !n the contrary, the agricultural plan (ust be co(piled %ro( belo* up*ard, that is, by starting *ith the tea(, then going up to the brigade and then to the co((une, rung by rung; the state plan (ust be based on the plan o% the tea(s (naturally, the di%%erent le,els o% the co((une (ust organise their production in the light o% the state plan and ta5ing into account local and seasonal conditions; at the (o(ent *hen the plan is dra*n up they (ust ta5e into consideration the state3s needs and the tas5s laid do*n by the state)& !nly thus can the agricultural plan be applied per%ectly, only thus can %ree rein be gi,en to the initiati,e o% the (asses and only thus *ill production (a5e a great bound, realising and surpassing the plan o% agricultural production&H (Nuoted %ro( t%de! conomi'%e!, Bo& 1'", p& 6"& .ee also the article by hou )i-chinA H)he %unda(ental syste( o% the people3s co((unes at the present stageH, in t%de! conomi'%e!, Bo& 1"'&) 4eter(ining the nature and si<e o% *or5ing groups is there%ore an i(portant (atter %or a nu(ber o% reasonsA the e%%iciency and realis( o% the plans dra*n up at the le,el o% these groups, the e%%iciency o% their application, the degree o% initiati,e sho*n by the (e(bers o% the group, the internal social control (i&e&, the group3s !elf3di!cipline ), and the social control %ro( outside (chec5ing o% 2uantity and 2uality, and o% cost o% production)& )his brings up, as already (entioned in passing, the proble( o% internal economic calc%lation, that is, econo(ic calculation at the le,el o% the di%%erent *or5ing groups& )his calculation is ob,iously not the sa(e thing as the %inancial autono(y *ith *hich economic !%bject! can be endo*ed& #t *ill doubtless ha,e to continue e,en a%ter the co((odity categories ha,e passed a*ay&9"1: Dhat has been said also brings up the proble( o% the lin5 bet*een 2uality o% *or5 at the le,el o% the *or5ing group and the pay(ent o% the group3s (e(bers& )hus, in the state %ar(s as at present organised in the =..>, the *ages paid to each *or5er are, as a rule, calculated essentially on the basis o% the *or5 done by the individ%al, *hich since accounting ta5es place at the le,el o% the state %ar( as a *hole, (eans that this accounting is ,ery co(plicated and it is not easy to chec5 concretely on the 2uality o% the *or5 done by each *or5er& For e/a(ple, in a report o% 26 4ece(ber 1969, Bi5ita @hrush(a*e ,1

che, (entioned a state %ar( *here pay(ent o% *or5ers re2uired the (aintenance o% 16,000 cards and docu(ents containing, altogether, 1,800,000

ite(s o% in%or(ation, all o% *hich ne,ertheless %ailed, he said, Hto ensure really e/act accounting and controlH& $ay(ent at the level of the #or;ing gro%p o%ten corresponds (ore closely to the collective character of the #or; done, so that pay(ent (ade to the group can subse2uently be shared out a(ong indi,iduals in the group in accordance *ith socially de%ined standards& )his, o% course, presupposes that a high degree o% !elf3di!cipline and !elf3chec;ing has been attained, i&e&, a high degree o% political consciousness& #% this is not present, then ad(inistrati,e super,ision is ine,itable, regardless o% its shortco(ings& )o conclude these obser,ations on the *or5ing groups, it (ust be stressed that, *hen the latter are su%%iciently stable and their social personality has been correctly de%ined, they can and (ust constitute (as *e ha,e seen %ro( *hat has been said abo,e) an e!!ential level for the preparation of plan! and chec;ing on their implementation ; %ro( *hich %ollo*s the i(portance o% correct internal !tr%ct%ring o% the econo(ic sub7ects& )hese obser,ations thus sho* us that, inside the production sector o% a socialist econo(y, the econo(ic sub7ects are, as a rule, sub7ects *hich are structured internally& ()his structuring *ill probably ha,e to beco(e (ore and (ore co(ple/ as the si<e o% the econo(ic sub7ects gro*s and integration progresses)& )he ,ery e/istence o% this internal structuring o%ten (a5es it hard to distinguish bet*een an econo(ic sub7ect and a *or5ing group possessing a social personality& !n this point let (e add %urther that, *hen the le,el at *hich a real econo(ic sub7ect is situated has to be decided, it is ,ery i(portant to ta5e into consideration the delays in trans(itting in%or(ation and in arri,ing at and noti%ying decisions& #t is necessary to allo*, on the one hand, %or the (a/i(u( inter,al that can be per(itted to elapse bet*een the appearance o% a proble( and the solution that m%!t be %ound %or it, and, on the other, the inter,al that ine,itably elapses, at a certain stage o% organisation and circulation o% in%or(ation, bet*een the (o(ent *hen this proble( appears and that at *hich a solution can be %ound %or it (this ti(e *ill ob,iously ,ary *ith the le,el at *hich the decisions are ta5en)& )his a(ounts to recognising, here once (ore, that deter(ination o% the econo(ic sub7ect is conditioned in part by the possibilities o% trans(itting in%or(ation, (e(orising it, and processing it in order to reach decisions, all o% *hich possibilities are connected *ith the de,elop(ent o% the producti,e %orces& Fere, too, e/perience and econo(ic calculation *ill pro,ide concrete ans*ers& #t (ust be noted in this conne/ion that the use o% !im%lation techni'%e! can, in so(e cases, (a5e it possible to a,oid e/cessi,ely repeated, long-dra*n-out and costly e/peri(ents&9"2: Fro( this standpoint, the si<e o% the econo(ic sub7ects, their internal organisation and their e/ternal lin5s appear to be partly sub7ect to the techni2ues o% collecting, codi%ying, trans(itting, asse(bling and interpreting in%or(ation& #ncluded in this Hin%or(ationH, o% course, are the econo(ic

(a*e ,1

or technical decisions that (ay be ta5en at ,arious le,els& )his i(plies that the ad,ances (ade in the sphere o% in%or(ation techni2ues (ay ha,e considerable practical conse2uences a%%ecting the si<e o% the real econo(ic sub7ects and the le,el at *hich it is possible to ta5e socially use%ul decisions& #%, at the stage no* reached in these re%le/ions, # *ere to try to %or(ulate so(e o% the conclusions that can be pro,isionally dra*n, # should say thisA #n present-day socialist econo(y there are units o% production or distribution *hich bear the character o% econo(ic sub7ects& )hese units are centres %or the appropriation o% nature by (an or %or the sharing-out o% the products o% this appropriation& )hey %or( the %ra(e*or5 o% a syste(atically organised technical di,ision o% labour& #n so %ar as the di%%erent centres o% appropriation or distribution are not lin5ed together organically, or as a result o% decisions that can be ta5en consciously by a higher econo(ic authority, these units constitute lin5s in a local di,ision o% labour and are econo(ic sub7ects each o% *hich has to deter(ine the conditions o% its relations *ith the others, *ithin the li(its laid do*n by the ai(s o% the plan and by the ,arious regulations i(posed in order to ensure good co-ordination o% the acti,ity o% the econo(ic sub7ects&9"": As *e ha,e seen, each o% these units o% production or distribution (ay be subdi,ided into H*or5ing groupsH& >elations bet*een the latter are deter(ined by the nature o% the techni2ues being used, in so %ar as these *or5ing groups are not the(sel,es econo(ic sub7ects& Dhat, in %act, is the (ar5 o% an econo(ic sub7ect (in contrast to the *or5ing groups that are not econo(ic sub7ects) is the %act that the products that result %ro( the production-process carried on *ithin an econo(ic sub7ect can be put to manifold and optional %!e! *hich cannot be go,erned by detailed socially use%ul %orecasting, *hereas the products that co(e %ro( a technical unit or *or5ing group that is not an econo(ic sub7ect are destined %or uses that are deter(ined, or *hich can be socially deter(ined in ad,ance, in an e%%icient *ay& )his is *hy, as has already been said, the le,el at *hich the distinction is (ade bet*een econo(ic sub7ect and *or5ing group ,aries as ti(e goes by& )his le,el depends on the de,elop(ent o% the producti,e %orces, including, o% course, the nu(ber and co(petence o% the trained personnel, the degree o% social consciousness and discipline, the possibilities %or collecting and trans(itting in%or(ation, and the possibilities o% %or*ard calculation, that are a,ailable to the society& )he de,elop(ent o% the producti,e %orces thus alters the le,el at *hich there is or is not co(plete technical deter(ination, or %or*ard social deter(ination, in a detailed and use%ul *ay, o% the possible needs %or and uses o% the ,arious goods e(erging %ro( a production process&

!ne o% the characteristics o% an econo(ic sub7ect is that it %or(s a #or;ing gro%p (or a co(ple/ o% *or5ing groups) at the le,el o% *hich econo(ic decisions (ust be ta5en& #n contrast to technical deci!ion! (re2uired %or the e%%icient use o% a given
(a*e ,2

techni'%e in order to achie,e given aim! ), economic deci!ion! deter(ine the nature and scope o% the ,ariable relations that (ay be established bet*een econo(ic units; thereby, econo(ic decisions also deter(ine the %!e! that *ill actually be (ade o% products *ith (any potential uses& Dhen the econo(ic sub7ect coincides *ith a production-unit, the econo(ic decisions that can be ta5en at its le,el concern essentially the uses to be (ade either o% the products supplied by other econo(ic sub7ects and *hich (ay enter into the production-process %or *hich this unit is responsible, or o% the products e(erging %ro( the prod%ction3proce!! dominated by the economic !%bject in '%e!tion. Dhen, ho*e,er, the econo(ic sub7ect is responsible essentially %or %unctions o% allot(ent, distribution or (anage(ent, the econo(ic decisions it can ta5e relate to the uses that *ill be (ade o% products e(erging %ro( a production-process carried on by other econo(ic sub7ects& #n any case, econo(ic decisions are those *hich establish, directly or indirectly, relations bet*een econo(ic units, *hen these relations are not entirely deter(ined by the ,ery nature o% the technical processes& .uch decisions do not, o% course, depend only on the econo(ic sub7ects& )his leads (e to re-e(phasise a point (ade earlier, na(ely, the need, at a gi,en stage o% de,elop(ent o% the producti,e %orces, to recognise that there (ay e/ist, in one and the !ame domain b%t for different type! of deci!ion, se,eral econo(ic sub7ects or ad(inistrati,e authorities hierarchically subordinate one to another, the decision o% a particular one o% these rather than another being preponderant, depending on the nature o% the proble(s to be sol,ed&
2)

conomic hierarchy and admini!trative or political !%bordination

)he subordination o% one decision-(a5ing authority to another (ay correspond either to a real technico3economic hierarchy (as in the case o% certain types o% ,ertical integration) or to an admini!trative or political !%bordination. According to circu(stances, the e/istence o% ad(inistrati,e subordination (ay gi,e e/pression either to social necessity or, on the contrary, to a *ea5ness in general econo(ic organisation& #n the latter case, it (eans that an ad(inistrati,e authority has assu(ed the tas5 o% ta5ing econo(ic decisions

*hich it *ould be better to ta5e at the le,el o% a *or5ing group& )his can lead to the bureaucratisation o% the econo(y&9"': )he distinction bet*een econo(ic subordination and ad(inistrati,e subordination is not, o% course, a (atter o% legal rules but rather one o% the speci%ic %eatures o% the authorities concerned& #% the higher authority is an integral part o% a *or5ing group, or a co(ple/ o% *or5ing groups, its do(ination (ay e/press the subordination o% the lo*er authorities to a genuine econo(ic hierarchy; other*ise it is an ad(inistrati,e or political authority& #n a socialist econo(y, subordination o% the econo(ic sub7ects to ad(inistrati,e or political authorities (ay result %ro( a ,ariety o% situations& .o(eti(es this subordination corresponds strictly to the re2uire(ents
(a*e ,7

o% planned de,elop(ent o% the econo(y in the direction o% socialis(& #n this case it e/presses the speci%ic conditions in *hich social priorities are %or(ulated and econo(ic policy applied& )his type o% subordination (ay ensure the *or5ing out o% the decisions *hich ha,e to be ta5en at the highest social le,el& )his is so *ith the (ain decisions regarding in,est(ents, prices, %unda(ental technical choices and the selection o% regions %or particular %or(s o% de,elop(ent& .o(eti(es this subordination is the only *ay o% ensuring, at least appro/i(ately, co-ordination o% the current acti,ities o% the econo(ic sub7ects, o*ing, %or e/a(ple, to the inade2uate training o% the e/ecuti,es placed at the head o% so(e o% the econo(ic sub7ects& .o(eti(es, this subordination (erely inter%eres in decisions that the econo(ic sub7ects ought to ta5e, because they are better placed to ta5e the(& #n such cases *e ha,e the partial or co(plete substitution o% admini!trative management %or economic management. )his substitution (ay be rendered ine,itable, during a certain period, either by political re2uire(ents (need %or nationalisation (easures ta5en 2uic5ly and on a large scale; an econo(y unbalanced by the strain o% *ar or by econo(ic attac5s), or by (ista5es in organisation, or by (ista5es in econo(ic policy (e&g&, a price policy gi,ing rise to HshortagesH that render ine,itable an ad(inistrati,e rationing o% products)& Dhen ad(inistrati,e (anage(ent tends to go beyond the ob7ecti,e re2uire(ents o% planning and the de,elop(ent o% the econo(y, it assu(es a b%rea%cratic character& #t loses touch *ith reality& #t *or5s slo*ly, and o%ten in the *rong direction& Dhen this is the situation, the real econo(ic sub7ects (ay react by setting up their o*n circuits %or passing round i(portant in%or(ation and by

%ollo*ing econo(ic rules o% conduct *hich only partly coincide *ith the decisions ta5en by the bureaucratic apparatus -- to so(e e/tent in order to get round the inade2uacies and inco(petence o% the latter& )here (ay then e/ist t*o di%%erent pictures o% econo(ic li%e -- one *hich can be seen at the le,el o% the econo(ic sub7ects the(sel,es and another *hich is co(posed at the le,el o% the bureaucratic apparatus and in order to satis%y the re2uire(ents o% this apparatus& )his latter picture (ay so(eti(es be so distorted as to constitute nothing but a (irage& Dhen this happens, and this Hbureaucratic (irageH ser,es as the basis %or plans, these ha,e less and less e%%ect on real econo(ic e,olution& 0,en apart %ro( the e/istence o% ad(inistrati,e authorities, the %act that there is a hierarchy o% sub7ects (eans that certain sub7ects ha,e to ta5e decisions *hich inter%ere directly in the acti,ity o% others& .uch inter%erence (ust, in principle, al*ays ta5e place in conditions *hich ensure that the %unctions and responsibilities o% each sub7ect are clearly deli(ited& #% this is not the case, then the e%%iciency o% the *hole and the possibilities o% chec5ing *hat actually happens *ill be greatly reduced&
")

conomic !%bject!, planning a%thoritie! and admini!trative order!

A %unda(ental %eature o% a planned econo(y is, o% course, that the


(a*e ,9

di%%erent econo(ic sub7ects, *hate,er their le,el in the hierarchy to *hich they belong, all ha,e their acti,ities subordinated to the decisions o% a national planning centre, or o% regional, sectoral or %unctional planning authorities *hich the(sel,es all depend, in principle, on this national centre& .o %ar, a centre li5e this is not a real econo(ic sub7ect, as it does not directly control the producti,e %orces as a *hole, it (erely underta5es, technically, the !ocial direction o% these %orces, in the na(e o% the political authority to *hich it is itsel% subordinate& #t is by *ay o% an increasingly co(plete !ociali!ation o% the producti,e %orces that this social direction can be progressi,ely replaced by direct !ocial domination. Dhen that is co(pleted, the planning centre *ill tend to beco(e, itsel%, a real econo(ic sub7ect& At that (o(ent, (oreo,er, the ties bet*een *or5ing groups *ill be pro%oundly altered, because co(plete and direct social do(ination o% the producti,e %orces *ill bring about the disappearance o% co((odity production and tend to trans%or( the relations bet*een the %or(er econo(ic sub7ects into so(ething analogous to the relations bet*een *or5ing groups *ithin an econo(ic sub7ect& #n the present state o% things, ho*e,er, social direction o% the producti,e %orces, as underta5en by the planning centre, ta5es the concrete %or( o% the *or5ing out at this centre o% a certain nu(ber o% decisions -- the centre does

no (ore, o% course, than *or5 the( out, since the decisions are actually ta5en by the political authorities& )he decisions *or5ed out at this le,el are, in principle, those *hich determine the entire orientation of the national economy. )hey concern the recognition, or esti(ation, o% social needs, and the proportion in *hich these needs *ill be satis%ied (so %ar as an a priori esti(ate can play a part here)& )hese decisions also concern the *ays in *hich society3s needs are to be satis%ied, gi,en the re2uire(ents o% the o,erall and sectoral econo(ic balances during %uture periods o% di%%erent lengths& )hey thus concern the chie% 2uantitati,e and 2ualitati,e targets o% prod%ction and the chie% inve!tment!. )hey also concern the choice o% the (ain techni2ues and the deter(ining o% the syste( o% prices and inco(es& )his is *hat, at the present ti(e, %or(s the basic content o% economic planning. $lanning decisions, i% they are to be e%%ecti,e, (ust %or( *holes *hich are ho(ogeneous and ade2uately e/hausti,e& )hey then constitute plans& Dhile it is essential that the economic !%bject! ta;e part in the #or;ing o%t of the!e plan!, in order to ensure that they are realistic, the !%bordination of the economic !%bject! to the targets laid do*n by the plans is also essential, in order to ensure that these plans are so(ething (ore than *ish%ul thin5ing& .ubordination o% econo(ic sub7ects to the plan is achie,ed through noti%ication o% certain targets to each o% the(, by econo(ic regulation and by the (anipulation o% Hecono(ic le,ersH& )he latter e/pression (eans the use o% those instru(ents *hich the retention o% co((odity categories (a5es it still possible to (anipulateA prices, (oney, credit, etc& #t (ust be strongly e(phasised that the decisions ta5en regarding
(a*e ,'

(anipulation o% the Hecono(ic le,ersH cannot be arbitrary in character, or, i% they are, they *ill be ,ain or *ill render ,ain so(e other decisions i(plicit in the plan, e,en *hen these are in principle obligatory& Arbitrary decisions can thus considerably reduce the e%%iciency o% the econo(ic syste( as a *hole& )hus, *hile in the present state o% things a certain nu(ber o% decisions (ust, i% they are to be adapted to reality, be the re!pon!ibility o% the basic econo(ic sub7ects (e&g&, the production-units), these decisions can the(sel,es only possess real e%%icacy i% the calculations (ade by these econo(ic sub7ects are (ade in Hecono(ically signi%icantH prices (the precise (eaning o% this e/pression *ill be considered else*here)& onse2uently, i% the prices laid do*n by the higher authorities are not Hecono(ically signi%icantH, the e%%icacy o% these decisions ta5en at the base o% the econo(y *ill be negated and they (ay bring about results *hich *ere desired neither by the production-units nor by the planning centre& )he subordination o% the econo(ic sub7ects to e/press order! or de%inite reg%lation results %ro( an admini!trative hierarchy. )he latter (ay be (ade

up either o% di%%erent le,els o% the planning organisation (this is so *hen, besides a central planning organ, there are regional, local, sectoral, etc&, organs, *hich ha,e the responsibility o% (a5ing the enterprises under their control con%or( to the planned targets, by (a5ing these (ore e/act), or o% an econo(ic ad(inistration in the strict sense, *hich is itsel% responsible to the central authority and the planning organs& )he econo(ic ad(inistration (ay itsel% be centralised to a greater or lesser degree& #t (ay be (ade up o% econo(ic (inistries, organs responsible %or allotting certain products, or organs *ith co(petence o,er a certain region (as is the case today in the =..> %or part o% industry, *hich is directed by ,ovnar;hoDy, H ouncils o% Bational 0cono(yH)& As has already been said, i% the role played by an econo(ic ad(inistration li5e this e/tends to tas5s that can be underta5en in a socially (ore e%%icient *ay by the econo(ic sub7ects the(sel,es, there is a ris5 that the econo(y *ill beco(e bureaucratised& #n this conne/ion it is necessary to a,oid the %re2uent illusion by *hich the de3concentration of the organ! of economic admini!tration is seen as (eaning the establish(ent o% a f%nctional hierarchy o% econo(ic sub7ects& A deconcentration o% this sort (ay *ell eli(inate so(e o% the de%ects that result %ro( ,ertical ad(inistrati,e centralisation, but it is not to be con%used *ith a %unctional econo(ic organisation that locates the essential po*er o% c%rrent management at the le,el o% the econo(ic sub7ects& #% seen as a !%b!tit%te %or a %unctional econo(ic organisation, deconcentration o% econo(ic ad(inistration (ay o%ten bring the ris5 o% (a5ing hea,ier still the burden o% a bureaucratic apparatus, an apparatus *hich is re(ote %ro( production and *hich erects a !creen bet#een the political centre and the economic !%bject!. <hen thi! i! the ca!e, the political centre, #hich o%ght to be in a po!ition to plan, i! doomed to have only a partial, incorrect and even di!torted vie# of real economic life a! it act%ally goe! on in the prod%ction %nit!. )he 2uality o% planning can be seriously a%%ected by this&
(a*e ,+

Dhen the ad(inistrati,e Hrelay stationsH are not (erely responsible %or tas5s o% regulation and super,ision, but also ta5e management decisions, this can result in the setting up o% bodies responsible %or %unctions that *ould be %ul%illed better by the econo(ic sub7ects the(sel,es& )he positi,e role o% the ad(inistrati,e authorities is essentially, as a general rule, to super,ise, coordinate and help the production-units, not to inter%ere in their acti,ities& 0,en *hen restricted to a super,isory role, ho*e,er, the acti,ity o% the ad(inistrati,e authorities (ay ta5e on a bureaucratic character, that is, (ay beco(e re(ote %ro( the de(ands o% econo(ic and social reality& )his %re2uently happens *hen these ad(inistrati,e authorities are not the(sel,es sub7ect to strict political and social control& )he latter can pre,ent bureaucratic

distortions i% it is carried out both by a r%ling political party inspired by the *ill to build socialis( and by organ! of people)! po#er *hich e(anate directly %ro( the locality or region *ithin *hich the (ain acti,ity o% the econo(ic sub7ects *hich %all under this control is carried on& Dhen the acti,ities o% certain econo(ic sub7ects are nation-*ide in their e%%ect, or e,en e/tend beyond the li(its o% one state, then it is only at the si(ilarly nation*ide or international le,el that political control can be e/ercised in a de(ocratic and not a bureaucratic *ay& #n the %oregoing passages # ha,e tried to clari%y so(e o% the essential %eatures o% econo(ic sub7ects and also o% the hierarchical conne/ions that can be established either bet*een econo(ic sub7ects the(sel,es or bet*een ad(inistrati,e authorities and econo(ic sub7ects& Bo* # (ust say a %e* *ords about contractual relations bet*een econo(ic sub7ects& b) $ontract%al relation! )he decisions an econo(ico-7uridical sub7ect can ta5e *hich concern another independent econo(ic sub7ect assu(e the %or( neither o% orders nor o% regulations& .uch decisions cannot be unilateral, they (ust be e(bodied in contracts& ontractual relations, in contrast to relations o% subordination, are thus relations *hich can unite se,eral econo(ico-7uridical sub7ects *hich are co(parati,ely independent o% each other& )he contracts into *hich econo(ico-7uridical sub7ects enter (ay be o% *idely di%%ering content& )his is not the place to try and analyse the(; # shall there%ore con%ine (ysel% to so(e ,ery broad indications&
1)

$ontract! for b%ying and !elling

#n so %ar as the ,arious econo(ic sub7ects (e,en i% they are all parts o% the state sector o% a socialist econo(y) ha,e po*er to dispose o% certain products, the decisions they ta5e to get rid o% these products, or to ac2uire the(, assu(e, as a rule, the %or( o% contracts (%or buying and selling)& )hese contracts gi,e rise to a %or( o% circulation *hich di%%ers %ro( that resulting %ro( orders to trans%er products (such as the orders that ensure the circulation o% products *ithin a %actory and *hich are i(posed by a higher authority upon a lo*er one)& )his %or( o% circulation is the corollary o% the relati,e autono(y o% the di%%erent econo(ico-7uridical sub7ects&
(a*e ,&

De ha,e seen, ho*e,er, that *hen the plan has laid do*n in ad,ance the destination, or the source, o% certain products, contracts o% purchase and sale (*hich then (erely superi(pose a contractual obligation upon the obligations arising %ro( the plan) ha,e, to so(e e/tent, a %or(al characterA they do not really gi,e e/pression to the relati,e autono(y o% the econo(ico-7uridical

sub7ects& Be,ertheless, e,en *hen such contracts are (ade by ,irtue o% the plan, they %or(, li5e the pay(ent o% the speci%ied price, a condition %or the alienation o% the products sold by one econo(ic sub7ect and ac2uired by another& )hese contracts thus re,eal the sur,i,al o% commodity exchange. )he latter is still necessary because the ad(inistrati,e authorities are unable to %or(ulate *ith su%%icient e/actitude, in ad,ance, all the directi,es relating to the conditions o% circulation o% the products concerned& Dhat cannot be %or(ulated as directi,es has to ta5e the %or( o% contracts; %or e/a(ple, (atters relating to !pecification!, or delivery date!. )he co(bination o% planned tas5s and contractual obligations thus appears as *hat are called Hplanned contractsH&
2)

-abo%r contract!

8abour contracts are the 7uridical %or( by *hich an econo(ic sub7ect in the sphere o% production or distribution decides to e(ploy a *or5er, and by *hich the latter underta5es to *or5 %or a certain econo(ic sub7ect& #n a planned socialist econo(y, the conditions and conse2uences o% this (utual underta5ing are largely laid do*n by the plan, by regulations and by collecti,e labour agree(ents (on *hich # cannot d*ell here)& An underta5ing o% this 5ind constitutes the speci%ic 7uridical %or( on the basis o% *hich the *or5ers ta5e part in the sharing a(ong the(sel,es o% part o% the consu(able social product& #n the sector o% producer co-operati,es there are, o% course, no such labour contracts bet*een a co-operati,e and its (e(bersA the leaders o% the cooperati,e assign tas5s to each (e(ber and decide the conditions go,erning the share-out o% the collecti,e product a,ailable&
")

$redit contract!

A credit contract is one by *hich an econo(ic sub7ect (a production-unit, %or e/a(ple) decides to borro* %ro( another econo(ic sub7ect (a nationalised ban5, in the socialist planned econo(ies o% today)& )he conditions o% this contract are also sub7ect to social regulation and, (oreo,er, the very p%rpo!e of !%ch a contract i! often laid do#n by the plan. Dhen this is so, the real decision has been ta5en at a higher le,el (%or e/a(ple, by the planning authority *hich in this *ay allots part o% the social accu(ulation %und)& )he contract then e!!entially give! bodily form to order! addressed to the t*o contracting parties; ne,ertheless, de%inite obligations arise %ro( this contract, %or it pro,ides the %ra(e*or5 *ithin *hich i(portant partic%lar! are detailed, concerning the conditions %or (a5ing the loan and putting it to use& Dhen, ho*e,er, *hat is in,ol,ed is a loan (ade Houtside o% the planH, *e ha,e be%ore us a relati,ely autono(ous decision ta5en by t*o econo(ic sub7ects (the one borro*ing and the one lending), *hich operates *ithin
(a*e ,,

the li(its o% an o,erall regulation& )he place that can be accorded to this *ay o% allotting the social accu(ulation %und has been (uch discussed& #t is generally agreed that loans Houtside the planH can occupy only a li(ited place in a planned econo(y& )he allot(ent o% the accu(ulation %und does, indeed, deter(ine to a large e/tent the pace and e,en the %or(s o% econo(ic de,elop(ent, that is, the f%ndamental p%rpo!e of !ocial planning. All the sa(e, i%, at the present le,el o% de,elop(ent o% the producti,e %orces, loans Houtside the planH can still be needed, this is due to the i(possibility, at the (o(ent, o% %oreseeing precisely enough all the technical changes that *ill be socially bene%icial and *hich *ill re2uire the use o% a part o% the accu(ulation %und in order to be i(ple(ented& Dhen it is to the disad,antage o% society to *ait until a %resh plan has been dra*n up be%ore carrying out certain particularly e%%icient technical changes, then recourse is had to the procedure o% loans Houtside the planH& #t is not *ithout i(portance to note that the contract by *hich a productionunit borro*s %ro( a ban5 (ay bring about partial econo(ic subordination o% the %or(er to the latter, since the ban5 can then e/ercise control o,er the e%%ecti,e conditions %or the use o% the (oney& De (ay as5 *hether, during the entire phase o% the building o% socialis( in *hich (oney econo(y still plays a big role, the controlling f%nction o% the state ban5 does not pro,ide the (ost %le/ible (eans o% subordinating production-units to the decisions o% the centre, (ore e%%iciently than can be done by *ay o% a hierarchic econo(ico-ad(inistrati,e apparatus& Fere it is appropriate to recall *hat 8enin *rote on the (atterA HA single state ?an5 & & & *ith branches in e,ery rural district, in e,ery %actory, *ill constitute as (uch as nine-tenths o% the !ociali!t apparatus& )his *ill be country-*ide boo;3;eeping, country-*ide acco%nting o% the production and distribution o% goods, this *ill be, so to spea5, so(ething in the nature o% the s5eleton o% socialist society&H (+ol& 21 o% 8enin3s +e%vre! compl?te!, pre-*ar edition, p& "11& 90ng& ,ersion %ro( 8enin, $ollected <or;!, 'th edn&, +ol& 26, p& 106:&)9O:
')

$o3operation contract!

Finally, the decisions ta5en by econo(ic sub7ects and e(bodied in contracts can also assu(e, as *e ha,e seen (c%&, !%pra, note "), the %or( o% agree(ents %or co-operation& #t (ay be thought that the process *hereby e/change and the co((odity categories *ill be eli(inated *ill pass, to so(e e/tent, by *ay o% such cooperation agree(ents bet*een enterprises, *hich can gi,e rise to ne* econo(ic and 7uridical sub7ects capable o% absorbing the sub7ects *hich ha,e engendered the(& Fo*e,er, this process o% contract%al integration can use%ully ser,e the de,elop(ent o% the producti,e %orces only i% it re%lects real changes in the nature o% these %orces and in the degree to *hich they are socialised&

c) (he nat%re of the deci!ion! to be ta;en by the different economic !%bject! and !ocial a%thoritie! )he nature o% the decisions that can be ta5en by the di%%erent econo(ico9O (ran!criber)! *oteA .ee 8enin3s H an the ?olshe,i5s >etain .tate $o*erMH& -- DJR:

(a*e ,%

7uridical sub7ects and by the ,arious social authorities, and *hich a%%ect other econo(ic sub7ects and social authorities, is closely bound up *ith the nature o% the relations that ha,e to be established bet*een the(& #n so %ar as the relations established bet*een di%%erent *or5ing groups, econo(ic sub7ects or social authorities are relations o% hierarchical !%bordination, the decisions ta5en by the higher authority in relation to the lo*er are essentially o% t*o typesA the regulation and the order& A reg%lation is a body o% decisions *hich lays do*n a %ra(e*or5 (i&e&, li(its) %or the acti,ities o% the subordinate sub7ects& #t i(plies autono(y o% decision-(a5ing by the subordinate sub7ect *ithin the li(its o% the regulation laid do*n by the higher authority& )he %urther this regulation goes, and the (ore detailed it is, the less is the autono(y en7oyed by the sub7ect& >egulation (e(anating %ro( the organs responsible %or *or5ing out the plan, or %ro( the ad(inistration responsible %or its application) co(es into play *hen %orecasting can assu(e a general %or(& #n such cases it is possible %or the higher authority to base itsel% upon this %orecasting in order to decide, once %or all (i&e&, until conditions change), the orientation o% certain decisions to be ta5en by the econo(ic sub7ects& )he sa(e can apply, inside a co(ple/ econo(ic sub7ect, *ith regard to the subordinate econo(ic sub7ects or *or5ing groups& Dhen %orecasting o% a general 5ind is not possible, the higher authority can deter(ine certain actions o% the hierarchically subordinate sub7ect by gi,ing it a !pecific order. )hus, in the planned econo(ies o% today, the chie% targets to be reached during a certain period by the ,arious econo(ic sub7ects are laid do*n by the plan& .o %ar as these econo(ic sub7ects are concerned, the tas5s laid do*n by the plan constitute orders& #t (ay be that so(e o% the conditions under *hich these targets ha,e to be reached (e&g&, the use o% a particular techni2ue) are also laid do*n by e/plicit orders& !n the other hand, other conditions %or attaining these targets, *hich it *ould be unhelp%ul to try to deter(ine %ro( a distance, are go,erned by decisions ta5en by each econo(ic sub7ect, *ithin the li(its laid do*n by the regulatory decisions and by the *or5ing o% the Hecono(ic le,ersH set in operation by ,irtue o% the o,erall plan&

#t is i(portant to recall here that the ,arious *or5ing groups or technical units (the *or5shop, %or instance), *hich together (a5e up an econo(ic sub7ect, essentially recei,e order! co(ing %ro( an econo(ic authority inside the sub7ect and responsible either %or the general direction o% the latter or %or the direction o% one o% its constituent lin5s& #t is *ithin this %ra(e*or5 that the *or5ing groups ha,e to ta5e technical deci!ion!. 4ecisions are called HtechnicalH *hen they concern a production-process the p%rpo!e and nat%re o% *hich ha,e already been entirely laid do*n by the ruling authority& A *or5ing group *hich has only the right to decide the material condition! in *hich the operations entrusted to it are carried out has no econo(ic
(a*e %1

personality& !% course, technical conditions do also, as a rule, in,ol,e ta5ing economic efficiency into consideration but, %or e,ery group *hich can ta5e only technical decisions, the frame#or; of calc%lation o% its econo(ic e%%iciency is *holly and strictly deter(ined %ro( *ithout& #ncreasing integration into a co(ple/ econo(ic sub7ect o% the acti,ities o% di%%erent production-units (%or(ing parts o% the sa(e ho(ogeneous branch or o% a chain o% units *hich technically control each other) leads to loss o% econo(ic personality by these units, *hich gradually co(e to %unction only in con%or(ity *ith orders e(anating %ro( a central authority, orders *hich they ha,e to %ul%il *ithin the %ra(e*or5 o% an o,erall syste( o% regulations& )he decisions ta5en by these units *ill thus, to an increasing e/tent, be purely technical decisions& #n a sense, the appearance o% econo(ic sub7ects hierarchically subordinated to each other, *hen this hierarchical subordination is not arbitrary but corresponds to the nature and degree o% de,elop(ent o% the producti,e %orces, can be regarded as a transitional pheno(enon, the subordinate units being destined to beco(e changed into *or5ing groups *ithout any econo(ic personality& d) (he different type! of hierarchy A hierarchy *ill be called Had(inistrati,eH *hen the *or5ing groups *hich occupy subordinate places in this hierarchy do not %or( *ith the directing authority an organic *hole possessing the character o% a co(ple/ econo(ic sub7ect& #n this case, the directing authority is an ad(inistrati,e or political authority and the subordinate *or5ing groups re(ain econo(ic sub7ects *hich thus ha,e, in principle, to ta5e econo(ic decisions that cause the( to enter into relations *ith other sub7ects&

As has been said, the subordination o% the econo(ic sub7ects in the production or distribution spheres to ad(inistrati,e or political orders corresponds to a necessity o% planned econo(y& #t is through this ad(inistrati,e and political subordination that the prioritie! of !ocial development are i(posed, along *ith respect %or the !ocial need! ac5no*ledged by the plan, and the a priori co3ordination o% the ,arious acti,ities the interdependence o% *hich (ay be sub7ect to social %orecasting& !n the other hand, *hen ad(inistrati,e subordination goes beyond *hat is socially use%ul and necessary and tends to substitute relations o% ad(inistrati,e subordination %or econo(ic relations *hich *ould be better adapted to the actual e/igencies o% planned econo(ic de,elop(ent, *e see a bureaucratic distortion o% the econo(y and a lo*ering o% e%%iciency, either at the le,el o% planning or at that o% (anage(ent, or else at both le,els& #n e/tre(e cases, an econo(ico-7uridical sub7ect (ay be placed in a situation *here it loses de facto all its autono(y and is there%ore no longer a real 7uridical sub7ect (e,en i% it retains the appearance o% one)& )he only real 7uridical personality is then that o% the higher authority& #n cases *here the latter is not a true econo(ic sub7ect (this e/isting at a lo*er le,el because it is at this le,el alone that actual control can be e/ercised o,er the produc(a*e %1

ti,e %orces), there can be lac5 o% correspondence bet*een the econo(ic and the 7uridical conditions in *hich the group (ade up o% a 7uridical sub7ect and so(e econo(ic sub7ects is %unctioning& De ha,e already obser,ed that a lac5 o% correspondence li5e this bet*een 7uridical relations and concrete production-relations can cause (ore or less co(plete paralysis o% the econo(ic sub7ects, *ith s2uandering or underutilisation o% society3s resources, and operation by the econo(ic sub7ects in *ays that are in breach o% the regulations (*hich then partly cease to be e%%ecti,e)& #n this last-(entioned case, the e%%orts (ade by the higher authority *ith a ,ie* to en%orcing at all costs a syste( o% regulations *hich is inappropriate can lead to the proli%eration o% the bureaucratic apparatus and a control o,er the econo(y *hich is at once (ore and (ore detailed and less and less e%%ecti,e (the econo(y %unctioning, to so(e e/tent, in breach o% the rules laid do*n, and so, in a *ay, HclandestinelyH)& Actions per%or(ed in breach o% the rules are not reported, so that the chec5ing o% acti,ities and their results beco(es partly illusory; in such circu(stances, foreca!ting beco(es e,en (ore illusory& Dhen the lac5 o% correspondence bet*een the 7uridical rules and the actual relations o% production goes beyond certain li(its, the picture o% the econo(y that the di%%erent social authorities %or( and present to the political authority (ay be e/tre(ely distorted& )hence%orth, the political authority is brought, in

so %ar as it relies on the docu(ents supplied by the social authorities and not on a (ore direct a*areness o% reality, to let itsel% be guided, to use the e/pression already e(ployed, by a sort o% Hbureaucratic (irageH, *hich can only result in a gra,e lac5 o% control o,er econo(ic reality& )he ris5s o% such a H(irageH being %or(ed are all the greater because the ad(inistrati,e organisation has a ,ertical structure *hich is strongly hierarchical, *hereas the econo(y is %ar %ro( being co(pletely characterised by organic ,ertical integration& Dhen this is the case, the ,ertical hierarchy is essentially b%rea%cratic, in the sense that it entails an allot(ent o% admini!trative %unctions *hich does not correspond to the allot(ent o% economic %unctions that is needed by the nature and de,elop(ent o% the producti,e %orces& onse2uently, a*areness o% econo(ic reality tends to be replaced by an ad(inistrati,e, bureaucratic, sub7ecti,e and (ysti%icatory Ha*arenessH& Dhen this occurs, indeed, *e ha,e a situation in *hich, on the one hand, there are the real econo(ic sub7ects, the *or5ers, the constantly changing production-relations, and the real contradictions, *hile, on the other, there is an ad(inistrati,e apparatus *hich is busy shu%%ling papers, reports, %igures, statistics& )he higher *e go in this ad(inistrati,e hierarchy the (ore synthetic do these papers, these reports and %igures, beco(e, and the (ore abstract, in the bad sense o% the *ord& .ynthesis and abstraction are, o% course, necessary %or the general direction o% the econo(y, but there are %alse syntheses and bad abstractions,
(a*e %2

such as those *hich select secondary %eatures %ro( a co(ple/ reality, instead o% selecting the essential %eatures, that is, those *hich enable one to *or5 e%%ecti,ely upon this reality& Bo*, in the progressi,e ascent o% docu(ents and in%or(ation up through an ad(inistrati,e apparatus structured in accordance *ith its o*n logic and not *ith that o% the econo(y3s organisation, the selection that is (ade a(ong the ite(s o% in%or(ation to hand can easily beco(e deter(ined by *hat is e/pected or *anted by the higher authority& )he latter, in %act, has to 7udge the lo*er authorities by their Hachie,e(entsH, and in an ad(inistrati,e set-up these achie,e(ents are (ainly HappreciatedH through *ritten reports& )hus, the higher this Hin%or(ationH tra,els, the (ore thoroughly is it cleared o% *hate,er constitute the negati,e aspects o% the situation reported on, that is, e/actly *hat %or(s one o% the essential ele(ents in it, on *hich action (ust be ta5en i% progress is to be (ade& Dhen there is a political organisation *hich is *ell-structured and *ell ar(ed on the theoretical plane, and *hen this can ensure that another selection o% in%or(ation is (ade, and another channel pro,ided %or its up*ard trans(ission, the de%ects o% such a syste( can to so(e e/tent be o%%set& )he

de%ects re(ain none the less ,ery serious, because it is ine,itable that the *eight o% the Hin%or(ationH selected through a centralised ad(inistrati,e apparatus (ust tell ,ery hea,ily upon the nature o% the decisions ta5en, and this is all the (ore so since ad(inistrati,e organisation is ta5ing the place o% the real econo(ic sub7ects& Fro( a certain point on*ard, instead o% an e%%ecti,e econo(ic organisation *hich pro,ides %or a proper di,ision bet*een econo(ic tas5s and ad(inistrati,e ones, all that is a,ailable is a centralised bureaucratic organisation, *hich contradicts both the needs o% econo(ic (anage(ent (*hich re2uires (ultiple %unctional relations) and those o% genuine de(ocratic centralis( (*hich re2uires that in%or(ation, criticis(s and suggestions circulate in both direction! )& Another reason *hy an ad(inistrati,e apparatus %or (anaging the econo(y (*hen it establishes vertical hierarchical relations instead o% the hori<ontal econo(ic relations that are needed) can beco(e a constant source o% bureaucratic illusions is that this type o% organisation leads to compartmentali!ation bet#een prod%ction3%nit!. )his co(part(entalisation does not, as a rule, correspond to the actual %or(s o% the di,ision o% labour, *hich, on the contrary, usually calls %or (ultilateral lin5s& Dhen the econo(y is ad(inistrati,ely co(part(entalised in this *ay, the units o% production are treated as the lo*est cogs o% a (achine *hich operates ,ertically and can be controlled %ro( a single centre, *hereas, in %act, each o% these productionunits, in so %ar as it constitutes an econo(ic sub7ect, is a place *here hori<ontal relations *ith other production-units (ust and do intersect& )he substitution o% ad(inistrati,e and hierarchical relations %or direct econo(ic relations thus entails (any negati,e conse2uences %ro( the standpoint o% the apprehension, and so o% the control, o% reality&
(a*e %7

A(ong the conse2uences (ost %re2uently obser,ed is the greater attention accorded to the physical 2uantities produced by the di%%erent branches o% the econo(y, as co(pared *ith the 2uality o% these products, since they are destined %or users *ho are in the sphere o% other ad(inistrati,e authorities& #n an econo(y (anaged in a predo(inantly ad(inistrati,e and centralised *ay, obser,ation con%ir(s that a tendency e/ists to be concerned (ainly *ith the physical 2uantities o% the ,arious goods to be pro,ided, and ,ery little *ith the conditions in *hich these products *ill be used and the relations that ought to be established bet*een the di%%erent production-units in order to ensure satis%actory channelling o% the products& #n so %ar as relations bet*een econo(ic sub7ects are badly arranged, 7ust because o% ad(inistrati,e centralisation, the real economic effect o% the e/istence o% di%%erent physical 2uantities o% products (ay be 2uite di%%erent %ro( *hat is e/pected& Dhat is i(portant is not (erely to dispose o% de%inite 2uantities o% %ertiliser, insecticide, tractors, spare parts, and so on, but also, and

at least to the sa(e e/tent, to ensure that each prod%ction3%nit recei,es these ,arious products at the moment re'%ired and in the '%antity and '%ality re'%ired by it. #% this does not happen, the econo(ic e%%ect o% the possible overall a,ailability o% the ,arious products (ay be 2uite unrelated to the e%%ect anticipated in abstract calculations *hich ta5e no account o% the concrete condition! %nder #hich each prod%ction3%nit i! !%pplied by the re!t. Dhen these concrete conditions %ail to con%or( to the production re2uire(ents o% each !eparate %nit , but are instead deter(ined by inappropriate bureaucratic cogs, the econo(ic e%%ect o% a gi,en o,erall supply o% goods (ay be nil, or al(ost nil, or, in any case, insigni%icant& #n general, lac5 o% correspondence bet*een a hierarchical ad(inistrati,e structure and the orders e(anating %ro( this, on the one hand, and, on the other *hat the econo(y needs in order to %unction, can result %ro( %ailure to recognise the real econo(ic sub7ects, or %ro( the superi(posing on these real econo(ic sub7ects o% a centralised econo(ic ad(inistration *hich is itsel% unadapted to the real relations bet*een these econo(ic sub7ects, or %ro( a syste( o% regulation *hich is too (eticulous and bureaucratic, or, on the contrary, %ro( a syste( o% regulation *hich is insu%%iciently e/act and detailed and lea,es to the di%%erent 7uridical sub7ects a %ield o% decision-(a5ing *hich is bigger than that in *hich they can operate *ith %ull 5no*ledge& )his last situation can also lead to both s2uandering and under-utilisation o% resources& 0%%icient (a/i(u( utilisation o% resources can there%ore be secured only i% there is con%or(ity bet*een organisation and regulation on the one hand and, on the other, the re2uire(ents o% the econo(y3s %unctioning& At the le,el o% each econo(ic sub7ect, this con%or(ity is attained *hen the econo(ic sub7ect possesses 7uridical po*ers *hich enable it to ta5e decisions *ithin the %ield *here these decisions can be ta5en #ith f%ll ;no#ledge regarding condition! for their application, chec;! on ho# they are
(a*e %9

carried o%t and foreca!ting of their f%t%re con!e'%ence!. )he si<e o% this %ield is (ainly deter(ined by the degree o% de,elop(ent o% the producti,e %orces and o% their social character& 4ecisions that go beyond the %ield that can be do(inated by an econo(ic sub7ect, and re2uire %or*ard ,ie*s or (easures a%%ecting the %uture acti,ity o% se,eral econo(ic sub7ects, not yet su%%iciently integrated to be do(inated by a higher econo(ic sub7ect, (ust necessarily be either the responsibility o% an ad(inistrati,e authority or else be le%t to the *or5ing o% the co((odity categories& )hus, *hen the acti,ities o% di%%erent sub7ects are not integrated but are only inter3dependent, the decisions that ha,e to be ta5en *ith regard to these

acti,ities belong either to the sphere o% direct planning, that is, o% a priori ad7ust(ents (*hen the %or*ard ,ie* can be su%%iciently e/act) achie,ed through general regulation or through speci%ic orders, or else to the sphere o% co((odity relations, *hen precise %orecasting is not a practical proposition& #n in-bet*een situations, relating to a %ield *hich is *ider than that *hich can be directly do(inated by an econo(ic sub7ect, the categories o% planning and those o% the (ar5et *ill ha,e to be co(bined, the (ar5et categories being sub7ect to (anipulation by the planning authorities (this is *here the planning o% prices and inco(es co(es in, a sub7ect *hich *ill be dealt *ith in a later chapter)& #n the %oregoing passages a *hole nu(ber o% proble(s ha,e been le%t on one side, connected *ith the ta;ing of deci!ion! at the le,el o% the econo(ic sub7ects, or the authorities *hich super,ise the(& )hese proble(s (*hich call %or e/tensi,e analysis in their o*n right) concern the mechani!m! *hich enable an effective decision to be (ade, the constitution o% the organs responsible %or ta5ing decisions *ithin each econo(ic sub7ect or each econo(ic authority, the mode of appointment o% the (e(bers o% these organs, and so on&9"6: )his *ould ta5e us too %ar %ro( our (ain sub7ect, *hich is the deter(ination o% econo(ico-7uridical sub7ects, the nature o% the relations that (ust necessarily be established bet*een the( at the present stage o% de,elop(ent o% the producti,e %orces, and, %inally, the e%%ect, on certain aspects o% the #or;ing o%t and application o% plans, o% the e/istence o% co((odity categories and o% econo(ic sub7ects& #t is this last point that *e (ust no* e/a(ine& 6 ,ome problem! of planning connected #ith the exi!tence of economic !%bject! )he %act that econo(ic sub7ects e/ist in the production sphere, endo*ed *ith relati,e autono(y in decision-(a5ing, ob,iously gi,es rise to a considerable nu(ber o% proble(s as regards the dra*ing up o% plans and the i(ple(enting o% these plans& # *ill here touch on only so(e o% these proble(s& a) (he role played by economic !%bject! in the dra#ing %p of plan! #n order to see *hat is in,ol,ed in plans based on the e/istence o% a large nu(ber o% econo(ic sub7ects it is enough to i(agine the opposite
(a*e %'

situation, *here there is no diver!ity o% econo(ic sub7ects but only a certain nu(ber o% technical depart(ents operating inside a single econo(ic sub7ect& #n a situation li5e that, once the targets %or the econo(ic sub7ect ha,e been laid do*n, the tas5s o% the ,arious technical depart(ents co(posing it, and the (eans necessary %or realising these tas5s, can essentially be deter(ined a

priori, pro,ided a certain nu(ber o% calc%lation! are (ade& #n other *ords, the chie% tas5s o% the technical depart(ents can be ded%ced %ro( the targets o% the econo(ic sub7ect, allo*ing %or the technical %eatures, in the strict sense, o% the ,arious *or5ing groups e(braced by this sub7ect&9"6: )he position is 2uite di%%erent *hen an econo(ic sub7ect has to ta5e current econo(ic decisions& )hese decisions ha,e engendered (ore or less regular relations bet*een it and a (ore or less considerable nu(ber o% other econo(ic sub7ects& #n this situation, the conditions in *hich the plan can fore!ee the acti,ities o% each o% the econo(ic sub7ects in 2uestion are 2uite di%%erentA it i! not po!!ible to arrive by #ay of ded%ction %ro( the targets to be attained by a gro%p of economic !%bject! at the tas5s to be carried out by each of them. #n this situation (that is, *hen there is a plurality o% econo(ic sub7ects), it is necessary, in order to arri,e at plans *hich are both realisable by each econo(ic sub7ect and econo(ically as ad,antageous as possible, not (erely to consult the *or5ing groups and arouse their initiati,e but also to cause the di%%erent econo(ic sub7ects to participate acti,ely in the act%al #or;ing o%t of the plan!.
1)

Proced%re! for con!%ltation and participation

#t is this situation that con%ers such i(portance, *eight and signi%icance upon the procedure *hich consists in preparing centrally a dra%t plan, sending this Hdo*nH to the econo(ic sub7ects so that they can a(end it, and then bringing the a(ended plan bac5 HupH to the planning centre& )his is not (erely a calc%lation techni'%e 9"1: or a *ay o% asse(bling rele,ant in%or(ation, it is a !pecial #ay of #or;ing o%t a plan, dictated by the necessity (%or the sa5e o% a high degree o% social e%%iciency) o% ta5ing into consideration the !pecific and concrete econo(ic situation o% the di%%erent sub7ects& At a lo*er le,el o% socialisation o% the producti,e %orces than is characteristic o% (odern industry, that is, in the sectors *here this socialisation is relati,ely less de,eloped, the preparation o% the plan cannot yet be under ta5en by the Hsending do*nH o% dra%t plans and their return, a(ended, to the central authority& #t has to be done by the dra*ing up at the centre o% a si(ple directional frame#or;, *hich is handed o,er to the di%%erent econo(ic sub7ects& )he latter then *or5 out, on this basis, their o#n draft plan!. )hese dra%ts are sent to the central authority, *hich (a5es any necessary ad7ust(ents, in a continuing dialogue *ith the econo(ic sub7ects& As *e sa* earlier, this is the *ay in *hich, in hina, the production plans o% the *or5tea(s and *or5-brigades are prepared *ithin the people3s co((unes, as also the plans o% the co((unes the(sel,es& #t (ust be obser,ed that, in an increasing nu(ber o% socialist countries, and notably in the .o,iet =nion itsel%,9"8: the yearly production plans o% the
(a*e %+

industrial enterprises o% the state sector itsel% are to so(e e/tent dra*n up by this (ethod, that is, starting %ro( dra%ts prepared by each of the enterpri!e!, *ithin the %ra(e*or5 o% %orecasts o% general econo(ic de,elop(ent& )hese general %orecasts result either %ro( a prospecti,e de,elop(ent plan or %ro( directi,es *or5ed out centrally %or a period shorter than that co,ered by the prospecti,e plan& !ne (ay be surprised to %ind (ethods o% dra*ing up the plan *hich assign a (ore substantial role to the di%%erent econo(ic sub7ects succeeding (ethods *hich had reduced to little the role played by these sub7ects& )here *ould see( to be grounds %or *ondering *hether the *ay the (ethods o% dra*ing up plans is e,ol,ing does not re%ute the conclusions o% the %oregoing analyses, since *hat *e see is that *hen the producti,e %orces o% the socialist countries ha,e increased and their social character has been consolidated, a bigger role than be%ore is accorded to the econo(ic sub7ects in the preparation o% the plans& )here are se,eral reasons %or this e,olution, and they sho* that it does not contradict the conclusions o% the %oregoing analysis, despite the %act that it see(s to be de,eloping in the opposite *ay to *hat *ould be suggested by a (echanical application o% the conclusions o% this analysis& !n this point # *ill con%ine (ysel% to listing brie%ly so(e o% the reasons that account %or this type o% e,olutionA (1) )he rapid transition %ro( one (ode o% production to another, the i(balance and econo(ic tensions caused by it, and by the great e%%orts (ade to accu(ulate, ha,e, during a certain period, created a situation that rendered te(porarily i(possible the granting to each econo(ic sub7ect o% all the (argins o% initiati,e, decision-(a5ing or suggestion that corresponded to the actual le,el o% de,elop(ent o% the producti,e %orces; (2) )he lac5 o% e/perience o% the (anagers o% enterprises, trained personnel and *or5ers li5e*ise (ade i(possible, %or an entire period, *ider initiati,e on the part o% the econo(ic sub7ects and *ider participation by the( in the *or5ing out o% the plan targets; (") Dhat *as a necessity at a certain transitional stage (a necessity *hich, true, *as so(eti(es interpreted e/cessi,ely), *as later loo5ed upon as a (ode o% organisation appropriate to the le,el o% the producti,e %orces already attained, so that, %or a certain period, there *as a tendency to treat the producti,e %orces as though they had reached a higher degree o% socialisation than *as really the case& #n %act, as soon as the proble(s o% the %irst transitional phase had been o,erco(e, the %ar-reaching incon,eniences o% (ethods o% *or5ing out the plan *hich *ere not appropriate to the le,el o% de,elop(ent o% the producti,e %orces (e,en a%ter these had progressed) (ade necessary a re,ision o% these (ethods, in the direction o% (ore e/tensi,e autono(y, and a greater (easure o% initiati,e and po*er o% suggestion being accorded to the econo(ic sub7ects&

)his process *ill certainly ha,e to be re,ersed later on, in conse2uence o% the e,er-higher socialisation o% the producti,e %orces& Fo*e,er, i% *e
(a*e %&

accept the %oregoing analyses, *e ha,e also to accept that this re,ersal o% the process *ill ha,e to be carried out essentially through reduction in the nu(ber o% econo(ic sub7ects and trans%or(ation o% a considerable 2uantity o% the( into (ere technical depart(ents o% co(ple/ econo(ic sub7ects&
2)

,ome factor! infl%encing the content of the draft plan prepared by an enterpri!e

#t (ust be obser,ed that the content o% the %irst dra%t o% the plan o% an enterprise (*hich *ill ha,e a ,ery i(portant bearing on the plan ulti(ately adopted) is (uch in%luenced by the criteria that *ill subse2uently ser,e to (easure the e%%iciency o% the (anage(ent o% the enterprise and also, perhaps, to deter(ine the a(ount o% part o% the pay(ent (ade to the (anage(ent, the specialist personnel and the *or5ers& For e/a(ple, i% bonuses to enterprises or to specialist personnel are a*arded on the basis o% (or ta5ing into account) the proportion in *hich the plan o% each enterprise has been %ul%illed or surpassed, it is al(ost ine,itable (in so %ar as the (oti,ation o% those *ho are responsible %or preparing the plan o% the enterprise is based on considerations o% (aterial gain, or e,en o% prestige) that the %irst dra%t o% the plan o% the enterprise *ill assu(e a Hsub-opti(u(H le,el, because this is *hat *ill enable the enterprise to surpass its o*n plan *ithout di%%iculty& .ince the yardstic5, or criterion, o% !%rpa!!ing the plan has o%ten been, and still is, one o% the criteria by *hich the 2uality o% (anage(ent is esti(ated, this is a ,ery %re2uent pheno(enon, resulting in the e/istence *ithin the enterprises o% unused Hreser,esH o% production-capacity& .i(ilarly, as regards costs o% production, i% bonuses are to so(e e/tent a*arded on the basis o% the achie,e(ent by an enterprise o% costs o% production lo*er than those %oreseen by the plan, the enterprise *ill tend, *hen the %irst dra%t o% its plan is dra*n up, to esti(ate its production-costs as planned at a le,el higher than is really necessary& For these reasons it has so(eti(es been proposed that bonuses be a*arded, in part, not on the basis o% !%rpa!!ing the plan but on the basis o% the progre!! propo!ed by the plan of the enterpri!e in compari!on #ith the re!%lt! of the previo%! year on condition, o% course, that the plan thus put %or*ard is duly realised (this is the gist o% one o% 8iber(an3s proposals regarding the a*ard o% bonuses on the basis o% planned profit!, as proposed by an enterprise itsel%)& )he disad,antage o% this (ight be that in the course o% a gi,en year each econo(ic sub7ect (ight restrict itsel% to achie,ing the targets it had laid do*n in ad,ance, e,en though it could surpass the(, so as to 5eep in hand, so to spea5, a sort o% Hreser,eH o% proposals %or planned ad,ances %or use in the subse2uent year&

)his sho*s that the (argin o% initiati,e and %reedo( o% (anoeu,re *hich has to be allo*ed to each econo(ic sub7ect (precisely because it alone can 5no* its o*n production-capacities) is such as to gi,e rise to contradictions bet*een the interest o% the econo(ic sub7ect and the collecti,e interest& )hese are ob7ecti,e contradictions the scope o% *hich one (ust try to restrict not only by organisational (easures but also by de,elop(a*e %,

ing that political consciousness *hich alone can (a5e e,ery group %eel that the interests o% society (ust ta5e precedence o,er those o% a li(ited group& #n practice, it is the tas5 o% the social authorities standing higher than the econo(ic sub7ects to chec5 -- though this is no easy tas5 -- on the e/tent to *hich the initiati,es or proposals e(anating %ro( the econo(ic sub7ects con%or( or %ail to con%or( to the general social interest& #n the .o,iet =nion, *hen the %irst dra%t o% the plan o% an enterprise is sent up to the ,ovnar;hoD, the latter has to chec5 *hether the econo(ic sub7ect has 5ept bac5 hidden Hreser,esH enabling it to surpass the plan& Baturally, *hen it (a5es this in,estigation, the ,ovnar;hoD tends as a rule to start %ro( the results achie,ed in the pre,ious year and to raise the( (ore or less (echanically by a certain percentage, so that the total %igures o% the enterprise plans co(e up to the targets set %or the region or the *hole country& )his *ay o% proceeding, *hich is o%%icially disappro,ed o%, entails a nu(ber o% disad,antages; it tends to (a5e the plan o% the enterprise the result not o% an ob7ecti,e e,aluation o% its potentialities but rather o% a co(pro(ise bet*een its o*n esti(ate, usually a (odest one, and the (ore a(bitious esti(ate, *hich is not necessarily better %ounded, o% the higher social authority& b) (he degree of exactne!! and the more or le!! obligatory character of enterpri!e plan! )he e/istence o% econo(ic sub7ects necessarily endo*ed *ith a certain autono(y (ust ob,iously reduce the degree of exactne!! that can be achie,ed in the %orecasts e(bodied in plans& Accordingly, in so %ar as the acti,ity o% an econo(ic sub7ect is partly deter(ined by the acti,ities o% the other econo(ic sub7ects, it is pointless to try and de%ine in detail, e/actly, all aspects o% the %uture acti,ity o% each econo(ic sub7ect& )he situation is clearly di%%erent *here the fig%re! for overall target! are concernedA here a %airly high degree o% precision can be attained& Dhat is di%%icult, at the present le,el o% de,elop(ent o% the producti,e %orces, is the endea,our to allot a priori, *ith precision, all these targets among the different economic sub7ects& =nder present conditions, an a priori allot(ent li5e this is ,ery unli5ely to be the opti(u( allot(ent&9"9:

Further(ore, e,en at the le,el o% the *or5ing out o% o,erall plans, that is, o% o,erall targets, certain '%alitative aspects o% production (ust today still be le%t on one side& For e/a(ple, the plan (ay *ell lay do*n the nu(ber o% pairs o% shoes to be produced during a year; it cannot %oresee, in a socially use%ul *ay, the styles o% shoes that ought to be produced, and still less the nu(ber o% pairs o% each style and the allot(ent o% this speci%ic production a(ong the di%%erent %actories& Any atte(pt to go into such details results ine,itably in the (anu%acture o% products *hich are not those (ost in de(and, and so in a *aste o% social labour& #t *ould be the sa(e i% the atte(pt *ere (ade to %orecast in a ,ery detailed *ay the production o% di%%erent types o% e2uip(ent& Dhen the latter is highly di,ersi%ied, corres(a*e %%

ponding to a *ide ,ariety o% conditions o% production and use, it is necessary to lea,e to agree(ents bet*een enterprises an i(portant role in the speci%ication and destination o% *hat they produce& )he targets and tas5s laid do*n by the plan %or each enterprise at the present ti(e in the .o,iet =nion are essentially the %ollo*ing (so %ar as industrial enterprises are concerned)A (otal amo%nt prod%ced, (easured in physical units (by broad categories o% products) or in ,alue, at current prices& (otal amo%nt inve!ted, *ith destination o% in,est(entsA ne* building and e2uip(ent, (odernisation, large-scale repairs& Principal technical change! (these being minim%m targets)A (achinery to be installed, ne* processes to be introduced, etc& (echnical norm! relating to use o% (aterials and po*er, and reduction in the consu(ption o% inter(ediate products (these nor(s represent maxima in the sense that the 2uality o% the (anage(ent o% an enterprise is esti(ated by re%erence to its success in reducing this consu(ption as co(pared *ith the %orecasts)& *%mber of #or;er! and office !taff, in broad categories, and total a(ount o% *ages to be paidA these esti(ates are maxima *hich the enterprise (ust stri,e not to e/ceed, and, i% possible, not e,en to attain; indi,idual *age rates are, o% course, %i/ed on the basis o% o%%icial scales& $o!t of prod%ction per %nit of the prod%ct! (maxim%m targets)& ,elling price! of prod%ct!. )hese are co(pulsory; the prices actually charged (ust be neither higher nor lo*er than those laid do*n& )he only e/ceptions are (ade %or certain products *hich are ne*, or are being (ade in s(all 2uantities or e,en in single speci(ens& )he prices laid do*n in these

cases (ust be calculated in accordance *ith certain rules and (ust be appro,ed by an ad(inistrati,e authority& 6inim%m profit, resulting %ro( the di%%erence bet*een cost o% production and selling price, and corresponding, in general, to a (argin o% bet*een 2 and 6 per cent, calculated on the basis o% the cost o% production& As *ill be seen, so(e o% the targets thus laid do*n by the plan are absolutely obligatory, as, generally spea5ing, *ith selling prices; others, on the contrary, are minim%m ,alues to be reached and, i% possible, surpassed, as *ith production %igures and technical i(pro,e(ents; *hile yet others are maxima *hich the enterprise (ust try, i% it can, not to attain, as *ith the technical nor(s o% consu(ption o% inter(ediate products and the nor(s o% e(ploy(ent o% labour per unit product& )he %act that so(e targets are maxima or minima that (ust not be e/ceeded or (ust not be attained corresponds to the e/istence o% limit! *ithin *hich the enterprise can operate, so(ething *hich to so(e e/tent gi,es concrete %or( to its %reedo( o% (anoeu,re& An essential proble( is ob,iously that o% %i/ing these li(its in such a *ay that *ithin the( the enterprise can *or5 out an opti(u( productionprogra((e& Another proble( is to ensure that the opti(u( progra((e in 2uestion
(a*e 111

is opti(u( not only %or the particular enterprise but also %or society as a *hole& )hese are proble(s *hich depend especially on the conditions o% econo(ic calculation and planning at the le,el o% the enterprise& #t (ust, ho*e,er, be pointed out at once that the %reedo( o% (anoeu,re *hich is necessarily accorded to the econo(ic sub7ect gi,es rise to i(portant proble(s in conne/ion *ith price policy& As !s5ar 8ange obser,ed, in an article published in 1961A9'0: HAt the present ti(e there is o%ten a con%lict bet*een the pro%itability o% the production o% a certain range o% goods and the social need %or these goods& )he enterprises sho*, to ,arying degrees, a tendency to produce the goods *hich are (ost pro%itable, e,en though socially less necessary& )his contradiction results %ro( a (ista5en policy o% price%or(ation *hich runs counter to the la* o% ,alue& Li,en a suitable price-policy, the goods *hich are socially (ost needed *ould also be the (ost pro%itable& #% this *ere so, the socialist enterprise, ai(ing at pro%itability o% production, *ould auto(atically %ul%il at the sa(e ti(e its social and econo(ic tas5s&H

)his 2uotation raises a nu(ber o% proble(s regarding price policy *hich # do not at the (o(ent intend to discuss&9'1: )he interest o% the 2uotation so %ar as our the(e is concerned is, in particular, that it sho*s ho* it is possible to try and sol,e one o% the contradiction! #hich can ari!e bet#een the different ta!;! of the plan, by operating a certain price-policy, that *hich is proposed in this passage, so as in principle to gi,e the enterprise the directi,e to see5 %irst and %ore(ost to produce the (ost pro%itable goods, the prices o% goods being deter(ined in consideration o% the social priorities the(sel,es& #n conne/ion *ith the %oregoing, it is also necessary to (a5e certain obser,ations regarding, on the one hand, the proposals that ha,e been (ade in the .o,iet =nion to reduce the nu(ber o% obligatory tas5s laid do*n in the plan and, on the other, certain contradictions or *ea5nesses that are at present to be %ound in business accounting and planning at the le,el o% the enterprise& !ne o% the disad,antages that appear *hen too (any obligatory tas5s are laid upon a particular enterprise is, as has already been sho*n, the contradiction that (ay arise bet*een the %ul%il(ent o% di%%erent tas5s& #t is in order to reduce to the (ini(u( such possibilities o% contradiction that the .o,iet econo(ist 8iber(an has proposed the %ollo*ing changes regarding the laying do*n o% plans at enterprise le,el&9'2: (1) )hat the plans %or indi,idual enterprises, a%ter agree(ent and appro,al o% targets concerning a(ount and range o% goods to be produced, shall be entirely deter(ined by the enterprises the(sel,es, *hich *ill thus be allo*ed to choose %or the(sel,es the (eans o% reaching their targets& (2) #n order to ensure that the enterprises (aintain a conscientious attitude to*ards the state and ha,e a (aterial interest in producing as e%%iciently as possible; that a single %und be established %ro( *hich pay(ent o% all categories o% H(aterial incenti,esH shall be (ade, the a(ount o% this %und
(a*e 111

depending on profitability, that is, on the pro%its in relation to the production %unds o% the gi,en enterprise& (") )hat long-ter( nor(s be laid do*n by the centre to pro,ide a scale o% incenti,es, these incenti,es being related to the degree o% pro%itability attained by the ,arious branches o% production and groups o% enterprises *hich operate in appro/i(ately the sa(e natural and technical conditions& (') )hat centralised planning be rein%orced and i(pro,ed by not laying do*n certain obligatory tas5s (control %igures) e/cept %or the ,ovnar;hoDy alone& )hat the practice o% allot(ent o% tas5s a(ong ,arious enterprises by the ,ovnar;hoDy in accordance *ith the Hle,el reachedH by these enterprises be

abolished& )hat the ,ovnar;hoDy be obliged, on the basis o% economic analy!i!, to chec5, e,aluate and i(pro,e the plans dra*n up by the enterprises the(sel,es, *ithout, ho*e,er, altering the scales o% pro%itability *hich ser,e as the basis %or a*arding incenti,e bonuses to the enterprises& (*ote A )hese last t*o categories o% proposals ai(, on the one hand, at *or5ing out a di%%erential syste( o% pro%itability, on the national scale, ta5ing into account the situations o% the di%%erent enterprises or groups o% enterprises, and, on the other, at not a*arding bonuses to enterprises unless they achie,e both their nor( o% profitability and the target! o% their plan, targets re,ised on an ob7ecti,e basis by the ,ovnar;hoDy.) (6) )hat (ethods o% using the bonus %unds supplied by the pro%its o% an enterprise be laid do*n in such a *ay as to e/pand the rights o% the enterprises to use these %unds %or purposes o% indi,idual and group incenti,e& (*ote A )his no longer relates, there%ore, to the (ethods o% a#arding bonuses but to the (ethods o% %!ing the(& #t is at this le,el that H(aterial interestH really (a5es itsel% %elt, *hereas up to this point *hat has been in,ol,ed is rather the indices that (a5e it possible to H(easure the e%%iciencyH o% the (anage(ent&) (6) )hat the principle be established that the prices o% ne* goods be %i/ed in a %le/ible *ay, so that the (ost pro%itable products (ay be pro%itable both %or the producers and %or the consu(ers, that is, (ay be pro%itable on the scale o% the econo(y as a *hole&9'": (*ote A )he last proposal ai(s at helping technical progress to (a5e its *ay by %a,ouring, as regards pro%itability, the enterprises that are (anu%acturing ne* products, *hich are (ore ad,antageous %or the national econo(y& #t is indeed ob,ious that i% the pro%itability o% ne* products re(ains the sa(e as that o% old-established products, *hile the (anage(ent o% enterprises is e,aluated, and bonuses a*arded on the basis o% pro%itability, then enterprises *ill usually ha,e no interest in introducing ne* products because at %irst the launching o% a ne* product can gi,e rise to (any di%%iculties and cause a te(porary %all in pro%itability&) c) ,ome contradiction! or #ea;ne!!e! in the pre!ent practice of b%!ine!! acco%nting and planning at enterpri!e level.
1)

Inve!tment! #itho%t !ec%rity

$resent-day .o,iet practice includes the granting #itho%t !ec%rity to each


(a*e 112

econo(ic sub7ect o% the resources it needs %or its ne* in,est(ents& #n other *ords, *hen in,est(ents are pro,ided %or in the plan, in order to achie,e certain targets, the enterprise or the econo(ic sub7ect recei,es %ro( the

ban5ing syste( the %unds needed %or the realisation o% these in,est(ents, #itho%t any obligation to repay or to pay any intere!t to the ban; (this does not apply, in principle, *hen in,est(ents are underta5en Houtside the planH)& )his practice brings a certain contradiction into the %unctioning o% the enterprise, considered as an econo(ic sub7ect endo*ed *ith a relati,e autono(y o% (anage(ent& Dhereas, indeed, each enterprise has to b%y the ra* (aterials and inter(ediate products it needs, and, as a result, its purchases enter into its costs o% production (*hich (ust, at least in principle, encourage it to a,oid any *aste o% inter(ediate products), it recei,es its in,est(ent %unds, so to spea5, H%ree o% chargeH&9'': )his (ay result (and o%ten has resulted) in encouraging the enterprise to as5 %or in,est(ent %unds larger than it really needs& #t (ay, in particular, be led to do this in order to build up %uture Hreser,esH o% increase in production or reduction in cost o% production& =nder these conditions, in,est(ent is not sub7ect to the sa(e rules o% business accounting as current (anage(ent, so(ething *hich does not tend to ensure that, at the le,el o% each enterprise, the in,est(ent %unds are used in the (ost satis%actory *ay& )he control e/ercised o,er each econo(ic sub7ect by the higher social authorities should, o% course, in principle a,oid the *asting o% in,est(ent %unds& )o the e/tent, ho*e,er, that there is lac; of conformity bet*een the rules deter(ining the operation o% the econo(ic sub7ect, at the le,el o% the use o% c%rrent re!o%rce!, and those *hich deter(ine its operation at the le,el o% the use o% inve!tment f%nd!, and that only the %or(er correspond to its 2uality as an econo(ic sub7ect, *hereas the latter treat it as a (ere technical depart(ent, distortion and *aste see( to be (ore or less ine,itable& For this reason it is being (ore and (ore %re2uently proposed, in the .o,iet =nion and in other socialist countries, that the principle o% gratuitous granting o% in,est(ent %unds to enterprises be abandoned, as contrary to the principles o% autono(ous (anage(ent& #% this proposal *ere adopted, it *ould (ean that the enterprise *ould ha,e to repay the in,est(ent %unds granted to it, and perhaps also (this is, at any rate, one o% Acade(ician Be(chino,3s proposals) *ould ha,e to pay to the state treasury a certain su( representing a definite percentage of the val%e of the inve!tment f%nd! tied %p in it. )his pay(ent *ould enter into the costs o% production o% the gi,en enterprise& )he 7usti%ication o% this proceeding *ould be that the present concept o% cost (that is, o% costs o% production *ithout any HcapitalH charge) is a HcategoryH o% si(ple reproduction, since it includes only current e/penses, depreciation and a s(all Hpro%itH& According to Acade(ician Be(chino, ( .7., in >ussian, 21th April 196"), each enterprise should be able to re-create, on an e/panded scale, its o*n conditions o% *or5, than5s to a su%%icient degree o% Hpro%itabilityH o% its in,est(ents&

(a*e 117

)his presents i(portant proble(s o% business accounting at enterprise le,el, proble(s *hich *ill ha,e to be discussed in another conte/t&
2)

(he ann%al character of the plan!

Another contradiction results %ro( the present practice o% *or5ing out annual plans %or an enterprise& )he annual character o% the plan can actually hinder technical progress& #t has been pointed out that an enterprise *hich introduces inno,ations that *ill be %ruit%ul a%ter a lapse o% se,eral years (ay, during the %irst %e* years o% the installation o% these inno,ations, gi,e a (ediocre per%or(ance that *ill e,o5e disappro,ing opinions o% its current (anage(ent& 4iscussions no* going on in the socialist countries sho* that this constitutes a serious restraint on the introduction o% inno,ations in the enterprises& #t is no* proposed that this restraint be re(o,ed by bringing in *ays o% esti(ating the 2uality o% (anage(ent *hich *ill not be con%ined to the one-year-at-a-ti(e %ra(e*or5&
")

(he '%antitative indice!

Finally, another shortco(ing o% present-day practice results %ro( the essentially 2uantitati,e character o% the targets& Nuantitati,e targets are ob,iously easier to (easure, but pursuit o% the( (ay lead to neglect o% the 2ualitati,e aspects o% production& )hus, enterprises *hich *ant to attain a certain ,olu(e o% production, and *hich %ind this di%%icult, are o%ten te(pted to per(it a lo*ering in the 2uality o% their products, so as to increase, so to spea5, arti%icially (or rather, in appearance), the producti,ity o% their *or5& =nder these conditions, society (ay recei,e %ro( the gi,en enterprise only ser,ices *hich are in %act in%erior to those that *ould be represented by a ,olu(e o% production *hich *as s(aller but o% better 2uality (either because so(e o% the products are unusable or because they are less durable)& #t has o%ten been suggested, in order to re(edy this state o% a%%airs, that those cases should be (ade (ore %re2uent in *hich direct contacts are (ade bet*een the supplying and the using enterprises, the latter being, in principle, the parties (ost interested in chec5ing on the 2uality o% the products supplied to the(& Bot only should direct lin5s be %or(ed in this *ay, it is suggested, but they should be sub7ect to cancellation by the using enterprise in the e,ent o% standards o% 2uality being disregarded by the supplier& )he using enterprise *ould then get in touch *ith other suppliers *ho (ight be able to pro,ide goods o% better 2uality& #t (ay be that ad,antages that are unreal are ascribed to this 5ind o% H%le/ibilityH in relations bet*een enterprises& !n the one hand, it (ay not be that the using enterprise *ill al*ays pro,e able to spot in good ti(e the inade2uate 2uality o% the goods supplied to it, and, on the other, in a situation

in *hich e,ery enterprise is *or5ing at %ull capacity, it is not easy %or a using enterprise to %ind a ne* supplier&9'6: Actually, it *ould probably be pre%erable to entrust a !ocial a%thority *ith the tas5 o% chec5ing the 2uality o% products, by laying do*n 2ualitati,e standards *hich, i% not respected, *ould result in certain products, though
(a*e 119

supplied in the (aterial sense, ha,ing no econo(ic ,alue, or only reduced ,alue& ()his raises the proble( o% a syste( o% price-%i/ing *hich *ould ta5e account o% the !ocial %!ef%lne!! o% products -- a proble( *hich deser,es treat(ent on its o*n&) d) 6ethod! %!ed by the planning organ! to lay do#n prod%ction3 target! )he (ethods *hich are used by the planning organs in order to lay do*n e,en o,erall targets %or production are also a%%ected by the e/istence o% econo(ic sub7ects& !*ing to the %act that econo(ic sub7ects e/ist, endo*ed *ith a certain degree o% autono(y; to the %act, conse2uent upon this one, that the co((odity categories e/ist; and also to the %act that the part o% the national inco(e *hich is consu(able on an indi,idual basis is allotted by (eans o% (oney, the central planning organs are obliged, in order to lay do*n the targets %or production-plans, to e(ploy a great ,ariety o% (ethods& #n practice, as # ha,e already indicated, once the basic targets o% econo(ic acti,ity %or a gi,en period ha,e been decided on in an o,erall and pro,isional *ay by the central planning organs, the targets %or the current production plans ha,e to be deter(ined progressi,ely by these sa(e central organs (or their regional or sectoral e/tensions) on the basis o% the %ollo*ing (ethodsA (1) Dor5ing-out o% o,erall %orecasts in increasing detail, (a5ing use o% econo(ic and technical pro7ections and being guided by political and social choices& (2) ollation, and ad7ust(ent to the basic targets, o% the %orecasts or propo!al! of the economic !%bject! and !ocial gro%p!. #% these %orecasts and proposals ha,e been *or5ed out *ithin the %ra(e *or5 o% the basic targets, it should be possible to (a5e the ad7ust(ents *ithout altering too radically the dra%t proposals initially co(posed by the planning organs, but ne,ertheless it is clear that these ad7ust(ents (ust result in incorporating in the o,erall targets the(sel,es certain proposals that ha,e been *or5ed out in a decentralised *ay&

)hese proposals and %orecasts e(anate both %ro( the econo(ic sub7ects responsible %or tas5s o% production or distribution (trade organs) and %ro( social groups responsible %or ,arious sectors o% collecti,e consu(ption& )he role o% the planning organs is clearly not con%ined to adding together these proposals and %orecasts but consists rather o% co(paring and ad7usting the(& )hese ad7ust(ents, *hich are in principle deter(ined by social priorities, are carried out through a continuous dialogue *ith the ,arious econo(ic sub7ects& 0/perience sho*s, (oreo,er, that the capacity o% the econo(ic sub7ects to %orecast their %uture needs, e,en o,er a relati,ely short period, is not al*ays su%%icient %or the dra%t plans they produce to be really use%ul& )his is especially true *hen a planning policy is beginning to be put into e%%ect, *hen those *ho stand at the head o% the ,arious econo(ic sub7ects are still relati,ely ine/perienced& Dhen this is so, the central organs ha,e to underta5e the preparation o% o,erall %orecasts co,ering the needs o% the econo(ic
(a*e 11'

and technical sub7ects, (a5ing use o% technical coe%%icients and tables o% intersectoral relations& #t (ust again be stressed that the o,erall statistical %orecasts (ay o%ten be (ore signi%icant than the %orecasts (ade at the le,el o% each econo(ic sub7ect ta5en separately& )he tendency, %re2uently obser,ed, to as5 each econo(ic sub7ect %or a ,ery large nu(ber o% %orecasts regarding its %uture needs (ay result in the central planning organs being pointlessly sno*ed under *ith a (ass o% Hin%or(ationH o% little interest, or e,en lac5ing in any real (eaningA this can pro,e to be the source o% serious (ista5es, or at least o% substantial losses, *hen atte(pts are (ade to use this Hin%or(ationH or these proposals& For e/a(ple, in certain socialist countries at certain periods, the ,arious state %ar(s ha,e been as5ed to %orecast %ro( one year to the ne/t *hat their needs *ould be in spare parts, s(all agricultural i(ple(ents, and e,en scre*s and nails& More o%ten than not, %orecasts (ade and added up in this *ay turned out to be (uch (ore re(ote %ro( reality than those resulting %ro( the application o% statistical nor(s& )rue, the latter do not enable one to %orecast ho* (any nails or scre*s each state %ar( *ill need indi,idually, but that is o% no i(portance so long as the necessary scre*s and nails are a,ailable in the country and each econo(ic sub7ect possesses the financial mean! to buy the(, *ithin the li(its o% its real needs, %ro( state trading organs *hich the(sel,es operate *ith a certain degree o% %le/ibility& (") Finally, in a certain nu(ber o% cases the %orecasts o% the planning organs can be *or5ed out on the basis o% detailed !tati!tical !o%nding! (poll! ) carried out a(ong a certain nu(ber o% econo(ic sub7ects or social groups or e,en indi,idual consu(ers& #n,estigations by (eans o% *ell-chosen sa(ples o%ten bring in in%or(ation o% (uch greater signi%icance than long 2uestionnaires

circulated a(ong thousands o% production-units, *ho co(plete the( *ith ,arying degrees o% ade2uacy& e) 6ethod of carrying o%t the plan! 6ethod! of carrying o%t the plans are o% course ,ery closely bound up *ith the e/istence o% econo(ic sub7ects endo*ed *ith a certain degree o% autono(y& )here is a %unda(ental di%%erence bet*een the (ethods *hereby the internal production-progra((e o% an econo(ic sub7ect is carried out and the (ethods *hereby relati,ely autono(ous econo(ic sub7ects carry out national plans& Fro( the theoretical standpoint *hat is i(portant to stress is that, on the plane o% the (ethods o% carrying out the plans, account has to be ta5en o% the %act that the e/istence o% econo(ic sub7ects, endo*ed *ith relati,e autono(y, i(plies the superi(posing o% macro3deci!ion! ta5en at the le,el o% the central authorities, upon econo(ic micro3deci!ion! ta5en at the le,el o% the econo(ic sub7ects& )o the e/tent that the (icro-decisions ta5en by an econo(ic sub7ect a%%ect another economic !%bject, they cannot by their ,ery nature be realised by (eans o% orders,9'6:so that an i(portant role has ine,itably to be played by contract! concl%ded bet#een the economic !%bject!.
(a*e 11+

Fere again *e (ay 2uote %ro( the article by !s5ar 8ange pre,iously (entioned, *here he *ritesA H)he relations bet*een di%%erent socialist enterprises ought, in principle, to be based on a syste( o% direct contracts concluded bet*een the(, this replacing the present syste( o% allot(ent %ro( abo,e& )he latter (ethod should be retained only in e/ceptional cases, *here shortages o% certain goods, especially ra* (aterials, cannot be eli(inated through raising prices because the i(ple(entation o% the econo(ic plan de(ands (ore selecti,e (ethods than a (ere price policy&H9'1: )hese conclusions o% !s5ar 8ange3s ne,ertheless call %or a co(ple(entary obser,ation& )his relates to the %act that the ,ery de,elop(ent o% structured econo(ic sub7ects results in the e/tension o% form! of allotment #hich are internal to the!e !%bject!. )hese %or(s are neither ad(inistrati,e nor contractual, but technical& # (ust add, too, that contractual ties bet*een econo(ic sub7ects cannot be as %le/ible as they need to be unless an ade2uate nu(ber o% trading organ! are set up *ithin the stated sector, *ith responsibility %or managing !toc;! o% inter(ediate products and %inished products&

#ndeed, i% each econo(ic sub7ect is to decide the (o(ent at *hich it *ill proceed to purchase certain products, and also the speci%ications o% these products, it is essential, to ensure the continuity o% the production-process, that there be ade2uate social stoc5s o% the ,arious categories o% product& !n the other hand, it is e2ually essential %or correct use o% social accu(ulation that the a,ailable stoc5s should not e/ceed the real needs& )his brings up the proble( o% the correct (anage(ent o% stoc5s& #t is ,ery i(portant to sol,e this proble(A it conditions, to a large e/tent, the e%%icient current %unctioning o% the econo(ic syste( as a *hole& #n the socialist countries they ha,e (ade atte(pts to sol,e the proble( o% stoc5 (anage(ent by laying do*n Hnor(sH %or stoc5s& )hese nor(s are (ade obligatory %or the enterprises, *hich (ust neither e/ceed certain 2uantities nor allo* their stoc5s to %all belo* a certain (ini(u( le,el& #n %act, the %i/ing o% these nor(s usually lac5s %le/ibility& #t is seldo( possible to deter(ine in this *ay the ,olu(e o% stoc5s that genuine econo(ic sub7ects (ay need (the situation is di%%erent *here *hat are in,ol,ed are technical depart(ents %unctioning *ithin an econo(ic sub7ect)& !pti(u( (anage(ent o% social stoc5s is a speci%ic econo(ic proble(, the solution o% *hich re2uires e/act calculations and the e(ploy(ent o% (ethods o% progra((ing& #n order to carry out such tas5s there *ill %re2uently be need %or co-operation by either a trading depart(ent *ithin a co(ple/ econo(ic sub7ect or else a state trading organ responsible %or (anaging particular products& )hough there is no ti(e to go thoroughly into the proble(, it is use%ul to stress that the *ay stoc5s are (anaged has an i(pact on the pace at *hich production plans are acco(plished& Fere arise a nu(ber o% proble(s connected *ith *hat can be called the Hprogra((ing o% the carrying-out o% the
(a*e 11&

planH, proble(s *hich cannot be e/a(ined i((ediately because this *ould ta5e us too %ar a*ay %ro( the centre o% our present concerns& $oncl%!ion )o su( up, according to the %oregoing analyses, the retention o% the role played by the commodity categorie! *ithin the state sector o% the socialist econo(y and the exi!tence of di!tinct economic !%bject! *ithin this sector are connected *ith the present le,el o% de,elop(ent o% the producti,e %orces and the greater or lesser degree o% socialisation o% these %orces, as bet*een one branch and another o% the econo(y, and e,en, inside the ,arious branches, bet*een the production-units&

#% the e/istence o% distinct econo(ic sub7ects is an ob7ecti,e e/istence, rooted in a certain le,el o% de,elop(ent o% the producti,e %orces and (erely confirmed by la* (*hich itsel% can create only 7uridical sub7ects), it *ill be realised that exchange can and m%!t ta5e place bet*een the econo(ic sub7ects *hich together (a5e up the state sector o% the socialist sector& #t *ill also be realised that, on the other hand, *ith the ad,ance in the social character o% the producti,e %orces, an increasing nu(ber o% production units are destined to beco(e (ere technical units a(ong *hich products can circulate in con%or(ity *ith a pre-established plan and *ithout, conse2uently, any e/change o% co((odities& #t is in this sense that, in conomic Problem! of ,ociali!m in the .,,R, .talin *as able to spea5 o% the need, Hby (eans o% gradual transitions, to replace co((odity circulation by a syste( o% products-e/changeH (op. cit., p& 66A 0ng& edn&, p& 16)& Dhen the nu(ber o% econo(ic sub7ects sur,i,ing in the production sphere is su%%iciently s(all and the conditions in *hich they operate are su%%iciently regularised %or it to be possible to %orecast, *ith su%%icient precision, their need %or products supplied by other econo(ic sub7ects, the (o,e(ent o% these products %ro( one econo(ic sub7ect to another can really be e%%ected in a socially organised *ay and in con%or(ity *ith a pre-concei,ed plan& Fence%orth, the econo(ic sub7ects progressi,ely beco(e the socially controlled organs o% a di,ision o% labour *hich is at once technical and social& =lti(ately, the econo(ic sub7ects cease to be sub7ects and are no longer anything but non-autono(ous cogs in the di,ision o% labour& )hus, the e/istence o% co((odity categories *ithin the state sector o% the socialist econo(y is bound up *ith the %act that, *ith the producti,e %orces at their present le,el o% de,elop(ent, the econo(ico-7uridical sub7ects (ust be allo*ed a certain (argin o% initiati,e i% the econo(ic syste( as a *hole is to %unction e%%iciently& More precisely, it is necessary, at this le,el o% de,elop(ent, that the initiati,es ta5en by certain *or5ing groups shall correspond not (erely to technical decisions but also to economic ones& #n other *ords, so(e o% these decisions (ust bear, to so(e e/tent, upon the purposes %or *hich the (eans o% production at the disposal o% the econo(ic sub7ects are used, and upon the relations that the econo(ic sub7ects establish a(ong the(sel,es in order
(a*e 11,

to ac2uire or to alienate certain (eans o% production or certain products, so as to acco(plish the plan under the best possible conditions& #t is there%ore because it is necessary %or the e%%icient *or5ing o% the econo(y that certain *or5ing groups (ay be able to ta5e econo(ic decisions that these groups constitute economic !%bject!. )his ,ery necessity (eans that

in the planned econo(y o% today, as has already been (entioned not only do econo(ic (acro-decisions ha,e to be superi(posed on technical (icrodecisions, but also technical (acro-decisions on econo(ic (icro-decisions& Dith the producti,e %orces at their present le,el, this necessity is bound up *ith the still considerable li(itations on the possibility o% e!timating !ocial need! in advance, especially needs *hich arise in the production-sphere itsel%, and *ith the still ,ery great i(per%ection o% a priori esti(ation o% the labour ti(e that !ho%ld be de,oted to the obtaining o% the di%%erent ,arieties o% product& #t is, in particular, these li(itations and i(per%ections that (a5e it i(possible to %orecast *ithin the %ra(e*or5 o% the o,erall econo(ic plan the precise allot(ent o% the labour-%orce that *ould be (ost e%%icient, the e/act 2uantities o% goods that *ill actually be a,ailable and the detailed *ay in *hich these goods should be allotted& )hese, then, are the reasons *hy a (argin o% initiati,e (ust be le%t to the di%%erent econo(ic sub7ects& )his a(ounts to saying that *ithin certain li(its, laid do*n by the plan itsel% and by the ,arious 7uridical authorities, the di%%erent econo(ic sub7ects (ust necessarily beha,e, up to a point, li5e (ore or less HindependentH producers& #n other *ords, as things are at present, *hat Mar/ called Hthe interconne/ion o% social labourH ta5es e%%ect not only through the plan but also, still, up to a point, through the e/changing o% the products o% labour& ()he e/pression Hinterconne/ion o% social labourH is used by Mar/ in his *ell5no*n letter to @ugel(ann o% 11th July 1868&) #% econo(ic sub7ects e/ist and ha,e necessarily, as such, to be endo*ed *ith a certain (argin o% econo(ic initiati,e, this (eans that, at the present le,el o% de,elop(ent o% the producti,e %orces, the initiati,es ta5en by certain *or5ing groups a%%ect not only the use (ade by the econo(ic sub7ects o% the (eans o% production that are assigned to the( %or the acco(plish(ent o% certain de%inite purposes, but also the use or non-use, by *ay o% ac2uisition, o% certain (eans o% production, especially o% certain ite(s o% e2uip(ent& .atis%actory deter(ination o% the 7uridical conditions in *hich econo(ic sub7ects o% the production sphere operate presupposes an e%%ort to ascertain *hat the econo(ic bases are %or the right o% these sub7ects to use or not to use certain (eans o% production, and the econo(ic bases o% their right to dispose o% the products obtainedA only in this *ay *ill it be possible to decide in con%or(ity *ith social interests the e/tent and the necessary li(its o% these rights& De 5no*, %or e/a(ple, that *hen .talin published his *or5 on conomic Problem! of ,ociali!m in the .,,R he noted that despite the %act that the mean! of prod%ction at the disposal o% the collecti,e %ar(s at that ti(e (land

(a*e 11%

and (achinery) belonged to the !tate, the product o% collecti,e-%ar( production *as the property o% the di%%erent collecti,e %ar(s& #t *as so, said .talin, because the land *as used by the collecti,e %ar(s Has i%H it *ere their o*n property, e,en though the collecti,e %ar(s had no right to sell it, buy it, rent it out or (ortgage it& #n practice, in the situation that e/isted at that ti(e (and *hich has changed since in the direction o% an increase in the po*ers o% the collecti,e %ar(s, through the sale to the( o% the (achinery *hich they use), the collecti,e %ar(s possessed only a sort o% right to prod%ctive %!e o% the (eans o% production, *hereas they *ere o#ner! o% the products& As regards the state enterprises in the =..>, they also possess a right to prod%ctive %!e o% the (eans o% production *hich are assigned to the(& )his right o% producti,e use is ,ery (uch (ore li(ited in its e%%ects than that *hich is en7oyed by the collecti,e %ar(s, %or these enterprises the(sel,es belong to the state and their integration in the social di,ision o% labour is (uch (ore co(plete than is the case *ith the collecti,e %ar(s& )he point that (ust be stressed in this conclusion is that the nature and scope o% the rights Hto producti,e useH that are en7oyed by the collecti,e %ar(s and the state enterprises cannot be deter(ined arbitrarily, i% it be desired that these rights shall e%%ecti,ely ser,e the progress o% planned socialist econo(y& )he nature and scope o% these rights (ust %ollo* %ro( the need to ensure conformity bet#een j%ridical po#er! over certain mean! of prod%ction and practical capacitie! to operate the!e mean! of prod%ction. )his is a point # ha,e de,eloped at greater length in HFor(s and (ethods o% socialist planning and the le,el o% de,elop(ent o% the producti,e %orcesH (the ne/t chapter o% this boo5)& As # ha,e indicated in this article, the attribution to certain social authorities o% j%ridical po#er! of di!po!al (ay e,entually %ind e/pression in the e/istence o% different form! and level! of !tate !ociali!t property. Dhereas, %or e/a(ple, the .o,iet state is the o*ner o% certain enterprises, these (ay the(sel,es be, in a sense, Ho*nersH o% their (eans o% production and their products, in so %ar as they en7oy at one and the sa(e ti(e certain 7uridical po*ers and e%%ecti,e capacities to dispose o% things *hich con%or( to these po*ers& #n this *ay, the HonenessH o% a right o% o*nership *hich is characteristic o% a certain phase o% capitalist de,elop(ent is %inally bro5en up&
9'8:

)he scope o% the Hright o% disposalH possessed by the state enterprises is, o% course, strictly li(ited by the %act that these enterprises the(sel,es belong to the state and that the latter allo*s the( rights o,er the (eans o% production it assigns to the( only to the extent that the!e right! are %!ed for reali!ing the plan and are nece!!ary %or doing this under good conditions o% social e%%iciency&

Fere *e %ind again, on the plane o% 7uridical categories, a conclusion to *hich *e had co(e on the plane o% econo(ic categoriesA the e/istence o% co((odity categories inside the state sector o% the socialist econo(y is not (erely an Haccounting de,iceH or a con,enience %or calculations& )he e/istence o% these categories e/presses, si(ultaneouslyA (1) )he sur,i,al, to a certain degree and *ithin certain li(its, o% e/(a*e 111

changes *hich ta5e place on the basis o% econo(ic decisions ta5en in a relati,ely autono(ous *ay by *or5ing groups (the autono(y o% these groups is relative, because they en7oy it only so as to be able to contribute (ore e%%ecti,ely to the %ul%il(ent o% the targets o% the plan), and (2) )he e/istence, re2uired by this relati,e autono(y itsel%, o% po*ers o% disposal and rights o% usage, po*ers to alienate and ac2uire, *hich ha,e been accorded to the econo(ic sub7ects, rights *hich can constitute subordinate %or(s o% property& #% this analysis is accepted, then one is led to consider li5e*ise that (oney plays, *ithin the state sector o% the socialist econo(y, not (erely the role o% a %nit of acco%nt but also a real economic role. And this role is, to (a5e it possible, to a certain e/tent, %or the di%%erent econo(ic sub7ects to get rid of their products, or to provide them!elve! *ith products, on the ba!i! of their o#n initiative!. #% the plan could %oresee the e/act 2uantities o% products that each *or5ing group *ould pro,ide, and o% those that *ould be re2uired by each group, and i% it *ere in a position to ensure at the desired (o(ent the %ull satis%action o% the needs o% each group, it *ould also be able to decide #here the prod%ct! !ho%ld come from to (eet each group3s needs and the direction in *hich the goods pro,ided by each group should be sent& =nder these conditions, the products could be dealt *ith by (eans o% socially e%%icient allot(ent orders, and there *ould be no %urther need either %or purchases or %or sales; nor, there%ore, %or (oney& !n the other hand, since such %orecasting and such a balance, a priori, bet*een supplies and needs are not yet possible (*ith a %e* e/ceptions), and, especially, since they cannot be e%%ected *ith su%%icient precision (%ro( the standpoint o% the ti(e and place at *hich supplies (ust be produced and despatched), it is necessary to allo* a su%%icient (argin o% initiati,e to a certain nu(ber o% *or5ing groups; this is *hat, basically, (a5es it necessary to use (oney %or b%ying and !elling.9'9: #n the socialist econo(y o% today, (oney thus plays not (erely an accounting role but also a real one (on the econo(ic and 7uridical plane)& )here are, %or this reason, in the planned econo(ies o% today, side by side, a material plan and a financial plan. !nly *ith the disappearance o% the

co((odity categories *ithin the state sector o% the socialist econo(y *ill it be possible %or the %inancial plan to disappear also, giving place to material planning alone (*hich *ill also, o% course, include planning and accounting o% labo%r expendit%re )& ($aper published in Probl?me! de Planification, duplicated H ahierH Bo& 6& entre d30tudes de $lani%ication .ocialiste, Ecole $rati2ue des Fates Etudes (+#e .ection), $aris 9.orbonne:, 1966&) 23TES T3 C!-PTE. 2
)his paper has been *ritten on the basis o% notes %or and re%le/ions on a series o% lectures the author ga,e in 196"-' at the Ecole $rati2ue des Fautes Etudes (+#e .ection), $aris (.orbonne)&
1

)he %ollo*ing abbre,iations ha,e been usedA +&0& R 9opro!y ;onomi;i, .&D& R ,o#jet#i!!en!chaft, 0&$& R conomic Problem! of ,ociali!m in the .,,R, 0&L& R ;onomiche!;aya 7aDeta, .&B&@h& R ,oviet *arodnogo :hoDyai!tva (,ovnar;hoD, or ouncil o% Bational 0cono(y)& 9p& "1: 2 #n a note *ritten in the (argin o% ?u5harin3s boo5 8enin re(ar5s that the de%inition the author gi,es o% political econo(y (the science o% a social econo(y based on production o% commoditie!, i&e&, science o% an unorganised social econo(y) (a5es us ta5e Ha step bac5 as co(pared *ith 0ngelsH, *ho, as *e 5no*, de%ined political econo(y in the broad sense as the Hscience o% the conditions and %or(s under *hich the ,arious hu(an societies ha,e produced and e/changed and, on this basis, ha,e distributed their productsH& For our sub7ect, this aspect o% the discussion to *hich ?u5harin3s boo5 ga,e rise is ob,iously o% great i(portance& )he ,ie*s e/pressed by 8enin about this boo5 *ere not all, incidentally, so negati,e as certain co((entators *ere to allege so(e years later& .o(e o% 8enin3s co((ents *ill be %ound in Gamechaniya na :nig% *. A%;harina H ;onomi;a Pere;hodnogo Perioda H, 2nd edn&, Mosco*, 19"2 (see also +ol& S# o% the 1928 edn& o% 8enin3s *or5s)& A co((entary on this discussion and its continuations (*hich there%ore gi,es (any other re%erences) *ill be %ound in A& @au%(an, H)he origin o% the $olitical 0cono(y o% .ocialis(H, in ,oviet ,t%die!, January 196", pp& 2'" et se2& .ee also >onald 8& Mee5, ,t%die! in the -abo%r (heory of 9al%e, 8ondon, 1966, especially pp& 266-61& 9p& "1: " Dhile the idea that co((odity categories *ere destined to disappear in the %irst phase o% socialist society *as generally accepted by Mar/ists be%ore the !ctober >e,olution, *e 5no* that 8enin *as one o% the %irst to renounce this conception and stress the i(portance o% econo(ic calculation e,en at the le,el o% production-units (c%&, particularly, his H>eport to the 9th All->ussia ongress o% .o,iets, 4ece(ber 1921H, $ollected <or;!, >ussian 'th edn&, +ol& "", pp& 160-1)& 9p& "": ' )his is e/actly *hat # do accept& 9p& "": 6 Nuotations ta5en %ro( 8enin3s article H!n o-operationH (192")& 9p& "6: 6 -e $apital, ostes edn&, +ol& #, p& 66& (0ng& edn& o% 19"8, pp& 60-1&) )he Ler(an reads H!elb!t be#%!!t H& 9p& '1: 1 4oubtless because they could not be, *ithout re%erence to social praxi!. 9p& '2: 8 )he superi(posing o% collecti,e or co((unal o*nership o,er indi,idual (%a(ily) or personal production can be obser,ed, o% course, in a nu(ber o% econo(ic syste(s in course o% transition, e&g&, *hen pri(iti,e co((unal %or(s are e,ol,ing into e/ploitation by separate %a(ilies& 9p& '6:

(a*e 112

960 in March 1962, about 1,600 a%ter Bo,e(ber 1962& 9p& '6: )hese %igures re%er to di%%erent years in the decade 1960-60& )hey are 2uoted %ro( the article by 8& ?erri and C& .h,i5o, entitledA HA co(parison bet*een production-structures in the =..> and in other countries (on the basis o% inter-sectoral balances)H, in 9. ., 196", Bo& 1, trans& in ,.<., 196", Bo& 8, pp& 818 et se2&; %igures ta5en %ro( p& 826& 9p& '9: 11 )he e/pression Hproduction-relationsH is used here in the general sense in *hich Mar/ used it *hen he considered Hthe distribution o% the (e(bers o% society a(ong the ,arious 5inds o% productionH as Hthe sub7ection o% indi,iduals to certain relations o% productionH (c%& Mar/, $ontrib%tion d la $riti'%e de l) conomie Politi'%e ( ontribution to the riti2ue o% $olitical 0cono(y), Liard edn&, 1928, p&"21A A(erican and #ndian edns&, p& 286)& 9p& 66: 12 An account (in French) o% the conditions go,erning the conclusion and e/ecution o% contracts in ?ulgaria, at the le,el o% the socialist trading organisations, *ill be %ound in the article by 4r& #,an +laho, (.o%ia)A H8e systK(e des contrats des organisations co((erciales socialistesH, in A%lletin d% $entre *ational po%r l)&t%de de! tat! de l) !t, 196", Bo& " (?russels), pp&229 et se2&A 9p& 66: 1" 4r& +laho,, in the article already (entioned, calls this Htransport in transitH& 4escribing the si(ilar role assu(ed by the *holesale trading enterprises o% the socialist sector as inter(ediaries bet*een the producers and the retailers, he *ritesA H#n the contractual relations bet*een the producing enterprises and the trading ones, a big part is played by transport in transit, as it is not necessary actually to deli,er the goods to the depots o% the *holesale trading organisations& )he latter present the producing enterprises *ith lists sho*ing ho* the goods are to be allotted, stating 2uantities, ,arieties and deli,ery dates %or each recei,er, and the (ini(u( nor(s %or transport in transit&H (+p. cit., p& 2"8&) 9p& 68: 1' )he %irst instance i(plies a te(porary degeneration o% so(e o% the %unctions o% (oney, *hile the second sho*s that the social use o% (oney has been transcended, that is, it has begun to *ither a*ay& 9p& 60: 16 )he signi%icance o% this circulation o% currency to5ens beco(es apparent, o,er and abo,e the %ield *e are studying at the (o(ent, *hen the econo(ic authority *hich has recei,ed these to5ens is able to use the( as (oney, that is, to underta5e purchases *hich do not strictly result %ro( decisions ta5en at a di%%erent le,el& 9p& 62: 16 !n the .o,iet trusts and the 7lav;i, see (y boo5 -) conomie ,ovi&ti'%e ($aris, 1960, pp& 122 and 126)& 9p& 6': 11 )his type o% organisation corresponds to so(e e/tent to the H,byta H and HPrombaDy H o% the =..> (c%& op cit., pp& 2"0-2)& 9p& 6': 18 )his type o% integration is being e%%ected at present in the =..>, at the regional le,el, through the %or(ation o% H.o,iet %ir(sH e(bracing a certain nu(ber o% enterprises o% the sa(e type, the (ost i(portant o% *hich ta5es on the leadership o% the *hole group& Lenerally spea5ing, the constitution o% such a H%ir(H is sub(itted %or appro,al by the ,ovnar;hoD to *hich the enterprises are sub7ect& )he integration thus achie,ed is (ore co(plete
9 10

(a*e 117

in so(e cases than in others& #t (ay e,en lead to the birth o% a ne* econo(ic and 7uridical sub7ect, ta5ing the place o% the separate enterprises *hich pre,iously e/isted& )he H%ir(H so constituted (ay, %inally, ta5e on the %unctions that *ere %or(erly the responsibility o% a ?ranch 4epart(ent o% the ,ovnar;hoD. Dhen this happens, an econo(ico-technical hierarchy has replaced an ad(inistrati,e one& !n the H.o,iet %ir(sH, see +& @a(enets5y3s article H)he .o,iet %ir(s, results and prospectsH, in 9. ., 196', Bo& 6, p& 62& 9p& 6': 19 Dithin the capitalist econo(y this line is (ar5ed by the (erging o% enterprises, *ith the appearance o% buying and selling agencies and (anage(ent centres& Fo*e,er, capitalist o*nership and the contradictory interests o% the pri,ate o*ners continually set li(its to e,olution in this direction, or else, *hen it does ta5e place, this happens %or the e/clusi,e ad,antage o% one particularly po*er%ul %inancial group, and not necessarily on an econo(ically e%%icient scale& 9p& 66: 20 Fro( the standpoint o% the relations that a production-unit en7oys *ith the HrestH o% the econo(y (relations *hich, on the basis o% state o*nership, are o% decisi,e i(portance %or the

retention or disappearance o% the co((odity categories) the %act that a production-unit disposes o% all its products to one single central sales o%%ice (ay, pro,ided that this organisation is not arti%icial, ha,e conse2uences that co(e ,ery close to the integration o% one production-unit into another& 9p& 66: 21 )he brea5-up o% such organic *holes *hich too5 place in uba i((ediately a%ter the >e,olution *as one o% the %actors in the %all in sugar production& .ince 196" there has been a (o,e to re-establish organisational unity through a Bational .ugar o((ission and regional and local co((issions& 9p& 61: 22 #n >o(ania such agro-industrial co(bines no* e/ist, integrating into a co(ple/ econo(ic unit culti,ation, stoc5raising, tinning-plant, %actories (a5ing ani(al %oodstu%%s, and e,en shops %or distributing the products& 9p& 61: 2" .ee note 11& 9p& 61: 2' A proble( *hich, though i(portant, # cannot deal *ith %or the (o(ent, is that o% the li(its set to the integration o% acti,ities in a particular producti,e econo(ic co(ple/& A 2uic5 obser,ation that can be (ade, ho*e,er, is that economic integration ta5es place only in so %ar as all the acti,ities integrated satis%y a single econo(ic and technical %unction and co(ple(ent each other& #n other *ords, the li(it to econo(ic integration is deter(ined by the speci%ic nature o% the %unctions to be carried out, and the rele,ant test is the cost incurred by a particular acti,ity& #t is there%ore necessary to 5no* *hether or not an integrated %unction is carried out at a lo*er cost than a non-integrated one& )he idea o% econo(ic integration leads on to the idea o% the H(aster o% the operationHA this role is played, in an integrated econo(ic group, by the e!!ential f%nctional lin; in this group, i&e&, the acti,ity to *hich all the others are subordinate& )he integration o% a certain nu(ber o% acti,ities in an economic complex (a5es the latter collecti,ely responsible, *ithin a socialist econo(y, %or the

(a*e 119

%ul%il(ent o% a group o% tas5s& Dhat the plan lays do*n are the tas5s o% this co(ple/ and the general e/ternal conditions %or their acco(plish(ent, *hile the internal conditions are the business o% the (anage(ent o% the co(ple/; this (anage(ent (ay be carried out through a %unctional hierarchy o% responsibilities& 9p& 68: 26 )his is not enough to situate this co(pany a(ong the ,ery largest A(erican co(panies %ro( the standpoint o% turno,er and nu(bers e(ployed& )hus, Leneral Motors3 turno,er in 196" *as P16,600,000,000 and in that year it e(ployed 6'0,000 people and in,ested P6'1,000,000 in plant& )he net ,alue o% the %ir(3s plant on "1 4ece(ber 196" *as esti(ated at P",000,000,000 and its net *or5ing capital at P",100,000,000& 9p& 68: 26 #t (ust be stressed that pri,ate property relations o%ten hinder the appearance o% an econo(ic sub7ect *hen the producti,e %orces are ready %or it& )his is particularly noticeable in the capitalist setting, *here the limit! of enterpri!e! are deter(ined by property3relation!, so that enterprises belonging to di%%erent o*ners (7oint-stoc5 co(panies, %or instance), but *hich potentially form a !ingle economic !%bject, continue to %unction independently o% each other& HMergersH bet*een enterprises so(eti(es put an end to this type o% situation& )he presence o% the sa(e directors on the boards o% di%%erent co(panies *hich %or( together a potential single econo(ic sub7ect (ay also constitute an attempt to o,erco(e the di%%iculties resulting %ro( the obstacles put by pri,ate property in the *ay o% the appearance o% an econo(ic sub7ect (this cross-(e(bership, these Hpersonal lin5sH, (ay also, o% course, be due to reasons 2uite other than those (entioned here)& #n other cases, nationalisation, *ithin the %ra(e*or5 o% capitalis(, (ay be the only *ay o% o,erco(ing the obstacles caused by pri,ate property and pre,enting the %or(ation o% a single econo(ic sub7ect, though the latter is ob7ecti,ely necessary; in the case o% the French econo(y, the %or(ation o% the .&B& &F& (state rail*ays), 0&4&F& (state electricity), La< de France (state gas) and FouillKres de France (state coal-(ines) apparently re%lects a situation li5e this& =nder socialis(, too, 7uridical rules (ay %or a ti(e obstruct the appearance o% an econo(ic sub7ect& )his happened in the .o,iet =nion, *hen %actories that ought to ha,e been operating in an integrated *ay, e&g&, *ithin a %ra(e*or5 o% organic co-operation, *ere dependent on di%%erent central (inistries *hich opposed such co-operation& )his is *hat has been called the proble( o% Had(inistrati,e co(part(entalisationH& #t (ust be added that the reorganisation on

territorial lines underta5en *ith the establish(ent o% the ,ovnar;hoDy has gi,en rise to a certain nu(ber o% cases o% Hregional co(part(entalisationH& 9p& 12: 21 #t should be obser,ed in passing that this re2uire(ent i(plies that, %or a gi,en le,el o% econo(ic interdependence it is not possible use%ully to go belo* a certain le,el o% decentralisation& )his is connected *ith the i(possibility o% HcondensingH all the in%or(ation needed %or socially use%ul decisions in a syste( o% prices such that all the (icro-econo(ic decisions

(a*e 11'

ta5en al*ays coincide *ith the (acro-econo(ic ones& )his is the other side o% the %act that the conse2uences o% certain decisions depend strictly on other decisions *hich ha,e to be ta5en si(ultaneously (the co(ple(entary character o% certain decisions)& )his is a co(ple/ proble( to *hich # shall co(e bac5 *hen # discuss the role o% prices in a planned econo(y& 9p& 16: 28 %& 9. ., February 1962, pp& 11' et se2& 9p& 11: 29 #n his boo5 called ,ov;hoD, :ol;hoD o% le probl&mati'%e d% comm%ni!me, $aris, 0ditions du .euil, 196', >enG 4u(ont, *ho declares in %a,our o% the organising *ithin the collecti,e %ar(s o% s(all, indi,idualised *or5-brigades, endo*ed *ith per(anent (eans o% production and %inancial autono(y, *rites on this sub7ectA H#% & & & the *or5ers *ere directly interested in the o,erall econo(ic results achie,ed by their little groups, they *ould stri,e to co(bine i((ediate e%%iciency o% their *or5 *ith reduction in its arduousness, and the (ost rapidly producti,e detail in,est(ents& )he better(ent o% the (any hand-tools, %ro( the i(pro,ed hoe to the *heelbarro*, and that o% handling and digging *or5, *ould not be so neglected as it is& !n e,ery *or5-site, the lin5s in the *or5-chain *here producti,ity *as ,ery lo* *ould be studied by the persons the(sel,es in,ol,ed& )hey *ould stri,e to ensure the har(onious de,elop(ent o% the e2uip(ent as a *hole, instead o% concentrating on the (echanisation o% so(e parts at the e/pense o% the rest, *hich in the end pro,es (ore e/pensi,e&H (+p. cit., p& 2'2&) >enG 4u(ont3s proposal a(ounts to attributing to s(all *or5-brigades the status o% Hecono(ic sub7ectsH& )he degree o% control o,er the (eans o% production *hich is possible at such a le,el does not see(, ho*e,er, to be su%%icient %or the brigade to be regarded as a real econo(ic sub7ect& !n the other hand, it can certainly possess an Hecono(ic personalityH and constitute, as *e shall see later, a r%ng in the ladder of economic acco%nting. #n any case, recourse to econo(ic calculation and to ,arious e/peri(ents is needed in order to decide the le,el at *hich the econo(ic personality o% a *or5ing group is located and that at *hich the econo(ic sub7ects are located, as *ell as the opti(u( si<e o% both the %or(er and the latter& #n general, the proble( o% the re!i!tance to innovation o%%ered by present-day %or(s o% organisation, both in industry and in agriculture, is causing an i(portant discussion in the .o,iet =nion at the present ti(e; the February 196' issue o% Planovoye :hoDyai!tvo pro,ides an echo o% this discussion& 9p& 11: "0 !n these 2uestions, see the article by arlos >a%ael >odrigue<, H0l nue,o ca(ino de la agricultura cubanaH, $%ba ,ociali!ta, Bo,e(ber 196", pp& 11-98& 9p& 18: "1 #t is *ell 5no*n that internal econo(ic calculation (Hbusiness accountingH) has been practised %or a long ti(e no* *ithin .o,iet industry& A decision o% the entral o((ittee o% the $.= (?) dated 6 4ece(ber 1929 e(phasised, %or the %irst ti(e o%%icially, the i(portance o% internal econo(ic calculation at the le,el o% *or5shops and depart(ents o% industrial enterprises& #nternal econo(ic calculation is, o% course, acco(panied by the

(a*e 11+

dra*ing up o% internal plan! %or the *or5shops and depart(ents in 2uestion& )he per%ecting o% the practical %or(s in *hich internal econo(ic calculation can be carried out is an e/tre(ely co(ple/ (atter& )his is clearly to be seen *hen *e analyse the discussions

*hich ha,e ta5en place on this sub7ect in the .o,iet =nion& )hus, in the (anual entitled ;onomi;a !ot!iali!tiche!;i;h promy!hlenni;h predpriyatii (Mosco*, 1966), *e readA H#t is necessary to (ention the 3(ista5en3 atte(pts that ha,e been (ade to introduce (echanically, at the le,el o% the depart(ents o% enterprises, the sa(e content and %or(s o% business accounting relationships that pre,ail bet*een enterprises& )he e/perience o% industrial enterprises sho*s that the %or(s o% business accounting #ithin the factory (ust be clearly distinguished %ro( those o% b%!ine!! acco%nting by the enterpri!e it!elf. Dor5shops, depart(ents, di,isions and brigades are (erely subdi,isions o% the enterprise, participating in the total production process o% the enterprise, and this is *hy they cannot appear as independent units in business accounting& )hey do not %igure in econo(ic relationships *ith other enterprises, ban5s, %inancial organs & & & and there%ore, so %ar as *or5shops, di,isions and brigades are concerned, it is not necessary to (a5e business agree(ents *ith other enterprises, ha,e a separate ban5 account, buy ra* (aterials and sell %inished products, obtain ban5 credits and allot(ents %ro( the budget, or 5eep accounts o% their acti,ity in the %or( o% a depart(ental balance-sheet sho*ing pro%its and losses&H (+p. cit., p& "1'&) (!n the proble(s o% internal business accounting in %actories, see also Ca& #& @o5han, (he +rgani!ation of A%!ine!! =cco%nting in "actorie! (in >ussian), Mosco*, 196'&) As regards the capitalist enterprise, *e 5no* that, e,en i% the technical depart(ents are not accorded %inancial autono(y, the %or(s o% (anage(ent tend to*ards the 5eeping o% internal balance3!heet! for both foreca!ting and chec;ing3%p. #t should also be noted that, in a socialist econo(y, *hen a certain level at #hich b%!ine!! acco%nting i! to ta;e place is decided on, this (ay not al*ays necessarily correspond to a per(anent *or5ing group& )hus, in uba, the atte(pt *as (ade, in certain 7ranja! (7ranja .nidad, in Fa,ana pro,ince) to 5eep account o% receipts and pay(ents %or each field, though no *or5ing group *as assigned per(anently to any one %ield& 9p& 19: "2 )he use o% si(ulation techni2ues and electronic de,ices %or this purpose *ill clearly assu(e increasing i(portance in the years to co(e& #t *ill (a5e possible the ta5ing o% e%%icient decisions on proble(s in,ol,ing a ,ery large nu(ber o% ,ariables, *ithout ha,ing to underta5e actual e/peri(ents, using Hsi(ulatedH e/perience instead& )o illustrate the sort o% proble(s that si(ulation techni2ues can help sol,e, # *ill 2uote the case o% the organisation o% air tra%%ic& )he establish(ent o% a si(ulator air-tra%%ic control %or the *hole o% Destern 0urope is at present being considered& #t *ill be gi,en the tas5 o% laying do*n the courses that, in 1910, *ill ha,e to be %ollo*ed by the si/-hundred-odd

(a*e 11&

aeroplanes *hich *ill then be (o,ing regularly across the Dest-0uropean s5y, and o% %i/ing the locations o% the rele,ant ground installations, together *ith the procedures %or ensuring ta5e-o%% and landing by this air-%leet& )he si(ulator *ill (a5e it possible to trace the e%%ects o% the ,arious possible co(binations o% ground-installations and the relations bet*een these and the aircra%t in %light& A si(ulator capable o% doing this necessitates an electronic brain e2uipped *ith o,er 100,000 transistors& 9p& 80: "" )he proble( o% the organs responsible %or this co-ordination *ill be dealt *ith a little later&
9p& 81:

#t is clear that bureaucratic distortion o% the econo(y can also occur *hen, in!ide a complex economic !%bject, the responsibility %or ta5ing certain decisions is entrusted to econo(ic authorities *hich are uselessly high up in the hierarchy and less *ell placed than authorities lo*er do*n %or ta5ing co(pletely e%%ecti,e decisions& ontrari*ise, i% the responsibility %or ta5ing decisions is entrusted to authorities *hich are not su%%iciently high up the ladder to be able to ta5e account o% all the necessary in%or(ation, together *ith the co(ple(entary nature o% certain decisions (c%& note 21), a certain Hecono(ic dislocationH *ill result& 0cono(ic dislocation and bureaucratisation o% the econo(y ali5e result in a loss o% e%%iciency (in co(parison *ith *hat could be achie,ed under other conditions), i&e&, in poor co-ordination bet*een decisions, or poor adaptation o% (eans to ends& 9p& 82: "6 A point here *hich is essential and *hich (ust ne,er be lost sight o% see(s to (e that, *ithin the %ra(e*or5 o% a planned econo(y, e,ery econo(ico-7uridical sub7ect in the
"'

production sphere is (erely a lin5 in the di,ision o% labour, and a lin5 destined to be subordinated to an increasing e/tent to a larger sub7ect (in proportion as the socialisation o% the producti,e %orces progresses) o% *hich it thus tends to beco(e, little by little, a (ere technical depart(ent& )his being so, the setting-up o% elected decision-(a5ing organs at the le,el o% each production-unit can, as a rule, only be a (easure that holds bac5 the co(plete socialisation o% the (eans o% production and e,en sets an obstacle in its *ay, e(ptying o% its content the p%blic o*nership o% these (eans o% production and replacing it, de facto, *ith o*nership by a limited gro%p o% *or5ers& Dhen this occurs, *e are not on the road to the building o% socialis( but on the road to the degeneration o% the ,ery conditions essential %or social planning& #t (ust %urther be stressed that *hen the ai( o% production is no longer pro%it but consu(ption, the social control o% producti,e acti,ity *hich is essential *ould see( to need to be e/ercised (ore and (ore at the le,el o% con!%mption, i&e&, o% the e,aluation o% social needs& )his being so, proposals ai(ed at setting up a %or( o% control *ielded (ainly by the producers a! !%ch can only hold bac5 the adapting o% production to its %inal ai(, na(ely, social needs& )his does not, o% course, rule out control by producers o,er the conditions

(a*e 11,

o% production and their acti,e participation in i(pro,ing the latter& ?ut this i(pro,e(ent (eans nothing e/cept in relation to !ocial need! to be !ati!fied, so that it is essential that the %unctioning o% the di%%erent production-units be conditioned by the si<e and nature o% socially recognised needs& #t (ust be added, (oreo,er, that *ith the ,ery de,elop(ent o% the producti,e %orces, the ti(e de,oted by e,eryone to producti,e acti,ity *ill get less, *hile the ti(e de,oted to consu(ption and leisure *ill increase& )his, too, points to the conclusion that it is at the le,el o% the organisation o% consu(ption that ne* %or(s o% social control o,er production itsel% (ust be de,eloped& onse2uently, inside the state sector o% the socialist econo(y, appoint(ent by an authority representing society as a *hole o% a HdirectorH responsible %or (anaging each econo(ico7uridical sub7ect see(s to be the (ethod best adapted to the needs o% increasing socialisation o% the producti,e %orces, since this socialisation (a5es e,ery econo(ic sub7ect a (ere cog in a di,ision o% labour destined to satis%y the needs o% society as a *hole& !% course, the %act that each econo(ic sub7ect is headed by a responsible director, appointed by the state po*er or by *hate,er other social authority has general o,ersight o% the de,elop(ent and use o% the producti,e %orces does not in the least (ean that the *or5ers o% each econo(ic unit should not be consulted on all the decisions that a%%ect the(, that they should not be %ully in%or(ed about the progress o% the unit in *hich they *or5, or that they should not ha,e e,ery opportunity to (a5e all possible suggestions and proposals regarding the plan o% this production-unit; but the decision (a5ing po*er (ust not be atomi!ed, i% the ,ery %oundations %or the building o% socialis( and %or planning are not to be destroyed& #n ,ery large production-units li5e, %or e/a(ple, a che(ical co(bine or an iron-and-steel co(bine, e(ploying tens o% thousands o% *or5ers, controlling (ines, blast-%urnaces, rolling(ills, %oundries, internal (eans o% transport, and so on, it see(s to be essentially at the le,el o% the ba!ic #or;ing gro%p! that participation by the *or5ers in the dra*ing up o% the plan and in (a5ing use%ul suggestions %or its i(ple(entation can ta5e place (ost e%%ecti,ely& At this le,el it is also possible to set up production co((ittees, co((ittees %or introducing inno,ations, and so on, in *hich the (anual *or5ers, the technical cadres and the (anagerial personnel all ta5e part& #n production-units *here the localisation o% the producti,e %orces is still on a ,ery narro* basis, *here production cannot be precisely deter(ined by the plan, and in *hich, conse2uently, the socialisation o% labour is still realised (ainly through e/change (as in the case o% producer co-operati,es), the situation is di%%erent %ro( *hat it is in the big productionunits o% the state sector& #n units li5e this, appoint(ent o% the (anager o% the co-operati,e enterprise by the *or5ers3 collecti,e does not in,ol,e ris5 that it (ay pre,ent the strict subordination o% the acti,ity o% these units to the targets o% the plan, since, in any e,ent, this

subordination can only be partial& )o co(e bac5 to the production-units that belong to the state sector, it

(a*e 11%

(ust be said that the control that the producers should e/ercise o,er these production-units is a control that belongs to the prod%cer! a! a #hole and not (erely the narro* groups o% *or5ers *ho produce *ithin each o% these production-units considered in isolation& )his control by all the producers o,er all the production-units o% the state sector raises the proble( o% political de(ocracy, and so o% the de(ocratic structure o% the state& )his is 2uite a di%%erent proble( %ro( that o% the internal organisation o% the di%%erent production-units, and *e should be going too %ar beyond our present tas5 i% *e *ere to try to study it here& #n any case, de(ocratic %unctioning o% the state and o% the ruling party constitutes the condition %or genuine socialist planning *hich (ust subordinate both the ai(s o% the plan and the (eans o% achie,ing it to the o,erall interests o% the *or5ers and o% society& 9p& 9': "6 Baturally, a thorough 5no*ledge o% these characteristics and the potentialities inherent in the( is only possible gi,en close consultation *ith the (e(bers o% these groups and sti(ulation o% their initiati,e& )hus 8& M& Lato,s5y, su((ing up the *or5 o% a se(inar de,oted to H ybernetics and $lanningH (c%& 9. ., 196', Bo& 6) is 7usti%ied in stressing that Hno centralised opti(isation o% the plan and no auto(isation o% (anage(ent detracts %ro( the i(portance o% local initiati,e & & &H (p& 96)& 9p& 96: "1 As in the syste( o% planning at t*o le,els proposed by @ornai and 8ipta5& 9p& 96: "8 %& J& +ernes, H$lans, bGnG%ices et pri(es en =>..H ($lans, pro%its and bonuses in the =..>), conomie et Politi'%e, 4ece(ber 196", pp& '8 et se2& 9p& 96: "9 !% course, as a result o% ad,ances in the producti,e %orces the(sel,es and also o% the use o% electronic (ethods o% calculation, there are grounds %or supposing that these di%%iculties *ill be o,erco(e in the not too distant %uture, at least so %ar as certain branches o% acti,ity in the (ore highly industrialised socialist countries are concerned, but this (eans that *hen that ti(e co(es, the character o% Hecono(ic sub7ectH attaching to the production-units %unctioning in those branches o% acti,ity *ill already be on the *ay out& 9p& 98: '0 !s5ar 8ange, HFo* do # ,isualise the $olish econo(ic (odelMH (in Ler(an), in Polen von He%te, 1st February 1961& 9p& 100: '1 )hough these proble(s ha,e been %or se,eral years the sub7ect o% special attention in the .o,iet =nion, they are %ar %ro( ha,ing been sol,ed& )hus, *hen, at a (eeting o% the ouncil o% Bational 0cono(y o% the =..> in spring o% 196', the acti,ities o% the ,ovnar;hoDy o% the @har5o, and entral +olga areas *ere e/a(ined, it *as noted that, though the industrial enterprises o% these areas had surpassed, in o,erall ter(s, their production plans and other targets laid do*n in the %or( o% technico-econo(ic indicators (nor(s o% consu(ption o% inter(ediate products, producti,ity, etc&), (ore than '0 per cent o% the( had %ailed to %ul%il their tas5s as regards the particular goods produced, and thereby Hthe national econo(y has %ailed to obtain large 2uantities o% electrical (achines, superchargers, goods truc5s, spare parts and (ining e2uip(entH (c%& 9. ., 196', Bo& 6, p& 9')& 9p& 100:

(a*e 121

%& the article by J& +ernes (see note "8)& 9p& 100: )hese *ere 8iber(an3s proposals put %or*ard in Pravda o% 9 .epte(ber 1962& 9p& 101: '' #t is only through Hdepreciation nor(sH (*hich are usually lo*) that the i((obilisation o% in,est(ent %unds by an enterprise (ay lead to a certain increase in its costs o% production& 9p&
'2 '" 102: '6 )he

ob7ection that to authorise this practice *ould upset the plan %orecast is, in the (ain, o% %or(al ,alidity only, since it is %ailure to respect 2ualitati,e standards (e,en i% this be not (easured) that really upsets the plan %orecasts& 9p& 10": '6 !% course, (icro-decisions *hich a%%ect only one econo(ic sub7ect by itsel% can ta5e the %or( o% orders e(anating %ro( the (anage(ent o% this sub7ect, or %ro( the organ *hich (anages part o% this sub7ect, and addressed to a *or5ing group or e,en to a particular *or5er, but these are orders that concern the internal %unctioning o% the sub7ect and are thus o% a technical nature& 9p& 106:

Article in Polen von He%te re%erred to in note '0, p& 11& 9p& 106: #t *ill be obser,ed that, *ith the de,elop(ent o% 7oint-stoc5 co(panies, as *ell as other %actors, this HonenessH is already tending to brea5 upA the shareholders are the 7oint o*ners o% the 7oint-stoc5 co(pany in *hich they ha,e in,ested their capital, but the co(pany is the Ho*nerH o% its (eans o% production& )he general (eeting o% the shareholders ha,ing, in principle, de%ined the purpose o% the co(pany3s acti,ity, it is under the responsibility o% the (anaging director, *ho is not necessarily a shareholder, that the (eans o% production are put to current use and that so(e o% the( (ay e,en be bought or sold (in so %ar as these purchases and sales do not alter the purpose o% the co(pany3s acti,ity)& More i(portant econo(ic decisions (e/tension o% acti,ity, ne* in,est(ents, etc&) are ta5en by the board o% directors, *hereas the shareholders3 general (eeting theoretically ta5es the decisions *ith a larger bearing; actually, these decisions are (ore o%ten than not prepared by the per(anent sta%% o% the (anage(ent under conditions such that the general (eeting can do nothing but rubbersta(p the(& )his brings out ho*, in this instance, there is a lac5 o% con%or(ity bet*een the 7uridical po*er and the e%%ecti,e capacity o% the shareholders3 general (eeting& Dhat has happened is that the social character o% the producti,e %orces has burst so(e o% the li(itations i(posed by the pri,ate o*nership o% these %orces, though this ta5es place to the ad,antage not o% society as a *hole but to that o% a s(all nu(ber o% especially po*er%ul shareholders& 9p& 109: '9 #% the i(possibility o% an e/act %orecast *ere con%ined to the sphere o% indi,idual consu(ption, it *ould only be in this sphere that the co((odity categories had a role to play; so it is not i(possible that the co((odity categories (ay cease to e/ist in the production sphere *hile continuing to so(e e/tent in that o% consu(ption& #t is not out o% the 2uestion, ho*e,er, that co((odity categories (ay, on the contrary, disappear %irst in the consu(ption sphere and only later in that o% production& )hese are proble(s that, %or the ti(e being, can only be (entioned in passing& 9p& 110:
'1 '8

Contents

[ - Part 2 - ]

hapter )hree Forms and methods of socialist (lannin* and the le"el of de"elo(ment of the (rod:cti"e forces # 4eli(iting the socialist sector %ro( the pri,ate sector under the dictatorship o% the proletariat& ## )he organisation o% the socialist sector& 1 0cono(ic la*s and socialis(& $roperty and production-relations& 2 ### )he organisation o% e/change&

121 122 12' 126 121 1"0

(a*e &

1 #ndi,idual production and e/change& 2 .ocialist production and e/change& #+ )he organisation o% distribution& hapter Four 3n some conce(ts of the transitional economy # Abstract and concrete& ## Mar/ist analysis and pre-scienti%ic HanalysisH& ### )he speci%icity o% Mar/ist dialectics& #+ 4ialectical synthesis and the %actor o% practice& + )heory and the contradictions o% practice&

1"0 1"2 1"1 1'" 1'' 1'' 1'6 160 162

+# .cience and ideology& hapter Fi,e Plannin* and (rod:ction-relations # $ossibility and reality& ## Bationalisation, socialisation and the transitional econo(y& ### )he *ithering-a*ay o% the co((odity categories& #+ )he prospects o% technico-econo(ic integration& + $rices and calculations in labour-ti(e& +# !*nership and subordination& hapter .i/ The (ro lem of (rices in the socialist co:ntries of E:ro(e =Some refle;ions on a recent de ate> )he price-syste( in the .o,iet =nion at the beginning o% the # 1960s& ## )he initial concerns o% the participants in the debate about ### prices& )he (ain proposals& 1 $rices based on ,alue& 2 $rices based on Ho*n costsH& " $rices based on Hprices o% productionH& ' $rices based on H*orld pricesH& #+ o(binations o% price-syste(s and Ht*o-channel pricesH& + .o(e 2uestions raised by concrete price-%i/ing& +# .o(e conse2uences o% the discussion about prices& +## )he proble(atic o% the discussion on prices& +### )he theory o% ,alue and the planning o% prices& 1 +alue and socially-necessary labour-ti(e& 2 $rice and ,alue& )he speci%icity o% the price proble( in the econo(y o% #S transition S onclusion& Appendi/ to hapter .i/ ?ibliography on the proble( o% prices in the socialist countries o% 0urope

16' 16" 161 169 112 116 111 118 18' 186 188 189 190 191 196 201 202 20' 206 208 21' 21' 218 22" 221

2''

(a*e 121

78

Forms and methods of socialist (lannin* and the le"el of de"elo(ment of the (rod:cti"e forces

)he %ollo*ing paper originated as re%le/ions on the theoretical aspects o% so(e o% the proble(s no* being %aced by the econo(y o% uba& As these proble(s

are o% the 5ind that necessarily arise in any country that ta5es the path o% building socialis(, it has see(ed to (e that it (ight be o% interest to publish the paper in its original %or(, *ith only a %e* (inor changes& #t is true that in (y paper a nu(ber o% i(portant 2uestions relating to the building o% socialis( are not dealt *ith, because they *ere not i((ediately rele,ant to the uban econo(y& .o(e o% these 2uestions *ill be tac5led else*here in this *or5& As *ill be seen, # a( lea,ing aside here the speci%ic historical conditions o% uba and the =..>, as *ell as proble(s other than econo(ic ones, though these (ust, o% course, be ta5en into consideration *hen a concrete solution is decided on& )his paper is, then, a paper on econo(ic theory& )he latter is an indispensable instru(ent %or the *or5ing out o% a correct solution o% econo(ic proble(s, e,en though it is not, o% course, su%%icient in itsel% to %urnish co(plete ans*ers to all the 2uestions posed by practical planning and the organisation o% a socialist econo(y& #n order to sol,e as correctly as possible the proble(s no* %acing the uban econo(y, it is necessary to analyse the( theoretically& !nly on the basis o% such analysis can one disco,er the econo(ic strategy and tactics appropriate to the needs o% the present stage, ta5ing into account the speci%ic concrete %eatures o% this stage and o% the present le,el o% de,elop(ent o% the producti,e %orces& !nly an analysis li5e this enables one to de%ine the %or(s o% organisation and (ethods o% *or5 that correspond to the econo(ic strategy and tactics adopted& Dhile theoretical analysis is ob7ecti,ely necessary, it is also necessary sub7ecti,ely, %or it alone can pro,ide the correct scienti%ic ,ie* *hich is essential in order to guide the actions o% the leaders o% the >e,olution, the political cadres and the *or5ing (asses the(sel,es& A scienti%ic ,ie* is
(a*e 122

essential, too, %or the practical i(ple(entation o% the general line adopted& A(ong other things, this should enable the(A (a) )o o,erco(e the hesitations that (ay legiti(ately be %elt be%ore replacing %a(iliar (ethods o% *or5 and %or(s o% organisation by ne* (ethods and %or(s; (b) )o a,oid the %eeling that they are retreating, on the plane o% econo(ic organisation, *hen they are only renouncing organisational %or(s that are either outgro*n or pre(ature, that is, in either case, inappropriate; (c) )o escape the te(ptation to i(itate (ethods or %or(s o% organisation *hich (ay ha,e produced positi,e results in di%%erent ob7ecti,e conditions,

*here priorities other than those *hich pre,ail today in the uban econo(y had to be obser,ed& !n the theoretical plane, as *e 5no*, the %unda(ental proble( consists in treating the producti,e %orces in con%or(ity *ith their nature& #% one acts other*ise, it is i(possible to (aster the producti,e %orces, and so to direct their de,elop(ent e%%ecti,ely& .i(ilarly, on the theoretical plane, it is essential to analyse (en3s beha,iour not as i% this *ere ulti(ately deter(ined by the idea they ha,e o% their relations bet*een the(sel,es and o% their respecti,e roles (*hich *ould i(ply that it is enough to change this idea, through education, to achie,e a change in their beha,iour in the desired direction -- an idealistic ,ie* o% the *ay things happen), but as a conse2uence o% the actual places (en occupy in the technical and social di,ision o% labour and in a gi,en process o% production and reproduction (*hich also reproduces their needs, *hile gradually changing the(), a process *hich is itsel% basically deter(ined by the le,el o% de,elop(ent o% the producti,e %orces& An analysis o% this 5ind enables us to understand that the decisi,e le,er %or changing (en3s beha,iour consists in changes e%%ected in production and the *ay it is organised& 0ducation3s role is essentially one o% eli(inating attitudes and %or(s o% conduct inherited as sur,i,als %ro( the past, and apprenticing people to the ne* %or(s o% beha,iour i(posed by the actual de,elop(ent o% the producti,e %orces& #t is on the basis o% these rules o% general analysis, the rules o% historical (aterialis(, that *e ha,e to sol,e the theoretical proble(s set by the e,olution o% the production-relations, as a result o% the progress o% the producti,e %orces, together *ith the proble(s o% deli(iting the di%%erent %or(s o% property, o% the organisation o% the socialist sector, o% the organisation o% e/change, o% the distribution o% inco(e, and o% planning& / 6elimitin* the socialist sector from the (ri"ate sector :nder the dictatorshi( of the (roletariat De 5no* that Mar/ and 0ngels sho*ed that the de,elop(ent o% capitalist econo(y is acco(panied by the appearance o% %or(s o% production that are increasingly social, and that it is this increasingly social character o% the producti,e %orces that (a5es socialisation o% the (eans o% production an ob7ecti,e necessity&91: De 5no*, too, that the %ounders o% scienti%ic socialis(
(a*e 127

sho*ed that the social character o% the producti,e %orces is (ore or less strongly (ar5ed, depending on the type o% econo(ic acti,ity and the nature o% the techni2ues e(ployed&

Fro( these analyses, and his %urther de,elop(ents o% the(, 8enin dre* practical conclusions about the deli(itation bet*een the socialist and pri,ate sectors o% the econo(y during the %irst phase o% the dictatorship o% the proletariat, and about the conditions needed %or the *ithering a*ay o% the pri,ate sector and the integration into the socialist sector o% acti,ities at %irst carried on by the pri,ate sector& 8enin e(phasised especially that it is not possible to sol,e the proble(s o% s(all and (iddle-peasant econo(y *ithout reorganising the econo(y as a *hole, *ithout Ha transition %ro( indi,idual, disunited petty co((odity production to large-scale social productionH& And he addsA H)his transition (ust o% necessity be e/tre(ely protracted& #t (ay only be delayed and co(plicated by hasty and incautious ad(inistrati,e and legislati,e (easures& #t can be accelerated only by a%%ording such assistance to the peasant as *ill enable hi( to e%%ect an i((ense i(pro,e(ent in his *hole %ar(ing techni2ue, to re%or( it radically&H92: 8enin thus stresses, in this passage *ritten in 1919, the technical %oundations needed %or the changes to be carried out in agriculture, the great length o% the transition period, and the assistance to be a%%orded to the peasant during this protracted transition period& #n 1921, in his *ell-5no*n report on the substitution o% a ta/ in 5ind %or the re2uisition syste(, 8enin returned at so(e length to these sa(e notionsA HAny o((unist *ho thought the econo(ic basis, the econo(ic roots, o% s(all %ar(ing could be reshaped in three years *as, o% course, a drea(er & & &H H#t *ill ta5e generations to re(ould the s(all %ar(er, and recast his (entality and habits& )he only *ay to sol,e this proble( o% the s(all %ar(er -- to i(pro,e, so to spea5, his (entality -- is through the (aterial basis, technical e2uip(ent, the e/tensi,e use o% tractors and other %ar( (achinery, and electri%ication on a (ass scale & & &H9": 8enin, as *e 5no*, dre* all the practical conse2uences %ro( this analysisA since the indi,idual peasants, o% both the poor and (iddle categories, are destined to sur,i,e as such %or a long ti(e, HDe (ust try to satis%y the de(ands o% the peasants&H9': And he addsA HFo* is the peasant to be satis%ied and *hat does satis%ying hi( (eanM & & & #% *e go into this, *e shall see at once that it *ill ta5e essentially t*o things to satis%y the s(all %ar(er& )he %irst is a certain %reedo( o% e/change, %reedo( %or the s(all pri,ate proprietor, and the second is the need to obtain co((odities and products& Dhat indeed *ould %ree e/change a(ount to i% there *as nothing to e/change, and %reedo( o% trade, i% there *as nothing to trade *ithTH96:

#% 8enin e,entually insisted on the need to (aintain indi,idual agricultural production during a transition period96: (so long as the technical
(a*e 129

basis %or social agricultural production had not been established, on a scale su%%icient to cope *ith the needs o% society as a *hole), and on *hat this i(plied as regards %reedo( o% local e/change, this *as because agricultural production is the hardest branch o% the econo(y to trans%or( technically, both in respect o% (aterial conditions and o% production-practices; and also because the peasantry is a particularly i(portant class, *hose alliance *ith the *or5ing class is essential to the dictatorship o% the proletariat& Dhat is true, ho*e,er, o% indi,idual agricultural production is true also o% the cra%ts and o% s(all-scale industrial production, so long as these ha,e not yet de,eloped a high-le,el technical %oundation& // The or*anisation of the socialist sector Dhile the 2uestion o% ho* the producti,e %orces should be allocated bet*een the pri,ate sector and the socialist sector has long since been the sub7ect o% theoretical consideration, this is not true, at least to the sa(e degree, and ho*e,er surprising it (ay see(, o% the proble(s posed by the internal organisation o% the socialist sector& For this reason, the *or5ing out o% principles to go,ern the organisation o% this sector in countries ta5ing the socialist road calls %or ,ery special attention& )he historical e/perience o% the other socialist countries in this sphere needs to be analysed theoretically in order to be %ully utilised& Fistorically, do*n to recent years, the internal organisation o% the socialist sector in the .o,iet =nion has been concei,ed essentially %ro( the standpoint o% con%ronting the (ost urgent proble(s, under pressure %ro( particularly di%%icult and co(ple/ conditions, in situations that *ere o%ten e/tre(ely tense (*ar co((unis(, reconstruction a%ter the ci,il *ar, *or5ing out and re,ising the Fi,e-Cear $lans *hile Fascis( *as ad,ancing in Ler(any and a ne* *orld *ar threatened, the *ar itsel%, then the reconstruction %ollo*ing that)& #t *as there%ore not al*ays possible to adapt this organisation syste(atically to the re2uire(ents o% the le,el o% de,elop(ent o% the producti,e %orcesA it had to be adapted e(pirically to rapidly changing circu(stances& )his resulted in relati,ely %re2uent changes in organisation, as regards both the production-units, *ith their 7uridical po*ers, and the nature o% the authorities to *hich these production-units *ere attached, their decision (a5ing po*ers and so on& )he solutions gi,en to these proble(s ob,iously ha,e a big e%%ect on the good or bad %unctioning o% the socialist sector, its speed o% de,elop(ent, its pro%itability, its capacity %or adaptation to technical progress, and so on&

.ince, o,er a long period, the changes (ade in the organisation o% the socialist sector o% the .o,iet econo(y *ere due abo,e all to i((ediate practical considerations, they *ere not at all the outco(e o% pro%ound theoretical analysis& !nly %airly recently ha,e the .o,iet authorities begun to proceed di%%erently and tried to ta5e account, in the actual organisation o% the socialist sector, o% the re2uire(ents o% the la* o% necessary con%or(ity bet*een production-relations and the character o% the producti,e %orces&91:
(a*e 12'

#n ,ie* o% the great i(portance (%or the building o% socialis( in uba or any other country ta5ing the socialist road) o% %inding a correct solution to the proble(s o% organisation, and in ,ie* also o% the re%erence it is essential to (a5e, in this %ield as in others, to the e/perience o% the (ost ad,anced socialist countries, *e (ust gi,e so(e attention to at least a %e* o% the reasons *hy these proble(s ha,e still recei,ed, e,en in the .o,iet =nion, only a partial and not altogether satis%actory treat(ent& .o(e o% these reasons are purely practical& )he (ost decisi,e o% the( see(s to be the (ainly ad(inistrati,e %or( that .o,iet planning necessarily assu(ed o,er a long period, o*ing to the ,ery high priority that had to be gi,en to the de,elop(ent o% the econo(ic in%rastructure, especially to hea,y industry& )he .o,iet =nion *as, in %act, an econo(ically bac5*ard country *here the (aterial %oundations o% socialist e/panded production had to be laid do*n 2uic5ly, by de,oting e/ceptional e%%orts to the de,elop(ent o% 4epart(ent # o% the econo(y and, (ore particularly, to the de,elop(ent o% the basic industries& #n these circu(stances, the need %or (a/i(u( econo(ic e%%iciency, *hich ought to be %unda(ental to organisational *or5, had rather o%ten to be neglected, i% not on the strategic plane, *here it *as usually respected, then at least on the tactical plane, *here it *as o%ten relegated to secondary i(portance, and not only as regards econo(ic organisation& !ther reasons besides this historical one relate to the stage reached in the theoretical elaboration o% decisi,e points o% doctrine, and these deser,e close attention& # conomic la#! and !ociali!m

!ne o% the (ost i(portant o% these reasons appears to ha,e been an appreciation by certain Mar/ists *hich *as inade2uate, and so(eti(es e,en *rong, o% the proble( o% econo(ic la*s and contradictions in socialist econo(y and society& An e/tre(e instance o% a *rong appreciation o% this 5ind is pro,ided by >osa 8u/e(burg *ho, in a Hle%tistH ,ie* o% the %uture, thought that there *ould no longer be any econo(ic la*s in socialist society and political econo(y *ould there%ore be depri,ed o% its %unction&98:

)he sa(e appreciation *as (ade by Bi5olai ?u5harin in his boo5 on the political econo(y o% the transition period, especially *here he *ritesA HAs soon as *e ha,e to deal *ith an organised national econo(y, all the basic 3proble(s3 o% political econo(y, such as ,alue, price, pro%it, etc&, si(ply disappear& & & & )his is *hy there can be a place here %or a certain descripti,e syste( and also %or a pattern o% nor(s, but none %or a science in,estigating the 3blind la*s3 o% the (ar5et, since the (ar5et *ill ha,e ceased to e/ist& )hus, the end o% capitalist-co((odity society *ill also be the end o% political econo(y&H99: De 5no* ho* this opinion put %or*ard by ?u5harin (*ho *as then de%ending Hultra-le%tistH ,ie*s) *as re%uted by 8enin&910:
(a*e 12+

For our purpose *e shall note t*o essential aspects o% the (ista5es (ade by ?u5harin, na(elyA (a) on%usion bet*een Hecono(ic la*H and Hla* o% the (ar5etH (*hich a(ounts to reducing political econo(y to a Hscience o% e/changeH and not recognising its nature as the Hscience o% social productionH); (b) on%usion bet*een the %ree *or5ing o% la*s and their ob7ecti,e nature& Mista5es li5e these ob,iously (a5e it i(possible, too, to understand the conditions under *hich the la* o% ,alue operates in the di%%erent phases o% de,elop(ent o% socialist society& #t *as *ith regard to the operation o% the la* o% ,alue in socialist society that the *rong theoretical ,ie*s # ha,e recalled *ere co(bated soonest, (ost ,igorously and (ost syste(atically& Dith regard to the practical (atter o% the internal organisation o% the socialist sector, ho*e,er, the conse2uences o% (ista5es li5e this, or o% the sa(e nature, only gradually ca(e to be co(bated& #t *as in his conomic Problem! of ,ociali!m in the .,,R that .talin e(phasised (ost strongly that ob7ecti,e econo(ic la*s e/ist in a socialist econo(y,911: and that he sho*ed, though *ithout deducing all the conse2uences, that these la*s also ha,e a bearing on the *ay socialist society is organised, that is, on the %or(s that ha,e to be gi,en to the production relations and the technical and social organisation o% production& )hese %or(s need to be (odi%ied gradually, so as to adapt the( to the actual de,elop(ent o% the producti,e %orces, %ailing *hich, instead o% helping the progress o% these %orces, they beco(e a %etter upon it& #n this *ay, the idea o% a possible HcontradictionH bet*een producti,e %orces and organisational %or(s in the socialist sector is put %or*ard, *hile at the sa(e ti(e the non-antagonistic nature o% this contradiction is stressed, since there is no group in society possessing su%%icient (eans to resist the necessary changes -- *hich does not (ean that certain social strata (such as a

bureaucratic stratu(, say) (ay not be interested in opposing changes e,en though these are necessary& Mao )se-tung, too, has e(phasised the contradictions that (ay de,elop in socialist society, and the need to resol,e these contradictions correctly& HMany people,H he said, Hre%use to ad(it that contradictions still e/ist in a socialist society& & & & )hey do not understand that socialist society gro*s (ore united and consolidated precisely through the ceaseless process o% correctly dealing *ith and resol,ing contradictions & & & )he basic contradictions in a socialist society are still those bet*een the relations o% production and the producti,e %orces, and bet*een the superstructure and the econo(ic base& & & &H912: )he %act that only ten years ago it *as necessary to re%ute the thesis that there are no ob7ecti,e econo(ic la*s under socialis(, and that it *as necessary to recall *ith e(phasis the e/istence in socialist society o% contradictions bet*een production-relations and producti,e %orces, sho*s ho* bac5*ard theoretical thought had beco(e in this sphere, and e/plains *hy the proble( o% the organisation o% the socialist sector *as posed in scienti%ic ter(s only belatedly and partially&
(a*e 12&

2 Property and prod%ction3relation! Another theoretical root o% the situation described abo,e, and one *hich is both deeper and e,en less studied, is the inade2uacy, and so(eti(es the %alsity, o% the analyses that ha,e been (ade o% the concepts Hproduction relationsH and HpropertyH& De 5no* that, %or Mar/, production-relations are the relations that (en establish a(ong the(sel,es in the process o% social production, and that these relations change *ith the de,elop(ent o% the (aterial producti,e %orces&91": )he nature o% the production-relations is thus deter(ined by the producti,e %orces the(sel,es and by their degree o% de,elop(ent& $roperty in (or o*nership o%) the (eans o% production is the 7uridical and abstract e/pression o% so(e o% the production-relations, an e/pression *hich has to be changed *hen the producti,e %orces change, and along *ith the( the corresponding production-relations&91': )he conne/ion bet*een producti,e %orces, production-relations and %or(s o% property is %ar %ro( ha,ing al*ays been grasped correctly& De see this, %or instance, in $ro%essor !s5ar 8ange3s (rait& d) conomie Politi'%e. 8i5e (any other econo(ists, 8ange regards o*nership o% the (eans o% production as the HbasisH o% production-relations&916: Actually, it is the le,el o% de,elop(ent o% the producti,e %orces that deter(ines the nature o% the production-relations, relations *hich (ay %ind (ore or less ade2uate 7uridical e/pression in a gi,en %or( o% property in

(o*nership o%) the (eans o% production& Mar/ e(phasised on se,eral occasions this aspect o% the lin5 bet*een production-relations and %or(s o% property&916: #% *e regard as the HbasisH o% the production-relations *hat is only a (ore or less ade2uate 7uridical e/pression and %or( o% the(, *e are easily dra*n into (a5ing %alse conclusions& .uch a conception, indeed, pre,ents us %ro( grasping the real content o% socialist property and its di%%erent %or(s& .i(ilarly, it stands in the *ay o% a clear and concrete analysis o% socialist appropriation and o% the roots o% the retention o% co((odity e/change and the la* o% ,alue during the %irst historical period o% socialist society& #t is essential to spend a little ti(e on these points& )he (ista5e that consists in con%using the 7uridical %or( o% property *ith effective appropriation is a (ista5e that has o%ten been (ade, and *hich 8enin had to protest against already in his o*n ti(e& #n his *ell 5no*n article HAgainst 38e%t-Ding3 childishness and the petty-bourgeois (entalityH, he contrasts the 7uridical act o% nationali!ation *ith the !ociali!ation that i(plies the e%%ecti,e capacity o% society to account and allot,911: a capacity *hich is itsel% bound up *ith a certain de,elop(ent o% the producti,e %orces (*hich e(brace (en the(sel,es, *ith their le,el o% 5no*ledge)& Fere, 8enin is contrasting the 7uridical %or( *ith the concrete productionrelations& Fe is e(phasising that this 7uridical %or( is e(pty *hen these
(a*e 12,

relations are such that they do not enable the %or( to be ade2uately %illed, because capacity to deal effectively #ith the mean! of prod%ction and their prod%ct! does not coincide *ith %or(al o*nership& )his brings us bac5, a%ter a see(ing detour, to the proble( o% the internal organisation o% the socialist sector& )his organisation is, in reality, only e%%ecti,e i% the 7uridical po*er to dispose o% certain (eans o% production or certain products coincides *ith the capacity to e(ploy these (eans o% production and these products in an e%%icient *ay& )he social le,el at *hich this capacity is to be %ound at any gi,en (o(ent ob,iously does not depend on (en3s Hgood*illH but on the de,elop(ent o% the producti,e %orces& Dhen 7uridical po*er and e%%ecti,e capacity do not coincide, *hen the 7uridical sub7ect is not really an econo(ic sub7ect, there is a di,orce bet*een, on the one hand, the real proce!! of prod%ction and di!trib%tion, and, on the other, the proce!! aimed at by those *ho *ield political po*er *ithout possessing e%%ecti,e capacity& )his di,orce results in a (ore or less serious absence o% real direction o% the econo(ic process by those *ho are supposed to be directing it, and it usually engenders an o,ergro*th o% regulations and an e/cessi,e e/pansion o% the bureaucratic apparatus& )hese har(%ul pheno(ena are the(sel,es bound up *ith the ,ain e%%ort being (ade to try and bridge the

gul% separating the %or(al 7uridical %ra(e*or5 %ro( the actual productionrelations, *hich %ail to %ill this %ra(e*or5 ade2uately& Analysed in this *ay, the proble( o% the internal organisation o% the socialist sector and o% the di%%erent %or(s o% socialist property can be seen in its %ull signi%icance& For e/a(ple, in the .o,iet =nion, the collecti,e-%ar( %or( o% socialist property is better adapted to the le,el o% de,elop(ent o% the producti,e %orces at the disposal o% the collecti,e %ar(s than the state %or( *ould be& )his (eans that, at the present le,el o% de,elop(ent o% these %orces, socialisation o% the production-process is (ore real *ithin the collecti,e %ar( %ra(e*or5 than it could be i% %or(al o*nership o% these producti,e %orces *ere trans%erred to the state& )he latter *ould then be obliged either to direct (ore or less centrally a production-process *hich, in the present state o% things, can only be directed and controlled e%%ecti,ely on the spot, or else to delegate its po*ers o% decision-(a5ing to a HdirectorH appointed by the state, *ho *ould thus ta5e upon hi(sel% the %unctions that are carried out at present by the collecti,e-%ar( co((unity and its organs& #n %act, such a trans%er *ould cause a setbac5 to socialisation (that is, to control by the co((unity o,er the production-process) rather than ad,ancing it %urther& Dhen one spea5s o% the HhigherH %or(s o% socialist property, (eaning state o*nership, this has only (in relation to production-processes *hich are not yet ripe %or this type o% o*nership) a strictly hi!torical signi%icance, as a pro,isional ,ie* o% %uture de,elop(ent, and has no i((ediate rele,ance to the actual le,el o% de,elop(ent o% the producti,e %orces& )his is the ,ery reason *hy it is necessary to retain the so-called Hlo*erH %or(s& )heir e/istence is thus not to be e/plained, as so(e *ould
(a*e 12%

ha,e it, by the Hconser,ati,e (entalityH o% the peasants but by the reality o% the actual production-relations& )he sale to the collecti,e %ar(s o% the agricultural (achinery at the disposal o% the Machine and )ractor .tations in the .o,iet =nion pro,ides us *ith an e/a(ple o% transition %ro( state property to collecti,e-%ar( property, so(ething that %ro( the %or(al standpoint i(plies a Hsetbac5H to the degree o% socialisation o% these (eans o% production& )his Hsetbac5H, ho*e,er, (ay signi%y in reality a step %or*ard in e%%ecti,e socialisation, i% it entails, in practice, an ad,ance in the econo(ic e%%iciency *ith *hich society uses the (eans o% production thus trans%erred&918: #t is al*ays a (atter, *hen one *ants to ensure (a/i(u( con%or(ity bet*een 7uridical authority and capacity to use, o% deciding *hat type o% group has the right to control and direct certain production-processes, and this is so(ething that cannot be done correctly *ithout ta5ing account o% the nature o% the producti,e %orces in,ol,ed in the particular process&

)he sa(e principle, o% course, has to go,ern the allot(ent o% 7uridical po*ers, o,er particular (eans o% production or particular products, a(ong the ,arious go,ern(ental organs o% the socialist state or the ,arious econo(ic authorities o% this state& ()hus, in the .o,iet =nion, the ,ovnar;hoDy are regional authorities o% the state po*er, *hereas a .o,iet enterprise is a state economic authority&) )he assign(ent o% 7uridical po*ers to certain social authorities (ay be e/pressed in the e/istence o% di%%erent %or(s and le,els o% state socialist property& )hus, *hile the .o,iet state o*ns certain enterprises, the latter (ay the(sel,es o*n their (eans o% production and their products, in so %ar as they at the sa(e ti(e possess certain 7uridical po*ers and the corresponding e%%ecti,e capacity to dispose& )he HonenessH o% property-right *hich is characteristic o% bourgeois la* is thus bro5en up& #t is i(portant to realise that things (ay, and indeed (ust, be so during a *hole phase o% de,elop(ent o% socialist society -- not only %ro( the standpoint o% the organisation o% the socialist sector but also %ro( that o% understanding *hat socialist trade is and *hat role the la* o% ,alue plays& # shall co(e bac5 to this point later& #t %ollo*s %ro( *hat has been said abo,e that i% 7uridical po*er to dispose o% certain (eans o% production is granted to an authority *hich does not possess, at the gi,en le,el o% de,elop(ent o% the producti,e %orces, e%%ecti,e capacity to dispose o% the(, then this arrange(ent *ill (ean that there is insu%%icient social control o,er these producti,e %orces& )his is *hat has happened in uba in those branches o% industry *here the essential 7uridical po*er to dispose has been entrusted to the $on!olidado!, *hereas the production-units alone constitute genuine econo(ic sub7ects en7oying e%%ecti,e capacity to dispose& Dhat can rightly be called a Hproduction-unitH (and *hat constitutes a genuine econo(ic sub7ect) ,aries, o% course, depending on the le,el o% de,elop(ent o% the producti,e %orces& #n certain branches o% production,
(a*e 171

*here the integration o% acti,ities is su%%iciently ad,anced, it is the branch itsel% that (ay constitute a Hproduction-unitH& )his (ay be so, %or instance, in the case o% the electrical industry, on the basis o% the interconne/ion that e/ists bet*een po*er stations, since this (a5es possible centralised direction o% the entire branch& #t (ust %urther be obser,ed that, depending on the type o% use that is (ade o% certain (eans o% production, e%%ecti,e capacity to dispose o% the latter (ay be possessed by di%%erent authorities, *hence also the possibility o% superposition o% di%%erent 7uridical po*ers o,er the sa(e (eans o% production&

)hese are the ,arious considerations that ha,e to be 5ept in (ind in de%ining the place o% each o% the di%%erent %or(s o% socialist property, the rights o% the enterprises, their ties *ith the central econo(ic organs, the *ays in *hich current econo(ic (anage(ent is carried on, the %or(s and rules o% econo(ic planning, and so on& /// The or*anisation of e;chan*e )he organisation o% e/change, and conse2uently o% the distribution o% products, (ay appear to be do(inated by the *ay production is organised technically& Actually, the organisation o% e/change is an integral part o% the organisation o% the social reproduction process, *hich consists at once o% production, consu(ption, circulation and e/change o% products and acti,ities& #n a socialist econo(y *hich includes, at one and the sa(e ti(e, both petty indi,idual production and social production, the organisation o% e/change (ust necessarily assu(e a di%%erent %or( depending on the type o% production& )heoretical study is also needed here o% the 2uestion o% ho* to organise e/change in the *ay best adapted to the relations established bet*een the de,elop(ent o% the producti,e %orces and the satis%action o% recognised social needs& 1 Individ%al prod%ction and exchange )hat the e/istence o% indi,idual production under the dictatorship o% the proletariat necessarily entails the retention o% the categories Hco((odityH and H(oneyH is no*adays uni,ersally accepted& )hat the e/istence o% these categories necessitates also the e/istence o% a (ar5et and o% a certain degree o% %reedo( o% e/change is, ho*e,er, so(eti(es denied& )his is so at the present ti(e in uba, and it *as also the case in the .o,iet =nion at the end o% the HDar o((unis(H period, during *hich circu(stances had obliged the .o,iet po*er to abolish %reedo( o% e/change and reduce the %unctions o% (oney to the (ini(u(& At that ti(e there *ere 2uite a %e* o((unists in the .o,iet =nion *ho belie,ed that abolition o% %reedo( o% e/change *as co(patible *ith the retention, *hich *as then una,oidable, o% indi,idual production, and that this *ould not hinder the de,elop(ent o% the producti,e %orces, and so the consolidation o% the dictatorship o% the proletariat&
(a*e 171

De 5no* ho* 8enin ans*ered those *ho thought in this *ay and ho* he declared that a certain degree o% %reedo( o% e/change *as necessary, gi,en the e/istence o% indi,idual production -- a (easure o% %reedo( that should be controlled and li(ited so that it *ould ser,e the interests o% the dictatorship o% the proletariat and not a%%ect the latter ad,ersely& 8enin said that, gi,en the basis o% indi,idual production, H& & & here you cannot a,oid local %ree e/change & & &H919:

and added, as the conse2uence %ollo*ing %ro( thisA HDe can allo* %ree local e/change to an appreciable e/tent, *ithout destroying, but actually strengthening, the political po*er o% the proletariat&H920: )hat a certain %reedo( o% local e/change is necessary not only as a (ere te(porary (easure but %or a *hole historical period is sho*n by the %act that a collecti,e-%ar( (ar5et still e/ists today in the .o,iet =nion& #ts continued e/istence con%ir(s the need %or a local agricultural (ar5et as corollary to the e/istence o% pri,ate agricultural production -- a %or( o% production *hich, as regards certain i(portant %oodstu%%s, is responsible %or (eeting a %ar %ro( negligible proportion o% consu(ption in the .o,iet =nion today& .i(ilarly, the recent e/perience o% $eople3s hina has sho*n that the reestablish(ent o% so(e indi,idual agricultural production has had to be acco(panied by the re-establish(ent o% local (ar5ets, and that this has contributed substantially to a (ar5ed i(pro,e(ent in the supply o% %ood to the to*ns and a ne* rise in industrial production&921: )hus, theory and practice ali5e con%ir( the need %or a certain degree o% %reedo( o% e/change as a corollary o% the e/istence o% indi,idual production& )he concrete proble(s *hich it is o% the highest i(portance to resol,e correctly concern the li(its to be set to this e/change and ho* to subordinate it to the interests o% the de,elop(ent o% socialist society& )hese proble(s can be settled only through studying the international e/perience o% the socialist countries, and through day-to-day practical e/perience,922: analysed in accordance *ith the (ethods o% dialectical (aterialis(& )he %oregoing re(ar5s and re%erences sho*, in any case, that the proble( o% re-establishing in uba a local (ar5et %or agricultural produce results, so %ar as a certain historical period is concerned, %ro( the nature o% the present producti,e %orces o% uban agriculture& )his is the perspecti,e, too, in *hich should be concei,ed the transition o% pri,ate agriculture to*ards socialist %or(s o% production, principally by *ay o% co-operati,e organisation in the countryside& Dhile the organisation o% e/change o% goods resulting %ro( indi,idual production gi,es rise (ainly to proble(s o% a concrete character, this is not the case *ith the organisation o% e/change o% goods produced by the socialist sector, or circulating *ithin this sector, %or i(portant theoretical 2uestions arise in this %ield&
(a*e 172

2 ,ociali!t prod%ction and exchange

Fere, indeed, the ,ery nature o% the proble(s has o%ten been obscured by a (ista5en ,ie* o% things *hich has centred analysis not upon the real production-relations but upon abstract 7uridical categories li5e the concept o% Huni%or( state o*nershipH, or the general concept o% Hsocial o*nershipH& #% to such abstract categories there already corresponded concrete production-relations such that an ulti(ate and single social authority, that is, a single and solitary 7uridical sub7ect, *as e%%ecti,ely capable o% disposing e%%ecti,ely o% all the (eans o% production, deciding ho* they should be used and *hat should beco(e o% their products, then the latter *ould ha,e co(pletely ceased to be co((odities, all the co((odity categories ((oney, prices, etc&) *ould ha,e disappeared, and there *ould be no disad,antage in using the concept o% social o*nership in order to e/press the co(plete do(ination o% society o,er its products and the correlati,e disappearance o% the co((odity categories& #n %act, ho*e,er, such disappearance o% the co((odity categories presupposes a degree o% socialisation o% the process o% social reproduction (uch (ore ad,anced than e/ists today& !nly on the basis o% this (ore ad,anced socialisation o% the reproduction process *ill it be possible %or the di%%erent %or(s o% social o*nership that e/ist today in all the socialist countries to gi,e place to %ull and co(plete o*nership by society as a *hole, *hich alone *ill per(it the co((odity categories to *ither a*ay& De 5no* that, as regards present-day collecti,e-%ar( production, .talin analysed this *ithering-a*ay o% the co((odity categories in ter(s o% raising collecti,e-%ar( property to the le,el o% public property and the gradual replace(ent o% co((odity-circulation by Ha syste( o% products-e/change, so that the central go,ern(ent, or so(e other social-econo(ic centre, (ight control the *hole product o% social production in the interests o% societyH&92": )he idea o% the capacity o% a social-econo(ic centre to handle all the products in the interests o% society is here seen as decisi,e& Fo*e,er, society3s e,olution to*ards co((unis( absolutely rules out %or the %uture that this social and econo(ic centre be %or(ed by the !tate (or, a fortiori, by an econo(ic sub7ect li5e ?u5harin3s Hsingle state trustH)& )his centre *ill be society itsel%, %unctioning through its central directing econo(ic organ -*hich does not, o% course, (ean that this centre *ould act *ithout Hrelay stationsH, *here ,ery (any decisions *ould ha,e to be ta5en& #n a situation li5e this, *ith integration o% the process o% social reproduction, and organic coordination o% its ,arious phases, the co((odity categories *ill thus ha,e ,anished -- *hich *ill not (ean, ho*e,er, that ob7ecti,e econo(ic la*s *ill ha,e ,anished, but only the la*s o% co((odity econo(y& #n any case, at the present ti(e, e,en in the (ost ad,anced socialist countries, the process o% social production and e/panded reproduction is not yet a process *hich has been co(pletely integrated and organically
(a*e 177

co-ordinated, *ith the di%%erent parts o% it strictly go,erning each other, and there%ore capable o% being %ully do(inated by society& )he de,elop(ent o% the producti,e %orces has indeed brought about an increasing interdependence bet*een the ,arious econo(ic acti,ities, the di%%erent ele(entary processes o% production& #t is precisely this interdependence, this beginning of integration, that has (ade socialist econo(ic planning (the only real planning) necessary, and has gi,en its true content to social o*nership o% the (eans o% production (*ithout *hich no econo(ic planning is possible)& Fo*e,er, the process o% integration o% the ,arious ele(entary processes o% production is only at its beginning& 0ach o% these processes is still de,eloping in a relati,ely independent *ay& )he appropriation o% nature by (an is there%ore ta5ing place in centres (production-units) *hich are distinct and separate, and bet*een *hich co(ple/, (ani%old and (ore or less regular relations are established& 0ach o% these production-units constitutes, there%ore, a centre %or the appropriation o% nature *hich has its speci%ic character, its o*n reality& Dhile the interdependence o% these centres re%lects the social character o% production and as already noted, gi,es real content to the social o*nership o% the (eans o% production, the separate and distinct character o% these centres deter(ines the 7uridical %or( o% the o*nership o% the (eans o% production assigned to each o% the(& =nder these conditions, reasoning *hich starts only %ro( the general concept o% Hstate o*nershipH, to designate the ,arious higher %or(s o% socialist property, and *hich see5s to reduce the latter to a uni%or( reality, co(es up against insuperable di%%iculties, especially *hen analysing the circulation o% co((odities *ithin the state socialist sector, socialist trade, the role played by (oney, and so on& An e/a(ple o% these di%%iculties is pro,ided by so(e o% .talin3s analyses in his *or5, already 2uoted, on conomic Problem! of ,ociali!m in the .,,R. Fere, as *e 5no*, .talin tries to e/plain the need %or co((odity relations *ithin .o,iet socialist society on the basis o% the e/istence o% t*o %or(s o% socialist propertyA property o% the *hole people (that is, o% the state) and property o% (ore li(ited groups (essentially, collecti,e-%ar( property)&92': ?y starting %ro( the 7uridical sphere and analysing the proble( on this basis, .talin is led to deny the essentially co((odity character, at the present ti(e, o% e/change bet*een state socialist enterprises, and to render inco(prehensible theoretically the nature o% the buying and selling carried on bet*een state enterprises, the nature, in this econo(y o% (oney, prices, business accounting, %inancial autono(y, etc& )hese categories are thus depri,ed o% all real social content, and appear as abstract %or(s or technical procedures *hich are (ore or less arbitrary, and not as the e/pression o% those ob7ecti,e econo(ic la*s the necessity o% *hich is at the sa(e ti(e stressed by .talin hi(sel%&926:

Fere *e see once (ore *hat a theoretical cul-de-sac one can get into *hen, in analysing a social process, one starts not %ro( the concrete pro(a*e 179

duction-relations but %ro( a 7uridical concept treated abstractly, and, a fortiori, *hen one (a5es this concept the HbasisH o% the production relations& #n reality, the (ethod o% dialectical (aterialis( re2uires that the starting point %or analysis be the social relations that constitute the other side o% the process *hereby (an appropriates nature (that is, the production-relations and the actual (odes o% appropriation)& #% *e approach the (atter this *ay, and ta5e into account that at the present le,el o% de,elop(ent o% the producti,e %orces, in e,en the (ost ad,anced socialist society, this appropriation-process is not yet a !ingle proce!!, *holly do(inated by society, but is still a (ulti%or( and %rag(ented process, di,ided bet*een a nu(ber o% centres o% acti,ity and a nu(ber o% ele(entary appropriation processes *hich it is only beginning to be possible to co-ordinate on the scale o% society (through socialist planning), then *e realise thereby the ine,itability o% e/change bet*een these centres o% acti,ity, and the actual social and econo(ic content o% the di%%erent %or(s o% socialist property, o% socialist co((odity e/change, the role played by (oney inside the socialist sector, and so on& Dhen an analysis is (ade on these lines, the di%%erent %or(s o% socialist property no longer appear as the reason that can He/plainH the e/istence o% co((odity relations in the socialist sector (*hich *ould a(ount to e/plaining econo(ic categories by a certain 7uridical superstructure)& !n the contrary, it is the e/istence o% certain production-relations that e/plains the co((odity relations and the 7uridical %or( they ha,e to assu(e&926: Fro( that point on*ard *e also realise that in proportion as the de,elop(ent o% the producti,e %orces leads to an effective integration o% the production-processes, an organic co3ordination o% these processes, *hich increasingly beco(e a single process, the %ield o% co((odity relations shrin5s, and the sphere o% acti,ity o% the co((odity categories *ithers a*ay& Dhen this e,olution is co(plete, the planning and (anage(ent o% the econo(y can be directed by a single social authority (*hich does not necessarily (ean a single 7uridical sub7ect)& .o long as this stage has not been reached, socialist planning ta5es charge o% the conscious direction o% all the increasingly nu(erous processes o% social reproduction *hich are beginning to be co-ordinated (because ob7ecti,ely they control each other), *hile socialist econo(ic (anage(ent ta5es charge o% the conscious direction o% the ,arious processes that are the responsibility o% the di%%erent econo(ic sub7ects& )he latter are thus lin5ed together both by the plan, in so %ar as they ob7ecti,ely control each other, and by co((odity relations, in so %ar as they are still relati,ely independent&

#n recent years the increasingly co(ple/ character o% the .o,iet econo(y and the other socialist econo(ies has (ade it clear that the idea o% a rapid *ithering a*ay o% the co((odity categories and o% socialist co((odity e/change *as pre(ature, and this is *hy (ore attention has had to be gi,en to these categories, to the relati,e autono(y o% each socialist enter(a*e 17'

prise, and so on& At the sa(e ti(e, the increasing integration o% the production-processes in the technically mo!t highly developed branche! has created ne* possibilities o% (anaging these branches by electronic (eans& )his enables us to understand better the *ays by *hich it *ill be possible to de,elop the a priori co-ordination o% econo(ic acti,ities, thus bringing about the %inal disappearance o% the co((odity categories&921: )he conse2uences or i(plications o% the %oregoing analysis are (any& # shall (ention here only those *hich see( the (ost i(portant in relation to the planning and organisation o% the socialist econo(y& (a) #n conne/ion *ith *hat has been said, it *ill be realised that, *ith the present le,el o% de,elop(ent o% the producti,e %orces and integration o% the ele(entary processes o% production, the labour e/pended in production cannot yet be, in its entirety, directly !ocial labour& #n other *ords, though the plan lays do*n the a(ount o% labour to be e/pended in the di%%erent branches o% production, it can still do this only appro/i(ately, and it is only a%ter the e,ent that it is possible to 5no* to *hat e/tent the labour e/pended on the di%%erent 5inds o% production *as, actually and *holly, !ocially nece!!ary labo%r. )he e/istence o% co((odity categories and (oney inside the socialist sector (eans, in %act, that it is still to so(e e/tent through the (ar5et that the !ociali!ation of labo%r is e%%ected& )he socialist (ar5et *hich ser,es as controller and (ediu( o% the socialisation o% labour is already ,ery (uch (odi%ied, in the *ay it *or5s, by the de,elop(ent o% socialist production-relations& )han5s to these socialist relations, the producers are no longer lin5ed together only through their products (*hich, in a pure co((odity society, (eant the do(ination o% the producers by their products, co((odity-%etishis(, and so on), they also (aintain direct lin5s, as a!!ociated producers& As such, they endea,our to coordinate their e%%orts in ad,ance, and they are able to achie,e this coordination, to so(e e/tent, through the econo(ic plan& )he latter lays do*n the %unda(ental targets o% econo(ic and social de,elop(ent and there%ore lea,es only a subordinate role to be played by the (ar5et& )his is possible because, o,er and beyond the ele(entary processes o% appropriating nature (processes *hich are still separate %ro( each other, and *hich there%ore continue to oppose the producers to each other to so(e e/tent), a beginning has already been (ade in integrating the process o% social production& Dith

the eli(ination o% pri,ate o*nership o% the (eans o% production and the introduction o% planning, this social process *hich is beco(ing integrated is no longer bro5en up, no longer %rag(ented as it is under capitalist conditions, *hich (aintain in being relations o% production and o% property *hich ha,e been outgro*n by the de,elop(ent o% the producti,e %orces& (b) Dhat has been said (eans, too, that at the present stage o% de,elop(ent o% the producti,e %orces, e,en in the (ost ad,anced socialist countries, society is not yet able %ully to 5no* the state o% !ocial need! (including the needs that arise in the sphere o% (aterial production itsel%) and to deter(ine
(a*e 17+

politically in a %airly e/act *ay those needs that *ill be accorded recognition in the %uture& Dhat %ollo*s %ro( this is that it is i(possible to proceed in a satis%actory, that is, an e%%icient, *ay to carry out an allot(ent o% the (eans o% production, or o% products in general, in advance, and that there is need %or !ociali!t trade and state co((ercial organisations& Fence, %urther, the role o% (oney *ithin the socialist sector itsel%, the role o% the la* o% ,alue and o% a price syste( that cannot re%lect only the social cost o% the di%%erent products but has al!o to e/press the ratio bet*een the supply o% and de(and %or these products, and perhaps to ensure a balance bet*een supply and de(and, *hen the plan has not been able to ensure this in ad,ance and to use ad(inistrati,e (easures to achie,e this e2uilibriu( *ould co(pro(ise the de,elop(ent o% the producti,e %orces& (c) )he %oregoing also (eans that each production-unit (that is, each social lin5 *ithin *hich an ele(entary production-process is going on) has to be allo*ed a certain freedom of manoe%vre. )his (ust enable each productionunit to cope *ith *hate,er has not been %oreseen, to (a5e the best use, %or the good o% society, o% the resources under its control, since these resources can be properly used only to ser,e society3s real needs, and the latter are not necessarily those that the plan has sought to %oresee& )his %reedo( o% (anoeu,re (ust, at the present stage o% de,elop(ent o% the producti,e %orces, relate both to so(e ele(ents in the progra((e o% acti,ity o% each productionunit and to so(e o% the (eans to be e(ployed in carrying out this progra((e& )he practical proble( is to lay do*n li(its to this %reedo( o% (anoeu,re *hich *ill ensure that it !erve! the real ai(s o% the plan (the building o% socialis(, the har(onious de,elop(ent o% the producti,e %orces and the satis%action o% society3s needs)& )his practical proble( can be sol,ed correctly only by e/perience, interpreted by theory& Fere it is i(portant to stress that i% ade2uate %reedo( o% (anoeu,re is not allo*ed to each production-unit, and an atte(pt is (ade to deter(ine in ad,ance, in a detailed *ay, the acti,ity that each is to carry on, together *ith

the conditions o% this acti,ity, the result, in the present state o% things, *ill be an enor(ous *astage o% labour-po*er and products& !%ten, in %act, in planned econo(ies *here the necessary %reedo( o% (anoeu,re has not been granted to the production-units, this *astage is li(ited to so(e e/tent through the exchange e%%ected by the production units a(ong the(sel,es, %or(ally in ,iolation o% the plan but actually, (ore o%ten than not, in order to achie,e the real ai(s o% the plan& )his is ho* the ob7ecti,e necessity o% econo(ic la*s (a5es itsel% %elt& Dhat is bad in such cases is that, instead o% these la*s being used consciously, *hich is the principle o% the plan, they are allo*ed to operate spontaneously& (d) #t is this co(bination o% the retention, %or an historical period, o% the co((odity categories, e,en inside the socialist sector, *ith the %reedo( o% (anoeu,re that has to be allo*ed, *ithin certain li(its, to each produc(a*e 17&

tion-unit, that gi,es (eaning to the acco%nting a%tonomy o% each production unit, the Hb%!ine!! acco%nting H that ta5es place in each production-unit and the possibilities o% !elf3financing that each unit should possess& )hese categories, rules and possibilities are bound up *ith a particular stage o% the producti,e %orces& )hey re%lect the conditions and ob7ecti,e re2uire(ents %or the *or5ing o% the socialist econo(y at its present stage o% de,elop(ent& Failure to respect the( can only hinder the proper %unctioning o% the econo(y and put di%%iculties in the *ay o% planning itsel%& /< The or*anisation of distri :tion #t is a co((onplace o% Mar/ist analysis to recognise that the relations and (odes o% distribution are deter(ined by the actual organisation o% production& 928: Fro( this it (ay be concluded that i% co((odity relations still sur,i,e *ithin the socialist sector, at the present le,el o% de,elop(ent o% the producti,e %orces, these co((odity relations (ust also still per(eate the production-relations& )his is ulti(ately one o% the reasons *hy, at the present ti(e, in all the socialist econo(ies, this distribution also ta5es place by *ay o% the co((odity categories ((oney and *ages)& )his is a pheno(enon that Mar/ did not %oresee, as is sho*n, %or instance, by the analysis he (a5es in conne/ion *ith his $riti'%e of the 7otha Programme. #n the passage re%erred to, Mar/ en,isages an allot(ent o% products by (eans o% Hlabour certi%icatesH, and not through the (ediation o% a true currency& #% Mar/ i(agined the proble( o% distribution being sol,ed li5e this in the %irst phase o% socialist society, this *as doubtless because at the ti(e *hen he *rote, it see(ed easier %or society to do(inate in an integrated *ay the entire social process o% production and reproduction than *as really the case, or than is still the case today&

Mar/3s realis( *as not at %ault, ho*e,er, *hen he %oresa* that, in the initial phase o% socialist society, goods *ould ha,e to be allotted in accordance *ith *or5 done and not in accordance *ith needs& Be,ertheless, *hat then appeared to Mar/ as a re2uire(ent essentially bound up *ith the Hsur,i,alH o% certain nor(s o% bourgeois right can be understood today, in the light o% e/perience, as a conse2uence o% the retention o% co((odity categories& .ince, ho*e,er, the producers in socialist society are not related (erely through their products, but also (aintain direct hu(an relations, as associated producers stri,ing to co-ordinate their e%%orts in ad,ance, and able to do this better and better than5s to the socialisation o% the producti,e %orces, the co((odity categories no longer do(inate either society or the indi,iduals co(posing it, and the content o% these categories is pro%oundly (odi%ied& )hus, *ages in socialist society are no longer the Hprice o% labour po*erH (since the producers are no longer separated %ro( their (eans o% production but, on the contrary, are their collecti,e o*ners), but the *ay in *hich part o% the social product is allotted& At the sa(e ti(e, this allot(ent continues to be carried out through the category H*agesH
(a*e 17,

because the labour contributed by each indi,idual is not yet directly social labour& Be,ertheless, society3s increasing (astery o,er its producti,e %orces enables it to distribute an e,er larger share o% the social product no longer in proportion to *or5 done, but in proportion to needs, and not through (oney categories but in 5ind& )he gradual disappearance o% the nor(s o% bourgeois right %ro( the sphere o% distribution has thus already begun, and it *ill proceed %aster and %aster *ith (an3s increasing do(ination o% the process o% social reproduction and the e/tinction o% co((odity relations and categories& Dhile the retention o% co((odity relations and categories, and o% all the superstructures connected *ith this retention, e/plains the need to relate the pay(ent (ade to each indi,idual to the 2uantity and 2uality o% his labour (*hat is called the Hsyste( o% (aterial incenti,esH), the trans%or(ation o% these relations and categories, and their gradual e/tinction, *hich is already under *ay, *ith the correlati,e superstructural changes, e/plain the increasingly i(portant role gi,en to beha,iour inspired by econo(ically disinterested (oti,es& )he respecti,e places occupied by the di%%erent 5inds o% incenti,e is thus not to be deter(ined arbitrarily, in the na(e o% so(e (oral ,ision or so(e ideal o% socialist society -- it has to be related to the le,el o% de,elop(ent o% the producti,e %orces, a(ong *hich (en the(sel,es are included, along *ith their 5no*ledge, their education, and, in general, their culture& Jan%ary, 01IJ.

23TES T3 C!-PTE. 7
#n general, the bond that lin5s the le,el o% de,elop(ent o% the producti,e %orces *ith the character o% the production-relations and the property relations corresponding to the( is re%erred to no*adays by the e/pressionA Hthe econo(ic la* that the relations o% production (ust necessarily con%or( *ith the character o% the producti,e %orcesH& )his e/pression, *hich *as %or(ulated %or the %irst ti(e by J& +& .talin, *as used by hi( in his boo5 conomic Problem! of ,ociali!m in the .,,R (page 8A 0ng& edn&, pp& 9-10)& 9p& 122: 2 +& #& 8enin, H0cono(ics and $olitics under the 4ictatorship o% the $roletariatH, 2uoted %ro( -)=lliance de la $la!!e +%vri?re et de la Pay!annerie, Mosco*, 1961, p& 616& (0ng& ,ersion %ro( $ollected <or;!, +ol& "0, pp& 112-1"&) 9p& 12": " Ibid., pp& 1'2-" (0ng& ,ersion in $ollected <or;!, +ol& "2, pp& 216-11 9(ran!criber)! *oteA .ee 8enin3s (enth $ongre!! of the R.$.P.@A.B& -- DJR:)& 9p& 12": ' Ibid., p& 1'2 (0ng& ,ersion, ibid., p& 211)& 9p& 12": 6 Ibid., p& 1'" (0ng& ,ersion, ibid., pp& 211-18)& 9p& 12": 6 De 5no* that 8enin recognised this necessity not only in the case o% the bac5*ard econo(y o% >ussia in 1921 but also in that o% the Had,anced
1

(a*e 17%

capitalist countriesH (c%& H$reli(inary 4ra%t )heses on the Agrarian NuestionH, a paper prepared %or the .econd ongress o% the o((unist #nternational, ibid., pp& 128-"0 0ng& ,ersion in $ollected <or;!, +ol& "1, pp& 168-61)& 9p& 12": 1 #t is *orth e(phasising here the e,olution o% .talin3s thin5ing on this 2uestion& #n 19"8 he *rote, about socialist societyA HFere the relations o% production %ully correspond to the state o% the producti,e %orces, %or the social character o% the process o% production is rein%orced by the social o*nership o% the (eans o% production&H (J& +& .talin, 6at&riali!me dialecti'%e et mat&riali!me hi!tori'%e, p& 21 o% the French edn& o% 1966, 0ditions .ocialesA 0ng& ,ersion %ro( ,hort $o%r!e of Hi!tory of the $P,. @AB, 19"8, p& 126& 9(ran!criber)! *oteA Also a,ailable in 0nglish as a separate te/tA H4ialectical and Fistorical Materialis(H& -- DJR:) #n his *or5 conomic Problem! of ,ociali!m in the .,,R (1962), ho*e,er, .talin *roteA H?ut it *ould be *rong to rest easy at that and to thin5 that there are no contradictions bet*een our producti,e %orces and the relations o% production& )here certainly are, and *ill be, contradictions, seeing that the de,elop(ent o% the relations o% production lags, and *ill lag, behind the de,elop(ent o% the producti,e %orces& Li,en a correct policy on the part o% the directing bodies, these contradictions cannot gro* into antagonis(s, and there is no chance o% (atters co(ing to a con%lict bet*een the relations o% production and the producti,e %orces o% society& #t *ould be a di%%erent (atter i% *e *ere to conduct a *rong policy& & & & #n that case con%lict *ould be ine,itable, and our relations o% production (ight beco(e a serious bra5e on the %urther de,elop(ent o% the producti,e %orces&H (+p. cit., pp& 66-1A 0ng& edn&, p& 16&) 9p& 12': 8 )hus, >osa 8u/e(burg *roteA H& & & political econo(y, as a science, has co(pleted its role %ro( the (o(ent *hen the anarchical econo(y o% capitalis( gi,es place to a planned econo(y, consciously organised and directed by the *or5ing co((unity as a *hole& )he ,ictory o% the *or5ing-class o% our ti(e and the achie,e(ent o% socialis( thus signi%y the end o% political econo(y as a science&H ( inf>hr%ng in die *ationalK;onomie, =%!ge#Lhlte Reden %nd ,chriften, ?erlin, 1961, +ol& #, p& '91&) 9p& 126: 9 Nuoted %ro( the Ler(an translation o% ?u5harin3s boo5 (M;onomi; der (ran!formation!periode, Fa(burg, 1922, p& 2)& 9p& 126: 10 .ee note 2 to hapter 2 o% this boo5& 9p& 126: 11 H& & & the la*s o% political econo(y under socialis( are ob7ecti,e la*s&H (.talin, op. cit., p& 10A 0ng& edn&, p& 12&) 9p& 126: 12 Mao )se-tung, De la contradiction a% !ein d% pe%ple (+n the correct handling of

contradiction! among the people), $e5ing, 1961& 9p& 126: 1" )hus, Mar/ *roteA H#n the social production *hich (en carry on they enter into de%inite relations that are indispensable and independent o% their *ill; these relations o% production correspond to a de%inite stage o% de,elop(ent o% their (aterial po*ers o% production&H (Mar/, $ontrib%tion N la criti'%e

(a*e 191

1'

16 121: 16 .ee,

de l)&conomie politi'%e ( ontribution to the criti2ue o% political econo(y), trans& 8aura 8a%argue, 0ditions Marcel Liard, 1928, pp& '-6A 0ng& ,ersion %ro( Be* Cor5 and alcutta edns&, p& 11&) 9p& 121: )hus, i((ediately a%ter the passage 2uoted abo,e, Mar/ goes onA H)he su( total o% these relations o% production constitutes the econo(ic structure o% society -- the real %oundation on *hich rise legal and political superstructures and to *hich correspond de%inite %or(s o% social consciousness& & & & At a certain stage o% their de,elop(ent, the (aterial %orces o% production in society co(e in con%lict *ith the e/isting relations o% production or -- *hat is but a legal e/pression %or the sa(e thing -- *ith the property relations *ithin *hich they had been at *or5 be%ore&H (Ibid., p& 6A 0ng& ,ersion, ibid&, pp& 11-12&) 9p& 121: %& !s5ar 8ange, conomie Politi'%e, +ol& # (HLeneral proble(sH), $aris, 1962, p& 18& 9p&

in particular, his Introd%ction to the criti'%e of political economy, pp& "26-"0 o% the translation by 8aura 8a%argue o% the $ontrib%tion. .ee also the dra%t o% Mar/3s letter to +era Uasulich in *hich Mar/ stresses that it is the need %or collecti,e *or5 in the pri(iti,e co((unity that underlies the co((on o*nership o% the land, and not the other *ay round (+ol& SS+## o% the >ussian edn& o% the *or5s o% Mar/ and 0ngels, p& 681)& 9p& 121: 11 %& 8enin, +e%vre! compl?te!, 'th edn&, +ol& 21, pp& "00-1& 9(ran!criber)! *oteA .ee 8enin3s H38e%t-Ding3 hildishness and the $etty-?ourgeois MentalityH& -- DJR: 9p& 121: 18 #t should not, o% course, be concluded %ro( these obser,ations that the *ays in *hich the (eans o% production are allocated, *ith the corresponding property-%or(s, (ust be deter(ined excl%!ively, in the period *hen socialis( is being built, by considerations related to e%%iciency in the use o% the ,arious (eans o% production& #n order to ensure the building o% socialis(, i((ediate econo(ic e%%iciency is clearly not the only thing that has to be 5ept in (ind -- %ar %ro( that, sinceA H& & & politics (ust ta5e precedence o,er econo(ics& )o argue other*ise is to %orget the A? o% Mar/is(&H ( %& 8enin, H!nce again on the )rade =nions, the current situation, and the (ista5es o% )rots5y and ?u5harinH, <or;! (in >ussian), "rd edn&, Mosco*, 19"1, p& 126A 0ng& ,ersion %ro( $ollected <or;!, 'th edn&, +ol& "2, p& 8"&) #t is because nationalisation, under the dictatorship o% the proletariat, (eans the ending o% the control e/ercised by the capitalists o,er the (eans o% production thus nationalised, that, in certain circu(stances, i(per%ect utilisation o% so(e (eans o% production by the proletarian state (through lac5 o% su%%icient con%or(ity bet*een the 7uridical authority possessed by this state and its real capacity) (ay be pre%erable (or e,en una,oidable), %ro( the standpoint o% the building o% socialis(, as co(pared *ith utilisation o% these sa(e (eans o% production by another social class, though this (ay, at the gi,en (o(ent, be (ore e%%icient& .i(ilarly, a relati,ely less e%%icient utilisation (%ro( the i((ediate standpoint) o% the (eans o% production controlled by the Machine and )ractor .tations *as regarded as pre%erable to handing o,er these (eans

(a*e 191

o% production to the collecti,e %ar(s, in the early years o% collecti,isation& #n general, it can occur that the degree o% social de,elop(ent o% the producti,e %orces o% a particular industry, or a particular industrial enterprise, (ay not H7usti%yH their nationalisation, so %ar as i((ediate econo(ic e%%iciency is concerned, and yet this (ay be f%lly j%!tified %ro( the standpoint o% rein%orcing the dictatorship o% the proletariat *hen the latter re2uires that the

econo(ic basis o% the po*er o% the hostile classes be bro5en& on,ersely, *hen the dictatorship o% the proletariat is su%%iciently %ir( not to need to nationalise producti,e %orces *hich are not yet highly socialised, there (ay be no 7usti%ication %or carrying out such nationalisations, especially *hen the proletarian po*er has su%%icient le,ers at its disposal to co(pel these (eans o% production to ser,e the purposes o% the building o% socialis(, *hile retaining *hat are still, %or the ti(e being, the (ost e%%icient conditions %or the utilising o% these (eans o% production& 9p& 129: 19 8enin -)=lliance de le cla!!e o%vri?re et de la pay!annerie, p& 1'6 (0ng& ,ersion, $ollected <or;!, +ol& "2, p& 219 9(ran!criber)! *oteA .ee 8enin3s (enth $ongre!! of the R.$.P.@A.B& -- DJR:)&
9p& 1"1:

Ibid., p& 1'6 (0ng& ,ersion, ibid., p& 220)& 9p& 1"1: P&;in Information, 2nd .epte(ber 196", pp& 16-11& 9p& 1"1: 22 #n his report to the )enth ongress, 8enin re%used to lay do*n *hat should be the li(its to %reedo( o% e/change& Fe declared that it *as necessary to establish the principle that there (ust be li(its, but beyond that he *ould not go, sayingA
20 21

H)ry one thing and another, study things in practice, through e/perience, then share your e/perience *ith us, and let us 5no* *hat you ha,e (anaged to do& & & &H (+p. cit., p& 1'9A 0ng& ,ersion, $ollected <or;!, +ol& "2, p& 222&) 9p& 1"1: 2" .talin, conomic Problem! of ,ociali!m in the .,,R, p& 66 (0ng& edn&, p& 16)& 9p& 1"2: 2' )his e/planation is set out at length in $oint 2 o% the H>e(ar5s on econo(ic 2uestions connected *ith the Bo,e(ber 1961 discussionH, the one entitledA H o((odity production under socialis(H& .talin3s atte(pt at an e/planation *hich is o%%ered here re%ers essentially to the attitude o% the collecti,e %ar(s& )hus, he *ritesA H)he collecti,e %ar(s are un*illing to alienate their products e/cept in the %or( o% co((odities, in e/change %or *hich they desire to recei,e the co((odities they need& At present the collecti,e %ar(s *ill not recognise any other econo(ic relation *ith the to*n e/cept the co((odity relation-e/change through purchase and sale& ?ecause o% this, co((odity production and trade are as (uch a necessity *ith us today as they *ere thirty years ago, say, *hen 8enin spo5e o% the necessity o% de,eloping trade to the ut(ost&H (+p. cit., p& 16A 0ng& edn&, pp& 19-20&) 9p& 1"": 26 )he di%%iculties resulting %ro( this *ay o% tac5ling the proble( stand out ,ery clearly in the section o% conomic problem! & & & entitled H>eply to o(rade Ale/ander #lyich Bot5inH& #n this passage .talin as5sA

(a*e 192

HDhy & & & do *e spea5 o% the ,alue o% (eans o% production, their cost o% production, their price, etc&MH and he ans*ersA HFor t*o reasons& Firstly, this is needed %or purposes o% calculation and settle(ent, %or deter(ining *hether enterprises are paying or running at a loss, %or chec5ing and controlling the enterprises& ?ut that is only the %or(al aspect o% the (atter& .econdly, it is needed in order, in the interests o% our %oreign trade, to conduct sales o% (eans o% production to %oreign countries& Fere, in the sphere o% %oreign trade, but only in thi! !phere, our (eans o% production really are co((odities, and really are sold (in the direct (eaning o% the ter()&H (+p. cit., pp&''-6A 0ng& edn&, pp& 68-9&) #t is clear that the second part o% this reply does not in the least e/plain *hy H*e spea5 o% the ,alue o% (eans o% productionH in!ide the .o,iet =nionA nor does the %irst part pro,ide any e/planation, since *hat *e *ant to 5no* is, precisely, #hy Hthis is needed %or purposes o% calculationH& 9p& 1"": 26 )his analysis coincides to so(e e/tent *ith that (ade by !& .i5 in his boo5 conomic!, Intere!t!, Politic! (in <ech), $rague, 1962& 9p& 1"': 21 More and (ore .o,iet econo(ists are co(ing to the opinion that transition to (ore detailed planning, based on the use o% electronic (achines, *ill be (ade possible by the increasing integration o% acti,ities *ithin the di%%erent branches& )his integration (a5es it possible to utilise (athe(atical (ethods o% (anage(ent, and electronic (achines, fir!t of all at the le,el o% the production-units and branches, and only later at the le,el o% the national econo(y as a *hole& )his does not, o% course, rule out the use o% (athe(atical (ethods and

electronics e,en no* at the le,el o% national econo(ic planning; but %or the (o(ent such use can only be ,ery li(ited, (ust lead to successi,e repetition o% processes, and cannot ser,e as the sole or e,en principal basis %or present-day socialist planning& .ee on this sub7ect the *ritings o% J& @ornai and )h& 8ipta5, (#o3-evel Planning, a study in progra((ing, prepared at the alculation entre o% the Fungarian Acade(y o% .ciences (roneoed docu(ent in 0nglish, ?udapest, 196")& 9p& 1"6: 28 H)he subdi,isions and organisation o% distribution are deter(ined by the subdi,isions and organisation o% production& 4istribution is itsel% a product o% production, not only in so %ar as the (aterial goods are concerned, since only the results o% production can be distributedA but also as regards its %or(, since the de%inite (anner o% participation in production deter(ines the particular %or( o% distribution, the %or( under *hich participation in distribution ta5es place&H (Mar/, Introd%ction N %ne criti'%e de l)&conomie politi'%e, p& "26A 0ng& edn&, p& 28'&)
9p& 1"1:

(a*e 197

98

3n some conce(ts of the transitional economy

Bo*adays there are a nu(ber o% countries engaged in building socialis(, and this constitutes an e/peri(ent on a huge scale that is o% concern to a thousand (illion hu(an beings directly, and indirectly to the *hole o% (an5ind& 8i%e itsel% has sho*n ho* co(ple/ are the proble(s posed by the building o% a ne* *orld *hich (ust not (erely put an end to the e/ploitation o% (an by (an but also ensure (an3s increasing control o,er nature and social de,elop(ent& )hus, (en are to be gradually %reed %ro( the constraints and li(itations that ha,e *eighed upon the( since hu(an society began& #n this *ay *hat the %ounders o% scienti%ic socialis( called the Hpre-history o% (an5indH *ill co(e to an end& #n %ace o% the rich e/perience accu(ulated by the countries *hich ha,e ta5en the road o% building socialis( and *hich are today in di%%erent stages o% an econo(y o% transition to*ards this ne* social (ode o% production, it is essential not to re(ain satis%ied *ith repeating general %or(ulae that *ere *or5ed out be%ore there had been any social e/perience o% the transitional econo(y& )his is necessary, too, *hen con%ronted *ith the distortions that Mar/is( has su%%ered under the in%luence o% ,arious tendencies in bourgeois thought (positi,is(, e(piricis(, and so on) or under that o% dog(atis( or idealis(& )he ti(e has co(e *hen it is essential to (a5e use o% the (ethod o% dialectical (aterialis(, in order to try and grasp the theoretical (eaning o% a nu(ber o% practices connected *ith the building o% socialis(& #t is essential, too, to underta5e criticis( o% certain analyses that ha,e been (ade o% real and

topical proble(s, using a (ethod *hich, though allegedly inspired by dialectical (aterialis(, is, in %act, re(ote %ro( it& (For practical reasons, the paper (ost %re2uently criticised in this discussion is 0rnest Mandel3s article called H)he co((odity categories in the transition periodH 9 conomica, Fa,ana, June 196':& My purpose is not, o% course, to dispute particularly *ith this *riter (ore than *ith any other, but to try and de%ine so(e essential theoretical and (ethodological positions&)
(a*e 199

/ - stract and concrete #n his Introd%ction to a $riti'%e of Political conomy, Mar/ contrasts t*o (ethods -- one *hich proceeds %ro( the concrete to the abstract, and the other, proceeding %ro( the abstract to the concrete, *hich he describes as the only scienti%ically correct (ethod& H#t see(s,H he *rites, Hto be the correct procedure to co((ence *ith the real and concrete aspect o% conditions as they are& & & & Cet, on closer consideration, it pro,es to be *rong& & & & )he 9(ethod *hich starts %ro( general conceptions and proceeds to concrete ones: is (ani%estly the scienti%ically correct (ethod& )he concrete is concrete because it is a co(bination o% (any ob7ects *ith di%%erent deter(inations, i&e&, a unity o% di,erse ele(ents& #n our thought it there%ore appears as a process o% synthesis, as a result and not as a starting point& & & & 9?y the scienti%ic (ethod: the abstract de%initions lead to the reproduction o% the concrete ob7ect in the course o% reasoning& & & & )he (ethod o% ad,ancing %ro( the abstract to the concrete is but a *ay o% thin5ing by *hich the concrete is grasped and is reproduced in our (ind as a concrete&H (+p. cit., 0ditions .ociales edn&, pp& 16'-6A 0ng& edn&, pp& 292-'&)91: #t is clear that Mar/ does not ad,ocate that science should stop at the le,el o% the (ost abstract categories, but that he calls upon scienti%ic acti,ity to thin5 its *ay bac5 to the concrete by *ay o% synthesis o% *hat he calls Hthe abstract de%initionsH&92: // 0ar;ist analysis and (re-scientific ?analysis? )he %unda(ental and Hspeci%icH di%%erence bet*een Mar/ist analysis and pre-scienti%ic (ideological) analysis is that the %or(er recognises that the %ield to *hich it is applied is a Hco(ple/ *hole structured in do(inanceH (to use the e/pression o% 8ouis Althusser, in his article on (aterialist dialectics in -a Pen!&e, Bo& 110, August 196", reproduced in Po%r 6arx, 0dit& Maspero, 1966A 0ng& edn&, "or 6arx, Allen 8ane, 1969) and that it there%ore uses concepts *hich are lin5ed together dialectically, their inter-relation e/pressing the relations and contradictions o% the ,ery %ield to *hich it is applied& )his

(eans that it does not proceed dog(atically and HabstractlyH, because the ,ery concepts *hich it e(ploys teach that the Hprincipal H contradiction in a gi,en concrete situation, and the principal aspect o% any contradiction, (ay ,ary %ro( one (o(ent to another& )his is *hy one (ust al*ays %ind the principal contradiction in each situation, and the principal aspect o% each o% the ,arious contradictions (this is the proble( o% the Hdecisi,e lin5H or the Hleading lin5H)& #t is clear that one cannot HgraspH this lin5 H(echanicallyH, that to do it re2uires a series o% (ental e%%orts, *hich e,entually (a5e possible a conceptual structuring that gi,es as %aith%ul an e/pression o% reality as can be achie,ed&9": )hus, depending on *hether *e ta5e our e/a(ples %ro( the sphere o% politics or %ro( that o% econo(ics, *e shall see that in a gi,en situation
(a*e 19'

the principal contradiction (ay be bet*een proletariat and bourgeoisie, or bet*een peasantry and large-scale lando*ning, or bet*een poor peasants and rich peasants, etc&, or else, %ro( the econo(ic standpoint, bet*een consu(ption and in,est(ent, industry and agriculture, the iron and steel industry and the che(ical industry, etc& )hese contradictions are ne,er, o% course, presented, so %ar as historical (aterialis( is concerned, as ab!ol%te contradictions, but as being underlain by the unity o% the contradiction& Also o% course, these contradictions are based on those bet*een the producti,e %orces and the relations o% production, but the latter do not e/haust the content o% the contradictionsA they are a speci%ic and %unda(ental (*hich does not (ean principal) degree o% this reality, and possess dri,ing po*er in relation to the other degrees, *hile the latter, in turn, react upon this %unda(ental contradiction (*hich (eans, %or e/a(ple, that contradictions in the superstructure (ay hinder or e,en bloc5 the de,elop(ent o% the producti,e %orces)& )he *hole thus operates li5e a co(ple/ structured *hole, al*ays (ar5ed at any gi,en (o(ent by a principal contradiction& )hese contradictions (erge, at a certain (o(ent, in a certain *ay, and this a(alga(ation gi,es rise to a ne* situation *hich is '%alitatively different from the preceding one. #n this ne* situation the principal contradiction is not the sa(e as it *as in the pre,ious situation, and, in general, the hierarchy o% contradictions and o% their aspects has been pro%oundly (odi%ied& .uch 2ualitati,e changes (ean, *hen they ta5e place in the socio-econo(ic %ield, either that a ne* (ode o% production has been entered upon, or else a ne* stage o% a gi,en (ode o% production, or a ne* point has been reached in this stage& )o say that the principal contradiction has been (odi%ied is also to say that the decisi,e lin5 by *hich the situation can again be (odi%ied is di%%erent as co(pared *ith the pre,ious situation& )hus, depending on the nature o% the principal contradiction and the principal aspect o% the contradictions, the line of practical action *ill be

di%%erent& ?y ta5ing e/a(ples %ro( the %ield o% politics and econo(ics *e shall see that, depending on the situation, the principal lin5 *hich has to be grasped in order to change this situation is constituted no* by the grouping o% the re,olutionary %orces around the proletariat, the dictatorship o% the proletariat allied *ith the peasantry o,er the other social classes, or allied *ith the poor peasantry only, no* by the priority o% industry o,er agriculture ta5en as basis o% de,elop(ent, *ith industry as the dri,ing %orce, the relati,ely e/tensi,e use o% (ar5et %orces (B&0&$&) or rapid collecti,isation, centralised planning or the use o% econo(ic le,ers, etc& /// The S(ecificity of 0ar;ist dialectics Fo*e,er, contradictions (ust not be studied in the(sel,es (in the Fegelian (anner); they need to be considered as %or(ing part o% Hthe ,ery essence o% thingsH, as 8enin puts it& )his is *here the speci%icity o% the contradiction lies, in Mar/ist dialectics& #t is this speci%icity that brings it about that, in dialectical (aterialis(,
(a*e 19+

e,ery contradiction re%lects the e/istence o% a co(ple/ process and constitutes one contradiction amid a !erie! of other!. )his is also *hy, in the totality o% contradictions that (a5es up a structured *hole, there is al*ays one contradiction *hich is the principal one& As Mao )se-tung saysA H#n the process o% de,elop(ent o% a co(ple/ thing, (any contradictions e/ist; a(ong these, one is necessarily the principal contradiction& & & &H (Mao )se-tung, +n contradiction, p& 66A 0ng& ,ersion %ro( ,elected <or;!, +ol& ##, p& "6&) Fro( this there also %ollo*s the necessary distinction bet*een the principal aspect and the secondary aspect o% the contradiction, *hich is (erely the re%le/ion H*ithin each contradiction o% the co(ple/ity o% the process, that is, the e/istence *ithin it o% a plurality o% contradictions, one o% *hich is do(inant & & &H (c%& 8ouis Althusser, -a Pen!&e, August 196", H.ur la dialecti2ue (atGrialisteH, p& 21)& Materialist dialectics is thus so(ething ,ery di%%erent %ro( the si(pli%ying abstraction, re(ote %ro( the historical, the co(ple/ and the concrete, *hich 0rnest Mandel o%%ers us as HMar/ist dialecticsH&9': )his 5ind o% abstraction is not e,en at the le,el o% idealist dialectics in its (ost %inished %or( (the Fegelian %or(), but it starts, li5e idealist dialectics, %ro( the basic presupposition o% a si(ple contradictory unity *hich de,elops *ithin itsel% by ,irtue o% the negati,e ele(ent in it, so that the HconcreteH totality that results %ro( this de,elop(ent al*ays brings us bac5 to the original si(plicity& #t is especially i(portant to stress that the desire to consider only Hsi(pleH categories, to re%use theory access to the concrete, leads precisely to the errors that it is sought to a,oid&

)a5e, %or e/a(ple, the proble( posed by the %act that the proletarian re,olution has been ,ictorious in a nu(ber o% countries *ith relati,ely underde,eloped producti,e %orces& on%ronted *ith this situation, an attitude *hich does not correspond to that o% dialectical (aterialis( can lead, and does in %act lead, to t*o sorts o% He/planationH, neither o% *hich has anything in co((on *ith Mar/is(, and *hich, %urther(ore, though (utually e/clusi,e, are both so(eti(es accepted by those *ho decline to recognise the speci%icity o% Mar/ist dialecticsA (a) )he %irst He/planationH leads to declaring that, though the producti,e %orces o% the under-de,eloped countries *ere in the(sel,es too *ea5 to pro,ide the source o% the re,olutionary (o,e(ent, it *as ne,ertheless the contradiction bet*een producti,e %orces and production-relations that *as the source o% the re,olution that occurred in these countries, because *hat counts is not the HlocalH or HnationalH le,el o% the producti,e %orces but the *orld contradiction bet*een producti,e %orces and production-relations& )his *ay o% allegedly Hsol,ingH the proble( brings in, %irst o% all, a purely idealistic relationship bet*een *hat is internal and *hat is e/ternal, and, in addition, it re,eals that those *ho o%%er this He/planationH ha,e not understood that the contradiction bet*een the le,el o% de,elop(ent o% the producti,e %orces and the production-relations, although it is the
(a*e 19&

%unda(ental contradiction, is only one of the contradiction! in the co(ple/ situation o% the country *here the re,olution has occurred, and is not necessarily, and e,en, generally !pea;ing, doe! not con!tit%te the principal contradiction& )he latter (ay be %ound at 2uite a di%%erent le,el& #t *as constituted, %or e/a(ple, by the re,olt o% the >ussian peasant soldiers against continuing the i(perialist *ar& )his *ar itsel%, o% course, resulted %ro( the contradiction, on the *orld scale, bet*een the le,el o% de,elop(ent o% the producti,e %orces and the production-relations; but this contradiction had attained its (a/i(u( sharpness only in the (ost highly de,eloped countries& )his contradiction e/isted, too, though to a lesser e/tent, in the countries *here the re,olution occurred, and this *as *hat (ade it possible %or the re,olution to assu(e a socialist character& Fo*e,er, the re,olution too5 place in these countries not because the contradiction bet*een producti,e %orces and production-relations had reached (a/i(u( sharpness there, but because there *as a principal contradiction (not identical in each country) *hich had beco(e ,ery acute, and because the re,olutionaries o% these countries *ere able to lay hold o% this contradiction so as to e%%ect a radical trans%or(ation& )his trans%or(ation assu(ed a socialist character in so %ar as these re,olutionaries did not con%ine the(sel,es to acting upon the principal contradiction (guiding the (asses in their struggles %or peace, or %or %reedo(, or %or land) but undertoo5 the tas5 o% resol,ing the %unda(ental contradiction o% our age&

(b) )he other He/planationH o% the de,elop(ent o% the re,olution in countries *here the producti,e %orces ha,e not yet reached a high le,el o% de,elop(ent leads (and this is the idealist alternati,e) to a denial o% any role to this contradiction bet*een producti,e %orces and production relations, and e/plaining the re,olutionary process by re,olutionary consciousness alone, by the e/a(ple set by the socialist countries, and so on& De thus see ho* re%usal to appreciate the co(ple/ and concrete character o% Mar/ist analysis leads either to idealistic positions or to (echanistic ones& #t is note*orthy that all the conceptions *hich depart %ro( Mar/is( in this *ay %inally end up in eclecticis(& Actually, i%, as Mandel thin5s, Mar/is( *ere incapable o% analysing Hreal capitalis( as it has de,eloped historically & & & as it has de,eloped concretely & & &H but only a Hpure and abstract capitalis(& & & &H (art. cit., pp& 9-10), it *ould pro,ide us (erely *ith a HpureH and Hsi(pleH theory *hich *ould there%ore be re(ote %ro( concrete conditions, *hich are particular, historical, contingent and accidental& )hese conditions, *hile they are those o% practice, *ould thus elude the grasp o% theory& Fence %orth, as the *ell-5no*n e/pression has it, Hthe necessary *ould (a5e itsel% %elt through the accidentalH, and the latter *ould there%ore ha,e either to be ignored or else (ade the ob7ect only o% short-sighted practice, o% e(piricis(& A conception li5e this can ob,iously pro,ide no guidance %or e%%ecti,e
(a*e 19,

practice, since, i% it is to be e%%ecti,e, theory (ust be capable o% grasping the allegedly HaccidentalH, that is, o% concei,ing reality as a co(ple/, structured *hole, in,ol,ing a totality o% contradictions *hich are ne,er congealed once %or all in an i((utable hierarchy& )his is *hat 8enin e/presses *hen he saysA H oncrete analysis o% the concrete situation is the soul o% Mar/is(&H )his is so because Mar/is( is not an HabstractH theory but a theory *hich leads to the concrete, and *hich there%ore can be a guide %or practice& )han5s to this, Mar/ist practice in the econo(ic and social spheres can operate upon all the contradictions& #t is able to do this because it enables us to grasp the lin5s that e/ist bet*een all the contradictions, and to ascertain *hat, at any gi,en (o(ent, is the principal contradiction, *hich is such because by acting upon it one can e,entually act upon all the contradictions& For Mar/ist analysis there is not, on the one hand, an abstract (odel %unctioning in the real( o% ideas, and, on the other, a reality *hich co(es (ore or less close to this (odel, and includes, besides the categories o% the H(odelH, so(e Haccidental conditionsH, that is, so(e purely He/ternalH %actors& Mar/is( does not lead to such a super%icial ,ie* o% things& #t considers e,ery reality as a structured *hole *hich has to be analysed as such, *ith its principal and secondary contradictions&

8enin pro,ides a precise theoretical e/planation o% the !ctober >e,olution by ta5ing account o% the totality o% the conditions that e/isted at the ti(e o% that re,olution, that is, the real, historical, concrete conditions& !nly thus can one understand *hy the socialist re,olution, dictated %unda(entally by the contradiction bet*een producti,e %orces and production relations, bro5e out, not in the countries *here this contradiction had been brought to its (a/i(u( acuteness, but in those *here a nu(ber o% historical and concrete HconditionsH ca(e together& An e/planation *hich resorts to ta5ing account o% these HconditionsH can a,oid eclecticis( and e(piricis( only i% these conditions are theoretically reintegrated in the o,erall conception o% a structured co(ple/ *hole& More precisely, these conditions ha,e to be understood as they are, that is, as the conditions o% e/istence o% a co(ple/ *hole, ta5en in its totality& #%, in the na(e o% the HpurityH and Hsi(plicityH o% theory, one lea,es the conditions out o% account, then one is le%t operating outside reality, *hich is al*ays co(ple/, historical, concrete and structured, and al*ays includes principal and secondary contradictions, and contradictions *hose Horder o% i(portanceH changes *ith changing circu(stances& .o long as one re(ains at this le,el o% ideological abstraction, one can 5no* only a HpureH capitalis(, on the one hand, and a HpureH socialis( on the other& !n the political plane this can lead either to Hultra-le%tis(H (%or instance, *ith the slogan, (echanically applied in all circu(stances, o% Hclass against classH) or to opportunis(, *aiting inde%initely %or real capitalis( to beco(e su%%iciently HpureH %or the co(ing o% HpureH socialis( to be ine,itable&96: Dhen *hat is on the agenda is building socialis(, the HpurestH conception
(a*e 19%

o% socialis( is o% only li(ited ,alue, because history is ne,er HpureH, nor is it Hstraight and e,en as the Be,s5y $rospe5tH (*hich (eans, a(ong other things, that the %eatures *hich *ill characterise de,eloped socialist society are not only not all necessarily to be obser,ed in the society o% transition, but that it (ay e,en happen that, during certain stages o% the de,elop(ent o% this transitional society, so(e %eatures that one (ay e/pect to be possessed by the socialist society o% the %uture *ill te(porarily beco(e blurred, and *ill not at all necessarily beco(e increasingly clear-cut)& Dhat (atters, there%ore, i% theory is to be capable o% thro*ing light on the *ay %or*ard %or the transitional society or the conditions %or the building o% socialis(, is analysis o% the concrete conditions o% this transitional society or o% this building o% socialis(, in a particular country& )his analysis (ust ob,iously deal *ith the signi%icant *holeness o% the situation& Fere again it is a 2uestion o% analysing the totality o% the contradictions, bringing out the principal contradiction and the secondary contradictions, and the principal and secondary aspects o% the contradictions& !nly thus can the speci%ic character o% a situation be brought out, *ith the speci%ic character o% the contradictions that are characteristic o% it&

)he speci%ic character o% the contradictions (in a gi,en country at a gi,en ti(e) is only the re%le/ion o% the conditions o% e/istence o% this country (the le,el o% de,elop(ent o% its producti,e %orces, its culture, its traditions, its si<e, the le,el o% consciousness e/isting at a particular (o(ent) on the contradictions in general, and the principal contradiction in particular& )his is precisely *hy socialis( is not being built under the sa(e conditions in uba, in the =..>, in hina, and so on& Dhoe,er re%uses to ta5e account theoretically o% these Hspeci%icitiesH is not a Mar/ist& )hat is *here one %alls into e(piricis( and eclecticis(, because one *ants to ;eep theory o%t!ide of hi!tory. 0/cept %ro( the point o% ,ie* o% ideology, practice and theory are ne,er outside o% history& Dhat they ha,e to deal *ith, in reality and in thought, is ne,er a HpureH (ode o% production but al*ays an hi!torically given !ocial formation, *ith all its speci%ic contradictions, its principal and secondary contradictions, and so on& Mar/is( is the only theory that enables us to deal practically and theoretically *ith a reality li5e this (*hich is *hat Mandel re%uses to do, not only theoretically but also practically)& Dith a li,ing approach li5e this, o% course, the contradictions and categories are no longer uni,ocal; they do not ha,e one %i/ed role and (eaning, gi,en once %or all& At the sa(e ti(e, they are not He2ui,ocalH, %or, *hile they are no longer deter(ined once %or all in their role and essence, Hthey sho* the(sel,es to be deter(ined by the structured co(ple/ityH *hich assigns the( their role (c%& 8ouis Althusser, art. cit., p& "1)& )he proble( o% dialectical (aterialist analysis is precisely that o% re,ealing *hy and ho* it is that successi,ely do(inant contradictions do not %ollo* each other in an arbitrary *ayA and the proble( o% Mar/ist practice is to grasp *hat at each (o(ent is the principal contradiction,
(a*e 1'1

and ho* by acting upon it (that is, by acting on *hat 8enin called the Hdecisi,e lin5H) one can pass %ro( a situation do(inated by one contradiction to a situation do(inated by another& )he generality %ro( *hich the scienti%ic approach starts is not itsel% the outco(e o% an abstracting process, but o% co(ple/ social processes ta5ing place at the le,el o% techni2ue and ideology& #t is upon these abstractions that science *or5s in order, gradually, to go %or*ard to %resh abstractions, enriched by increasingly HconcreteH ;no#ledge, and thus %orging scienti%ic concepts (*hich *ill e,entually beco(e the negation o% the ideological and technical concepts *ith *hich in,estigation began)& #t is this process o% enrich(ent (o% progress to*ards the concrete) that is the essence o% scienti%ic thought and o% the dialectical (aterialist approach& !ne (ust a,oid substituting %or this scienti%ic and dialectical approach the si(pli%ying procedures o% deduction, that is, o% (ere %or(al logic&96:

/< 6ialectical synthesis and the factor of (ractice 0rnest Mandel *ould appear to be right *hen he saysA H!ne (ust a,oid conf%!ing co(ple/ reality *ith its si(pli%ied reproduction in theoretical thought; that is, one (ust not close one3s eyes to all the co(ple/ities o% reality, al*ays in%initely richer than theory, *hich by its ,ery nature tends to si(pli%y things&H91: )his state(ent is true, ho*e,er, only in relation to the (ost i(po,erished %or(s o% theoretical thin5ing& Also, Mandel is at %ault in not practising the precept he states, %or he tries to deal *ith the co(ple/ reality o% the transitional society by (eans o% the si(plest and (ost abstract econo(ic categories o% HpureH and %ully de,eloped socialist society& Dhat Mandel actually tries to do is to ded%ce, %ro( the (ost abstract categories relating to socialist society, the (ore concrete econo(ic categories that characterise this society, or the transitional societies, together *ith the practical la*s that go,ern the *or5ing o% these societies& ?y so doing, he %ails to %ollo* the road that leads %ro( the (ost general abstractions to the concrete in thought& #n order to tra,erse this road one needs to go outside the si(ple relationships o% %or(al logic (deduction and reduction), and use the (ethods o% dialectical synthesis& #t is in %act i(possible to re-create the concrete by (erely adding abstractions together& #t has to be reproduced by (eans o% dialectics, *hich is, indeed, the *ay in *hich one gains access to reality& And in order to reach reality in this *ay, one has to proceed by (ediation, by recon!tit%ting in concept! the organic totality of a !ocio3economic formation, so(ething that can only be done by ta5ing account o% all the factor! that (a5e up this totality, including, o% course, the %actors o% practice, beginning #ith economic practice it!elf A and this is true, also, *hen one is trying to construct the theory o% socialist econo(y&98: #n order to *or5 out a Htheory o% socialist econo(yH, Mandel does not hesitate, li5e ?u5harin %orty years earlier,99: to operate *ith the (ost (eagre
(a*e 1'1

o% concepts, the only ones that could be *or5ed out be%ore there had been any !ocial practice in the building o% socialis(& At the sa(e ti(e, he re7ects as Hi(pureH, and un*orthy o% being accorded any theoretical ,alue, the concepts *hich it has been possible to *or5 out since then, as a result o% social practice in the building o% socialis(&910: As o%ten happens, the positi,ist approach, that is, the (echanical contrasting o% a dead HrealityH *ith an e2ually dead abstraction, beco(es trans%or(ed into a 5ind o% idealis( *hich renounces all approach to reality through practice& )his attitude is ,ery si(ilar to that adopted by those opponents o% Mar/ *ho, li5e ?Vh(-?a*er5 and others, ha,e tried to set ?oo5 # o% $apital (the

theory o% ,alue and the la*s o% price-%or(ation in si(ple co((odity econo(y) against ?oo5 ### (the theory o% price-%or(ation in capitalist society), by saying that Mar/ denied in ?oo5 ### *hat he had asserted in ?oo5 #& )hese opponents o% Mar/ accused hi( o% sliding do*n %ro( the plane o% abstract and theoretical analysis in ?oo5 # to the HpracticalH conceptions o% ?oo5 ###& According to the(, all that appears in ?oo5 ### is a prag(atic description o% the actual practice o% capitalists& )his ,ie* ignores *hat is essential, na(ely, that Mar/3s scienti%ic approach (a5es it possible to e/press the theoretical fo%ndation! o% this practice (*hich is that o% capitalis()& #n the sa(e *ay, the political econo(y o% socialis( cannot restrict itsel% (unless it is to re(ain sterile) to repeating the (ost general abstractions, or trying to deduce %ro( these the *hole o% the political econo(y o% socialis(& #t has to e/plain theoretically (that is, by bringing out its theoretical (eaning) the practice o% the countries *hich are actually building socialis(911: or ta5ing their %irst steps along the road o% transition to socialis(& .i(ilarly, too, the theory o% the proletarian re,olution cannot restrict itsel%, a%ter nearly a century o% practice (%ro( the $aris o((une to the uban re,olution) to the (ere general categories that are to be %ound in the *ritings o% Mar/ and 0ngels pre,ious to the o((une& )his theory (ust be enriched by the e/perience o% the .o,iet re,olution, that is, the practice o% 8eninis(, and the practice o% the other re,olutions that ha,e ta5en place; other*ise it is incapable o% beco(ing a theory *hich is as rich as it needs to be, because incorporating all the lessons o% e/perience& Finally, re%usal to ta5e account o% social practice in order to construct a li,ing theory leads to dog(atis( on the plane o% thought and, in a *ay that see(s parado/ical but is in %act strictly logical, to practicalis( on the plane o% action, that is, to the absence o% any re,olutionary theory -- *ithout *hich, as 8enin o%ten e(phasised, there can be no re,olutionary action& #n the %ield o% the building o% socialis(, a conception li5e this leads, inter alia, to treating as theoretically *ell-%ounded those practices *hich formally see( to e/press the (ost abstract categories&
(a*e 1'2

Moreo,er, this (ethodological attitude gi,es rise to the illusion that it is possible to choose, a(ong HpossibleH (odes o% practice (as one i(agines these laid out %or one3s choice, in the %ield o% abstractions), those that see( H(orallyH the best& =nless enriched through social practice and e/perience (*hich practice also includes, o% course, theoretical practice), abstract concepts see( to open on to a (ultitude o% HpossibleH lines o% action, so that practicalis( lin5s up *ith sub7ecti,is( and ,oluntaris(& < Theory and the Contradictions of Practice

For a Mar/ist, there can be no 2uestion o% see5ing to i(po,erish theory (erely in order to (a5e it (ore HintelligibleH& !n the contrary, the proble( is to enrich theory so as to (a5e it an increasingly e%%icient guide to practice& Mar/3s (ethod, as *e 5no*, consists in starting %ro( social practice and its results& #n the econo(ic %ield, Mar/ begins *ith the si(plest, historically gi,en relationships& .ince e,ery relationship has t*o aspects, *hich are both related and contradictory, Mar/ studies the contradictions *ithin it and the *ay in *hich these ha,e been actually resol,ed in social practice& )hen he studies this resolution and the de,elop(ent o% the relationships it i(plies, and thus the contradictions in,ol,ed in these relationships, and so on& )his (ethod is that o% dialectical (aterialis( applied to social and historical reality& #t there%ore re2uires that analysis be (ade o% the contradictions that ha,e been be2ueathed by history and ha,e de,eloped in the course o% practice& )he political econo(y o% socialis(, or, (ore generally, the political econo(y o% the societies *hich are building socialis(, can be *or5ed out only in this *ay, by see5ing the contradictions that are characteristic o% this econo(y or these societies, as o% all li,ing reality, and analysing ho* practice resol,es these contradictions& Dhen doing this, o% course, one has to be care%ul not to put on the sa(e plane the principal contradictions and the secondary ones, or %orget that the %unda(ental contradiction o% a mode of prod%ction (ust be situated in the sphere o% production itsel%& Mar/ %ounded political econo(y as a science precisely by basing his analysis on the sphere o% productionA he sho*ed that the pheno(ena *hich ta5e place in the sphere o% distribution are the corollary o% those (ore %unda(ental pheno(ena that de,elop in the sphere o% production& )he %unda(ental contradiction o% the transition period (that is, o% a period in *hich socialis( has not yet been built because the le,el o% de,elop(ent o% the producti,e %orces is not yet high enough) is that *hich contrasts an ad,anced %or( o% appropriation ((ade necessary by the de,elop(ent o% the producti,e %orces on the *orld scale) *ith the lo* le,el o% these producti,e %orces locally& onse2uently, the essential proble( in building socialis( -- in the econo(ic sphere -- is to o,erco(e this contradiction by raising the local producti,e %orces as 2uic5ly as possible to the le,el that corresponds to
(a*e 1'7

that o% the %or(s o% appropriation, *hile sa%eguarding these %or(s o% appropriation %ro( the dangers o% degeneration *hich threaten the( so long as they ha,e not been %illed by su%%iciently de,eloped producti,e %orces& )he struggle against the possible degeneration o% the ad,anced %or(s o% appropriation i(plies, o% course, struggle against bourgeois ideology and the penetration o% bourgeois standards o% beha,iour&912: #t also i(plies correct handling o% the %unda(ental contradiction, that is, the de,elop(ent o% the indispensable inter(ediate %or(s91": bet*een the social %or(s o% appropriation

and the not yet co(plete do(ination by society o% all the aspects o% production&91': H heH Lue,ara correctly criticises916: -- but (ista5enly ascribes to (e -- a H(echanisticH conception o% the la* o% con%or(ity bet*een the le,el o% de,elop(ent o% the producti,e %orces and the character o% the production relations& #%, in uba as pre,iously in hina or in the .o,iet =nion, the socialist re,olution has been ,ictorious, this is not because the contradiction bet*een the le,el o% de,elop(ent o% the producti,e %orces and the character o% the production-relations had reached (a/i(u( acuteness there, but because the speci%ic conditions in *hich this contradiction de,eloped (ade possible the ,ictory o% the *or5ers o,er the %orces o% the possessing classes and o% i(perialis(& Be,ertheless, this speci%ic situation and this ,ictory do not alter the %act that in the countries *here the proletarian re,olution has been ,ictorious up to no*, the relati,ely lo* le,el o% de,elop(ent o% the producti,e %orces (a5es a (ore or less prolonged transition period essential -- a period (ar5ed precisely by the circu(stance that the ne* property relations and production-relations are Hin ad,anceH o% the local le,el o% de,elop(ent o% the producti,e %orces& )his is one o% the speci%ic proble(s o% the building o% socialis( in the econo(ically under-de,eloped countries& )he e/istence o% this proble( necessarily doo(s to %ailure the atte(pts (ade by Mandel and others to deduce, %ro( the general re(ar5s (ade by Mar/ and 0ngels regarding the *ay a de,eloped society *or5s (one in *hich the le,el o% de,elop(ent o% the producti,e %orces is in con%or(ity *ith the ne* property-relations), the conditions in *hich the tran!itional !ociety operates&916: )he principal contradiction o% a society, ho*e,er, (ust not be con%used *ith the %unda(ental contradiction o% a (ode o% production, that is, *ith the contradiction bet*een the production-relations and the le,el o% de,elop(ent o% the producti,e %orces& )he principal contradiction (ay be situated, at a particular (o(ent (and this (ay e,en be %re2uently the case), in the superstructure -- usually the political superstructure, but also in the ideological, religious, etc&, superstructure& !nly an understanding o% the co(ple/ unity to *hich this principal contradiction belongs can enable one to dri,e it to the li(it and thus e/plode the other contradictions as *ell (including the %unda(ental ones)& #% the principal contradiction is not dri,en to the li(it then, as a rule, only secondary restructurings *ill ta5e place& )hese *ill bring about a
(a*e 1'9

change in the principal aspect o% the principal contradiction (e&g&, a change o% regi(e or o% political status), but not a change in the (ode o% production, or, (ore precisely, in the class nature o% the state&

For e/a(ple, the contradiction bet*een national aspirations and i(perialist repression constitutes the principal contradiction during the struggle o% a colonial country %or political independence& All the other contradictions concentrate ((erge) in this principal contradiction& A Mar/ist party *hich does not grasp this %act (theoretically and practically) is incapable not (erely o% understanding the situation but also, and ip!o facto, o% directing the *ay it *ill de,elop& #t is necessary also to grasp *hat the principal aspect o% this contradiction is (e&g&, *hich is the class that, at a gi,en (o(ent, is in the ,anguard o% this struggle)& !n this condition only is it possible to %oresee ho* ,ictory in this struggle (the (erging process, the transition %ro( contradiction to identity), accession to independence, *ill sharply change the status and the ,ery structure o% the contradictions, (a5ing another contradiction (e&g&, peasants ,ersus lando*ners, or *or5ing class ,ersus bourgeoisie) the ne* principal contradiction that has to be grasped in order to lead the struggle (by 5eeping or *inning leadership)& Dith the capture o% po*er, a ne* structure o% contradictions e(erges, and so on& Dhat, o% course, %ollo*s %ro( this is that, a%ter a re,olutionary trans%or(ation, the ele(ents in the situation (a ne* situation) on *hich one has to act in order to go %or*ard are no longer the sa(e as be%ore, and it is no longer the sa(e attitudes, slogans and %or(s o% consciousness that are decisi,e& #t is %ro( this that, in the absence o% a high degree of theoretical con!cio%!ne!!, the di%%iculties o% transition %ro( the ar(ed struggle to the stage o% econo(ic construction arise& Fence also the great dangers in,ol,ed in appealing, in the construction phase, to the sa(e 2ualities or attitudes as in pre,ious phases& )hus, *hile in the phase o% struggle %or po*er *hat *as characteristic o% the re,olutionary consciousness *as the spirit o% sacri%ice and discipline, capacity %or (ilitary organisation, and so on, other sub7ecti,e ele(ents *ill usually be decisi,e in the construction phaseA sense o% econo(ic analysis, ability to grasp ne* social contradictions, spirit o% technical organisation, and so on& Accordingly, declarations about the i(portance in the struggle %or socialis( o% Hre,olutionary consciousnessH in general are ,oid o% any precise content (they are neither true nor %alse)& All that can be decisi,e is a particular concrete (ani%estation o% this HconsciousnessH& </ Science and ideolo*y #n discussions about the role allegedly played by HconsciousnessH, in the (ost general sense, as a 2uasi-autono(ous %orce in the struggle %or socialis(, or in the building o% socialis(, re%erence is o%ten (ade to the theses o% the conomic 6an%!cript! o% Hthe young Mar/H& )his is done because o% the Hhu(anisticH character o% these theses and the central position assigned in the( to H(anH& Fre2uently 2uoted is the %ollo*ing
(a*e 1''

passage %ro( the conomic and Philo!ophical 6an%!cript! of 0OJJ, in *hich Feuerbach3s e2uation, Hhu(anis( (eans naturalis(H is acceptedA H o((unis( as the po!itive abolition o% pri,ate property, o% hu(an !elf3alienation, and thus the real appropriation o% h%man nature through and %or (an& #t is, there%ore, the return o% (an hi(sel% as a !ocial, i&e&, really hu(an, being, a co(plete and conscious return *hich assi(ilates all the *ealth o% pre,ious de,elop(ent& o((unis( as a %ully de,eloped naturalis( is hu(anis( and as a %ully de,eloped hu(anis( is naturalis(& #t is the definitive resolution o% the antagonis( bet*een (an and nature, and bet*een (an and (an& #t is the true solution o% the con%lict bet*een e/istence and essence, bet*een ob7ecti%ication and sel%-a%%ir(ation, bet*een %reedo( and necessity, bet*een indi,idual and species& #t is the solution o% the riddle o% history, and 5no*s itsel% to be this solution&H911: Dhen this 2uotation is used, an essential %act is o,erloo5ed, na(ely, that later on, as 8ouis Althusser has 2uite rightly pointed outA HMar/ based his entire conception o% political econo(y on criticis( o% this presupposition (homo oeconomic%!, and his legal or (oral abstract %or(, 3the philosophers3 Man3) & & &H (H ontradiction and o,erdeter(inationH, in Po%r 6arx, p& 109)& )he %act that Mar/, in 18'', still accepted the e2uation he had borro*ed %ro( Feuerbach sho*s the line that separates the consistent (aterialist positions ta5en up by Mar/ in his later *ritings %ro( the hu(anistic positions he *as still de%ending in the conomic and Political 6an%!cript!. #t *as in the latter, (oreo,er, that Mar/ e/pressed hi(sel% thus regarding (aterialis(A HDe see here ho* consistent naturalis(, or hu(anis(, is distinguished %ro( both idealis( and (aterialis(, and at the sa(e ti(e constitutes their uni%ying truth&H918: As 0& ?ottigelli rightly obser,es, at that ti(e (aterialis( *as Hstill, %or Mar/, a point o% ,ie* that had to be transcended in the na(e o% a hu(anis( o% *hich, it (ust be said, he *as ne,er again to spea5 in the ter(s by *hich he de%ined it in the 6an%!cript! H& ?ottigelli adds also this sound obser,ationA H#n 18'', Mar/3s thought *as still a long *ay %ro( ha,ing reached its de%initi,e %or(& )he 6an%!cript! are e,idences o% the clari%ication-process o% thin5ing that, on (any points, is still see5ing its *ay, rather than the e/pression o% %inished thought&919: Actually, the conomic and Philo!ophical 6an%!cript! contain, not yet entirely eli(inated, Feuerbach3s idea o% an essence o% hu(anity, regarded as a %act, or e,en a HtruthH o% hu(anity& #t is there%ore not accidental that these 6an%!cript! ha,e gi,en rise to contro,ersies and pole(ics, and ha,e encouraged so(e interpreters to %ind proo% in the( that Mar/3s thin5ing, at least in the 6an%!cript!, *as %unda(entally ethical&920: De 5no* ho* 0ngels, in a letter to 8a%argue dated 11th August 188', re%uted the ,ie* o% those *ho *anted to (a5e Mar/is( a syste( o% ethicsA

HMar/ *ould protest against the econo(ic 3political and social ideal3
(a*e 1'+

*hich you attribute to hi(& Dhen one is a 3(an o% science3 one does not ha,e an ideal; one *or5s out scienti%ic results, and *hen one is a party (an to boot, one %ights to put the( into practice& ?ut *hen one has an ideal, one cannot be a (an o% science, %or one starts out *ith preconceptions&H921: Fo*e,er, e,en i% in so(e o% the passages in the 18'' (anuscripts Mar/3s positions see( still to be ,ery close to Feuerbach3s, Mar/ realised e,en this early that hu(an nature cannot e/ist be%ore history and cannot be de%ined once %or all ti(e& #t *as in this *or5 that Mar/ *roteA HFistory is the true natural history o% (an&H922: Man as producer, (an producing hi(sel%, and not (an conscious o% hi(sel%, is Mar/3s point o% departure& Accordingly, (an3s truth is in his beco(ing& 4espite certain appearances, *e no longer ha,e here a purely intellectual approach, and are %ar beyond Fegel3s Hsel%-consciousnessH& #n short, re%erring to the hu(anis( and the role o% consciousness that *e %ind in the ter(s used in the 18'' (anuscripts (eans re%erring to Mar/3s thought as it *as be%ore Mar/ hi(sel% had ta5en his stand de%initi,ely on the plat%or( o% dialectical (aterialis(& #n these *ritings the concept o% production-relations does not yet appear, nor that o% the class struggle as the dri,ing %orce o% history& Another point that (ust not be %orgotten is that in the 6an%!cript! the concept o% HalienationH (used in the conte/t o% the 2uotation pre,iously gi,en) is still one o% the %unda(ental concepts& #t *as to lose this status later, %or Mar/ *ould replace it by the concept o% Hpra/isH& #t is doubtless not accidental that those *ho li5e to re%er to the 6an%!cript! and the allegedly ethical positions ta5en up by Mar/ do not accord to pra/is the place that it *as to occupy later in the *or5 o% the author o% $apital. )he %oregoing re%le/ions on the signi%icance o% the passage 2uoted (ay see( pointlessly lengthy& Fo*e,er, # do not thin5 so& )his passage, and, (ore generally, the conomic and Philo!ophical 6an%!cript! of 0OJJ, are not only the re%erence-point o% a nu(ber o% *riters *ho *ant to be Mar/ist *ithout being 8eninist, but also a sort o% line o% de(arcation *ithin Mar/3s o*n *or5& #t is certainly in this passage that Mar/ carried %arthest his philo!ophical analysis, gi,ing this *ord, as 8ouis Althusser rightly says, Hthe ,ery (eaning on *hich Mar/ *as later to pass pitiless 7udg(entH&92": #% the 18'' (anuscripts represent the Hunbounded theoretical triu(phH o% philosophy and the Hradical do(inanceH o% philosophy o,er econo(ics, this *as because at that ti(e Mar/ still accepted bourgeois political econo(y at %ace ,alue, that is, *ithout 2uestioning the content o% its concepts and their

syste(atic relationship&92': Fere e,erything is still e/pounded on the plane o% Hthe abstraction o% the econo(yH,926: *hich, as Althusser obser,es, gi,es authority also to the other HabstractionH, that o% philosophy&926: #t is i(portant to recognise these %acts& )hey enable us to understand better the relations lin5ing so(e o% the re%erences (ade to the 18'' (anu(a*e 1'&

scripts *ith certain intellectual and ideological approaches and attitudes o% the present day& )hus, *hen one reads the 6an%!cript! it (ay see( that philosophy, i&e&, HconsciousnessH, can resol,e the contradiction in political econo(y by thin5ing it out& Again, *hen one reads the 6an%!cript! it (ay see( that, *hile re(aining %aith%ul to Mar/3s spirit, one can dra* conclusions %ro( the Hdialectics o% conceptsH alone, *ithout needing to engage in analysing praxi! or underta5ing a dialectical synthesis on the basis o% this analysis and the notions %irst *or5ed out on this plane& An approach operating on the terrain o% the Hdialectics o% conceptsH leads to the clai(, %or instance, that Hthe e!!ence o% socialis( is planningH, or that Hthe e!!ence o% planning is the budgetary syste(H *hich logically (ust lead (and has not %ailed to lead so(e, including 0rnest Mandel) to the conclusion that it should be possible to *or5 out in ad,ance a political econo(y and e,en a philosophy and a (orality %or socialist society, in the belie% that one can dra* this philosophy, political econo(y and (orality %ro( concepts, instead o% building the( in a scienti%ic *ay on the basis o% social praxi!. #t *ill be seen ho* decisi,e it is to appreciate the radical line o% de(arcation that separates the Mar/ o% the 6an%!cript! of 0OJJ %ro( the Mar/ o% $apital. 4epending on *hether or not one recognises this line, one concei,es o% Mar/is( as a ne* philosophy, or a ne* (orality, or one concei,es it as a dialectical approach directed to*ards the concrete and to*ards action, and constantly enriching itsel% at the source o% !ocial practice (*hich includes political, econo(ic and theoretical practice, i&e&, scienti%ic practice)& ?y ta5ing the %or(er standpoint one is led to suppose it possible to deduce %ro( a %e* Hpri(ary truthsH, or a %e* HessencesH, a *hole set o% rules o% beha,iour, including a H(oralityH, a syste( o% econo(ic organisation superior to any other, an econo(ic policy *hich is rigid and ,alid %or all circu(stances, and so on& )hese are the typical positions o% dog(atis(& #%, ho*e,er, one recognises that Mar/is( is not a philosophy but abo,e all a theory o% the de,elop(ent o% reality, society, (an5ind, etc&, one arri,es at a 2uite di%%erent *ay o% loo5ing at the relations bet*een theory and practice, consciousness and the *orld, idea and reality& )hence%orth, it is no longer a (atter o% (easuring reality by an idea& )he categories that Mar/is( itsel% *or5ed out, and is still *or5ing out, are seen as the outco(e o% a process, an

historical de,elop(ent, in *hich, to be sure, consciousness plays the %inal role, but a de,elop(ent *hich is abo,e all that o% social practice (and not o% intellectual speculation)& A theory li5e this does not (erely o%%er a *ay o% interpreting the *orld, it opens the road to the do(ination o% reality by practice& #t opens the road to re,olutionary trans%or(ation o% the *orld, and (a5es it possible to !%bject thi! ne# #orld to a ne# analy!i! j%!t a! living and revol%tionary a! that to #hich it !%bjected the old #orld. #% consciousness is here only one o% the %actors in re,olutionary trans%or(ations, this is because these are not only or e,en (ainly trans%or(a(a*e 1',

tions o% consciousness, but trans%or(ations o% social, political and econo(ic reality& A certain (o(ent o% these trans%or(ations passes, o% course, through people beco(ing a*are o% reality, *hether by *ay o% class consciousness or o% theoretical consciousness, but the condition %or the role played by consciousness to be deci!ive (and it is decisi,e) is that this role (ust enter into the movement of objective force!, since only in this *ay can it change the latter& Dhat li,ing Mar/is( sets in (o,e(ent are ob7ecti,e %orces, econo(ic and social %orces, (asses and organisations& Dhat it o,erturns are class relations, and *hat it directs, a%ter the ta5ing o% po*er, is the de,elop(ent o% the producti,e %orces& #% that is *hat Mar/is( is, and the *or5 o% Mar/ and 8enin (and # spea5, o% course, not (erely o% their *ritings but o% their *hole historical achie,e(ent) pro,es that it is, then it is clearly so(ething 2uite di%%erent %ro( a philosophy o% consciousness and essence& ($ublished in -a Pen!&e, Bo& 126, February 1966, pp& "-20&) 23TES T3 C!-PTE. 9
#t (ay be use%ul to recall here *hat Fegel *rote in his -ogic, and 8enin3s co((ents on this& Fegel *roteA H3#t is only a notion3, is a thing co((only said; and not only the #dea, but sensuous, spatial and te(poral palpable e/istence is opposed to the Botion, as so(ething *hich is (ore e/cellent than it& And the abstract is counted o% less *orth than the concrete, because %ro( the %or(er so (uch o% that 5ind o% (aterial has been o(itted& )o those *ho hold this, the process o% abstraction (eans that %or our sub7ecti,e needs one or another characteristic is ta5en out o% the concrete in such a (anner that, *hile so (any other properties and (odi%ications o% the ob7ect are o(itted, these lose nothing in ,alue and dignity& )hey are the real and are rec5oned as counting in %ull, only they are le%t on the other side; and it is only the incapacity o% understanding to absorb such riches that obliges it to rest content *ith (eagre abstraction&H (+ol& +, $art 2, H)he sub7ecti,e logic o% the doctrine o% the concept 9or notion: in generalHA 0ng& ,ersion %ro( Fegel3s ,cience of -ogic, trans& Johnston and .truthers, 8ondon, 1929, +ol& ##, pp& 221-2&)
1

#n the preceding passage Fegel critically su(s up the ideas o% @ant, and 8enin notes on this sub7ectA H0ssentially, Fegel is co(pletely right as opposed to @ant& )hought proceeding %ro( the concrete to the abstract -- pro,ided it is correct 9B&?&: (and @ant, li5e all philosophers, spea5s o% correct thought) -- does not get a*ay %ro( the truth but co(es closer to it&H (8enin, $ahier! philo!ophi'%e!, 0ditions .ociales, 1966, p& 1'2A 0ng& ,ersion %ro( $ollected <or;!, +ol& "8, p& 111&) 9p& 1'': 2 #t is thus *rong to clai(, as Mandel does in the article 2uoted, that

(a*e 1'%

categories ne,er enable us co(pletely to grasp reality& Actually this is true only o% the (ost abstract categories, *hereas a scienti%ic (ethod, that o% dialectical (aterialis(, (ust ai( at *or5ing out categories *hich are (ore and (ore concrete, (ore and (ore capable o% reproducing reality and thus o% grasping it co(pletely, so as to (a5e it possible to change reality consciously& De 5no* that 8enin, in his *or5 on H8e%t-*ing o((unis(H, sho*ed that the root o% the (ista5en position o% the H8e%tH o((unists *as, precisely, their inability to get beyond the le,el o% the (ost abstract categories& 9p& 1'': " #t *ill be obser,ed that the (argin e/isting here bet*een conceptual structuring and real structuring is secondary as co(pared *ith the Habstract (odelsH to *hich Mandel re%ers, %or this (argin can al*ays be narro*ed by (eans o% an e%%ort o% conceptual structuring& #t is only because this e%%ort is not *orth *hile, in ter(s o% the e/tra e%%ecti,eness it could bring, that it is not underta5en& 9p& 1'': ' Mandel3s underesti(ation o% the real and concrete, and o% its co(ple/ity is sho*n %irst and %ore(ost by his assertion that HscienceH and HdialecticsH de,elop at the le,el o% Hsi(pleH categories& )his is indeed *hat happens so long as one re(ains at the le,el o% ideological abstractions& ,cientific categories, ho*e,er, are ne,er si(ple, but are al*ays in,ol,ed in a concrete li,ing and co(ple/ *hole& 9p& 1'6: 6 )his is the sa(e ultra-le%tis( that is %ound in the %or(ula criticised by Mar/ in his $riti'%e of the 7otha Programme A H)he e(ancipation o% labour (ust be the *or5 o% the *or5ing class, relati,ely to *hich all other classes are only one reactionary (ass&H (+p. cit., 0ditions .ociales, p& 26A 0ng& edn&, p& 2"&) Mar/ set against this one-sided %or(ula the phrase o% the $omm%ni!t 6anife!to A H!% all the classes that stand %ace to %ace *ith the bourgeoisie today, the proletariat alone is a really re,olutionary class& )he other classes decay and %inally disappear in the %ace o% (odern industry; the proletariat is its special and essential product&H #n his $riti'%e of the 7otha Programme Mar/ (a5es an ad(irable distinction bet*een the contradictions, *hen he sho*s us that the bourgeoisie can be regarded as a re,olutionary class in relation to the %eudalists and the (iddle classes (and so, he adds, %eudalists and (iddle classes do not %or( a single Hreactionary (assH along *ith the bourgeoisie)& Fe sho*s too, as the 6anife!to puts it that the (iddle classes are re,olutionary Hin ,ie* o% their i(pending trans%er into the proletariatH& De thus ha,e be%ore us the principal contradiction, bet*een proletariat and bourgeoisie, and the secondary contradiction, bet*een (iddle classes and bourgeoisie& 9p& 1'8: 6 4eduction, o% course, has its role to play too in scienti%ic thought, but it is a subordinate role, that o% e/ploring a %ield *hich has already been de%ined and deli(ited&) 9p& 160: 1 Ibid., p& 10& 9p& 160:

(a*e 1+1

Mar/ sho*ed us, in $apital, ho* to proceed %ro( internal relationships to the sur%ace o% things, %ro( the constituent ele(ents to the constituted reality, %ro( the rate o% surplus-,alue to the a,erage rate o% pro%it (*hich, %ro( a super%icial standpoint, loo5s li5e the nondialectical negation o% the rate o% surplus-,alue)& 9p& 160:
8

%& ?u5harin, (he conomy of the (ran!ition Period. 9p& 160: )here is no 2uestion, o% course, o% accepting uncritically the (any concepts *hich, here too, ha,e arisen %ro( non-scienti%ic practice, both technical and social, and *hich (ay be ideological in content& )he point is to start %ro( these concepts, and the actual practice that they stri,e to e/press, in order to *or5 out, using the (ethod o% dialectical (aterialis(, ne* scienti%ic concepts& 0,ery e/planation is not a 7usti%icationA sliding %ro( the one into the other is *hat happens *hen one %alls into ideology, in contrast to science& .cienti%ic analysis also re2uires that the contradictions o% this practice be re,ealed& 9p& 161: 11 #n an article *ritten in 196' ($%ba ,ociali!ta, June 196', p& 21), H heH Lue,ara bla(es (e %or concluding Hprag(aticallyH %ro( the %act that the co((odity categories (and the corresponding 7uridical categories) exi!t in the socialist countries, that they are nece!!ary, and starting %ro( this basis, going %or*ard analytically to a point *here Htheory and practice co(e into con%lictH& Fe adds that # a( %orgetting here that Hthe transition period is young, historicallyH, and that ine,itable (ista5es o% appreciation (ay ha,e been (ade& Fe *rites %urtherA HDhy suppose that *hat 3is3 during the transition period necessarily 3has to be3M Dhy clai( that the blo*s dealt by reality to certain bold (easures are (erely the result o% boldness, and not also, or entirely, o% technical (ista5es in ad(inistrationMH )he 2uestion is *ell put& )here can indeed by no 2uestion o% clai(ing that He,erything that is real is rationalH or necessary& Fo*e,er, there can be no 2uestion, either, o% according pri,ileged status, to the detri(ent o% practice, to the (ost abstract theoretical (odels, or the (ost general prophecies, that preceded any actual e/perience o% building socialis(& )he proble( that con%ronts us today is not one o% constructing out o% our i(aginations the political econo(y o% socialis(, or the transitional society (so(ething that Mar/ and 0ngels, and 8enin too, re%used to do), but one o% analysing theoretically the essential %eatures o% econo(ic practice in the di%%erent countries *hich are at di%%erent stages o% transition to*ards socialis(, or in building socialis(& #n order to be scienti%ic, this analysis (ust be critical& #t (ust illu(inate both *hat corresponds to the la*s o% de,elop(ent o% a society ad,ancing to*ards socialis(, to the contradictions that are speci%ic to this society and to the appropriate *ays o% (astering these contradictions, and also *hat constitutes a di,ergence %ro( this& #n order to do all this, it (ust analyse concretely the proble(s that ha,e arisen, or are arising, in the ,arious countries and at ,arious ti(es& )he ans*ers gi,en to these proble(s (ust be analysed critically& #t is thus not a (atter o% 7usti%ying, or describing, but o% producing ne*
9 10

(a*e 1+1

5no*ledge& )his ne* 5no*ledge *ill %or( the theory o% the transitional econo(y and the theory o% socialist econo(y& #t *ill help in sol,ing ne* practical proble(s& )he %act that the proble(s o% the transitional econo(y or o% the building o% socialis( are not only political but also econo(ic (eans, o% course, that they cannot be sol,ed (erely by (eans o% an econo(ic theoryA *hile this is indispensable, theoretical 5no*ledge (ust al*ays be co(ple(ented by a concrete analytical e%%ort to re,eal the speci%ic contradictions o% each social %or(ation, at the particular stage it has reached in its real de,elop(ent& )his constant disco,ering o% contradictions, both principal and secondary, and o% the shi%ts undergone by these contradictions as the producti,e %orces de,elop and social consciousness progresses, is the essence o% re,olutionary practice& )his practice does not ai( (erely at sho*ing or e/plaining, but at acco(plishing *hat, *ithout it, *ould not ha,e e/isted& 9p& 161: 12 )his struggle is usually understood as being (ade necessary by the e/istence o% Hcapitalist encircle(entH, *hich, ho*e,er, is only a secondary aspect o% the reality& )he principal aspect is that the ,ery contradiction bet*een the ad,anced %or(s o% property and the lo* local le,el o% the producti,e %orces constitutes the internal source %ro( *hich bourgeois and pettybourgeois tendencies arise, tendencies *hich ha,e to be co(bated in order to sa%eguard the ad,anced %or(s o% property and the actual class character o% the state *hich de%ends this property against internal degeneration and e/ternal attac5& 9p& 16": 1" )his is *hat is not seen by those *ho ignore social practice and the contradictions o% this practice, and *ho there%ore %ail to de,elop theoretical analysis, so that they usually re(ain on the plane o% (oralising practicalis(& 9p& 16": 1' )his point *ill be de,eloped in the ne/t article& 9p& 16": 16 $%ba ,ociali!ta, June 196', pp& 1" et se2& 9p& 16":

Another (ethodological (ista5e *hich is un%ortunately current is that o% transposing to socialist society, or to the transitional econo(ies, the conclusions o% Mar/3s analysis o% capitalist society& )his H(ethodH has %re2uently been used in discussions about proble(s o% price policy& 9p& 16": 11 French te/t %ro( 0(ile ?ottigelli3s translation, 0ditions .ociales, $aris, 1962, p& 81A 0ng& ,ersion %ro( Mar/, ,elected <riting!, ed& ?otto(ore, p& 166& 9p& 166: 18 Ibid., p& 1"6& (0nglish ,ersion %ro( ibid., p& 206&) 9p& 166: 19 ?oth 2uotations ta5en %ro( ?ottigelli3s introduction to the $aris edn& o% the 6an%!cript!, p& 8S#S& 9p& 166: 20 ?ottigelli notes that a(ong these interpreters are to be %ound both .ocial-4e(ocrats li5e 8andshut and Mayer, and also e/istentialists, Beo-)ho(ists, and theologians li5e 0& )hier, Father ?igot, Father al,e<, etc& 9p& 166: 21 $orre!pondence ngel!3-afarg%e, $aris, 1966, +ol& #, p& 2"6 (0ng& edn&, #, p& 2"6)& 9p& 166:
16 22 2"

6an%!crit!, op. cit., p& 1"8 (0ng& edn&, p& 168)& 9p& 166: %& H hroni2ue philosophi2ueA 8es Manuscrits de 18'' de @arl

(a*e 1+2

Mar/H, by 8ouis Althusser, in -a Pen!&e, February 196", pp& 106-9A also in Po%r 6arx, pp& 16" et se2& (Nuotation ta5en %ro( p& 168&) 9p& 166: 2' Dhich does not (ean that he accepted all its conclusions& 9p& 166: 26 )his Habstraction o% the econo(yH (eans, a(ong other things, that the econo(y is understood %ro( outside, as a group o% categories detached %ro( pra/is& 9p& 166: 26 H hroni2ue philosophi2ueH (see note 2"), p& 169& 9p& 166:

(a*e 1+7

'8

Plannin* and (rod:ctionrelations

!ne o% the characteristic %eatures o% certain *ritings, such as the article by 0rnest Mandel *hich # ha,e already 2uoted,91: is that they deal *ith Hecono(ic categoriesH o% an i(po,erished 5ind *hich, despite the ter(inology used, belong not to the econo(ic categories o% Mar/3s $apital but to those o% econo(ic ideology, or e,en, to e(ploy 0& ?ottigelli3s e/pression regarding the

6an%!cript! of 0OJJ, to that Hecono(ic pheno(enologyH *hich is still to be %ound in the 6an%!cript!. )o be con,inced o% this it is only necessary to see ho* alien to Mar/3s thought, as it de,eloped a%ter the 6an%!cript! of 0OJJ, is the *ay in *hich Mandel deals *ith the categories o% pri,ate o*nership and social o*nership& For e/a(ple, in his article he introduces the section dealing *ith Hthe %or( o% o*nership and the (ode o% productionH *ith the %ollo*ing propositionA H)ransition %ro( pri,ate o*nership o% the (eans o% production to collecti,e o*nership (eans transition %ro( the anarchy o% capitalist production to the ob7ecti,e possibility o% socialist planning&H (=rt. cit., p& 11&) A %or(ulation such as this is too ,ague and lac5ing in precision to help us ta5e e,en one step %or*ard in sol,ing the proble(s under discussion& >ather does it drag us bac5, to the le,el o% the general declarations o% *hat Mar/ and 0ngels called H,ulgar socialis(H, *hich lac5s any de%inite scienti%ic content& Mandel3s %or(ulation tends to conceal *hat is the real contro,ersy today, na(elyA *hat are the conditions under *hich Hthe ob7ecti,e possibility o% socialist planningH can be trans%or(ed into actual socialist planningM ?y (erely repeating that collecti,e o*nership (a5es socialist planning ob7ecti,ely possible one does not contribute in the slightest to sol,ing the essential proble(, *hich is ho* to pre,ent a speci%ic type o% anarchy o% production (disproportion, ine%%iciency, decline in producti,ity, etc&) %ro( de,eloping on the basis o% collecti,e o*nership -- so(ething that can happen and *hich it is i(portant to pre,ent happening& Fere are so(e obser,ations pro,o5ed by Mandel3s %or(ulationA First o% all, *e note that it is a 2uestion here o% Hpri,ate o*nership o% the (eans o% productionH being *holly trans%or(ed into Hcollecti,e o*nershipH& )his trans%or(ation thus appears to co,er e2ually, and *ithout any speci%ic di%%erence, capitali!t property and the private property
(a*e 1+9

o% the s(all indi,idual producers& #n the passage 2uoted the ,ery concept o% Hcapitalist propertyH as, %irst and %ore(ost, private o#ner!hip of !ocial mean! of prod%ction is not e,en e(ployed, either here or %urther on, precisely because Mandel re(ains on the plane o% the (ost general categories, those that Mar/ used be%ore he *rote $apital. #n $apital, ho*e,er, Mar/ e(phasises that e,en the phase o% private capital is only a tran!ient pha!e o% capitalis(, since the latter itsel% abolishes pri,ate property in the strict sense o% the *ord& 8et us re-read at this point *hat Mar/ *rites regarding 7oint-stoc5 co(paniesA H)he capital, *hich in itsel% rests on a social (ode o% production and presupposes a social concentration o% (eans o% production and labour

po*er, is here directly endo*ed *ith the %or( o% social capital (capital o% directly associated indi,iduals) as distinct %ro( pri,ate capital, and its underta5ings assu(e the %or( o% social underta5ings as distinct %ro( pri,ate underta5ings& #t is the abolition o% capital as pri,ate property *ithin the %ra(e*or5 o% capitalist production itsel%&H92: .till discussing the signi%icance o% the %or(ation o% 7oint-stoc5 co(panies, Mar/ %urther obser,es that in these co(panies e,en the labour o% (anage(ent is hence%orth separated %ro( o*nership o% the (eans o% production& Fe *ritesA H#n stoc5 co(panies the %unction (o% (anage(ent) is di,orced %ro( o*nership o% (eans o% production and surplus labour& )his result o% the ulti(ate de,elop(ent o% capitalist production is a necessary transition phase to*ards the recon,ersion o% capital into the property o% producers, though no longer as the pri,ate property o% the indi,idual producers, but rather as the property o% associated producers, as out right social property& !n the other hand, the stoc5 co(pany is a transition to*ard the con,ersion o% all %unctions in the reproduction process *hich still re(ain lin5ed *ith capitalist property, into (ere %unctions o% associated producers, into social %unctions&H9": #n this analysis as in (any others, Mar/ does not con%ine hi(sel% to tal5ing about Hpri,ate o*nershipH in general, but ta5es account o% the nature o% the producti,e %orces *hich are sub7ected either to pri,ate o*nership, or to capitalist pri,ate o*nership, or to capitalist o*nership o% social enterprises, and he highlights the decisi,e i(portance o% the changes that ta5e place in the le,el o% de,elop(ent o% the producti,e %orces and in the character o% the production-relations& As a result o% these changes, indeed, the sa(e 7uridical concept o% Hpri,ate o*nershipH co,ers a succession o% econo(ic realities *hich di%%er pro%oundly, since they range %ro( si(ple co((odity production to state (onopoly capitalis(, *ith, in bet*een, capitalist pri,ate production, capitalist social production and (onopoly capitalis(&9': #% *e neglect all these analyses (ade by Mar/, so instructi,e not only in their conclusions but also in the (ethod used, *e are unable to understandA (a) ho* a ne* social order is prepared %or inside capitalist society itsel%; (b) *hat the speci%ic contradictions are at the di%%erent stages o%
(a*e 1+'

capitalis(; (c) *hat speci%ic contradictions characterise the econo(ies *ithin *hich socialis( is built& 8et us return, ho*e,er, once (ore to the passages *here Mar/ *rites about 7oint-stoc5 co(panies& Fe addsA H)his is the abolition o% the capitalist (ode o% production *ithin the capitalist (ode o% production itsel%, and hence a sel%-dissol,ing contradiction, *hich prima facie represents a (ere phase o% transition to a ne* %or( o% production& #t (ani%ests itsel% as such a contradiction

in its e%%ects& & & & #t is pri,ate property *ithout the control o% pri,ate property&H96: And he goes onA H)he capitalist stoc5 co(panies, as (uch as the co-operati,e %actories, should be considered as transitional %or(s %ro( the capitalist (ode o% production to the associated one, *ith the only distinction that the antagonis( is resol,ed negati,ely in the one and positi,ely in the other&H96: )hese analyses are highly signi%icant& Bot only do they pro,e that Mar/ *as not at all content, as so(e allege, to study Hpure and abstractH capitalis(, they sho* that he stro,e, on the contrary, to study capitalis( theoretically in its de,elop(ent and its successi,e phases& )he practical and political bearing o% these analyses is e2ually clear& De need only recall that, in his criticis( o% the 0r%urt $rogra((e, 0ngels used the sa(e categories as those o%%ered by Mar/ in ?oo5 ### o% $apital ; as, %or e/a(ple, *hen he *rote, criticising $aragraph Four o% the docu(ent that @auts5y had sent hi(A H$aragraph '& 3)he absence o% planning *hich is rooted in the ,ery nature o% capitalist pri,ate production3 -- this re2uires serious i(pro,e(ent& # a( ac2uainted *ith capitalist production as a social (ode, as an econo(ic phase, and capitalist private production as a pheno(enon occurring in one %or( or another *ithin that phase& Dhat is indeed capitalist pri,ate productionM $roduction by the indi,idual entrepreneur; ho*e,er, this is beco(ing (ore and (ore an e/ception& apitalist production by joint3!toc; companie! is no longer private production, but production %or the 7oint account o% (any& Bot only private prod%ction but also lac; of planning disappear *hen *e proceed %ro( 7oint-stoc5 co(panies to trusts *hich control and (onopoli<e *hole branches o% industry& 4elete the *ord 3pri,ate3 and, at a pinch, the sentence (ay pass&H91: Fere *e see, in passing, ho* Mandel3s general %or(ulation about the HanarchyH o% capitalist production, *hile correct as to %unda(entals, is at the sa(e ti(e inade2uate& De 5no* that 8enin, a%ter 2uoting, in (he ,tate and Revol%tion, 0ngels3s phrase about Hthe end o% planlessnessH, i((ediately addsA HFere *e ha,e *hat is (ost essential in the theoretical appraisal o% the latest phase o% capitalis(, i&e&, i(perialis(, na(ely, that capitalis( beco(es (onopoly capitali!m &H98: )hough the anarchy o% capitalist production is not abolished (but is rather carried to e/tre(es) either by the de,elop(ent o% (onopoly capital-

(a*e 1++

is( or e,en by the appearance o% state (onopoly capitalis( and capitalist progra((ing, it is none the less true that the content and the ,ery %or( o% this anarchy are pro%oundly (odi%ied99: (to the ad,antage o% the (onopolies) and that the atte(pts at planning and progra((ing *hich are %eatures o% presentday capitalis( constitute proo% o% the e/istence *ithin it o% the (aterial conditions %or another social order, the socialist order As 8enin saidA H& & & state-(onopoly capitalis( is a co(plete material preparation %or socialis(, the threshold o% socialis(, a rung on the ladder o% history bet*een *hich and the rung called socialis( there are no intermediate r%ng! &H910: #%, in considering the proble(s o% transition %ro( capitalis( to socialis(, it is not enough to con%ine onesel% to general %or(ulas about Hpri,ate o*nershipH, this applies e,en (ore to Hcollecti,e o*nershipH& As *e ha,e seen, Mar/ uses the ter( Hcollecti,e o*nershipH to designate ali5e collecti,e o*nership by the shareholders o% 7oint-stoc5 co(panies, *or5ers3 production co-operati,es, and state o*nership o% the (eans o% production& Mar/ and 0ngels *ere ne,er satis%ied *ith analysing econo(ic proble(s on the basis o% H7uridical categoriesH& )heir analyses sho*, on the contrary that it is not the H7uridical %or(H o% o*nership that deter(ines the (ode o% production, but the concrete social relations& )hus, depending on the class nature o% the state, Hstate o*nershipH (ay be (erely Hcapitalis( pushed to an e/tre(eH, as 0ngels puts it in =nti3D>hring or, on the contrary, it (ay (ean Hsei<ure o% the (eans o% production in the na(e o% societyH& #n order that Hcollecti,e o*nershipH (ay (ean Hthe ob7ecti,e possibility o% socialist planningH, it (ust be o*nership by the proletarian state& ?ut e,en this state o*nership is not yet !ocial o*nership (that is, o*nership by society a! a #hole )& #t is so %ar only sei<ure o% the (eans o% production by the proletarian state Hin the na(e o% societyH, as 0ngels puts it, and this then beco(es social o*nership only in proportion as the state *ithers a*ay&911: Dhile state inter,ention in social relations beco(es progressi,ely unnecessary in one sphere a%ter another, parallel *ith this process co((odity production declines and *ithers a*ay, and *hat re(ains o% anarchy in social production is replaced by e,er (ore conscious and syste(atic organisation& .ei<ure o% the (eans o% production by the proletarian state (ay ta5e the %or( o% a single act, but ta5ing possession o% the (eans o% production by !ociety, the *ithering a*ay o% the state, the ending o% co((odity production, constitute, on the contrary, an historical process (conditioned by state o*nership) *hich necessarily e/tends o,er a long period, this period being itsel% di,ided into successi,e phases&

Just as Mandel has %ailed to distinguish, in the passage 2uoted, bet*een si(ple co((odity production, capitalist pri,ate production, capitalist social production, (onopoly capitalis(, and state (onopoly capitalis(, so also he %ails to distinguish bet*een the transitional society, socialist society
(a*e 1+&

and co((unist society (and their ,arious stages)& )hus, all the proble(s are dealt *ith as though they could be settled on the basis o% the si(ple anti(ony bet*een Hpri,ate o*nershipH and Hcollecti,e o*nershipH, as i% socialist society *ere from the !tart a de,eloped socialist society, in co(plete control o% the producti,e %orces& )he %act that this is not so, and can not be so, is at the heart o% the socialist *orld3s present proble(s& )o su( up *hat has been said so %ar and to tac5le another 2uestion closely lin5ed *ith the %oregoing, *e can say that *hat is pri(arily decisi,e about establishing o*nership by the proletarian state o% the principal (eans o% production is not that it (a5es i((ediately possible the introduction o% real socialist planning, since it (a5es this possible only as so(e thing for the f%t%re.912: Dhat is i((ediately achie,ed by proletarian state o*nership is the abolition o% the econo(ic and political po*er o% the bourgeoisie and -- *hat is decisi,e %or the %uture -- the trans%or(ation o% the class structure o% society and the class nature o% the state& )he %unda(ental %act is the radical trans%or(ation o% social relations& All the rest -- planning, social control o,er production -- is, at the start, still only an abstract possibility, the progressi,e trans%or(ation o% *hich into reality constitutes the condition %or the consolidation and %lo*ering o% the ne* social order& / Possi ility and reality De see ho* dangerous it can be to identi%y po!!ibility *ith reality. )he *hole proble( o% building socialis( is precisely that o% creating the conditions that *ill ensure that *hat e/ists as a po!!ibility (on the basis o% the e/propriation o% capitalist o*nership and the de,elop(ent o% collecti,e o*nership) (ay beco(e a reality. #n order to ensure this transition %ro( the potential to the real, ho*e,er, one has to begin by as5ing certain 2uestions& #s the %unda(ental characteristic o% socialis(, or o% an econo(y in *hich socialis( is being built, that it is sub7ected to a plan, or de,elops according to a plan; or is it that this econo(y is subordinated to social needs and de,elops according to the re2uire(ents o% these needs (o% *hich the plan (ust be an e/pression, as ade2uate as possible in the gi,en econo(ic, social and political conditions)M

#s it enough %or the proletarian state to *or5 out a plan, lay do*n targets and decide on priorities, %or this plan to correspond to the ob7ecti,e possibilities, the re2uire(ents o% (a/i(u( sa,ing o% labour, the re2uire(ents o% proportionality, and, as in the pre,ious 2uestion, the social needs the(sel,esM Further, is it enough that priorities ha,e been decided by the plan %or real econo(ic de,elop(ent to con%or( to the(M !ne has only to as5 these 2uestions, and to be only a little a*are o% the ob7ecti,e reality, to appreciate that the ans*er (ust be in the negati,e, that is, to ad(it that *hat is HpossibleH, %ro( the standpoint o% a (ista5enly abstract conception, is not necessarily real&
(a*e 1+,

#t has to be accepted, then, that the true proble(, the one that it is i(portant to ans*er and %ro( *hich %ollo*s the solution to all the others,91": consists in establishing the conditions *hich, at each stage and in con%or(ity *ith concrete conditions, (a5e it possible %or the econo(y to be genuinely planned, and %or the plan to correspond, so %ar as it can at the gi,en stage, to the re2uire(ents o% social de,elop(ent, social needs, proportionality, e%%iciency, and so on& #% *e %ail to e/a(ine these proble(s and re(ain content *ith (anipulating abstract categories *hich *e (ista5e %or reality, *e re(ain in the real( o% bad philosophy, do not get on to the plane o% concrete proble(s, and re(ain incapable o% pro,iding e,en the beginning o% an ans*er to these proble(s& 8et us ta5e an e/a(ple& A%ter recognising that socialist planning presupposes e%%ecti,e capacity on the part o% society to account %or and allot the producti,e %orces in an e%%icient *ay, Mandel as5sA H#n a country li5e uba, is it possible to 3account %or and allot e%%iciently3, that is, to plan the (achinery, the ra* (aterials and the *or5-%orce in the se,eral thousand industrial enterprises in the countryM )he ans*er is, o% course, yes& Bo doubt this is being done, at %irst, in an i(per%ect, partial, inade2uate *ay; but the trouble here is not the le,el o% de,elop(ent o% the producti,e %orces but *ea5nesses in organisation and lac5 o% e/perience, and these can and (ust be gradually corrected through the gaining o% e/perience and the %or(ation o% ade2uate cadres, through control and creati,e initiati,e on the part o% the (asses, etc& Any other conclusion *ould, indeed, put a 2uestion (ar5 o,er all socialist progress in an under-de,eloped country&H (=rt. cit., p& 1"&)91': #n its general %or(, the proposition at the beginning o% this passage (eans nothing at all, %or the real 2uestion is to 5no* %nder #hat condition! it is possible to HplanH, *ith *hat delays, through *hat %or(s o% organisation, gi,en *hat relations bet*een production-units, to *hat degree o% e%%iciency&

At the end o% the passage 2uoted, Mandel gi,es the i(pression that he is outlining the beginnings o% an ans*er *hen he *ritesA H)his is being done, at %irst, in an i(per%ect, partial, inade2uate *ay; but the trouble here is not the degree o% de,elop(ent o% the producti,e %orces, but *ea5nesses in organisation and lac5 o% e/perience, etc&H Fere, too, *e see the author a,oiding reality and %alling into the eclecticis( (*hich ends in e/plaining e,erything by Hcircu(stancesH) o% *hich he is so ready to accuse others& )his H%allH o% his results %ro( the %act that, %or hi(, the categories are HpureH and HabstractH notions (abstract in the bad sense o% the *ord) and that conse2uently it is necessary to (a5e a leap in order to get %ro( these Hpure and abstractH concepts to the analysing o% concrete reality& )hus, in the %oregoing passage, *e see that the notion o% Hle,el o% de,elop(ent o% the producti,e %orcesH has been e(ptied o% all concrete content, since it does not include the lac5 o% e/perience and inade2uate
(a*e 1+%

training o% the cadres, the *ea5nesses o% organisation, etc& Cet all these enter into the le,el o% de,elop(ent o% the producti,e %orces and de%ine the higher or lo*er le,el o% de,elop(ent o% these %orces& #n %act, it is only by ta5ing into consideration the le,el o% de,elop(ent o% the producti,e %orces that *e are able to understand that the sa(e 7uridical %or( (proletarian state o*nership) can co,er di%%erent concrete productionrelations and deter(ine a ,ery ,arying degree o% e%%iciency in accounting %or goods and allotting the(& )his is *hy the %or(s and the degree o% e%%iciency o% planning are closely lin5ed *ith the le,el o% de,elop(ent o% the producti,e %orces -- *hence the possibility or i(possibility, depending on this le,el, that co((odity relations *ill cease to apply bet*een the production-units that %or( part o% the nationalised sector under the dictatorship o% the proletariat& // 2ationalisation, socialisation and the transitional economy )he proble(s 7ust (entioned are so i(portant, both %or uba and %or all the countries *hich ha,e ta5en or *ill ta5e the road o% building socialis(, that it is essential to loo5 (ore closely at the *ay in *hich 8enin presents the(, especially in his *or5 called H-eft3#ing H childi!hne!! and petty3bo%rgeoi! mentality, a *or5 *hich is 2uite %unda(ental in this conne/ion& 8et us %irst reread the ,arious passages in this *or5 *here 8enin distinguishes, and e,en contrasts, nationalisation and con%iscation, on the one hand, and socialisation, on the other& H!ne (ay or (ay not be deter(ined on the 2uestion o% nationalisation or con%iscation, but the *hole point is that e,en the greatest possible 3deter(ination3 is not enough to pass from nationalisation and con%iscation to socialisation& )he (is%ortune o% our 38e%ts3 is that by their nai,e, childish co(bination o% the *ords 3(ost deter(ined policy

o% socialisation3 they re,eal their utter %ailure to understand the cru/ o% the 2uestion, the cru/ o% the 3present3 situation& )he (is%ortune o% our 38e%ts3 is that they ha,e (issed the ,ery essence o% the 3present situation3, the transition %ro( con%iscation (the carrying out o% *hich re2uires abo,e all deter(ination in a politician) to socialisation (the carrying out o% *hich re2uires a different 2uality in the re,olutionary)& HCesterday, the (ain tas5 o% the (o(ent *as, as deter(inedly as possible, to nationalise, con%iscate, beat do*n and crush the bourgeoisie, and put do*n sabotage& )oday, only a blind (an could %ail to see that *e ha,e nationalised, con%iscated, beaten do*n and put do*n (ore than *e ha,e had ti(e to co%nt. )he di%%erence bet*een socialisation and si(ple con%iscation is that con%iscation can be carried out by 3deter(ination3 alone, *ithout the ability to calculate and distribute properly, #herea! !ociali!ation cannot be bro%ght abo%t #itho%t thi! ability &H916: #t is clear that 8enin is here contrasting the 7uridical act o% nationalisation (or con%iscation) *ith socialisation, that is, *ith control by society or, Hin its na(eH, by the state,916: is o,er *hat has been nationalised or con%iscated&
(a*e 1&1

)he distinction (ade is thus a distinction bet*een a 7uridical category and a social realityA though large-scale industry has been nationalised it has not been e%%ecti,ely socialised, that is to say, (anaged in an e%%icient *ay on behal% o% society& #n this passage, indeed, *hat 8enin is concerned about is not the direction to be gi,en to the petty-bourgeois or si(ple co((odity sectors o% the econo(y but the *ay to (anage (odern large-scale industry& )his is *hy he en,isages at that ti(e *hat he calls Hstate capitalis(H under .o,iet po*er& )his state capitalis(, in the actual situation that .o,iet >ussia *as in at that ti(e, *as e/pressed in the %act that the .o,iet state *as *illing to entrust the H(anage(entH o% the (ost i(portant enterprises to *hat 8enin called Hcultured capitalistsH, not in their capacity as capitalists but as specialist technicians or organisers, and to pay the( high salaries %or this ser,ice& #t *as thus a (atter, concretely (in the %or(, and at the le,el *hich *ere possible at that (o(ent), o% ensuring the socialisation o% the large-scale enterprises by creating the conditions necessary %or e%%icient (anage(ent under the control o% the proletarian state& Dhat 8enin *as concerned to do *as te(porarily to entrust the H(anage(entH, that is, certain e/ecuti,e %unctions (under the control o% H*or5ers3 co((issars or *or5ers3 co((ittees *ho *atch the (anager3s e,ery step, *ho learn %ro( his (anage(ent e/perience and *ho not only ha,e the right to appeal against his orders, but can secure his re(o,al through the organs o% .o,iet po*erH), o% Hthe large!t types o% enterprises, *hich actually supply products to tens o% (illions o% peopleH, to Hcultured capitalistsH&911: For 8enin, nationalising the largest enterprises did not, there%ore, constitute a sort o% (agical %or(ula *hich *ould ensure Hauto(aticallyH a regular and

har(onious gro*th o% production, the adaptation o% the latter to social needs, and so on& For that it *as, though a necessary condition, not a su%%icient one& Dhat *as %urther needed *as to ensure, under concrete conditions, the e%%ecti,e socialisation o% the social (eans o% production, *hich i(plies, a(ong other things, e%%icient accounting, allocation and (anage(ent, under social control& )he proble( is ob,iously not one o% 5no*ing *hether (odern large-scale industry is HripeH %or nationalisation, since it is& )he proble( is to deter(ine the precise conditions in *hich nationalisation *ill lead to real socialisation& learly, the %or(ula o% Hstate capitalis(H under .o,iet po*er sol,ed this proble( only ,ery partially, i(per%ectly and te(porarily, and did this under the ,ery special conditions o% the beginning o% the %irst proletarian re,olution& +ery soon it *as necessary to %ind other %or(s, e2ually transient, through *hich the (anage(ent o% the state enterprises and the o,erall direction o% the econo(y could be better and better sub7ected to e%%ecti,e control by society& )hese are the concrete and precise 2uestions that ha,e to be as5ed and ans*ered in order to ensure the building o% socialis(& )hese are the proble(s o% the econo(y o% transition to socialis(& Dhat is in,ol,ed is not 7ust nationalisation, not 7ust statisation, it is the
(a*e 1&1

*ielding by the state po*er, through (easures adapted to the ob7ecti,e political, econo(ic and social conditions o% the country, o% e%%ecti,e and e%%icient control o,er the production and distribution o% goods& As 8enin rightly says in the sa(e passageA H)hose *ho %ail to understand this are co((itting an unpardonable (ista5e in econo(ics& 0ither they do not 5no* the %acts o% li%e, do not see *hat actually e/ists and are unable to loo5 the truth in the %ace, or they con%ine the(sel,es to abstractly co(paring 3capitalis(3 *ith 3socialis(3 and %ail to study the concrete form! and !tage! of the tran!ition 918: that is ta5ing place in our country& & & & #t *as not *ithout reason that the teachers o% socialis( spo5e o% a #hole period of tran!ition 918: %ro( capitalis( to socialis( and e(phasised the 3prolonged birth-pangs3 o% the ne* society& And this ne* society is again an abstraction *hich can co(e into being only by passing through a series o% ,aried, i(per%ect concrete atte(pts to create this or that socialist state&H919: )hese are, indeed, the concrete proble(s o% the transition %ro( capitalis( to socialis( *hich are posed for an entire hi!torical period and *hich ha,e to be sol,ed in each co%ntry %nder !pecific condition!. =p to no*, (any %unda(ental proble(s o% the econo(y in transition to*ards socialis( ha,e been connected *ith the %act that the re,olution has

not ta5en place in countries *here the producti,e %orces *ere (ost highly de,eloped but, on the contrary, in countries *here the producti,e %orces *ere relati,ely less de,eloped& )his (eans, to use 8enin3s %or(ula, that these countries are politically advanced but economically bac;#ard. )*o %urther obser,ations regarding this ,aluable *or5 o% 8enin3s& .trongly e(phasising the character o% the .o,iet econo(y o% the ti(e as an econo(y o% tran!ition %ro( capitalis( to socialis(, 8enin points out that the %act that the .o,iet >epublic calls itsel% a ,ociali!t .o,iet >epublic does not i(ply Hthat the ne* econo(ic syste( is recognised as a socialist orderH,920: but rather Hthe deter(ination o% .o,iet po*er to achie,e the transition to socialis(H&921: #t is clear that at the present ti(e the uban econo(y, %or e/a(ple, is not yet a socialist econo(y but an economy in tran!ition %ro( capitalis( to socialis(& )hus, all deductions and HrecipesH %or(ulated on the basis o% an abstract conception o% Hsocialis(H are *ithout any practical bearing %or this econo(y& )o suppose that decisions to e/propriate or nationalise settle e,erything and ensure the co(ing to birth o% a ne* (ode o% production is truly to %all into H7uridical illusionis(H& #n all the *ritings in *hich he dealt *ith proble(s o% organising the .o,iet econo(y, 8enin e(phasises the transient nature o% that econo(y as it *as at that ti(e, and e/presses his concern to see a concrete adj%!tment of the form! of organi!ation to the level of development of the prod%ctive force!.922: )his (eans that it is necessary to deter(ine, in each concrete case, the
(a*e 1&2

speci%ic %or(s to be gi,en to the ne* production-relations and to the organisation o% production& #n order to ensure the e%%ecti,eness o% the (anage(ent o% the econo(y, these speci%ic %or(s (ust be adapted to the le,el and the speci%ic %eatures o% the de,elop(ent o% the producti,e %orces o% each country, and also to all the characteristics -- historical, political (including the le,el o% class consciousness) and cultural -- o% the gi,en country and e,en o% the di%%erent branches o% its econo(y&92": )hus it is not by accident or by (ista5e that the agrarian re%or( in uba has speci%ic %eatures that (ar5 it o%% %ro( the agrarian re%or(s carried out in other socialist countries& #% the concrete %or(s o% (anaging the econo(y could be deduced %ro( abstract categories, there *ould be only a single H(odelH %or the transition to socialis(, a single (odel %or agrarian re%or(, etc& )he e/perience o% the socialist countries the(sel,es, especially that o% uba, sho*s that this is not

so& Dhat e/ists is only Ha series o% ,aried, i(per%ect concrete atte(ptsH,92': at creating a ne* social order& /// The witherin*-away of the commodity cate*ories )he passages in Mandel3s *ritings *hich deal *ith the sur,i,al and *ithering a*ay o% the co((odity categories in the sphere o% the distribution o% consu(er goods do not call %or any particular co((ent& #t is other*ise, ho*e,er, *hen he criticises the idea that the (eans o% production still retain today the character o% co((odities inside the socialist sector, e,en in the econo(ically (ost ad,anced countries, such as the .o,iet =nion& Fere *e %ind the old ?u5harinist clai( (%ro( the ti(e *hen ?u5harin *as an Hultrale%tH) that at botto( there is only Htrans%er o% a product %ro( one %actory to another *ithin a single great state trustH& #n order to de,elop discussion on this i(portant sub7ect let us ta5e so(e o% the argu(ents %or(ulated by Mandel in the article already 2uoted& !ne o% his argu(ents is that in the sphere o% production o% (eans o% production in a planned econo(y, the labour e/pended is al*ays and in all circu(stances socially necessary labour& )o Hpro,eH this clai( he says that it is only *hen the Hpossibility o% o,erproductionH e/ists that labour-ti(e can be *asted& Dell, no*, he goes on, though it is certainly possible that so(e consu(er goods produced by socialist industry (ay re(ain unsold, it is inconcei,able that the sa(e thing could happen to (eans o% production& Fe *ritesA H an there be 3o,erproduction o% the (eans o% production3 in the socialist sectorM !b,iously not& #% 3by bad luc53 the production o% (eans o% production e/ceeds the plan %igures or runs ahead o% the plan3s technological %orecasts, there is nothing to stop socialist industry %ro( using this surplus in order to go %or*ard to a (ore ad,anced stage o% e/panded reproduction, either at once or in the %uture& onse2uently, the (eans o% socialist production, being ne,er 3unsaleable3, cannot contain 3socially unnecessary3 labour& )hey crystallise social labour i((ediately and auto(atically, and ha,e no need o% the (ediu( o% e/(a*e 1&7

change in order to do this& )hey are there%ore not co((oditiesH (=rt. cit., p& 2'&) )he super%iciality o% this Hproo%H is ob,ious& #n the concrete reality o% the transitional econo(y, or e,en in the entire %irst stage o% the socialist econo(y, there (ay and do e/ist (any reasons *hy, in practice, the (eans o% production supplied by the socialist sector and intended %or the sa(e sector (ay pro,e to be ulti(ately unsaleable, or unsaleable %or a (ore or less lengthy period, or o% (ediocre utility& )his can happen because o% short-co(ings in the

2uality o% production, disproportion in the production o% di%%erent (eans o% production, and so on& Dhen this happens, on a socially signi%icant scale (and it does happen, and not only in uba), it (eans that the le,el o% social %orecasting o% the needs o% the production sphere and o% the technical and technological conditions o% production is still lo*& Cet it is only a su%%iciently high le,el and 2uality o% %orecasting o% social needs that can deter(ine in ad,ance that the labour e/pended in producing (eans o% production *ill be socially necessary& .o long as this le,el o% social %orecasting is unattainable (and this is a progra((e that is ,ery (uch (ore than a (ere (atter o% planning techni2ue), it is still (ainly the case that (eans o% production are !old, and sold at prices roughly corresponding to their val%e, *ithin the %ra(e*or5 o% production-progra((es that con%or( to the central plan, *hich sho*s the socially-necessary character o% the labour e/pended in their production and the in,est(ents co((itted in order to (a5e this possible& Fere *e co(e again upon another %unda(ental point, related to the notion o% Hsocially necessary labourHA it is not enough %or a product to be HsoldH %or the labour e/pended to produce it to be #holly socially necessary& For that, the total a(ount o% social labour e/pended on producing the gi,en article (ust correspond to the !ocial %tility o% this article& )his is *hat Mar/ says in his letter to @ugel(ann o% 11th July 1868& Mandel re%ers to this letter, but *ithout dra*ing the conclusion to *hich it leads us, na(ely, that one o% the %unda(ental proble(s is to deter(ine, in a socially satis%actory *ay, ho* to distribute society3s labour a(ong the ,arious branches o% production, *hich i(plies distribution carried out proportionally to the respecti,e needs that e/ist %or the ,arious products& At the present ti(e this cannot be co(pletely acco(plished by the plan (echanis( alone in any o% the socialist countries& )o a ,ery large e/tent, still, the distribution o% social labour a(ong the di%%erent branches o% production, and the adaptation o% this distribution to the relati,e i(portance o% the ,arious needs, and to social utility, can be e%%ected only through (echanis(s *hich are si(ilar to those o% the (ar5et but *hich operate in subordination to the plan3s targets and social purposes& As the econo(y beco(es (ore and (ore co(ple/, the tendency is increasingly %or direct lin5s to be established bet*een the production-units, and, *hen these units are not technically and econo(ically integrated, to the concluding o% contracts *hich lay do*n in
(a*e 1&9

concrete ter(s the 2uantity and 2uality o% the ,arious goods that ha,e to be supplied by one enterprise to another& Actually, in a socialist econo(y, e,en in the countries *ith the highest de,eloped producti,e %orces, the distribution o% (eans o% production a(ong the %actories ta5es place only partly through the plan& #n a ,ery large nu(ber o% cases, the plan allocates not particular use-,alues (i&e&, de%inite (eans o%

production), but %inancial resources&926: )hese %inancial resources are %or (ore or less general use& )he concrete pro,ision o% (aterial goods, o% (eans o% production, is acco(plished o%ten, and e,en (ore and (ore %re2uently as the econo(y gro*s (ore co(ple/, by *ay o% buying and selling transactions& #t is thus necessary at present %or (illions o% econo(ically ele(entary decisions to be ta5en, relating to (illions o% (eans o% production& )hese decisions, and the operations o% production and distribution that %ollo* %ro( the(, are regulated by (eans o% (oney -- in accordance, o% course, *ith the ,olu(e o% credit assigned by the planning organs& #% this is so, the reason is that, in a ,ery large nu(ber o% cases, economic calc%lation (Hbusiness accountingH) cannot yet be %ully e%%ecti,e at any le,el higher than that o% the production-units&926: )hese are %acts, and %acts that do not result %ro( (ista5es or de,iations %ro( an abstract (odel o% the socialist econo(y& )hey result %ro( present day ob7ecti,e necessities& !ne (ay thin5, o% course (# thin5 so (ysel%) that these necessities are destined to disappear in the %airly near %uture, and this *ill alter the conditions in *hich the planned econo(y operates, but %or the (o(ent these necessities e/ist& )o try to ignore the( can lead only to s2uandering the labour e/pended by the producers and reducing the effective do(ination o% the econo(y by the planning authorities& Dhile gi,ing onesel% the illusion o% planning H(ore closelyH one *ould (erely be planning less *ell& Dhen *e go deeper into these proble(s *e co(e again upon the 2uestion o% the conditions necessary %or the co((odity categories to *ither a*ay& )his *ithering-a*ay is not, in (y opinion, lin5ed *ith increasing centralisation, but rather *ith e,er closer integration o% the di%%erent production-units, that is, *ith the de,elop(ent o% closer and closer organic ties bet*een these production-units& !ne o% the conse2uences o% a de,elop(ent li5e this, itsel% bound up *ith the auto(ation o% production and (anage(ent, *ill be the assigning in ad,ance o% an increasing nu(ber o% (eans o% production to their ulti(ate users, and this on the basis o% rigorous %orecasting& )his *ill %or( one o% the ob7ecti,e %oundations %or the *ithering a*ay o% the role o% (oney *ithin the socialist sector& ?ut this is not yet the situation today& #% *e are unable to recognise the speci%ic %eatures o% the present situation, i% *e try to apply %or(s o% organisation and %or(s o% circulation o% the (eans o% production that do not correspond to the le,el o% de,elop(ent attained by the producti,e %orces, *e shall achie,e only a great deal o% *astage and a ,ery serious state o% ine%%iciency in the econo(ic syste(& )o re%use to recognise that there are ob7ecti,e reasons *hy the co((a*e 1&'

(odity categories still e/ist inside the production sector, or to try and He/orciseH this reality in the na(e o% an abstract and HpureH i(age o% socialist society, is to pro(ote the *asting o% resources and hold bac5 the de,elop(ent o% the socialist econo(y, and so to delay the co(ing o% the (o(ent *hen the

co((odity categories *ill disappear because the ti(e %or this to happen *ill really ha,e arri,ed& /< The (ros(ects of technico-economic inte*ration #t is note*orthy that the conceptions *e ha,e 7ust been criticising are at ,ariance not only *ith the actual situation in the socialist econo(ies, or the econo(ies in transition to socialis(, but also *ith the real tendencies *hich, at the present stage in the de,elop(ent o% their producti,e %orces, are characteristic o% the recent e,olution o% these econo(ies& #n %act, the ,ery gro*th in the ,olu(e o% production, *ith the increasing di,ersi%ication o% products, and o% the technological channels by *hich the di%%erent products can be obtained, are e,ery*here acco(panied today by a (ore and (ore ob,ious need to recognise the e/istence o% the co((odity categories *ithin the socialist sector& )his need is especially i(perati,e *hen it is sought to cut do*n as (uch as possible the e/penditure o% necessary labour %or obtaining a social product adapted to social needs& W At the present stage o% de,elop(ent o% the producti,e %orces o% the socialist countries it is possible to see clearly that detailed production progra((es %or enterprises supplying consu(er goods cannot be *or5ed out %ro( abo,e but (ust result %ro( the orders recei,ed by these enterprises&921: Fro( this standpoint, the current plan %or the production o% consu(er goods, *or5ed out at the national le,el, (ust ulti(ately ta5e ,ery %ull account o% the needs e/pressed by the consu(ers, in so %ar as this is physically possible (gi,en the resources a,ailable), and *hile respecting the re2uire(ents o% coherence bet*een the plans and, abo,e all, o% !ocial prioritie!.928: #% the needs e/pressed by the consu(ers are not ta5en into account, *hat results is that the labour contributed is *asted& #n the second place, so(e o% the need %or ra* (aterials or se(i-%inished goods on the part o% the enterprises supplying consu(er goods cannot be deter(ined centrally, and this has to be done by *ay o% direct agree(ents bet*een the enterprises supplying consu(er goods and those *hich pro,ide the( *ith ra* (aterials or se(i-%inished goods& Actually, in the present state o% things, this is ho* it is possible %or 2ualitati,e and 2uantitati,e ad7ust(ent to ta5e place e%%ecti,ely bet*een the needs o% one group and *hat the others supply& Finally, once the plan has laid do*n, centrally, the targets %or in,est(ent, the allocation o% in,est(ents by production-categories, the essential conditions %or their location, and the (ain types o% e2uip(ent to be produced as a result o% these in,est(ents, the concrete putting into e%%ect o% (ost o% the progra((es o% production and in,est(ent, resulting %ro( the central plan, *hich ha,e to be carried out by the enterprises is also based on the presupposition that it is the latter *ho are to settle bet*een
(a*e 1&+

the(sel,es the ,olu(e, 2uality and deli,ery-dates o% supplies, so as to ensure that the plan is realised under the conditions (ost ad,antageous to society& #n the conditions o% today, the increasing co(ple/ity and di,ersity o% production, the (ultiplication o% the nu(ber o% enterprises, and so on, (a5e e,er (ore di%%icult, and e,en i(possible in practice, ade2uately detailed central %orecasting o% the di%%erent 5inds o% production and their allocation& #t is this i(possibility o% su%%iciently precise central %orecasting o% needs %or di%%erent categories o% products that (a5es it necessary to establish direct lin5s bet*een production-units, a syste( o% orders, purchases and sales, and so the te(porary e/tension o% the sphere o% co((odity acti,ities inside the socialist sector itsel%& )his e/tension ta5es place, ho*e,er, only in so %ar as the gro*ing co(ple/ity and di,ersity o% production are not yet balanced by ade2uate progress in the technical and econo(ic integration o% the di%%erent productionunits (*hich thus continue to be econo(ic sub7ects)& )he signi%icance o% this integration process is the %ollo*ingA *ithin a large integrated group (and the practical %or(s o% integration (ay ,ary), changes that the ,olu(e and structure o% production undergo at one end ha,e an i(pact *hich is precise (i&e& calc%lable ) on *hat has to be supplied by the other (e(bers o% the group& )hence%orth it is possible to (a5e calculations in ad,ance and calculations o% opti(a (as e/perience has sho*n), and it is no longer necessary to use, bet*een the di%%erent (e(bers o% these groups, the procedure o% contracts, orders, purchases and sales& #n proportion as integrated technico-econo(ic groups li5e this de,elop, it *ill really be possible %or the co((odity categories to disappear& )o consider the purely technical aspects o% the integration process *ould be to go too %ar outside (y sub7ect& 8et it su%%ice to say that this integration does not necessarily i(ply the %or(ation o% physically a(alga(ated HproductionunitsH& #t (ay be assu(ed that *hat *ill play the decisi,e role in this conne/ion *ill be standardisation o% products, increasing interdependence o% branches o% production, auto(ation and the de,elop(ent o% (ethods o% (anaging production-units by electronic groups, *ith teleco((unication lin5s bet*een these electronic groups& Dhate,er (ay be the technical process *hereby production-units beco(e integrated (and so cease to be Hecono(ic sub7ectsH), it *ill be seen that the prospect be%ore us (a5es it %oreseeable that %ro( a certain (o(ent on*ard the plan *ill ha,e to concern itsel% only *ith relations bet*een a relati,ely li(ited nu(ber o% large integrated econo(ic groups& )herea%ter, %orecasting on the social scale *ill beco(e increasingly precise and strict& At that (o(ent the co((odity categories *ill be able to ,anish %or good& )his prospect (ust lead us to (a5e a care%ul distinction bet*een ad(inistrati,e centralised planning, *hich *as, %or particular historical reasons, the %or( ta5en by the %irst Fi,e-Cear $lans o% the .o,iet =nion (not so (uch because o% the lo* le,el o% de,elop(ent o% the producti,e

(a*e 1&&

%orces as because o% the e/ceptional in,est(ent e%%ort that had to be (ade at that ti(e), and technico-econo(ic centralised planning, *hich, in (y ,ie*, *ill be the %or( characteristic o% a %ully de,eloped planned econo(y& < Prices and calc:lations in la o:r-time )he %oregoing discussion can be continued on another le,el& #t is a %act that in none o% the socialist econo(ies, or the econo(ies in *hich socialis( is being built, are econo(ic calculations (ade in ter(s o% labourti(e& 0,ery*here these calculations are (ade in prices, and this is true both %or consu(er goods and %or (eans o% production, %or goods passing %ro( the socialist sector into the other sectors o% the econo(y and %or goods circulating *ithin the socialist sector& De ha,e to consider the underlying signi%icance o% this %act&929: )he only possible e/planation, %ro( a Mar/ist standpoint, is that the labourti(e actually e/pended on producing (eans o% production is not yet, under present-day conditions, *holly and Hauto(aticallyH, !ocially nece!!ary labourti(e, i&e&, labour-ti(e proportionate to the social utility o% the di%%erent products& )his is one reason, a(ong others, *hy it is una,oidable not (erely to rec5on and calculate in ter(s o% price! but also to (a5e payment! on the basis o% prices *hich are not and cannot be strictly and al*ays proportionate to the labour-ti(e actually e/pended&9"0: )he prices used in the socialist econo(ies o% today thus (ay, and indeed (ust, di,erge %ro( ,alues, because there (ay ha,e been de,oted to the production o% a gi,en product (*hether an article o% consu(ption or a (eans o% production) (ore social labour or less than *as 7usti%ied by the social need %or this product& #n turn, this possible di,ergence bet*een the ti(e actually e/pended and the ti(e socially necessary (ay result either %ro( the ob7ecti,e i(possibility o% (easuring be%orehand the social need %or a product (this is thus not (erely a (atter o% occasional (ista5es), or %ro( the i(possibility o% deter(ining in ad,ance the a(ount o% labour per unit necessary %or the production o% a particular category o% products, ta5ing into account the 2ualities and the speci%ic %eatures these (ust ha,e in order to be able to satis%y social needs& .i(ilarly, di,ergences bet*een prices and ,alues (ay be (ade necessary i% it is desired to ensure opti(u( use o% e/isting plant, *ithin the %ra(e*or5 o% a plan the %inal targets o% *hich ha,e been laid do*n, *hile the econo(ic sub7ects in the production sphere are allo*ed decision-(a5ing po*ers corresponding to their degree o% e%%ecti,e control o,er the production processes& #n so %ar as a su%%iciently detailed and e/act %orecast o%, on the one hand, needs, and, on the other, the (eans o% labour necessary in order to satis%y

these needs, together *ith the conditions %or opti(u( use o% these (eans, is not yet possible, calculation in ter(s o% HpricesH (di%%ering (ore or less %ro( ,alues) is there%ore necessary& Dhat %ollo*s %ro( this is that calculation o% prices and calculation o% costs are t*o di%%erent things& Accordingly, the econo(ic and social basis
(a*e 1&,

%or the sur,i,al o% the co((odity categories lies in the %act that at the present ti(e the interdependence o% the di%%erent producti,e acti,ities is neither strictly predeter(ined nor al*ays capable o% e/act predeter(ination, and that, conse2uently, the di%%erent production-units or econo(ic sub7ects are obliged to beha,e as Hrelati,ely independent producersH& ?et*een these HproducersH (*hich are *or5ing groups), (ediation has to be pro,ided, and this cannot at present be done by the plan alone& )he socialist (ar5et has there%ore to play a part in %ul%illing this tas5& Dithin it, the di%%erent econo(ic sub7ects, *hose basic production targets are laid do*n by the plan, are both decision-(a5ing centres and units %or speci%ic calculations& </ 3wnershi( and s: ordination )he %oregoing a(ounts to saying that the econo(y does not yet %unction as a single unit %or the appropriation o% nature, or as a single *or5ing group& #n other *ords, in the socialist societies o% today each production unit, or each econo(ic sub7ect, still constitutes a relati,ely autono(ous centre %or the appropriation o% nature& )his econo(ic situation %inds 7uridical e/pression in the %act that each production-unit Ho*nsH its (eans o% production and its products& )his Ho*nershipH ob,iously has nothing in co((on *ith *hat >o(an la* (eans by o*nership, or *ith capitalist o*nership, since it is Ho*nershipH subordinated to the *ider o*nership o% its enterprises by the proletarian state& #n practice, the pre-e(inence o% .tate o*nership (eans not (erely that the enterprise is currently subordinate to the plan but also that the state is able, should this be socially ad,antageous, to abolish a particular enterprise, or to trans%er part o% its (eans o% production to another enterprise& )he continuity o% e/panded reproduction ob,iously re2uires that operations li5e these (trans%er or abolition) should ta5e place only in e/ceptional cases& )hese are so(e o% the %acts re,ealed by analysis o% present-day concrete situations& Failure to recognise these %acts, either in the na(e o% an ad(inistrati,e conception o% planning or in that o% HtheoreticalH ,ie*s *hich re%lect the absence o% any concrete analysis9"1: o% the conditions %or building socialis(, and o% any e/act notion o% the transitional phases through *hich the econo(y o% a country building socialis( has to pass,9"2: leads to atte(pts to establish relations bet*een production-units *hich do not correspond to ob7ecti,e re2uire(ents&

Atte(pts o% this 5ind can entail disastrous conse2uences in the actual *or5ing o% the econo(y, and this %or (any reasons& )hey set up a syste( o% i(agined relations, or an He/plicit (odelH *hich does not correspond to the real relations& )he latter %or(, so to spea5, an HunderlyingH (odel, behind the He/plicitH one, but since this is not *ithout in%luence on the actual *or5ing o% the econo(y, the result is a Hreal (odelH *hich has its o*n la*s o% operation, la*s *hich are partly (as5ed by the He/plicit (odelH, so that the HtransparencyH o% the econo(y is (uch reduced&9"":
(a*e 1&%

!n the practical plane, this leads to a generalising o% irresponsibility and *aste, and (a5es true econo(ic calculation di%%icult or e,en i(possible -- and li5e*ise, there%ore, real social control& #n e/tre(e cases, the e%%ect is to (a5e planning itsel% to so(e e/tent illusory& #t is si(plistic to suppose that recognising the e/istence o% a certain %or( o% subordinate Ho*nershipH by econo(ic sub7ects o% their (eans o% production (or, i% the e/pression is pre%erred, a certain right o% use and disposal o% these (eans o% production) (ust in,ol,e HnegatingH o*nership by the state& #n reality, as has been stressed, these econo(ic sub7ects are the(sel,es subordinate sub7ects so long as the econo(ic plan and state o*nership play a %unda(ental role in all (a7or decisions& )he %act that the di%%erent econo(ic sub7ects o% the production sphere are subordinate sub7ects is sho*n in the *ay that the state plan lays do*n the conditions %or %or(ing accu(ulation %unds and consu(ption %unds& )he total a(ounts o% these %unds, and the (ain *ays in *hich they are to be used, are not deter(ined by the la*s o% the (ar5et but by society3s *ill& #n,est(ent %unds are assigned (allocation o% in,est(ents bet*een branches in accordance *ith the long-ter( ai(s o% de,elop(ent, choice o% principal production techni2ues, (ain decisions about location, etc&) in con%or(ity *ith socially deter(ined targets& )here (ust, o% course, be coherence bet*een the socially (ade choices, both at the le,el o% in,est(ents co((itted and at that o% ai(s to be attained& #t is the %unda(ental tas5 o% planning to *or5 out such coherence in ad,ance, together *ith the socially opti(u( use o% resources, in order thus to ensure the achie,e(ent o% society3s purposes& #n this *ay an econo(y de,elops *hich is sub7ect no longer to the la*s o% pro%it, but to social priorities and ai(s& )he %or(ation, at the le,el o% society, o% the accu(ulation %und (eans that, through proletarian state o*nership, *hate,er is not Hlabour %or onesel%H ta5es the %or( o% Hlabour %or societyH, and is no longer labour %or an e/ploiter& 4epending on the e/tent o% social control *hich it is actually possible to e/ercise o,er production and e/panded reproduction, that is, depending on the stage o% de,elop(ent reached by the transitional society, or the socialist society, planning can play a great ,ariety o% roles&9"': #t is not, in the (ain, by the degree and %or(s o% planning that the He/tent to *hich socialis( has been

achie,edH is to be 7udged& #ndeed, the Hessence o% socialis(H (i% one *ants to use this e/pression) is not planning but the ending of exploitation of man by man. )he latter, in turn, presupposes not only the 7uridical %or( o% state o*nership but also, and above all, a speci%ic content o% state po*er and speci%ic conditions in *hich it is e/ercised (role o% the party, etc&)& )hese are concrete 2uestions *hich re2uire that the proble(s be studied in their totality, ta5ing account o% the inter-relation bet*een the econo(ic, social and political %acts o% the situation& (Article published in -a Pen!&e, Bo& 126, April 1966, pp& 61-16&) 23TES T3 C!-PTE. '
conomica (Fa,ana), June 196'& %& !%pra, h& ', note 1& 9p& 16": h& 21 o% ?oo5 ### o% $apital (p& '11 o% the Mosco* Ler(an-language edn& o% 19""; p& 102 o% +ol& +## o% the 0ditions .ociales edn&)& (0ng& ,ersion %ro( $apital, +ol& ###, F8$F edn&, p& '21&) 9p& 16': " Da! :apital, ?oo5 ###, p& '18 (pp& 102-" o% +ol& +## o% the 0ditions .ociales edn&)& (0ng& ,ersion %ro( ibid., p& '28&) 9p& 16': ' #t *ill here be seen ho*, *hen analysing real social relations, Mar/is( goes %ar beyond narro*ly 7uridical categories, and this, a(ong other things, enables it to grasp concretely the e/tre(e di,ersity o% the social relations that can be co,ered by the general and abstract category o% Hcollecti,e o*nershipH or Hstate o*nershipH& 9p& 16': 6 Da! :apital, ###, pp& '19-80 (p& 106 o% +ol& +## o% 0ditions .ociales edn&)& (0ng& ,ersion %ro( ibid., p& '29&) 9p& 166: 6 Da! :apital, ###, p& '82 (p& 106 o% +ol& +## o% 0ditions .ociales edn&)& (0ng& ,ersion, ibid&, p& '"1&) 9p& 166: 1 $riti'%e d% Programme de 7otha et d) rf%rt, $aris, 0ditions .ociales, 1960, pp& 81-2& (0nd& edn&, p& 6'&) 9p& 166: 8 ,tate and Revol%tion, in +ol& 26 o% 8enin3s +e%vre! compl?te!, 1962 edn&, p& '18& (0ng& ,ersion %ro( $ollected <or;!, 'th edn&, +ol& 26, p& ''2&) 9p& 166: 9 )hus, to the cyclical retardation o% the de,elop(ent o% the producti,e %orces, or e,en the cyclical setbac5 or destruction o% these %orces, is no* added the syste(atic directing o% an e,er greater proportion o% the accu(ulation %und to*ards non-producti,e ends (ar(a(ents, etc&), that is, an atte(pt to sterilise per(anently an increasing proportion o% the producti,e %orces& 9p& 166: 10 8enin, H)he #(pending atastrophe and Fo* to o(bat itH, in +e%vre! compl?te!, +ol& 26, edn& o% 1962, p& "90& (0ng& edn&, $ollected <or;!, 'th edn&, +ol& 26, p& "69&) 9p& 166: 11 .tate and society sho* the unity o% a contradiction& #t is %ro( this ,ery contradiction that there %ollo*s the contradiction (and the unity) o% state o*nership and social o*nership& 9p&
1 2 166: 12 #s

it necessary to recall that ten years passed bet*een the procla(ation o% .o,iet po*er and the First Fi,e-Cear $lanM 4o *e ha,e to recall that this plan ans*ered only ,ery partially the re2uire(ents %or socialist planning, and this not because o% reasons connected *ith Hplanning techni2ueH but because o% pro%ound social and econo(ic reasons connected especially *ith the degree to *hich the producti,e %orces *ere really socialisedM 9p& 161: 1" %& ?ettelhei(, HFor(es et (Gthodes de la plani%ication socialiste et ni,eau de dG,eloppe(ent des %orces producti,esH, -a Pen!&e, February 196' (!%pra, h& ") and H8es cadres socio-Gcono(i2ues et l3organisation de la plani%ication socialeH, Probl?me! de Planification, ahiers Bo& 6, entre

(a*e 1,1

d30tude de $lani%ication .ocialiste, Ecole $rati2ue des Fautes Etudes (+#9e: .ection), 1966 (infra, h& 6)& 9p& 168: 1' De *ill ignore the last phrase, *ith its pole(ical content, *hich could be turned against the *riter hi(sel% by retorting that, i% he as5s this 2uestion it is perhaps because he is one o% those *ho thin5 that i% reality does not con%or( strictly and i((ediately to the picture they ha,e o% the socialist econo(y, then one (ust doubt *hether socialis( is possible in countries that do not con%or( to their a priori ,ie* o% things& 9p& 168: 16 +e%vre! compl?te!, +ol& 21, pp& "'8-9& (0ng& edn&, pp& """-'&) 9p& 169: 16 %& the 2uotation %ro( 0ngels, !%pra, p& 166& 9p& 169: 11 +ol& 21, pp& "60 and "66& (0ng& edn&, pp& "'6 and "'9&) 9p& 110: 18 My e(phasis, &?& 9p& 111: 19 Ibid., p& "66& (0ng& edn&, pp& "'0-1&) 9p& 111: 20 Ibid., p& "60& (0ng& edn&, p& ""6&) 9p& 111: 21 Ibid., p& "60& (0ng& edn&, p& ""6&) 9p& 111: 22 A particularly interesting passage is this one, ta5en %ro( a resolution adopted at the Binth ongress o% the ?olshe,i5 $arty (in 1920), a docu(ent dra*n up under 8enin3s direct inspirationA H)he *ay in *hich industry is organised at present is transient& )he *or5ers3 state has nationalised the capitalist trusts, (a5ing ,arious enterprises in the sa(e industries 7oin these trusts, and uniting, in trusts concei,ed according to the pattern o% these capitalist trusts, industrial enterprises *hich had not been trusti%ied under capitalis(& #ndustry has been %or(ed into a series o% (ighty ,ertical organisations, econo(ically isolated %ro( each other and lin5ed together only at the top, by the .upre(e ouncil o% the Bational 0cono(y& HDhereas under the capitalist regi(e each trusti%ied enterprise could obtain ra* (aterials, labour, etc&, in nearby (ar5ets, these sa(e enter prises ha,e today to recei,e e,erything they need through the orders o% the central organs o% the uni%ied econo(y& Dith the huge si<e o% the country, ho*e,er, and o*ing to the e/tre(e instability and uncertainty o% the principal %actors o% production, the disorganised state o% transport & & & the as yet highly ine/act procedures and (ethods o% econo(ic statistics, the centralising (ethods that ha,e resulted %ro( the %irst period o% e/propriating bourgeois industry, and *hich ha,e ine,itably led to the dissociation o% the enterprises (in the to*ns, pro,inces, districts and regions), ha,e gi,en rise to (onstrous %or(s o% 3red tape3 *hich are doing irreparable har( to our econo(y&H Nuoted %ro( 8enin, +e%vre! compl?te!, +ol& SS+ o% the edn& o% 19"0, p& 621& 9p&
111:

)he need %or these adaptations (and o% great creati,e initiati,e in concei,ing the() (ust not be con%used *ith so(e strict HproportionalityH or other that allegedly has to be (aintained bet*een econo(ic %orces and political ones, or bet*een econo(ic %orces and %or(s o% organisation& .uch strict HproportionalityH cannot e/ist, under the conditions o% a transitional econo(y (ar5ed by internal une,enness o% de,elop(ent& As 8enin saysA
2"

(a*e 1,2

H.uch an argu(ent can be ad,anced only by a 3(an in a (u%%ler3 *ho %orgets that there *ill al*ays be such a 3discrepancy3, that it al*ays e/ists in the de,elop(ent o% nature as *ell as in the de,elop(ent o% society, that only by a series o% atte(pts -each o% *hich, ta5en by itsel%, *ill be one-sided and *ill su%%er %ro( certain inconsistencies -- *ill co(plete socialis( be created by the re,olutionary cooperation o% the proletarians o% all countries&H (+e%vre! compl?te!, +ol& 21, p& "61& 0ng& edn&, pp& "'6-6&) 9p& 112: 2' Ibid., p& "66& (0ng& edn&, p& "'1&) 9p& 112: 26 Fence the i(portant role played by the H%inancial planH& 9p& 11': 26 #t is not possible to underta5e here an e/a(ination o% the condition! and limit! o% the !ocial e%%ecti,eness o% this ele(entary (or HbasicH) econo(ic calculation& # say so(ething about it in Bo& 6, already (entioned o% Probl?me! de Planification. (.ee h& 2 o% this boo5&) 9p& 11': 21 Most o%ten, these orders *ill reach the producing enterprises through state trading organisations *hich are the(sel,es in contact *ith the consu(ers& )his is the (echanis(

per%ected in hina and *hich at the present ti(e (a5es it possible %or the detailed productionprogra((es o% the enterprises supplying consu(er goods to be brought up to date e,ery 2uarter (see -a con!tr%ction d% !ociali!me en $hine, by h& ?ettelhei(, J& harriKre, and F& Marchisio, $aris, Maspero, 1966)& 9p& 116: 28 At this le,el, respect %or social priorities can be ensured to so(e e/tent by using the retail price (echanis(& 9p& 116: 29 Nuite ob,iously, it is no ans*er to the 2uestions that this brings up to say that there is nothing here but the retention o% the He/ternal %or(sH o% co((odity transactions, on the grounds that, *hen *hat are in,ol,ed are (eans o% production that do not lea,e the socialist sector, they are not HrealH co((odities& )he appearance or disappearance o% an econo(ic category (here the 3category3 called a 3co((odity3) cannot be decided by 7uridical property %or(s but only by the ob7ecti,e conditions under *hich the econo(ic syste( itsel% %unctions& #t is no ans*er, because the conne/ion is o,erloo5ed bet*een the e/istence o% prices, together *ith sales and purchases, and the non-e/istence (and present i(possibility) o% rec5oning in ter(s o% labour-ti(e& 9p& 111: "0 )his brings up the proble( o% prices and *hat they signi%y in the socialist econo(ies o% today -- a proble( too enor(ous to be tac5led here& 8et (e (erely recall that prices play an e/tre(ely co(ple/ role in a socialist econo(y& )hey e/press both ,alue and social utility& )hey pro,ide the basis %or centralised calculations and also %or decentralised ones (at the le,el o% the production-units or econo(ic sub7ects, %or *ho( prices ser,e as in%or(ation in a condensed %or()& )hey are one o% the %oundations o% the circulation o% (oney a(ong the enterprises, and so on& )o the e/tent that prices not only re%lect the present (ar5et situation and the indi,idual %orecasts o% econo(ic agents, but also ta5e account o% both ,alue and social utility, they ser,e as the basis %or the %unctioning o% a !ocially controlled (ar5et& .o long as such a (ar5et is still needed, the

(a*e 1,7

planning o% prices is, alongside the planning o% in,est(ents and inco(es, the (ost e%%ecti,e (eans o% social control o% the de,elop(ent o% production on the basis o% state o*nership& (!n the relation bet*een ,alue and price, see Maurice Lodelier3s contribution to Bo& " o% Probl?me! de Planification (Ecole $rati2ue des Fautes Etudes)& 9p& 111: "1 +ery o%ten the absence o% concrete analysis results %ro( %acile identi%ication o% Had(inistrati,e planningH (through *hich, it see(s, countries are (ore or less obliged to pass i((ediately %ollo*ing a thorough change in the (ode o% production) *ith the econo(ic planning *hich is characteristic o% the %urther de,elop(ent o% a society on the road to socialis(& 9p& 118: "2 )his proposition does not (ean that in all countries the transitional phases (ust necessarily bear the sa(e %eatures& )his is a co(ple/ 2uestion on *hich # ha,e no ti(e to d*ell here& 9p&
118: "" )he

ter(s He/plicit (odelH, Hunderlying (odelH and Hreal (odelH are used in a theoretical analysis by #sy Joshua, as yet unpublished& 9p& 118: "' #t *ill be seen that all this brings up the proble( o% the distinction and the relations bet*een a planned econo(y and a (ar5et econo(y& .i(plistic contrasting o% these t*o types o% econo(y can be rele,ant only at a le,el o% abstraction *hich has nothing to do *ith any practical reality& )he real proble( is that o% the cla!! character o% a gi,en society and the dominant feat%re! o% a concrete econo(y& ?esides, the relations bet*een the (ar5et %orces and the %orces o% the plan are ob,iously bound to change in the course o% ti(e, *ith the ,ery de,elop(ent o% the producti,e %orces and all the changes that acco(pany this gro*th, on the planes o% organisation, o% consciousness, etc& 9p& 119:

(a*e 1,9

+8

The (ro lem of (rices in the socialist co:ntries of E:ro(e =Some refle;ions on a recent de ate>
91:

For about ten years no* the proble( o% prices has been e/tensi,ely discussed in the socialist countries& )his proble( is one o% decisi,e theoretical and practical i(portance %or the %urther de,elop(ent o% the socialist econo(yA a coherent price-syste( in con%or(ity *ith the re2uire(ents %or the building o% socialis( is an indispensable tool both %or good day-to-day (anage(ent o% enterprises and %or satis%actory econo(ic planning& A syste( o% prices li5e this is, o% course, needed %ro( the ,ery beginning o% the process o% transition to socialis(, but the need %or it (a5es itsel% %elt still (ore acutely as the econo(y beco(es (ore co(ple/ and interrelations are (ultiplied bet*een the di%%erent branches and centres o% production& !nly at a still higher le,el o% the producti,e %orces *ill conditions e/ist %or the ,alue %or( to disappear, and, *ith it, the role o% prices&92: #n the present period, prices still ha,e an indispensable role to play, but they can play it only i% they are not %i/ed HarbitrarilyH, that is, pro,ided that they e/press the social conditions o% production and the re2uire(ents %or changing the econo(ic and social structures& For (any years, (ost decisions relating to prices in the socialist countries o% 0urope ha,e been ta5en on a day-to-day basis& Lenerally spea5ing, these decisions did not re%lect any o,erall theoretical conception&9":

#n the sa(e *ay, %or a long ti(e the econo(ists o% the socialist countries (ostly con%ined the(sel,es to describing current practice, trying to 7usti%y it and analysing certain o% its conse2uences, in order, so(eti(es, to suggest changes on one point or another, usually so(e point o% detail& )he recent debate has there%ore presented, in the breadth o% its sub7ect(atter, a stri5ing contrast *ith past habits& Be,ertheless, the results o% this discussion still re(ain ,ery li(ited& Dhen *e try to consider the debate as a *hole, *e are struc5 by the absence o% any %ir( and uni%or( state(ent o% the proble(s at issue& )his has contributed to no s(all e/tent to rendering the debate un%ruit%ul& !n
(a*e 1,'

the theoretical plane it *ould not be e/aggerating to say that the discussion has %ailed to result in any decisi,e step %or*ard; this does not (ean that there *ere not a certain nu(ber o% i(portant contributions, than5s to *hich the nature o% the 2uestions raised is today clearer than it *as be%ore& )his being so, it is not surprising that the i(pact o% the discussion on the practical (easures that it had beco(e urgent to ta5e *as relati,ely li(ited, although so(e o% the decisions adopted during recent years, in certain socialist countries o% 0urope, ha,e been inspired by theses that *ere put %or*ard in the course o% the theoretical discussion& #t should be obser,ed that the (utual contradictoriness o% these theses has %ound e/pression in the lac5 o% uni%or(ity o% the (easures adopted in the ,arious countries&9': )he (on the *hole) unsatis%actory character o% the debate about prices, %ro( the theoretical standpoint, e/plains too *hy price-re%or( in the .o,iet =nion (especially re%or( o% industrial *holesale prices) has been put o%% %ro( one year to the ne/t, though it *as announced so %ar bac5 as 1960& )here are, o% course, practical reasons, too, that account %or these postpone(ents, but the latter ha,e no* resulted in such substantial disad,antages %or the .o,iet econo(y that a price-re%or( (ust be carried through on 1st July 1961&96: #t is to a%%ect, in the %irst place, *holesale prices in hea,y industry& ( %& .itnin, Bo& 61, p& '6&) #% the debate can be described as co(parati,ely sterile, this is because, at the theoretical le,el, it has not noticeably ad,anced the analysis o% the proble(, as is sho*n by the reappearance again and again, during the period concerned, o% the sa(e the(es and the sa(e argu(ents, a sign o% the circular nature o% the discussion& +ery recently, ho*e,er, the discussion escaped %ro( this circularity, but only in so %ar as it (o,ed on to %resh ground and con%ronted %resh proble(s& )his shi%t in the sub7ect-(atter o% the discussion (*hich had at %irst been centred (ainly on the proble( o% prices and later (ainly on proble(s o% the (anage(ent o% enterprises and o% planning the econo(y), *hen the 2uestions

pre,iously under consideration had been ans*ered only ,ery partially and inade2uately, con%ir(s that the *ay the theoretical proble(s *ere presented *as unsatis%actory, so(ething # shall ha,e (ore to say about later& Dhile it is i(portant to consider the content o% the discussion and the (ain the(es tac5led, *hich is *hat # propose to do here, it does not appear to (e to be use%ul to go o,er the history o% the debate itsel%, o*ing to the restricted nature o% its outco(e& !n the other hand, it does see( necessary to recall *hat has been, and still largely continues to be, the price-syste( in the .o,iet =nion, that is, in the country *here the discussion began and *hose price-policy has, in the past, inspired to a ,ery great e/tent the decisions ta5en in this sa(e sphere in the other socialist countries o% 0urope& A 2uic5 loo5 at this price syste( *ill enable us to understand better *hat *ere the (ost
(a*e 1,+

i((ediate concerns o% those *ho too5 part in the discussion, and the li(its *hich these concerns i(posed on the scope o% the proble(s discussed, %ro( *hich %ollo*s the need %or (ore precise %or(ulations& / The (rice-system in the So"iet @nion at the e*innin* of the 1%'1s )he price-syste( pre,ailing in the =..> at the beginning o% the 1960s *as a real product o% history, being, in a sense, deri,ed %ro( the price syste( le%t behind by the B&0&$& )he latter *as, broadly spea5ing, a syste( o% (ar5et prices *hich had already been partly (odi%ied by regulation based on political and social considerations, and abo,e all, by the do(inant role played in industry by the state sector&96: At the start o% the Fi,e-Cear $lans, those prices *hich had not already been regulated *ere brought under regulation, *hich (eant that %ro( then on*ard all industrial prices *ere trans%or(ed into Hadmini!tered H or Hreg%lated H price!,91: %i/ed by the rele,ant state organs&98: )ransactions bet*een state enterprises had to ta5e place on the basis o% these prices& Dages also being regulated (ta5ing account, to start *ith, o% their historically deter(ined le,el), the state enterprises operated *ithin a %ra(e*or5 o% Hregulated costsH& As ti(e *ent by, the price-syste( that *as the HlegacyH o% the B&0&$& naturally under*ent (odi%ications, *hich, though considerable, *ere usually partial in character, and ne,er called in 2uestion the Hhistorical basisH o% the prices concerned& )hus, *hen ne* products *ere (anu%actured (and (illions o% ne* products ha,e appeared bet*een 1921 and the present ti(e), their prices *ere deter(ined by ta5ing as basis their cost o% production -- this being itsel% deter(ined by historically gi,en prices -- at the ti(e *hen they began to

be (anu%actured (or the cost o% production e/pected *hen (anu%acture had been e/tended to a su%%iciently large scale), plus a certain Hpro%it-(arginH& )he entry o% ne* products into the production cycle o% a particular group o% users ga,e rise, also, to re,ision o% their selling prices& Fo*e,er, the price-syste( *as ne,er really re-cast so as to ta5e into account the speci%ic re2uire(ents o% a planned econo(y&99: )hus, although, in the end, prices ta5en indi,idually ha,e beco(e increasingly di%%erent %ro( *hat they *ere in 1921 (o*ing to technical changes and changes in *age-le,els), the !tr%ct%re of the price3!y!tem has continued to be deeply (ar5ed by its origins& )rue, *ith the passage o% ti(e this structure has also beco(e (ar5ed by a nu(ber o% decisions *hich *ere relati,ely independent o% the changes that ha,e co(e about in production-processes and costs o% production& .o(e o% these decisions *ere (ainly inspired by %inancial necessities, *hile others ai(ed at using prices as tools o% Hecono(ic calculationH (Hbusiness accountingH)& As regards %inancial necessities, these led to changes, big and s(all, in the pro%it-(argins added to the costs o% production o% the ,arious
(a*e 1,&

products, and also to changes in the rates o% the ta/es (this (eant, (ainly, the turno,er ta/) e(bodied in the prices paid by users& onse2uently, the ratios bet*een costs o% production and selling or buying prices ,aried a great deal %ro( one period to another& )hey *ere also ,ery di%%erent as bet*een one product and another& Lenerally spea5ing, the ,ariation in ratios bet*een selling prices and costs o% production *as not the result o% applying coherent principles to di%%ering situations, but rather o% decisions ta5en in di%%erent directions in response to the ,arying re2uire(ents o% di%%erent periods, or, 2uite si(ply, o% the greater or lesser con,enience o% using one particular product rather than another as a source o% %inancial receipts& )his situation greatly reduced the possibility o% using prices as a tool o% econo(ic calculation& #n general, there%ore, they *ere used %or this purpose only in an accessory *ay& $rices *ere considered abo,e all as a (eans o% accounting %or the receipts and e/penditure o% enterprises, that is, o% chec5ing on their operations %ro( the %inancial point o% ,ie*& #n principle, in,est(ent decisions and production plans *ere not supposed to be (uch a%%ected by the %inancial results o% the *or5ing o% indi,idual enterprises or branches o% the econo(y& )he dra*ing up o% plans *as to be based, abo,e all, on deter(ining a nu(ber o% targets regarded as being strategically i(portant %or the general de,elop(ent o% the national econo(y and the satis%action o% the people3s needs& Ad7ust(ents bet*een targets *ere thus e%%ected, during the dra*ing up

o% the plan, essentially by *ay o% using technical coe%%icients and (aterial balances& #n %act, it *as ne,er possible to be con%ined e/clusi,ely to these principles& #n practice, a certain nu(ber o% decisions, especially regarding the use o% a particular ra* (aterial or the introduction o% a particular techni2ue, *ere deter(ined or in%luenced by considerations o% price, or o% He%%iciencyH (easured by price, despite the ,ery slight econo(ic signi%icance o% the prices concerned& !n the other hand, it *as generally agreed, e,en be%ore the re%or( o% the (anage(ent o% .o,iet enterprises decided on in .epte(ber 1966, that the 2uality o% the (anage(ent o% enterprises could be esti(ated by obser,ing their costs o% production& Dithin the %ra(e*or5 o% ;hoDra!chet (the autono(y o% enterprises in respect o% accounting), *hich has e/isted since the B&0&$&, one o% the criteria %or e,aluating the 2uality o% (anage(ent has al*ays been the progress o% the pro%its (ade by each enterprise, and the latter3s achie,e(ent o% a certain planned le,el o% pro%itability; i% it *as a loss that *as planned, as *as the case *ith (any enterprises, and e,en *hole branches o% production, the red%ction of lo!!e! *as one o% the criteria %or esti(ating the 2uality o% (anage(ent& )hus, in practice, a large nu(ber o% decisions, so(e i(portant and others only a%%ecting (atters o% detail, but a(ounting together to so(ething ,ery substantial, *ere ta5en on the basis o% calculations (ade in ter(s o% prices& )he conse2uences o% this situation ha,e al*ays had a ,ery big bearing
(a*e 1,,

both on the (a5ing o% technological choices and on day-to-day production operations& #t *as, indeed, practically ine,itable that those responsible %or preparing technical pro7ects, or %or (anaging enterprises, should pre%er to ta5e decisions that Hsee(edH (ore ad,antageous because they could (a5e it possible to reduce costs o% production or per(it a Hsa,ingH o% in,est(ents, e,en though the Had,antagesH or Hsa,ingsH calculated li5e this *ere, (ore o%ten than not, (erely the result o% a certain *ay o% %i/ing prices and *ere thus %ar %ro( necessarily (eaning real econo(ic ad,antages %or the national econo(y& )he tendency to use prices as a (eans o% Hecono(ic calculationH has al*ays been regarded as sel%-e,idently 7usti%ied& )his is *hy the prices o% a large nu(ber o% (achines *ere deliberately %i/ed at a relati,ely lo* le,el in order to HencourageH their use& .i(ilarly, co(plicated procedures (o%ten necessitating recourse to subsidies) *ere introduced in order to encourage both the production and the use o% certain products& #n %act, the use o% prices as a tool o% econo(ic calculation and a *ay o% e,aluating *hether enterprises *ere (anaged *ell or badly *as %elt as an

ob7ecti,e necessity *hich ca(e increasingly into contradiction *ith the pricestructure itsel%, o*ing to the co(ple/ity and e,en incoherence o% this structure& // The initial concerns of the (artici(ants in the de ate a o:t (rices )he state o% the price-syste( in the .o,iet =nion about ten years ago, and the si(ilar state o% the price-syste(s in the other socialist countries o% 0urope, *as thus one o% the reasons *hy the debate on prices began& )he purpose o% this discussion *as to (a5e possible a coherent re,ision o% the price-syste(& At the start, one o% the (ain concerns o% nearly all o% those *ho too5 part in the debate *as to try and si(pli%y the price-structure, by (a5ing the %or(ation o% prices and their subse2uent e,olution sub7ect to a %e* si(ple rules& #t *as %airly generally agreed that the si(plicity and uni,ersality o% the rules applied in the %or(ation o% prices ought to (a5e the latter co(parable, and so Hecono(ically signi%icantH& #t *as %urther agreed that such prices ought to ensure the profitability o% nearly e,ery enterprise& )he proble( *as seen in al(ost the sa(e ter(s in the .o,iet =nion and in (ost o% the other socialist countries o% 0urope, in particular in Fungary, *here they *ere pri(arily concerned to put an end to *hat *as called the Hdis(e(ber(ent o% the price syste(H ( si5os-Bagy, Bo& 11, p& 266)& .o(e econo(ists (such as Bo,o<hilo,, see Bos& 6' and 66) did not accept this Hsi(pli%yingH point o% ,ie*, %or they *ere con,inced o% the co(ple/ity o% the social cost o% production *hich prices ought to (easure, and o% the need, i% this (easure(ent *as to be acco(plished, o% e(ploying (athe(atical (ethods& Fo*e,er, the trend o% thought represented by these econo(ists, though i(portant theoretically, has re(ained a (inority trend both in the .o,iet =nion and in the other socialist countries& )his is
(a*e 1,%

doubtless due to the %act that the theoretical and practical proble(s raised by the proposals o% these econo(ists are ,ery big ones, *hich call %or %urther research, in,ol,ing collaboration *ith (athe(aticians&910: #n any case, in relation to the central line o% the debate, the conceptions o% those econo(ists *ho ad,ocate the use o% (athe(atical (ethods %or the establish(ent o% a price-syste( occupy a position apart& # shall return to this point later& Dhile the %or(ulae suggested %or price-%i/ing *ere ,aried, they *ere none the less nearly all inspired by t*o concerns *hich *ere added to the ai(s already (entioned, o% si(plicity, uni,ersality and (a5ing pro%itability general& !ne o% these concerns *as to eli(inate Hsub7ecti,is(H in the %i/ing o% prices -- a concern *hich, in principle, goes bac5 a long *ay& #ts necessity *as

declared already by .talin in his *or5 on conomic Problem! of ,ociali!m in the .,,R (Bo& 68)& )he other concern, *hich is undoubtedly the (ost %unda(ental, is to reconstruct the price-syste( so that it can %unction as an instru(ent o% economic calc%lation, that is, a (eans o% g%iding certain decisions& )his is bound up, as has been said, *ith a practice that e(ploys calculations in priceter(s to esti(ate the Had,antagesH or Hdisad,antagesH o% a particular decision -- a practice *hich, (oreo,er, is una,oidable& )he content o% this second concern is gi,en ,ery general e/pression in %or(ulae such as thisA H$rices should re%lect the socially necessary labour inputs, that is to say, social costsH ( si5os-Bagy, Bo& 11, p& 266)& !rA H)he (ost i(portant principle o% price-%or(ation under socialis( consists in ensuring that the prices o% co((odities correspond to the socially necessary e/penditure o% labour in producing the(H ()sagolo,, Bo& 61, p& '06)&911: /// The main (ro(osals Agree(ent bet*een the *riters stops as soon as the ground o% their initial concerns is le%t behind and they go %or*ard to o%%er proposals& )hey are, indeed, di,ided by ,ery great di%%erences o% opinion *hen it co(es to de%ining ho* to H(easure ,alueH, lay do*n practical HrulesH %or price %i/ing, and allo* %or He/ceptionsH to these HrulesH& )o say so(ething at once about the last-(entioned point, it is obser,able that the e/ceptions (ost generally allo*ed, to the rules proposed, correspond to social and political considerations& )hese considerations (ay lead to certain products being sold relati,ely cheaply, because they are regarded as HculturalH, or there (ay be others the cost o% *hich is relati,ely high but *hich it is desired to 5eep, or cause to be, in *idespread use (ne* (eans o% production, %or instance)& )he e/ceptions to the rules that are proposed are related also to the %act that 2uality is ta5en into account in %i/ing prices, and, again, %ollo*ing a practice already (entioned, to desire either to HencourageH certain lines o% production by paying high prices to the enterprises that supply the( or, on the contrary, Hrestricting de(andH %or scarce goods ()sagolo,, Bo& 61, p& '06)&
(a*e 1%1

)he great nu(ber o% He/ceptionsH (ay cause one to as5 *hether they are not perhaps (ani%estations o% so(e la* o,erloo5ed by the proposed rules, but the 2uestion has rarely been put in this *ay, e/cept by econo(ists *ho ta5e a di%%erent line %ro( that o% co(posing HrulesH acco(panied by (ore or less nu(erous e/ceptions; that is, (ainly by the (athe(atical econo(ists& As has been said, it is not only on the nature o% the e/ceptions to be allo*ed to the price-%i/ing rules that the *riters di%%er, but also on the rules the(sel,es, in other *ords on the *ay in *hich socially necessary e/penditure should be calculated&

lose e/a(ination o% the proposed rules *ould probably sho* that there are se,eral do<en o% the(& #n Fungary, %or instance, *here the debate has been especially li,ely, the Bational $rices !%%ice has registered "2 di%%erent pricesyste(s (or H(odelsH) ( si5os-Bagy, Bo& 11, p& 266), (erely %or the purpose o% carrying out calculations *ith a ,ie* to choosing the HbestH syste(& Actually, despite their ,ery great di,ersity, (ost o% the proposals correspond to three basic conceptions, and co(binations o% these three& De *ill %irst e/a(ine the three basic conceptions, and then so(e others *hich deser,e special attention& 1 Price! ba!ed on Hval%e H !ne conception is ai(ed at pro,iding a price-syste( Hbased on ,alueH, re%erring to ?oo5 # o% $apital. #n practice, this conception is interpreted as i(plying that to the (oney costs o% the ,arious 5inds o% production (ust be added a Hnet inco(eH proportionate to the e/penditure on *ages re2uired %or these 5inds o% production& !ne o% the %irst upholders o% this conception *as the .o,iet econo(ist .tru(ilin (Bo& 69, pp& 60"-80)& )hough practice has al*ays been re(ote %ro( anything corresponding, e,en ,ery roughly, to this point o% ,ie*, it has al(ost al*ays been accepted o%%icially that prices are (or ought to be) Hbased on ,alueH, *hile at the sa(e ti(e the need has been allo*ed %or (any He/ceptionsH& )his point o% ,ie* is the one e/pressed in the $olitical 0cono(y )e/t boo5 o% the =..> Acade(y o% .ciences& A(ong the e/ceptions regarded as 7usti%iable the )e/tboo5 (entions the H%i/ing belo* ,alue o% the prices o% (eans o% productionH (=..> Acade(y o% .ciences, Bo& 1, p& 62')& HFi/ing belo* ,alueH is (eant in the sense o% prices lo*er than the price that *ould be %i/ed i% one *ere to %ollo* strictly the conception o% prices Hbased on ,alueH& )sagolo,3s $o%r!e of Political conomy (Bo& 61), published in 196", also ta5es this line, as *e ha,e seen& Fe allo*s (ore or less the sa(e e/ceptions to the H,alueH rule as those allo*ed by the )e/tboo5& )he calculations that ha,e been (ade in order to co(pare the ,arious prices (i% they had been %i/ed in this *ay) *ith the actual prices are, o% course, ,ery co(plicated& #t is, indeed, not su%%icient to carry out separate calculations %or each product, adding to present (oney e/penditure the
(a*e 1%1

total o% actual *ages (ultiplied by a coe%%icient e2ual to the a,erage ratio o% the net o,erall inco(e (on the social scale) to the total *ages o% the *or5ers in the production sector (or the industrial sector)& #% this *ere the procedure %ollo*ed it *ould lea,e entirely out o% account the %act that the (oney e/penditure o% all the branches *ould itsel% be altered by the changes that the alteration in the price structure *ould bring about in the prices charged by their o*n suppliers&

)he proble( can be sol,ed only by calc%lating an the price3change! at the !ame time, so(ething that calls %or the use o% tables o% inter-industrial relations& Fo*e,er, it is out o% the 2uestion, *ith the (eans o% calculation a,ailable up to no*, to *or5 on the (illions o% actual prices& )he calculations that ha,e been atte(pted ha,e been based on the a,erage prices o% the di%%erent branches o% production& )here is no point in e(phasising here the technical proble(s to *hich such calculations gi,e rise and the necessarily li(ited signi%icance o% the results obtained, o*ing to the %act that they relate only to the Ha,erage pricesH o% the branches& At the sa(e ti(e, it is not *ithout interest to illustrate the i(plications o% proposals o% this 5ind by re%erring to the results o% calculations carried out in Fungary, *here they ha,e sho*n special interest in this 2uestion& )o (a5e these calculations, the national econo(y has been assu(ed to be di,ided into 66 production sectors, *hich ha,e then been grouped into se,en branches& alculations ha,e sho*n that, as co(pared *ith actual prices, Hprices based on ,alueH *ould be 10&6 per cent lo*er in industry, '9 per cent higher in agriculture, 18 per cent higher in transport, and so on (Lanc<er, Bo& 2')& )his re,eals ho* %ar the actual price-syste( is %ro( being %ounded on the HrulesH that *ould be i(posed by the conception o% prices Hbased on ,alueH& According to calculations that ha,e been (ade, the sa(e is true o% other socialist countries, including the .o,iet =nion& 2 Price! ba!ed on Ho#n co!t! H A second conception has inspired proposals that ai( at reconstructing the price-syste( by Hnor(alisingH it, that is, by applying in as syste(atic and uni%or( a *ay as possible the rules o% price-%i/ing *hich had been adopted in practice (ore or less spontaneously& )his second conception is o%ten re%erred to as that o% prices Hbased on a,erage ,alueH& )he point o% this e/pression see(s to be abo,e all to conceal *hat the conception really a(ounts to, na(ely, a conception that has nothing at all to do *ith Hprice based on ,alueH& #t is so(eti(es described, *ith (ore (eaning, as the conception o% prices e2ui,alent to Ho*n costsH& oncretely, the procedure adopted is thisA in order to *or5 out *hat ought to be the selling price, one adds to the co!t of prod%ction, in money term!, o% each product a Hnet inco(eH obtained by (ultiplying this cost o% production by a certain Hstandard o% pro%itabilityH& )o a large e/tent this is in %act ho* prices *ere %or a long ti(e actually deter(ined, in the .o,iet =nion and in (ost o% the other socialist countries,912:
(a*e 1%2

though, as *e shall see, this procedure is no* being departed %ro( to an increasing e/tent&

)hrough this practice, each ti(e a ne* product appears and is produced in su%%iciently large 2uantities to *arrant its being gi,en a regulated price, the latter is actually %i/ed by rec5oning the cost o% production plus a certain standard o% pro%itability& )his is *hat happens *ith the !elling price! o% industrial enterprises; the prices actually paid by the buyers (ay be higher, as a result o% ,arious ta/es being added to the price& Further, *ith regard to actual practice, t*o (ore i(portant obser,ations need to be (adeA (1) )he cost o% production *hich ser,es as base %or calculation is not necessarily the actual cost o% production, but is usually an Ho%%icial cost o% productionH, i&e&, the cost o% production as Hcon%ir(edH by so(e ad(inistrati,e ser,ice& )his o%%icial cost o% production is usually, though not al*ays, the average cost o% production, as esti(ated at a certain (o(ent, and it (ay there%ore di%%er *idely %ro( the Hactual cost o% productionH o% a particular enterprise& )he proble( *hether one ought to ta5e as basis %or calculation the a,erage cost o% production %or the gi,en branch, or the maxim%m cost o% production (cost o% production o% an additional unit-product, or o% an enterprise *hich operates at the highe!t co!t, but is ne,ertheless essential i% needs are to be co,ered) is increasingly discussed& Dith a %e* e/ceptions, especially relating to the prices o% the products o% the e/tracti,e industries, practice continues to %a,our ta5ing the average cost o% production as basis %or calculation, and this is also the ,ie* o% (any econo(ists& Be,ertheless, a strong current o% opinion has appeared *hich %a,ours the adoption o% the maxim%m %igure, especially a(ong those econo(ists *hose attitude to the syste( o% Ho*n costsH is a critical one& (2) )he Hpro%itability (arginH is generally ,ery ,ariable as bet*een di%%erent products& Fo*e,er, despite the lac5 o% coherence bet*een the di%%erent practical procedures, that is, the e/tre(e ,ariety o% standards o% pro%itability and o% conditions under *hich costs o% production are calculated, not to spea5 o% the incidence o% a nu(ber o% ta/es, calculations sho* that, by choosing an ade2uate uni%or( pro%itability-standard it *ould be possible to arri,e, using this procedure, at a price-syste( that, on the a,erage, di,erged relati,ely little %ro( the actual price-syste(& )a5ing the e/a(ple o% Fungary again, *e see that there, on the basis o% calculations si(ilar to those (entioned abo,e, the prices obtained by applying a uni%or( standard o% pro%itability (itsel% calculated so that the a,erage le,el o% retail prices *as the sa(e as the actual le,el) *ould be, in the case o% industrial prices, only 0&' per cent higher than the actual prices& !n the other hand, prices calculated in this *ay *ould be 2&9 per cent higher than actual prices in agriculture and 1'&' per cent higher than in transport (Lanc<er, Bo&

2', p& 1')& )he si<e o% these di,ergences, *here agriculture is concerned, is due to the %act that agricultural prices are %i/ed
(a*e 1%7

in a special *ay, that is, they are not *or5ed out by adding a Hpro%itabilitystandardH to a cost o% production& )he *riters *ho supported the syste( o% Ho*n costsH *ere (ainly in %a,our o% the procedures in %orce *hen the debate opened& Dhat they criticised in these procedures *as largely the ,ery *ide di,ersity o% Hstandards o% pro%itabilityH *hich *ere applied to di%%erent products& For the(, Htrue pricesH re2uired that a uni%or( standard be applied to all o% the(& Fro( this point o% ,ie*, one o% the (ain criticis(s (ade o% the Htraditional practicesH *as the H%i/ing belo* ,alueH o% the prices o% (eans o% production, as co(pared *ith *hat these prices *ould be i% a single standard o% pro%itability *ere applied& At %irst, criticis( o% the traditional practices, in so %ar as this ai(ed not at re7ecting but (erely at HrationalisingH the(, *as on the *hole success%ul& )hus, to an increasing e/tent, in the .o,iet =nion the Hstandards o% pro%itabilityH applied to the costs o% production o% the ,arious products *ere brought closer together, though not reduced to uni%or(ity& For e/a(ple, in hea,y industry, the (argin o% pro%itability, *hich *as only 2&6 per cent in 19'0, rose to 1" per cent in 1960 ()sagolo,, Bo& 61, p& 609)& 4uring the sa(e period, the share o% net inco(e in the prices o% consu(er goods *as reduced, though it re(ains, on the *hole, higher than in the prices o% (eans o% production& Be,ertheless, it is no longer possible to spea5 o% the .o,iet =nion3s ha,ing an only slightly pro%itable hea,y industry alongside a highly pro%itable light industry& #ndeed, as a result especially o% the policy adopted regarding agricultural prices, a nu(ber o% branches o% light industry are *or5ing at a loss (the (eat industry) or at the (ini(u( le,el o% pro%itability (%ish and dairying industries)& #n general, despite the Hrecti%icationsH to *hich the .o,iet price-syste( has been sub7ected in recent years, it continues to lac5 (uch coherence and to present a nu(ber o% *ea5nesses& +& .itnin, hair(an o% the $rices o((ittee (attached to the Losplan organisation), has analysed so(e o% these *ea5nesses in an article in *hich he also lists the chie% %eatures o% the re%or( o% industrial *holesale prices no* in progress (Bo& 61)& !ne o% .itnin3s criticis(s o% the present price-syste( in the .o,iet =nion is that, in (any cases, selling prices do not e,en co,er costs o% production& Another o% his criticis(s relates to the ,ery *ide ,ariations in the Hrates o% pro%itH that present-day prices produce& )hus, the coal industry *or5s at a planned rate of lo!! o% #6 per cent o% the ,alue o% its production-%unds (accounts o% 196'), *hile the precision instru(ents industry *or5s at a rate o%

pro%it o% 60 per cent& )he *riter sho*s that e,en bigger ,ariations can be %ound bet*een the rates o% pro%it realised on the di%%erent products produced by one and the sa(e enterprise, so(e being produced at a loss and others at rates o% pro%it o% 200 or "00 per cent or e,en (ore, *ithout there being any 7usti%ication %or this disparity (Bo& 61, pp& "1-8)& )he lac5 o% coherence in the present price-syste( in the .o,iet =nion
(a*e 1%9

(a5es it ,ery di%%icult to HrationaliseHA to do this, e/cept *ithin rather narro* li(its, (ust in %act entail considerable disturbance in the structure o% prices& )his is no doubt one o% the practical reasons *hy it has been necessary to *ait so long %or the re%or( the o% price-syste(, announced as %ar bac5 as 1960, to ta5e shape in reality& )he present situation in,ol,es disad,antages *hich are all the (ore nu(erous because, since 1966, an increasing nu(ber o% .o,iet enterprises ha,e gone o,er to a ne* (ethod o% (anage(ent, *hich includes e,aluating their acti,ity on the basis o% pro%itability& #n other socialist countries in 0urope, price-re%or( has gone %urther than in the .o,iet =nion, and has cul(inated, in (ost cases, in abandon(ent o% the syste( o% Ho*n costsH& )he latter ne,ertheless continues to be applied, at least partly in $oland, in the L&4&>& and in >o(ania& 0,en in these countries, ho*e,er, they are (o,ing %arther and %arther a*ay %ro( a Hpure syste(H o% Ho*n costsH, because this syste( is being co(bined *ith others ((ainly by including in the price a Hrate o% pro%itH calculated in proportion to the in,est(ents tied up in the ,arious lines o% production)& .o as not to ha,e to go bac5 o,er the syste( o% Ho*n costsH, let (e say straight a*ay that its chie% 7usti%ication is that it is e/tre(ely si(ple to operateA at any (o(ent the actual or standardised cost o% production o% a type o% product can be *or5ed out by ta5ing the actual (oney e/penditure as one3s basis, *ithout ha,ing to concern onesel% about *hat this e/penditure (eans or about *hat is represented by the ,alue o% the %unds in,ested&91": #t is undoubtedly on account o% its co(parati,e si(plicity that this HprocedureH %or calculating prices has re(ained in %orce %or such a long ti(e and continues to be %a,oured by (any practical (en& At the sa(e ti(e it (ust be obser,ed that no serious theoretical argu(ent can be adduced to 7usti%y it& A& 0((anuel is right *hen, co(paring the di%%erent price-syste(s, he *rites, regarding the syste( o% Ho*n costsHA H)his is the (ost irrational and absurd syste( that could be, as regards both its internal i(plications and its e%%ect in the sphere o% %oreign e/change& #t raises the price o% the products o% those branches *here the coe%%icient o% ra* (aterial is high (these are not at all the sa(e as those *ith a high organic co(position, but indeed are generally

industries *ith a lo* organic co(position, such as the light-industry branches), *hile it lo*ers the prices o% the branches *ith a lo* coe%%icient o% ra* (aterial, *hich are generally the ones *ith a high organic co(position, such as the hea,y-industry branches&H (A& 0((anuel, Bo& 20, p& 6&) )he lac5 o% theoretical consistency in the syste( o% o*n costs e/plains *hy it is that the *riters *ho ha,e analysed the (athe(atical structures o% the (ain price-syste(s (especially so as to bring out the econo(ic i(plications o% a change %ro( one syste( to another) ha,e, as a rule, not thought it *orth *hile to analyse the structure o% the syste( o% Ho*n costsH (?rody, Bo& 16)&
(a*e 1%'

" Price! ba!ed on Hprice! of prod%ction H )he last o% the three (ain types o% proposal (entioned is o%ten described as a syste( o% Hprice-o%-productionH-type prices, because (ost o% the econo(ists *ho ad,ocate calculating prices in a *ay that can ta5e account not only o% the individ%al co!t o% each product but also o% as large a part as possible o% its 2uanti%iable !ocial co!t ha,e sought to re%er to the concept o% Hprice o% productionH, as this *or5ed out in ?oo5 ### o% $apital. )he proposals put %or*ard by these econo(ists ha,e, ho*e,er, pro,ided only ,ery li(ited ans*ers to the proble(s *hich preoccupied the(, and (ost o% the criticis(s directed against these proposals are 7usti%ied& )his, ho*e,er, should not (a5e us lose sight o% the decisi,e i(portance o% the proble(s o% ta5ing into account the actual social costs o% di%%erent 5inds o% product& Dithin the li(its o% this article it is not possible to analyse these proble(s in detail& )o do so *ould ta5e us too %ar %ro( our study o% the discussion on prices (one o% the shortco(ings o% *hich *as, indeed, that it did not tac5le these proble(s, or did so only to a ,ery li(ited e/tent)& )he essence o% the (atter, ho*e,er, can be put li5e thisA as a general rule, unless a si(ultaneous calculation o% costs is (ade, reduction to the (ini(u( o% individ%al costs o% di%%erent products %ails to ensure the reduction to the (ini(u( o% their total !ocial co!t, %or by reducing the indi,idual cost o% so(e products one causes an increase in the indi,idual cost o% others -- at least, a%ter a certain stage has been reached in the socialisation o% the producti,e %orces& !n the basis o% pri,ate o*nership o% the (eans o% production, the negati,e e%%ects, %ro( the angle o% the total !ocial co!t o% production, o% a particular techni2ue or procedure are a (atter o% indi%%erence to the capitalists, since the ob7ecti,e la*s o% the capitalist (ode o% production cause the decisions ta5en by the agents o% this (ode o% production to be do(inated by their stri,ing %or (a/i(u( indi,idual pro%its& #n an econo(y do(inated by social o*nership o% the (eans o% production, and ai(ing not at indi,idual pro%it but at (a/i(u( satis%action o% social

needs, indi%%erence to social costs is unacceptable, and this is *hat gi,es rise to a series o% proposals intended, in principle, to (a5e it possible to esti(ate these costs, *hich are ne,er seen directly by the agents o% production the(sel,es& #n *hat (ay see( a parado/ical %ashion, (ost o% these proposals appear to try to HrestoreH the prices o% production *hich are characteristic o% the capitalist (ode o% production& =p to a point, this parado/ is only an apparent oneA price o% production represents, in %act, an ele(entary (or Hpri(iti,eH) *ay o% ta5ing account o% certain social costs, those *hich the ,ery *or5ing o% capitalis( indirectly obliged the agents o% this (ode o% production to rec5on *ith& As Bo,o<hilo, correctly obser,es (Bo& 6', p& 216), it is only by analysing the *or5ing o% a (ode o% production *hich is (ar5ed by a higher le,el o% socialisation o% production that one can grasp
(a*e 1%+

that this is the actual %unction o% Hprice o% productionH& Fo*e,er, *hile recognising this, it is also necessary to recognise the capitali!t limitation! o% this price, and *hat, there%ore, the speci%ic changes are that (ust be (ade to it in order that it (ay beco(e so(ething di%%erent, a real social price that can e%%ecti,ely be used %or certain econo(ic calculations that ha,e to be (ade under the conditions o% transition %ro( capitalis( to socialis(& )here can be no 2uestion o% de,eloping here all the i(plications o% the proposals (entioned; that *ould (ean going o%% on to another sub7ect& # *ill there%ore con%ine (ysel% to a %e* points onlyA a) !ne aspect o% indirect social costs is thisA *hen production %unds are in,ested %or a certain purpose, this usually increases the costs o% production %or other branches *here these %unds (ight other*ise ha,e been in,ested -since the (ore that is in,ested in one direction, in order to reduce costs o% production there, the less can be in,ested in other spheres, *here costs are there%ore relati,ely and indirectly increased& )his conne/ion bet*een costs (eans that minimi!ation of the co!t of !ocial prod%ction as a *hole can be achie,ed only in so %ar as the reduction o% so(e costs does not entail an increase o% others& )he application o% an a,erage rate o% pro%it to the in,est(ents (ade in ,arious 5inds o% production, and the %or(ation on this basis o% a price o% production, (a5es it possible to (easure, in an ele(entary *ay, this aspect o% the indirect social costs o% e,ery in,est(ent in production& b) )his capitalist (easure(ent o% resultant indirect social costs cannot be trans%erred, 7ust as it stands, to a socialist econo(y or to transitional econo(ies& Dithout going into a detailed study o% the changes that (ust be (ade in this price91': (so(e o% the( still need to be *or5ed out theoretically), it can be said that the chie% aspects o% these changes are as %ollo*sA

(1) )he socialist econo(y, as it e,ol,es to*ards socialis(, has not and cannot ha,e any Ha,erage rate o% pro%itH (*hich itsel% results %ro( the la* o% ,alue being applied both to the products o% labour and to labour-po*er itsel%); *hat it has and (ust ha,e is a minim%m rate of labo%r3!aving. )his rate can be calculated only as part o% a planA it is not gi,en ready-(ade by the Hecono(ic syste(H, but has to be *or5ed out on the basis o% political and social decisions; (2) Measure(ents o% social costs cannot be con%ined to applying a si(ple H(athe(atical ruleH, %or the si<e o% the indirect social cost o% a particular line o% production depends on the total structure o% production *ithin *hich this particular production ta5es place& Bo*, *hereas under capitalis( this total structure o% production is do(inated by the la*s o% e/panded reproduction o% capital, under socialis(, or under social %or(ations transitional bet*een capitalis( and socialis(, this structure is do(inated by the plan, in *hich society3s esti(ation o% its o*n needs is e/pressed& !nly on the basis o% the plan itsel%, there%ore, can social costs be esti(ated& # shall co(e bac5 to this point later&
(a*e 1%&

=n%ortunately, (ost o% the econo(ists *ho ha,e sought to bring out the social costs o% production (*ith the e/ception, to so(e e/tent, o% Bo,o<hilo,), ha,e %ailed to sho* all the inade2uacies o% Hprice o% productionH as such& )his is *hy *hat ought to ha,e been an adu(bration o% a *ay to rec5on up social costs o% production appears usually as a (ere HapplicationH o% a syste( o% Hprices o% productionH& A%ter this parenthesis, the ai( o% *hich *as to sho* the nature o% the proble(s raised by the conceptions here (entioned, and the inade2uate treat(ent gi,en to these proble(s, *e can return to describing the (ain %eatures o% the proposals that ha,e been put %or*ard& #n general, according to these proposals, the price o% e,ery product should be calculated by adding to its cost o% production916: a net inco(e proportionate to the in,est(ent (ade in producing this product& )he *ay o% calculating prices thus proposed see(s, %or(ally spea5ing, to consist in applying a Hrate o% pro%itH to the in,est(ents co((itted to the ,arious 5inds o% production, and this is *hy, as has been sho*n, this syste( o% prices is described as a Hprice-o%-productionH syste(& 4epending on the particular econo(ist, the in,est(ents to *hich the Hrate o% pro%itH, or o% Hpro%itabilityH, is to be applied are either the entire in,est(ent co((itted to the gi,en line o% production (i&e&, both %i/ed %unds and circulating %unds), or only the %i/ed %unds& Dhen it co(es to the conditions %or deter(ining Hrates o% pro%itabilityH, the proposals are again ,ery di,erse, o*ing to the e(pirical or eclectic character

o% these proposals& #t has been proposed that rates di%%erentiated by sectors be applied (c%& Be(chino,, Bo& 61), or else a uni%or( rate deter(ined by the ratio bet*een the total a(ount o% in,est(ent laid do*n by the plan and the a(ount already in,ested, or one deter(ined by the ratio bet*een planned accu(ulation and planned consu(ption, or, again, a (ini(u( rate *or5ed out on the basis o% calculations %ro( plan ,ariants, and so on& #n recent years, an increasing nu(ber o% econo(ists in the .o,iet =nion and the 0uropean socialist countries ha,e co(e out in %a,our o% conceptions o% this sort& #n the .o,iet =nion, one (ay particularly (ention, as supporters o% this syste(, U& Atlas (Bos& ', 6 and 6), #& Malyshe,, and +& .obol (Bo& '2), +& 4& ?el5in (Bo& 11), 0& @ats and A& >o<hans5y (Bo& 29), and also, though *ith considerable 2uali%ications, Bo,o<hilo, (Bos& 6' and 66) and Be(chino, (Bos& 61, 62 and 6")& ontrary to *hat is *idely supposed outside the socialist countries, this conception is not necessarily bound up *ith the *riters3 ideas in %a,our o% e/tensi,e decentralisation, (a5ing planning H(ore %le/ibleH, pro,iding (aterial incenti,es, or using Hpro%itH as the chie% inde/ to the acti,ity o% enterprises& 8iber(an, %or e/a(ple (Bos& "8 and "9), has ad,ocated o,er a period o% se,eral years his ,ie*s ai(ed at enabling the pro%it criterion and (aterial incenti,es to play a greater role, but *ithout declaring hi(sel% either %or a substantial change in the price-syste( generally or, in particular, %or
(a*e 1%,

introducing a syste( o% the Hprice-o%-productionH type& 0,en *hen, in 1962, 8iber(an spo5e in %a,our o% a conception o% Hpro%itabilityH *hich *ould be de%ined by the ratio bet*een pro%it and a(ount o% in,est(ent in production, he does not see( to ha,e ad,ocated a recasting o% the price-syste( along the lines o% Hprices o% productionH& Moreo,er, *hen the Hprice-o%-productionH idea is ad,ocated in its strict %or(, it is seen to include in the Hprice o% productionH a Hcharge %or in,est(entsH *hich does not bene%it the enterprise but i! paid into the exche'%er. onse2uently, %ar %ro( being %a,ourable to an increase in the pro%its recorded by each production-unit, this proposal tends, in principle, to reduce these pro%its& on,ersely, *e obser,e that (ost o% the supporters o% a price-syste( o% the price-o%-production type ha,e also declared at the sa(e ti(e %or a high degree o% centralisation& )his is so, in particular, in the case o% Be(chino, (c%& Bo& 61, pp& '0-2) and Bo,o<hilo,,916: *ho are both %ar %ro( ad,ocating a Hpure price o% productionH but are rather in %a,our o% certain procedures that co(e close to the rec5oning-up o% social costs& #t is also i(portant to e(phasise that (ost o% those in %a,our o% this (ore or less pure price-o%-production syste( ha,e ta5en up their position not on the basis o% theoretical argu(ents, such as those ai(ing at bringing out the

indirect social costs o% di%%erent products, but rather by bringing %or*ard argu(ents o% a HpracticalH order& )hus, one o% the argu(ents (ost %re2uently ad,anced by supporters o% this 5ind o% price is that it enables the central planning organs to e/ercise better control o,er the use (ade o% production %unds by the enterprises& #n the sa(e *ay, it is o%ten said that, i% these proposals *ere adopted, this *ould (a5e it possible to reduce the in,est(ents re2uired by the enterprises& #t is, indeed, co((only the case that the enterprises3 in,est(ents greatly e/ceed their real needs& #n this *ay the (anagers try to create Hreser,esH o% production-capacity& )his practice, *hich is bound up *ith the di%%iculties the enterprises o%ten e/perience in obtaining (achinery or spare parts at the (o(ents *hen they need the( (o*ing to de%ects in the *or5ing o% the syste( o% technical supply), results, in %act, in a considerable *aste o% %i/ed %unds& )hus, in 1962, a census and so(e sa(plings carried out by the =..> entral .tatistical !%%ice sho*ed that about hal% the stoc5 o% (achine tools *as not being used (on the basis o% t*o-shi%t *or5ing, ta5en as the nor()& )his stoc5 represented, according to the in,estigation, a total ,alue o% one thousand (illion roubles& )he sa(e in,estigation re,ealed that there *as about si/ thousand (illion roubles3 *orth o% plant *hich had not been installed& )his a(ount corresponds to appro/i(ately hal% o% the annual in,est(ent in ne* plant (F& @hachaturo, and 4& 8,o,, Bo& "0)& #n any case, there is nothing to be gained %or our present purpose by listing the ,arious argu(ents that ha,e been put %or*ard %or or against this conception o% the price-syste(& )o do so *ould be to enter into the details o% the discussion itsel%&
(a*e 1%%

#t is to the point, ho*e,er, to note that the price-syste( that has been introduced in the .o,iet =nion during 1961 is inspired by the syste( o% prices o% production, although it in,ol,es substantial di,ergences %ro( *hat the logic o% this syste( *ould de(and& )he %ollo*ing %igures illustrate this point& For hea,y industry as a *hole, the rate o% pro%itability %oreseen (this rate is (easured in relation to the production %unds) is about 16 per cent on the a,erage, *hich entails an increase in the *holesale prices o% industrial products by 11-12 per cent (+& .itnin, Bo& 61, Bo& '1)& )his rate o% 16 per cent co(pares *ith a pre,ious rate o% about 10 per cent (A& @o(in, Bo& "1, p& 1")& 911: For a ,ariety o% reasons, ho*e,er, this a,erage actually results %ro( the use o% di%%erent rates o% pro%itability %or di%%erent branchesA 1&6 per cent in the coal industry (hitherto *or5ing at a loss), 16 per cent in the (etallurgy o% %errous (etals (*here pre,iously it *as 8 per cent) and non-%errous (etals ali5e, and in the e/traction o% oil and gas, a little less than 16 per cent in (achinebuilding, about 16 per cent in the che(ical industry (hitherto 20 per cent, on a,erage), 20 per cent in the ti(ber industry (hitherto 8 per cent), and 10 per cent in electric po*er production& #n light industry it *ould appear that rates o%

pro%itability are to ,ary, i% the proposals o% the .tate o((ittee on $rices are accepted, bet*een "0 and "6 per cent& As *ill be seen, although %or(ally prices are to be constructed as Hprices o% productionH (cost o% production plus rate o% pro%itability on production %unds), in reality the adoption o% rates o% pro%itability that di%%er *idely bet*een the branches (eans that the actual price-structure is %ar %ro( that *hich *ould be gi,en by a price-o%-production-type syste(& )he reasons %or these di,ergences are essentially practical ones& A 2uic5 loo5 at a %e* o% the( *ill re,eal so(e o% the di%%iculties in,ol,ed in going o,er %ro( one price-syste( to another, and also the i(plications o% the present price-re%or( in the =..>& De (ust obser,e, %irst o% all, that to ha,e adopted a uni%or( pro%itability rate %or all branches *ould ha,e (eant raising certain prices *hich it see(ed necessary to 5eep stable (retail prices, and prices o% certain goods intended %or agricultural use)& .econdly, account had to be ta5en, at one and the sa(e ti(e, o% this consideration and o% the proble(s posed by the (utual substitutability o% certain products, the prices o% *hich it *as thought necessary to 5eep lin5ed& )he (ost typical case is that o% H%uel and po*erH products& Fere, the application o% a uni%or( rate o% 16 per cent *ould ha,e (eant that a ton o% coal *ould ha,e cost %our ti(es as (uch as its caloric e2ui,alent in oil and t*enty ti(es as (uch as its e2ui,alent in natural gas& !n the other hand, e2ualising the prices o% caloric e2ui,alents, *ith a pro%itability o% <ero %or the coal-(ining industry, *ould ha,e gi,en pro%itability-rates (in relation to production %unds) o% '1 per cent to oil-e/traction, 108 per cent to oil-re%ining and 260 per cent to the natural gas industry (@o(in, Bo& "1, p& 16)A the a,erage pro%itability o% the %uel and po*er branch *ould thus ha,e been "6&8 per cent& )he solution adopted
(a*e 211

too5 account o% these proble(s, but resulted in a large nu(ber o% coal (ines continuing to *or5 at a loss& )his illu(ines another proble(, connected *ith the considerable une,enness o% the costs o% production o% the di%%erent production-units *ithin one and the sa(e branch o% production& Dhen this e/ceeds a certain le,el, so(e o% the production-units are *or5ing at a loss (i% the cost o% production that ser,es as basis %or the calculation o% selling prices is the a,erage cost) *hile others record e/tre(ely high pro%its& #n the case o% the %uel and po*er industry, these di%%iculties *ere partly eli(inated by using di%%erent accounting prices %or the di%%erent coal-(ines, and by ta5ing as basis the costs o% production o% the least %a,ourably situated oil and gas *ells, the rest being obliged to pay a di%%erential rent (.itnin, Bo& 61, p& '") Finally, it (ust be pointed out that the une2ual intensity o% in,est(ent in di%%erent 5inds o% production, co(bined *ith the une2ual speed o% rotation o%

these in,est(ent %unds, also presents a nu(ber o% proble(s& )hus, in oile/traction, the ratio o% production %unds to annual current production e/penses is 1 to 1, *hereas it is 1 to 1 in the clothing industry& )his (eans that a pro%itability-rate o% 16 per cent applied to these t*o industries produces a standard o% pro%itability (ratio o% pro%it to cost o% production) o% 100 per cent in the %or(er and 2 per cent in the latter& Dith a standard so lo* as 2 per cent, (ore than hal% o% the production units in the clothing industry *ould be *or5ing at a loss& )he situation being si(ilar in (any light industries, it has appeared necessary in such cases to bring the standards o% pro%itability up to 68 per cent, *hich (eans a considerable increase in the pro%itability-rates o% the %unds in,ested in these industries& #t is ob,ious that this type o% di%%iculty results %ro( ta5ing the a,erage cost o% production as basis *hen calculating the selling price& )o su( up, *e see that the re%or( o% *holesale prices carried out in .o,iet industry is %ar %ro( ha,ing resulted in si(pli%ying the conditions %or %i/ing prices by uni%ying the rules %or doing this& onse2uently the price-syste( e/presses only ,ery i(per%ectly the di%%erence in social costs bet*een di%%erent products& )his (ay ha,e only li(ited disad,antages %or the econo(ic calculations carried out at the le,el o% the planning organs, since the latter possess other sources o% in%or(ation about costs& ?ut it (ay ha,e un%a,ourable conse2uences as regards the decisions that enterprises ha,e to ta5e on the basis o% prices; and the re%or( o% the (anage(ent o% enterprises is (a5ing the latter ta5e prices as their guide *hen adopting a large nu(ber o% decisions and in trying to increase their pro%its& #t is i(portant to obser,e that, *hile pro%itability-rates ser,e to deter(ine selling prices, the receipts that result %ro( the application o% these rates are by no (eans all paid into the e/che2uer (*hich *ould %ollo* logically %ro( the adoption o% a syste( o% prices o% production) -- on the contrary, they (ostly appear in the %or( o% pro%its o% the enterprises& !nly a relati,ely s(all proportion o% these pro%its has to be paid
(a*e 211

into the e/che2uer, in the %or( o% a ta/ proportionate to the a(ount o% the production %und& )his ta/ should co(e to about 6 per cent in (ost industries& )he di%%iculties in,ol,ed in the price-re%or(, especially in co(bination *ith the re%or( in the (anage(ent o% enterprises, are *idely ac5no*ledged by .o,iet econo(ists& )hey consider that the present re%or(s are only the starting-point o% a long process o% change in the syste( o% prices, o% (anage(ent and o% planning& As has been (entioned earlier, besides the three basic syste(s o% price%or(ation that # ha,e 7ust described, so(e other syste(s *ere also proposed& A %e* *ords (ust be said about so(e o% these proposals, especially about those that ai( to HbaseH the internal price-structure on the prices that pre,ail on the *orld (ar5et, and those that co(bine ,arious %eatures o% the syste(s pre,iously e/a(ined&

' Price! ba!ed on #orld price! )he supporters o% a syste( o% internal prices HbasedH on *orld (ar5et prices see( to ha,e been especially nu(erous in Fungary, doubtless because relations *ith the capitalist *orld (ar5et play an i(portant role %or this country& According to those *ho put %or*ard the (ost syste(atic proposals o% this 5ind, it is not only the prices o% e/ports and i(ports that should be %i/ed on the basis o% *orld (ar5et prices but also those o% all other goods, since *orld prices represent, it is said, Hthe e/pression in (oney o% labour that is socially necessary on the international scaleH (c%& )arno,s5y, Bo& 60)& )his is a highly contro,ersial argu(ent at a ti(e *hen *orld prices are increasingly in%luenced by international (onopolies and oligopolies and by the strategy o% the principal capitalist states& .& Lanc<er (Bo& 2', p& 69), a%ter setting %orth the thesis o% the supporters o% a price-syste( based on *orld (ar5et prices, adds that in his ,ie* this thesis is unacceptable because it is necessary that Hin e,ery country the price-syste( (ust, in the %irst place, re%lect the pre,ailing conditions o% productionH& Fe correctly notes, (oreo,er, that it is ,ery di%%icult to deter(ine *hat *orld (ar5et prices actually are& Altogether, the proposals ai(ed at HbasingH internal prices on those o% the *orld (ar5et ha,e had only a li(ited in%luence on practical policy& )his in%luence has sho*n itsel%, ho*e,er, on the one hand at the le,el o% e/changes bet*een the socialist countries o% 0urope, %or *ho( the ouncil o% Mutual 0cono(ic Aid ( o(econ) has decided that the prices used should, in principle, be the sa(e as those pre,ailing on the capitalist *orld (ar5et in recent years;918: and, on the other, *ithin so(e o% the (e(ber-countries o% o(econ (easures ha,e been adopted *hich ai( at ta5ing account o% *orld prices& )hus, in ?ulgaria, it is proposed to establish a close lin5 bet*een the %or(ation o% internal prices and prices in %oreign trade, and to establish a direct relationship bet*een the receipts o% enterprises and their HutilityH %ro( the standpoint o% e/ports& #n Fungary, the accounts (aintained bet*een industrial enterprises and %oreign trade
(a*e 212

organisations (ust be 5ept in such a *ay that the producing enterprises recei,e *orld (ar5et prices %or their products& .o(e*hat si(ilar (easures are being prepared in $oland and <echoslo,a5ia ()arno,s5y, Bo& 60)& #n spite o% these (easures, the principal prices in the 0uropean socialist countries are essentially %or(ed on the basis o% one o% the three price syste(s described earlier, or o% a co(bination o% these& /< Com inations of (rice-systems and ?two-channel (rices?

)he reasons gi,en in %a,our o% these Hco(binationsH are, in general, essentially practical ones& Against the use o% prices based principally or entirely Hon ,alueH it is argued that such prices do not (a5e possible e,aluation o% the cost to society o% the considerable in,est(ents that certain techni2ues necessitate& #n opposition, ho*e,er, to the use o% a Hpure price o% productionH, it is so(eti(es pointed out -- using certain calculations *hich ha,e been (ade -that i% it is sought to ensure that in,est(ents and other collecti,e e/penditure are co,ered by (eans o% a Hnet inco(eH the a(ount o% *hich *ould be added to the cost o% production o% the di%%erent products, in proportion to the %unds in,ested in their production, then the result *ill be He/cessi,e restraintH on the introduction o% e2uip(ent (a5ing possible sa,ings in li,ing labour and, conse2uently, (aintenance o% a de(and %or labour-po*er that *ill e/ceed *hat is a,ailable& )his argu(ent has been de,eloped, in particular, by Andras ?rody (Bo& 16, p& 66)& Dhat is really concealed behind this argu(ent is a di%%erent one, concerning the relation bet*een the conditions %or e/panded reproduction o% labour-po*er and the conditions %or e/panded reproduction o% production %unds& For those, li5e ?rody, *ho (a5e use o% this argu(ent, only the needs o% %inancing the second 5ind o% reproduction can 7usti%y the addition to costs o% production o% a pro%itability rate to the a(ount needed %or this purpose& Dhate,er is needed %or e/panded reproduction o% labour-po*er ?rody considers to be a socially allocated %raction o% the *or5ers3 consu(ption %und, and there%ore he sees it as %or(ing the e2ui,alent o% a H*ageH, %ro( the standpoint o% e/panded reproduction& As *ill be seen, these argu(ents ai( abo,e all at building a price-syste( that enables e/penditure on in,est(ent and on collecti,e consu(ption to be co,ered, *hile the proble(s presented by the (easure(ent o% the social costs o% ,arious 5inds o% production are treated as being o% only secondary interest& Fo*e,er that (ay be, it is on the basis o% a set o% practical considerations li5e those (entioned abo,e that a nu(ber o% (ore or less co(ple/ pricesyste(s ha,e been *or5ed out, including the one *hich has been called the Ht*o-channel price-syste(H& Dhat is (eant by this is a syste( under *hich the price o% each product is (ade up by adding together the %ollo*ing ele(entsA (1) )he *ages actually paid to the *or5ers *ho (a5e the product under considerationA
(a*e 217

(2) A certain percentage o% this a(ount, regarded as corresponding to the Hsocial *ageHA

(") 0/penditure on the purchase o% products *hich enter into the (anu%acture o% the product under consideration& (') 4epreciation o% the production %unds in,ested in the gi,en line o% productionA (6) A charge %or the tying-up o% the production %unds, calculated by applying a pro%itability-rate to the ,alue o% the production %unds in 2uestionA )he e(ploy(ent o% a syste( li5e this necessitates deter(iningA a) )he percentage o% the Hsocial *ageH, b) )he pro%itability rate to be applied to the production %unds& #t is clear that, in order to (aintain a certain price-le,el, it *ill be necessary, i% one o% these percentages is ,aried, to ,ary the other one in the opposite direction& Dhen it co(es to deciding *hat rates to use, (any di%%erent proposals are put %or*ard, o*ing to the essentially e(pirical nature o% such proposals& )hus, in Fungary, *here this syste( has been studied especially thoroughly, proposals ha,e been (adeA a) )o apply a charge o% 10 per cent to the %unds in,ested (*hich a(ounts to saying that, on the basis o% a stable ratio bet*een production %unds and products, the national product should increase by 10 per cent per year) and to esti(ate the Hsocial *ageH either (as one o% the proposals has it) as e2ui,alent to 26-"0 per cent o% *ages paid in cash (?rody, Bo& 16, p& 66), this e2ui,alent being paid into the e/che2uer by the enterprise, in the %or( o% a ta/ assessed on the *ages it actually pays, or (according to another proposal), by calculating *hat the rate o% the *ages-ta/ should be in such a *ay that the product o% this ta/ co,ers the di%%erence bet*een *hat is produced by the 10 per cent charge on the %unds tied up and the total a(ount o% the net product needed %or %inancing in,est(ents and other collecti,e e/penditure (Lanc<er, Bo& 2', p& 69)A b) )o e,aluate the Hsocial *ageH as the e2ui,alent o% "6 per cent o% *ages paid in cash (still in the %or( o% ta/es paid by the enterprises to the e/che2uer), the balance o% the net product needed %or the planned gro*th o% the econo(y and the %inancing o% collecti,e consu(er e/penditure being then related to the ,alue o% the %unds in,ested, so as to sho* the pro%itability rate to be applied to the production %unds in,ested in the ,arious %or(s o% production& As *ill be seen, all these proposals are 2uite e(pirical& #n the case o% Fungary, too, they ha,e tried, by *ay o% a large nu(ber o% calculations (the di(ensions o% *hich ob,iously necessitate using electronic (achines, since changes in so(e prices indirectly a%%ect all other prices), to deter(ine the (ost Hade2uateH percentages, that is, those that best HcorrespondH to the structure o% the econo(y, in the sense that they (a5e possible a HreasonableH use o% its

production capacities, a socially acceptable and practicable le,el o% e(ploy(ent, and, there%ore, the pattern o% de,elop(ent *hich it is desired to achie,e&
(a*e 219

=nder Fungarian conditions, *here the t*o-channel syste( has been adopted to so(e e/tent, they ha,e sought a (ethod o% price-%or(ation *hich includes the %ollo*ing %eatures (# a( re%erring here not to proposals but to actual decisions *hich, in principle, are to co(e into %orce co(pletely in 1968)A in order to *or5 out the selling price o% an industrial product, one adds to its cost o% production the e2ui,alent o% 26 per cent o% the *ages actually paid %or producing it (10 per cent representing a contribution to social security and 16 per cent a Hta/H on *ages payable by the enterprises) and a charge %or the %unds in,ested, e2ui,alent to 6 per cent o% their ,alue& Apparently, this pro%itability rate is to be raised later on to 10 per cent& For certain goods, *hich it has see(ed necessary to sell at a higher price than could be obtained in this *ay (%or e/a(ple, so as to restrict de(and %or the() and *hich *ould there%ore bring the enterprises producing the( a ,ery high inco(e (described as a HrentH), a production ta/ has been introduced& All these e/penses and charges are included in the HcostH o% producing the goods, so that there is no 2uestion here o% a source o% pro%its %or the enterprise, unli5e the re%or( o% industrial *holesale prices in the =..>& )he ,arious ta/es (entioned are to (a5e up 60 per cent o% the net inco(e realised through the sale o% industrial products& A 20 per cent addition to net inco(e is to be pro,ided by a turno,er ta/, le,ied at ,arying rates %or di%%erent goods (the receipts %ro( this ta/ are, o% course, also destined %or the e/che2uer), and a "0 per cent addition to net inco(e as Hpro%itH o% industrial enterprises& )he conditions under *hich these t*o %ractions o% the net inco(e are deter(ined can be ,aried, so that prices are thus HdisengagedH %ro( strict proportionality to HcostsH, all the (ore so because the pro%it (argin %or the enterprises is only Hindicati,eH; actual prices can ,ary around this nor(, so as to adapt to the conditions o% the H(ar5etH ( si5os-Bagy, Bo& 11, p& 26")& )his is a point to *hich # shall co(e bac5 later& )his outline sho*s that, despite the e%%orts (ade to si(pli%y the pricesyste(, uni%y rules %or calculation, and bring prices closer to Hreal social costsH, they are still a long *ay %ro( achie,ing these ai(s& )his is so regardless o% the price-syste( adopted, *hether one based essentially on the idea o% Ho*n costsH or one using the ideas o% the Hprice-o%-productionH type or the Ht*o-channel priceH& < Some A:estions raised y concrete (rice-fi;in* )he %oregoing outline sho*s that concrete price3fixing constantly gi,es rise to proble(s *hich, in the light o% Hprice-syste(sH built according to ,arious H(odelsH, appear as Hspecial proble(sH re2uiring to be dealt *ith by special

rules or, (ore precisely, calling %or He/ceptionsH to be (ade to the rule, or to the principal rules& Dithout spending a lot o% ti(e on this 2uestion, a %e* *ords (ust be said about it, because it brings out so(e o% the *ea5nesses in the ap(a*e 21'

proaches to the price proble( *hich ha,e been loo5ed at, *ea5nesses *hich con%ir( the ,ie* that no theoretically satis%actory solutions ha,e been %ound %or the proble(s that it *as hoped to sol,e *hen the discussion on prices began& Dhen *e lea,e the *orld o% price H(odelsH to go o,er to the concrete %i/ing o% prices, or to the planning o% prices, a great nu(ber o% 2uestions arise to *hich the H(odelsH pro,ide no ans*er& Fere are so(e o% the(A (1) Dhat is to be done i%, at the price dictated by the (odel, the 2uantities o% an article that can be produced do not correspond to the de(and, being either too great or too s(allM .hould the price be altered, up*ard or do*n*ardM .hould the production-plan be changedM .hould di%%erential prices be introducedM #% the trouble ta5es the %or( o% a shortage, should rationing and ad(inistrati,e distribution be resorted toM )hese 2uestions, *hich are all connected *ith the proble( o% the scope to be allo*ed to the la* o% ,alue, ha,e recei,ed e,ery possible ans*er, depending on Hcircu(stancesH& (2) Fo* is it to be ensured that enterprises buy ne* products *hich they ought to buy because it is thought that they *ill be o% greater bene%it to the national econo(y than those %or(erly used, though their cost o% production is still high (either because the rele,ant production-techni2ue has not yet been (astered, or because their production is, at the start, only on a s(all scale)M .hould they be sold belo* the Hnor(al priceH, thus HpenalisingH the enterprises that produce the( -- the ,ery ones that are (a5ing inno,ationsM !r should these enterprises, *hile still ha,ing to sell at a loss, be subsidisedM !r should the subsidy be paid to the purchasing enterprisesM !r should certain enterprises be obliged to buy the ne* products at the high priceM Fere, too, all possible ans*ers ha,e been gi,en and, depending on circu(stances, put into practice& (") Fo* should one proceed *hen, *ithin one and the sa(e branch o% production, di%%erent enterprises ha,e ,ery di%%erent costs o% productionM .hould the a,erage cost in the branch be ta5en as HbasisH %or price-%i/ingM #% so, should the enterprises *hich, on this basis, do not co,er their costs, be subsidisedM !r should they be shut do*n, or (odernisedM !r should the %i/ing o% a uni%or( price not be atte(pted, and prices used instead *hich correspond to the Hindi,idual ,alues o% the goodsHM #% this is done, ho* *ill it be possible to co(pare the *or5ing o% enterprises *hich obtain their supplies at di%%erent pricesM .hould di%%erential ta/es be introducedM And so on& Fere, too, al(ost e,ery possible solution has been proposed and applied&

(') Fo* should one proceed *hen the Hsa(eH article ,aries a great deal in 2ualityM .hould 2uality be ta5en into account in price-%i/ingM #% this is done, does it not a(ount to ,iolating the la* o% ,alue, according to *hich the price o% an article is to be deter(ined by the labour-ti(e socially necessary to produce it, and not by its use-,alueM919: And i% not, ho* to ensure that those *ho buy goods o% poorer 2uality are not HpenalisedH, or e,en that they do not re%use to buy the( at allM .hould purchasers be
(a*e 21+

assigned a single supplierM .hould subsidies be paidM Fere, too, al(ost e,ery i(aginable solution has been proposed and put into practice&920: $ractice certainly has to ans*er these 2uestions, and (any others, as best it can& !nce it has ans*ered the(, ho*e,er, *e %ind oursel,es con%ronted *ith a syste( o% actual prices that no longer has (uch in co((on *ith the initial H(odelH& )his, in itsel%, (ay not see( a ,ery serious (atter& A%ter all, it *ill be said, i% the H(odelH cannot pro,ide an ans*er to concrete proble(s, then it is inade2uate, and it (atters little i% actual prices ha,e little in co((on *ith it& =n%ortunately, this is not a tenable attitude, because, ulti(ately, the initial preoccupations are still there, and are 7usti%ied& #t really is necessary that the socialist econo(y should ha,e a Hsigni%icantH price-syste(& )his price-syste( (ust be su%%iciently HtransparentH %or *hat loo;! ad,antageous, on the basis o% a price-calculation, to be really so, not only %or *hoe,er (a5es the calculation but also %or the national econo(y& )he price-syste( ought not be surrendered to sub7ecti,is(A prices should e/press Hsocial costsH& ?ut ho* is this to be achie,edM )he discussion on prices has thro*n little light on the sub7ect, though this *as its purpose, and negati,e conse2uences too serious to be ignored are bound to %ollo*& </ Some conseA:ences of the disc:ssion a o:t (rices )he %act that the discussion has done little to illu(ine the 2uestions that *ere put %or*ard *hen it began has had negati,e conse2uences in the %ield o% econo(ic practice itsel%, that is, in particular, at the le,el o% day-to-day econo(ic decisions& #ndeed, i% the proble( o% prices has co(e up, and has held the attention o% the econo(ists and the leaders o% the socialist countries o% 0urope %or so long, this is ob,iously not due to purely HtheoreticalH reasons, but because, as # recalled at the beginning o% this article, the proble( *as presenting itsel% in an acute %or(& Bot only *as this happening, it is still happening, and o%ten e,en (ore acutely, because the old price-syste( has HagedH still %urther, so that the prices constituting it tend to correspond still less to present-day conditions o% production&921: )rue, o,er the last ten years (any changes ha,e been (ade in

prices, but it is by no (eans certain that the read7ust(ents decided on since the discussion began, and the re%or(s underta5en, ha,e al*ays had a %a,ourable e%%ect, enabling the price-structure to gi,e better e/pression to the structure o% actual social costs& As *e ha,e seen, the Hgeneral rulesH *hich ha,e guided the ,arious re%or(s are e/tre(ely e(pirical and their theoretical basis is there%ore not strong& )his e/plains *hy the discussion on prices is still going on, and *hy a (ore thorough theoretical analysis is still being sought& #t e/plains, too, *hy nearly e,ery one o% the 0uropean socialist countries has Hits o*n %or(ulaH %or building a price-syste(& )he di,ergences bet*een the price-structure and the cost-structure ha,e
(a*e 21&

o%ten increased because, %or a nu(ber o% Hpractical reasonsH (the chie% o% *hich # ha,e (entioned), the HrulesH adopted ha,e not been applied uni%or(ly& As a result, the coherence ai(ed at in the price-syste( has re(ained unrealised& )his state o% a%%airs (ust, o% course, ha,e an un%a,ourable i(pact on the e%%icient *or5ing o% the econo(ic syste(, especially at a ti(e *hen, o*ing to the re%or(s adopted in respect o% the (anage(ent o% enterprises, the latter ha,e been gi,en a greater degree o% autono(y and are thereby called on to ta5e a greatly increased nu(ber o% decisions, in the sphere o% in,est(ent a(ongst others, and to do this using the price-syste( as their guide, since this deter(ines the relati,e pro%itability o% a particular choice, in (oney ter(s& )hus, the national econo(y is (uch (ore sensiti,e than be%ore to the *ea5nesses in the price-syste(& 0,en *hen, as a result o% re,isions, the price-syste(s ha,e been Hre7u,enatedH and so(e o% their incoherences eli(inated, the ai( originally sought is still a long *ay o%%& )he discussion ai(ed, indeed, at (ore than a (ere HupdatingH o% prices& And so(ething (ore is certainly neededA the ,ery progress o% the producti,e %orces is (ultiplying to an e/traordinary degree the nu(ber o% technical and econo(ic choices that ha,e to be (ade& Further(ore, it is increasing to an unprecedented e/tent the direct and indirect conse2uences o% the possible choices& Dhereas %or(erly the li(ited nu(ber o% technical possibilities, and also the urgency o% the proble(s, i(posed solutions (that is, in practice they le%t no roo( %or any choice), today things are ,ery di%%erent& Dhen setting up any large-scale pro7ect, one can no* choose bet*een a large nu(ber o% possibilities, and call upon the participation o% hundreds o% enterprises, supplying e2uip(ent and (achinery, in place o% the one or t*o enterprises o% earlier ti(es&922: )his is precisely *hy it is essential to ha,e calculating de,ices that can gi,e signi%icant in%or(ation& Dithout the( there is no certainty o% (a5ing the right choice, *hich (eans not that the pro7ects *ill %ail to be carried out, but that they *ill cost the national econo(y (uch (ore than i% (eaning%ul calculations had been (ade& )he *aste that can result

%ro( this state o% a%%airs holds bac5 the gro*th o% the national inco(e and slo*s do*n the rise in the standard o% li,ing& Bot only that, but i(per%ect prices and, in general, a %alse notion o% HcostsH, can syste(atically %oster a *astage o% resources that cannot be obser,ed *hile it is happening, and the conse2uences o% *hich do not (a5e the(sel,es %elt until they ha,e assu(ed alar(ing proportions& )hus, to so(e e/tent, the old price-syste(s and the conceptions underlying the( tended essentially to %a,our sa,ings in the li,ing labour directly necessary %or each 5ind o% production,92": *hile neglecting to sa,e past labour, 92': and %ailed to bring out the econo(ic ad,antages resulting %ro( rapid rotation o% production %unds as *ell as %ull use o% the(& )his bias in the preoccupations and the *hole conception behind the pricesyste( beco(es a gro*ing source o% *aste as the technical e2uip(ent o% labour increases, that is, as the a(ount o% %i/ed %unds in,ested
(a*e 21,

per *or5er beco(es larger& )he inade2uacy o% the price-syste( has certainly contributed its share to the slo*ing do*n, o,er the last ten years, in the econo(ic gro*th o% the (ost industrialised o% the 0uropean socialist countries926: (though this is not the only %actor, since it is an e/tre(ely co(ple/ pheno(enon, *hich cannot be dealt *ith in this article)& #n any case, *hate,er role (ay ha,e been played by other %actors,926: there can be no doubt that the li(ited character o% the results o% the discussion on prices has had negati,e e%%ects on the *or5ing o% the econo(y, since the (ore co(ple/ the latter beco(es the greater is its need o% (eaning%ul and e/act (easuring de,ices& Fo*e,er, the relati,e sterility o% the discussion on prices is tending also to ha,e negati,e conse2uences on the plane o% theory itsel%, or ideology& )his point calls %or detailed consideration, o*ing, especially, to the e%%ect that the e,olution o% general theoretical conceptions can ha,e not only on price policy but also on other aspects o% the econo(y3s *or5ing& )his brings us bac5 to the actual proble(atic o% the discussion& <// The Pro lematic of the 6isc:ssion on (rices As e(phasised at the beginning o% this article, one o% the reasons *hy the discussion on prices has led only to (utually contradictory proposals and rather unsatis%actory results (*hich are generally ad(itted to be such) is that the proble(s to be e/a(ined *ere badly de%ined in the %irst place& )his *ea5ness (eant that the real 2uestions, the decisi,e ones, *ere not presented clearly&

!%ten, indeed, the 2uestions raised, especially those addressed to $apital, *ere to so(e e/tent %alse 2uestions to *hich no (eaning%ul ans*ers could be gi,en& )his is *hy, in the (ost recent period, *hen the balance-sheet o% the discussion *as dra*n up and its relati,e %ruitlessness *as ac5no*ledged, the te(ptation arose to abandon the ground on *hich the discussion %irst began and (o,e to another, *hich it *as hoped *ould pro,e (ore %ertile& Fo*e,er, such a (o,e(ent could be (ade in se,eral di%%erent directions& #t could be agreed that the 2uestions to be put to $apital are di%%erent %ro( those *hich ha,e been put so %ar, that is, that *hat is needed is a change in the theoretical proble(atic o% the discussion, *hich i(plies a criticis( o% the pre,ious approach& !r it could be decided that $apital, and Mar/ generally, can pro,ide no ans*ers to Hne* proble(sH and that a turn (ust there%ore be (ade to*ards the innu(erable technical ideologies a,ailable, considering that *hat is (ost necessary is to e2uip onesel% *ith He%%icient econo(ic toolsH& )here are so(e indications that the latter line is no i(aginary danger& 8et us ta5e, %or e/a(ple, the article by si5os-Bagy *hich # ha,e already (entioned& Fere t*o series o% sy(pto(atic propositions are to be %oundA a) A%ter recalling ho* the discussion on prices began, the author *ritesA H#s the price debate today still characterised by the sa(e %eaturesM Bo, that is %ar %ro( being the case& )he price syste( is no longer criticised
(a*e 21%

today on the grounds that prices 3arbitrarily3 de,iate %ro( the ,alue or the production price& (he critici!m i! aimed mainly at the rigidity of the price!, at the admini!trative character of the price !y!tem. )he (ain ob7ection is that #e are applying an e!!entially )mar;et phenomenon) in an admini!trative manner&H ( si5os-Bagy, Bo& 11, p& 266A author3s o*n e(phasis&) Dhat the discussion is being bla(ed %or here is that it tried to ans*er the %ollo*ing 2uestionA HFo* should *e %i/ prices, that is, ho* should *e plan the(MH )he 2uestion that it no* see(s (ore correct to as5 isA HFo* can *e stop %i/ing prices by ad(inistrati,e (ethods and allo* the (ar5et (echanis(s to ha,e %ree playMH b) At the theoretical le,el, the relati,e sterility o% the discussion, and the conse2uent tendency to gi,e a bigger place to the (ar5et (echanis(s, direct Hthe attention o% Mar/ist econo(ists to the results achie,ed by their nonMar/ist colleaguesH ( si5os-Bagy, Bo& 11, p& 269), and the author addsA H+alue is the crucial 2uestion o% the price proble(& )his is the initial thesis o% socialist price-theory& ?ut (ust this thesis not be sub7ected to re,isionM Are the representati,es o% the school o% (arginal utility not right in re7ecting the category o% ,alue, or in substituting %or labour-,alue the concept o% (arginal utilityM )his 2uestion can and (ust be ans*ered on a ,ery practical basis& #% all ele(ents and all aspects o% price pheno(ena can be deter(ined *ith the shortter( rules o% the (ar5et, e,ery re%erence to ,alue is really only 7ust a sort o%

ideological *ay o% presenting the proble( that can be discarded& ?ut i% practice con,inces us that the essential proble(s o% price pheno(ena re(ain unans*ered in case the input principle is set aside, the starting-point o% the socialist price theory can be ta5en %or ,eri%ied&H ( si5os-Bagy, Bo& 11, p& 269&) si5os-Bagy hi(sel% considers that the labour theory o% ,alue pro,ides a satis%actory Hans*erH and, there%ore, that Hnothing 7usti%ies that the socialist price theory should be reconstructed on ne* %oundationsH ( si5os-Bagy, Bo& 11, p& 266)& )his type o% consideration tends, ho*e,er, to re(ain essentially Hacade(icH in so %ar as no syste( o% concepts is produced, on the basis o% the theory o% ,alue, that can be e(ployed in *or5ing out a *ay to plan prices, *hich in turn can be integrated in the o,erall planning o% the econo(yA this is so in so %ar as greater He%%icacityH is allo*ed to (ar5et prices than to planned prices, *hich is the position that si5os-Bagy and so(e other econo(ists o% the socialist countries are (o,ing to*ards& #n so(e o% these countries the role actually accorded to (ar5et prices by econo(ic practice is getting bigger& De ha,e seen that this is the case in Fungary, in conne/ion *ith the current re%or( in the syste( o% direction and (anage(ent& #n this country the enterprises are no* to ha,e the right to ,ary their prices %airly *idely, in accordance *ith the le,el o% supply and de(and& )his is so in <echoslo,a5ia, too, *here decisions ta5en in recent years ha,e caused the prices o% (any products no longer to be centrally planned (@osta, Bo& 21, p& 1'6)& #n the .o,iet =nion the 2uestion has not been settled in this *ay&
(a*e 211

)he discussion goes on, and points o% ,ie* %a,ourable to the setting up o% (ar5et prices are ad,ocated alongside others that ta5e the opposite line& 4uring 1966 a s(all nu(ber o% .o,iet econo(ists too5 up a %ir( position in %a,our o% co(petition and (ar5et prices, declaring that prices %i/ed on a central basis are detri(ental to the good *or5ing o% the econo(y& )his position *as de%ended, %or e/a(ple, by 8isich5in, in *ovyi 6ir, and, especially, by ?& >a5its5y (Bo& 66)& #t *as opposed by a nu(ber o% other *riters, such as @ronrod (Bo& "6) and A& ?achurin, +ice-$resident o% Losplan (Bo& 8)& )he %act that the ,alidity o% the labour theory o% ,alue should ha,e been raised in the *ay it has been in the passage 2uoted abo,e %ro( si5os-Bagy, *here he as5s *hether the socialist theory o% prices ought not perhaps to be reconstructed on ne* %oundations, using the conceptions o% (arginal utility, sho*s 7ust ho* inade2uate the initial proble(atic *as, and to *hat e/tent this is still true o% the present proble(atic also& )he 2uestion *hether a scienti%ic theory is ,alid cannot, o% course, be settled by direct re%erence to the proble(s and di%%iculties o% day-to-day

practice, not e,en the practice o% planning organs& )he criteria %or the ,alidity o% a scienti%ic theory are necessarily those o% theoretical practice, and cannot be those o% technical practice& #t is no (ore possible to 7udge directly the scienti%ic ,alidity o% the labour theory o% ,alue through so(e di%%iculty encountered in econo(ic techni'%e than it is possible to 7udge, %or e/a(ple, the ,alidity o% so(e theory about the ele(entary structure o% (atter through the di%%iculties e/perienced in using it technically, or to 7udge the ,alidity o% geo(etrical theore(s by ta5ing (easure(ents o% real ob7ects& )ransition %ro( the le,el o% scienti%ic theory to that o% technical practice de(ands di%%erential production, on the basis o% theoretical concepts, o% the technical concepts re2uired by real practice& Dhat is spo5en o% collo2uially as the HtestingH o% a scienti%ic theory, (eaning the technical reali!ation o% its theoretical concepts, and thus their use in practice, presupposes that these theoretical concepts ha,e been HrealisedH, both in concept! corresponding to the peculiarities o% the real setting and in technical concepts *hich (a5e it possible to lay do*n operati,e procedures ((easure(ent, calculation, etc&) and deter(ine the li(its o% their ,alidity&921: )his does not (ean that *ithout this t*o%old HrealisationH, achie,ed in detail, theoretical concepts are o% no use, i% not in pro,iding a %oundation, in the strict sense, %or e%%ecti,e econo(ic practice, then at least in gi,ing it orientation& 0%%ecti,e econo(ic practice can indeed be *or5ed out by bringing together shre*d e(pirical *or5 and general theoretical concepts *hich ser,e as HguidesH %or the direction it should ta5e& $ractice li5e this, though, ho*e,er e%%ecti,e it (ay be at certain ti(es, is una*are o% the reasons %or its success, and there%ore o% the li(its (in space and ti(e) o% its e%%ecti,eness, so that, once these un5no*n li(its are crossed, it e/periences ine,itable setbac5s& #n any case, such practice can neither con%ir( nor dispro,e the theoretical conceptions behind it&
(a*e 211

)hus, only an ade2uate di%%erentiated *or5ing o% the theoretical concepts into e(pirical concepts and technical concepts can ensure the %nity o% theory and practice& )his unity re2uires, %irst and %ore(ost, %ull de,elop(ent o% the content o% the scienti%ic concepts on the theoretical plane& )he discussion on prices has not contributed to such a de,elop(ent in the %ield o% price theory, and this is *hy it has pro,ed relati,ely sterile& Fence, also, so(ething *hich is at least e2ually serious, the doubt thro*n upon the scienti%ic ,alidity o% so(e %unda(ental theoretical concepts o% Mar/is(, and the tendency to present in a non-dialectical *ay the proble( o% the possible relations bet*een Mar/ist and non-Mar/ist theories about prices& As regards these non-Mar/ist theories, the proble( is not, as *as suggested in so(e o% the proposals put %or*ard during the price discussion, one o% accepting the( or re7ecting the( en bloc, or o% borro*ing so(e o% their conclusions& )he proble( is one o% critically analysing these theories, in the scienti%ic sense, that is, re,ealing *hat the presu(ptions behind the( are, the

i(plicit structures to *hich the concepts they use actually belong, and, on this basis, appreciating the signi%icance o% their ,arious conclusions& #n this *ay the apologetical nature o% these theories can be re,ealed, that is, their lac5 o% scienti%ic basis in so %ar as they clai( to e/plain the *or5ing o% the capitalist (ode o% production, *hile at the sa(e ti(e recognising the appositeness o% so(e particular approach *hich they (ay (a5e& #t is precisely this local and li(ited appositeness that conceals the non-scienti%ic character o% the ideological syste( to *hich the particular approach belongs& At the le,el o% analysis o% the part played by prices in the day-to-day *or5ing o% the econo(y, o% the in%luence o% a certain price-syste( *hen used as a (eans o% econo(ic calculation, it is scienti%ically 7usti%ied to e/a(ine to *hat e/tent and *ithin *hat li(its the non-Mar/ist theories ha,e arri,ed, on so(e point or other, at certain conclusions *hich, reinterpreted by Mar/is(, can be help%ul, at the technical le,el, in %or(ulating a price policy& A considerable %ield lies open there %or critical analysis, but this %ield can be (ade %ertile only i% it be *or5ed upon *ith the aid o% a solidly grounded theoretical proble(atic& #t is Mar/is( that pro,ides this theoretical proble(atic -- al*ays pro,ided that *e do not see5 in $apital a source o% directly usable HrecipesH, but ta5e it as a structure o% scienti%ic concepts on the basis o% *hich *e can *or5 out the technical concepts needed %or econo(ic practice and, in particular, %or the econo(ic practice o% the social %or(ations in transition bet*een capitalis( and socialis(& )he preli(inary condition %or any scienti%ic interpretation, or any use%ul e(ploy(ent, o% a proposition put %or*ard by a non-Mar/ist theory is that the ideological and apologetical basis o% the theory be clearly re,ealed, together *ith the limit! *ithin *hich the proposition is ,alid, li(its *hich *ill be deter(ined by the conceptual %ield *ithin *hich it is %or(ulated& !ne cannot but be struc5 by the tendency o% so(e Mar/ists to accept
(a*e 212

certain propositions %ro( non-Mar/ist theory *ithout obser,ing these preli(inaries&928: #n this *ay the %act that the syste( o% concepts on *hich these propositions are based is not a scienti%ic syste( is lost sight o%& )his syste( is (ade up o% a group o% hypotheses *hich place at the centre o% econo(ic analysis the consu(er *ho is a prey to HneedsH *hich are independent o% all productionrelations& HMa/i(isingH the satis%action o% these HneedsH is regarded as the criterion o% Hecono(ic rationalityH& A syste( o% concepts li5e this cannot e/plain the *ay any (ode o% production *or5s, but this does not pre,ent so(e o% the propositions it puts %or*ard %ro( possessing a certain ,alidity on the practical le,el& )he li(its o% this ,alidity are, ho*e,er, e/tre(ely narro*, as has been sho*n during the last ten years e,en by econo(ists *hose ideological positions ha,e nothing in co((on *ith Mar/is(, li5e )& &

@oop(ans (Bo& "2), Dillia( J& ?au(ol (Bo& 10), L& & Archibald (Bo& "), 0& J& Mishan (Bo& '9) and (any others&929: #% so(e ha,e tried to %ind in $apital HrulesH or H%or(ulaeH %or %i/ing prices, HrulesH that can be co(pared to others borro*ed %ro( so(e syste( o% econo(ic thought, this is because they ha,e been te(pted to see $apital as a Htheory o% pricesH on the sa(e plane as non-Mar/ist conceptions, and capable o% being H7udgedH (erely %ro( the standpoint o% day-to-day econo(ic practice& Dhen this ,ie* is ta5en, sight is lost o% the %act that the price-theory o% $apital is inseparably bound up *ith the total structure o% Mar/ist thought -- that Mar/is(, as a philosophy, is a theory o% the relation bet*een theoretical practice and other le,els o% practice; that, as a science o% history, it is a theory o% (odes o% production, their structures, the la*s o% their %or(ation, de,elop(ent and dissolution, and, a(ong other things, a theory o% social classes and class struggles& #t is *ithin this theoretical structure that the Mar/ist theory o% ,alue and prices has its place and signi%icance, not a(id the theoretical ,acuu( o% prag(atis(& )his, too, is *hy it is i(possible to put the 2uestion o% the ,alidity o% the Mar/ist theory o% ,alue and prices by standing on the le,el o% narro*ly concei,ed Hecono(ic practiceH& )he 2uestion as5ed in this *ay is not pertinent& At this le,el, indeed, *hich is not that o% science, that is, o% proo% and e/planation, it is easy to sho* the He2ui,alenceH bet*een the HpracticalH conclusions that can be dra*n %ro( a certain prag(atic or e(pirical interpretation o% the Mar/ist theory o% prices and the conclusions that can be dra*n %ro( a nu(ber o% other theories that are su%%iciently coherent& Andras ?rody, %or e/a(ple, analysing the conditions o% si(ple reproduction, has sho*n that it is possible to dra* %ro( 8eontie%3s table o% (atri/ relations the conclusion that prices Hbased on labour-,alueH %or( an ade2uate tool o% econo(ic calculation, because they ensure the perpetuation o% the syste( under the best technical conditions (?rody, Bo& 16, pp& 68-60)& ?ut he also sho*s that in a (atri/ structure li5e this it is
(a*e 217

possible to construct a price-syste( by treating any co((odity *hatsoe,er as the Hsource o% ,alueH& )his syste( *ill ha,e the sa(e Hpractical propertiesH as one based on labour-,alue, because the resulting price ,ector *ill al*ays be the sa(e, up to a (ultiplicati,e %actor (so that the structure o% prices *ill be the sa(e)& ?rody then analyses in the sa(e *ay the conditions %or e/panded reproduction, and sho*s that the Hprice o% productionH plays here the sa(e role as ,alue& Fe sho*s, too, that, in order to calculate these prices o% production, one can base onesel% on He/penditure o% labourH or on any other (aterial e/penditure, and al*ays arri,e at the sa(e price-structure (?rody, Bo& 16, p& 6")& .i(ilarly, *hen re,ealing the %or(al conditions %or the %or(ation o% a rate o% pro%it, he sho*s that the rate o% pro%it that corresponds to

Mar/3s de%inition is e2ui,alent to the e2uilibriu( rate o% gro*th in +on Beu(ann3s sense (?rody, Bo& 16, p& 6')& Fro( this he concludes that, at the le,el o% practical con!e'%ence!, the e2uations can be interpreted *ith e2ual ,alidity in ter(s o% labour-,alue, in (arginalist ter(s or in ter(s o% progra((ing theory& )he radical di%%erences separating Mar/3s theoretical conceptions %ro( Hprice theoriesH do not sho* the(sel,es at the le,el o% Hpractical calculationH o% prices, that is, at the le,el o% the use o% so(e H%or(ulaH or other, but at that o% explanation, that is, at the le,el o% scienceA (1) First, *hat Mar/3s analysis explain! are the ,ery reasons %or the exi!tence o% the ,alue %or(, and so o% prices, that is, the reasons *hy, in certain social %or(ations, products are si(ply products, *hereas in others they beco(e commoditie!, endo*ed *ith that supra-sensible 2uality, their price& Mar/ e/plains this by the e/istence o% partic%lar relation! a(ong the producers and bet*een the( and their products& #t is these relations that sho* through the ,alue %or( and endo* labour *ith the Hsocial 2ualityH o% being a Hproducer o% ,alueH, *hich it ceases to be *hen the sa(e production-relations are not present, because prices the(sel,es then disappear& #t is in this 2uite precise sense that labour involved in a certain !tr%ct%re of !ocial relation! is the source o% ,alue& (2) Be/t, Mar/3s analysis is the only one that pro,ides an explanation o% the historical, econo(ic and social (o,e(ent as a *hole, *hich deter(ines the appearance o% the Htrans%or(ed %or(sH o% ,alue and the conne/ion bet*een the price-structure and the production-relations& #t does this on the basis o% an analysis o% the speci%ic character o% the co((odity called labour-po*er; this is one o% the poles o% the basic class-relations o% capitalist society, *hich e/plains *hy changes in its price, or in the length o% the *or5ing day, are the sub7ect o% intense social struggles, the outco(e o% *hich deter(ines changes in the price-syste( and a particular %or( o% progress o% the producti,e %orces& (") Finally, Mar/3s analysis in its %ully de,eloped %or( e/plains ho* prices are %or(ed under the capitalist (ode o% production and constitutes the necessary starting-point %or building a theory o% prices under conditions o% transition bet*een capitalis( and socialis(&9"0:
(a*e 219

)hus, Mar/is( pro,ides both a theory o% ,alue and prices and a coherent theory o% social %or(ations, o% their speci%ic natures and the la*s by *hich they %unction and change& Any non-Mar/ist Hprice-theoryH, ho*e,er, pro,ides at best only one o% the possible de!cription! o% the (o(entary inter-relations bet*een prices, gi,en certain HhypothesesH& As %or the He/planationsH that non-Mar/ist theories are said to pro,ide, they relate not to real social relations but to psychological categories (H(an at the (ercy o% his needsH), or else technical ones, *hich dangle in an ideological ,oid, that is, *hich cannot be %itted into any analysis o% the actual (o,e(ent o% history& #ndeed, these

theories help rather to hide the nature o% the (o,e(ent o% history -- *hen they do not si(ply deny that there is any (o,e(ent at all, by re%erring to a Hgeneral econo(yH e/isting outside o% history, outside o% ti(e& 8et us no*, ho*e,er, lea,e this proble(, and consider the inade2uacies in the proble(atic *hich ha,e helped to pre,ent the discussion on prices %ro( producing use%ul results and *hich ha,e gi,en rise to the %or(ulations *e ha,e 7ust been studying& </// The theory of "al:e and the (lannin* of (rices )hough the *ea5nesses in the proble(atic o% the discussion present se,eral aspects *hich a%%ect each other, it see(s correct to say that the (ost i(portant o% these aspects is the generally empirical nature o% the proble(atic adopted& Bobody has sought in $apital the starting point %or an e/planation and a theory (*hich is still not %ully constructed), but instead they ha,e loo5ed %or practical ans*ers to practical 2uestions& #n this *ay, they ha,e usually ta5en the %unda(ental concepts o% $apital not as theoretical concepts *hich re%er to theoretical (atters but as e(pirical concepts re%erring to e(pirically (easurable (atters& onse2uently, nobody has tried, on the basis o% $apital, that is, abo,e all, on the basis o% its (ethod and its theoretical concepts, to *or5 out the scienti%ic concepts needed in order %ully to concei,e and to (aster the proble(s o% the transition %ro( capitalis( to socialis(& 1 9al%e and !ocially nece!!ary labo%r3time )hose *ho ha,e tried to %ind directly in $apital HrulesH and HproceduresH %or price-%i/ing in transitional econo(ies ha,e there%ore been putting 2uestions to Mar/3s *or5 to *hich it could not gi,e a direct ans*er, the sub7ect-(atter o% that boo5 being 2uite di%%erent& .ince one o% their ai(s *as to construct a price-syste( that *ould (a5e it possible to carry out calculations *hereby the social cost o% production could be (ini(ised, they %irst put the %ollo*ing 2uestionA ho# can one mea!%re thi! !ocial co!tP #n (ost cases, they thought they %ound in $apital the %ollo*ing ans*erA by calc%lating the Hval%e H of prod%ction. )his led to their second 2uestionA ho# are #e to carry o%t thi! calc%lationP And here, again, they thought they %ound the %ollo*ing ans*er in
(a*e 21'

$apital ; by co%nting the n%mber of ho%r! act%ally expended on prod%cing the vario%! good!. A%ter that, as *e 5no*, they thought they could (ultiply this nu(ber o% hours by the *ages actually paid, plus a certain Hnet inco(eH calculated in so(e (ore or less co(ple/ *ay -- the (ethod chosen itsel% being H7usti%iedH

by so(e interpretation o% Mar/3s analyses o% the *or5ing o% capitalist econo(y& #n any case, it see(ed to those *ho read $apital in this *ay i(portant abo,e all to %ind the a/es around *hich prices oscillate, that is, the reg%lating magnit%de! o% the reproduction process under capitalis( (,alue, price o% production or other (agnitudes o% the sa(e 5ind)& )hese axe! *ere seen as indicating the price-le,el representing social costs, *hereas other price le,els *ere seen as e/pressing accidental de,iations or %aulty ad7ust(ents, all o% the( being HdistortionsH *hich the socialist econo(y *ould ha,e to and *ould be able to eli(inate, its prices being planned and not abandoned to the %luctuations o% the (ar5et& )he inade2uacy o% this proble(atic, and its e(pirical nature, are clearly re,ealed *hen *e e/a(ine *hat sort o% %unda(ental concepts are actually *or5ed out in $apital, *ith special re%erence to the concepts *e ha,e 7ust been discussing& 8et us ta5e, %irst, the concept o% Hsocially necessary labour-ti(eH& Dhereas the e(piricist proble(atic that see5s in $apital direct an!#er! to 2uestions o% econo(ic techni2ue assu(es identity bet*een socially necessary labour-ti(e and e(pirically recorded labour-ti(e, a reading o% the boo5 that a,oids the e(piricist illusion enables one to see that, on the contrary, these t*o ideas re%er to radically different matter!. )he concept o% socially necessary labour-ti(e is in%initely (ore co(ple/ than that o% e(pirically recorded labour-ti(e, because it re%ers to 2uantities produced in co(parison *ith social needs& )he latter e/pression, in turn, indicates not an e(pirical or ideological concept, li5e that o% Hhu(an needsH, but a theoretical concept that has a precise (eaning in the structure o% $apital, and the e2ui,alent o% *hich needs to be *or5ed out %or the theory o% transition %ro( capitalis( to socialis(& #t is ob,ious that one cannot indulge in the illusion o% H%reeingH, the concept o% socially necessary labour-ti(e %ro( its theoretical status e/cept by re%using to Hconcern onesel%H *ith the aggregate 2uantities that could be produced, so as not to Hconcern onesel%H *ith anything but the a,erage cost o% a product in ter(s o% labour& )his approach does not ta5e us %ar, either theoretically or practically& #n particular, i% the proble( *hich it is sought to deal *ith is that o% prices that represent !ocial co!t, it is 2uite i(possible to thin5 this proble( out by ta5ing each cost !eparately. )he proble( cannot be studied e/cept in ter(s o% the conne/ion bet*een the di%%erent branches o% production, and, there%ore, *ithout ta5ing into account the 2uantities produced or to be produced, and the totality o% social needs& Moreo,er, *hen *hat is *anted is to carry out calculations regarding the

(a*e 21+

f%t%re, re%erence to pre!ent average co!t in labour is 2uite (eaningless, since the f%t%re cost o% e,ery product *ill depend on the (eans o% production that *ill be used in the year! to come. )hese (eans cannot be chosen *ithin the %ra(e*or5 o% a plan unless one can deter(ine in so(e other *ay *hat ought to be the labour-ti(e socially necessary %or each type o% product, so as to endea,our to de,ote to its production precisely this a(ount, no (ore and no less& Fere *e lea,e the %ield *ithin *hich calculation in prices can still ha,e so(e signi%icance, to enter one *here esti(ates o% labour-ti(e on the scale o% society are needed, together *ith application o% the principle o% econo(y in labour& Atte(pts to HreduceH, through tric5s o% calculation (that is, *ithout %irst *or5ing out ade2uate theoretical concepts), the labour-ti(e e(pirically e/pended on di%%erent 5inds o% production to the Hsocially necessary labourti(eH are co(pletely useless& )his is e,en truer o% atte(pts in *hich labourti(e actually e/pended is calculated as though it *ere identical *ith socially necessary labour-ti(e& .uch calculations can ne,er tell *hat it is desired they should tell, na(ely, e&g&, ho* to use the in,est(ent %unds a,ailable, in *hich branches to in,est the(, or *hether it is socially pre%erable to e%%ect a sa,ing o% labour in one branch o% production rather than another& All these 2uestions can only be ans*ered by using a concept o% Hsocially necessary labour-ti(eH treated in a suitable (anner (that is, *ith a content !pecific to the !ocial formation in '%e!tion ) and by *or5ing out, on this basis, the necessary e(pirical concepts *hich, the(sel,es, ha,e to be e(ployed in a concrete *ay& Li,en the (isunderstandings that an e(piricist reading o% $apital has brought into the discussion on prices, precisely in conne/ion *ith the basic concepts o% socially necessary labour-ti(e and ,alue, it *ill be use%ul to go bac5 o,er certain theoretical positions *hich are o%ten (et *ith in the discussion on prices in the econo(ies in transition bet*een capitalis( and socialis(& De 5no* that, %ollo*ing a *ell-established e(piricist interpretation o% the proble(, analyses are currently being e/pounded according to *hich it is the labour-ti(e act%ally e/pended to produce a product that deter(ines the H(agnitude o% the ,alueH o% the latter in a H(echanical senseH, that is, in (uch the sa(e sense as the a(ount o% *ater in a container can be *or5ed out by (ultiplying the ti(e during *hich a tap has been le%t running to %ill the container by the nu(ber o% litres poured out per (inute& #nterpretations o% this 5ind conceal, o% course, *hat they really are, the contradictions to *hich they lead, by (eans o% considerations regarding the ,ariation in Hindi,idual producti,ityH bet*een the *or5ers participating in production, or considerations regarding the H2ualityH o% the di%%erent 5inds o% labour& .o long, ho*e,er, as only such considerations as these are ta5en into

account, that is, so long as only the technical %eatures o% labour are considered, it is i(possible to escape %ro( a (echanistic
(a*e 21&

interpretation o% ho* ,alue is deter(ined by labour-ti(e; in other *ords, to see the radical di%%erence bet*een Mar/, on the one hand, and .(ith and >icardo, on the other& )hose *ho ta5e this approach see in Mar/ 7ust a scholar *ho (erely Hper%ectedH the theory o% ,alue and prices (especially by his analyses o% *ages as the ,alue o% labour-po*er and his theory o% price o% production) and not a scholar *ho put the theory o% ,alue on a '%ite different fo%ndation %ro( his alleged HpredecessorsH& #n other *ords, this interpretation (*hich underlies the H(easure(ent o% ,alueH by labour-ti(e e(pirically recorded or actually e/pended, and the price-syste(s *hich are directly connected *ith this (easure(ent) ignores one o% Mar/3s essential contributions to econo(ic science, na(ely, that the apparent HpropertyH that labour possesses to create H,alueH is not a HnaturalH property but a social one& )his (eans, a(ong other thingsA a) )hat it is al*ays necessary to distinguish bet*een labour3s producti,e character in the technical sense and in the economic sense& #n the %irst sense, *hat is (eant is the character o% concrete labour *hich produces use-,alues& )his producti,ity is (easured in technical ter(s, that is, in the %or( o% a ratio bet*een a 2uantity o% hours o% labour actually e/pended and the physical 2uantity o% products obtained thereby& #n the econo(ic sense, ho*e,er, *hat is (eant is the character o% labour as ab!tract producer o% e/change-,alue& #n this sense, the producti,e or non-producti,e character o% labour is deter(ined by the nature o% the !ocial relation!. )hus, under the capitalist (ode o% production, only labour that participates in the production o% surplus-,alue is Hproducti,eH labour& b) )hat it is the !tr%ct%re of a labo%r3proce!! *hich itsel% %or(s part o% a certain social structure that deter(ines *hether or not the labour in,ol,ed in it is producti,e& )hus, %ro( the (o(ent *hen, in large-scale capitalist industry, a Hcollecti,e labourerH con%ronts the (eans o% production, it is not the nature o% the tas5 per%or(ed by each (e(ber o% this Hcollecti,e labourerH that deter(ines *hether his labour is producti,e or non-producti,e, but the producti,e character o% the Hcollecti,e labourerH&9"1: )his is another aspect o% the deter(ination o% the producti,e or non-producti,e character o% labour by the !tr%ct%re to *hich the labour belongs& c) )hat *hat produces H,alueH is not Hlabour in generalH and that, conse2uently, this HproductionH is not the result o% a Htransiti,e causalityH but o% a Hstructural causalityH&

d) )hat the (agnitude o% the ,alue HproducedH by an hour o% labour is itsel% deter(ined by the totality of the !ocial relation! (and not (erely by the production-relations)A this is, indeed, *hat is (eant by the ter( Hsocial needsH& e) )hat, %inally, the HreductionH o% the labour-ti(e actually e/pended to the !ocially nece!!ary labo%r3time has to be (ediated through the #hole of the !ocial !tr%ct%re and an it! a%thoritie!, so(ething that is ob,iously true, *hate,er the social structure, e,en i% it does not gi,e rise to co((odity production& )his is *hy it is necessary to be al*ays on guard against a certain anthro(a*e 21,

pological line o% tal5 *hich hails Hhu(an labour, creator o% ,alue and sole producer o% *ealthH&9"2: )his is a *ay o% spea5ing *hich, *hen not nai,ely e(piricist, usually represents an atte(pt to hide the %act (and here # shall borro* the actual language o% anthropology) that labour *hich produces ,alue is al*ays HalienatedH labour, subordinated to its o*n products and, e,entually, e/ploited, %or co((odity production is al*ays pregnant *ith capitalist production-relations& Far %ro( sy(bolising (an3s (astery o% his o*n products, Hlabour as producer o% ,alueH sy(bolises the sub7ection o% (an to his o*n products& A social %or(ation3s ad,ance to*ards socialis( gradually puts an end to this sub7ection and thus ensures that labour ceases to be ,alueproducing labour -- so(ething that re2uires a high le,el o% socialisation o% production and a thoroughgoing trans%or(ation o% production-relations& )he relati,e sterility o% the discussion on prices, ,alue, the social cost o% production, and so on, sho*s so(e o% the negati,e conse2uences that can result %ro( an e(piricist reading o% $apital and %ro( the anthropological language that rein%orces it& 2 Price and val%e )he sa(e e(piricist proble(atic leads to regarding as empirically a!certainable (agnitudes not only socially necessary labour-ti(e but also ,alue, price o% production, a,erage rate o% pro%it, etc&, and so to atte(pts at directly Hmea!%ring H these (agnitudes, in order to use the results in HconstructingH price-syste(s& All o% *hich cannot, o% course, lead anyone any*here&9"": #t is only logical that gi,ing e(pirical status to theoretical concepts has pre,ented %ull ad,antage %ro( being got %ro( *hat Mar/ says in $apital about the category o% price, although *hat he has to say on this sub7ect is decisi,e in relation to the 2uestions at issue in the discussion on prices& #% too little attention has been gi,en to so(e o% the analyses that Mar/ de,otes to e(pirical categories li5e prices, this is due to the ,ery nature o% the initial approachA i% socially necessary labour-ti(e and ,alue are regarded as

He(pirical (attersH that are H(as5edH by prices (or hidden in the(), then it is these (atters that are regarded as e/clusi,ely i(portant; prices are then relegated to the status o% HappearancesH, that is, HinessentialsH, %or *hen concepts are ta5en %or reality it is hard to grasp that *hat is called HappearanceH is reality (<ir;lich;eit ) itsel%& Bo*, Mar/3s approach is not one o% see5ing and Hdisco,eringH, Hbehind pricesH, an ulti(ate HrealityH *hich is (ore H%unda(entalH and alone Hdecisi,eH& #t is 2uite di%%erentA he did not Hdisco,erH but *or5ed out theoretical concepts, or, (ore precisely, the theoretical structure than5s to *hich the e/istence o% prices and their (agnitude are e/plained& )hese conceptsA abstract labour, socially necessary labour-ti(e, ,alue, etc&, thus %or( a theoretical structure the ,arious ter(s o% *hich condition one another& #t is there%ore i(possible to isolate any o% these ele(ents e(pirically& )he %unda(ental concepts, such as those o% socially necessary labour
(a*e 21%

ti(e, ,alue, price o% production, etc&, are the nodal points o% this structure& Dhat they describe are both production-relations and Hregulating (agnitudesH, the si<es o% *hich, not directly (easurable, are deter(ined by the totality o% social relations& )he status o% these Hregulating (agnitudesH in price theory is si(ilar to that o% Hcentres o% gra,ityH in the physics o% solids& A centre o% gra,ity does not e/ist as an e(pirically ascertainable HrealityH& #t is a geometric position deter(ined by a structure and (ani%esting itsel% only by its e%%ects& )his does not (ean that *e ha,e to 5no* all its e%%ects concretely in order to deter(ine *here the centre o% gra,ity is& !n the contrary, as *e ha,e 5no*n since Archi(edes, it is enough to 5no* the structure to be able to deter(ine its centre o% gra,ity and ho* the latter operates& .o %ar as our proble( is concerned, since *e lac5 concrete prices already %or(ed spontaneously (the relation o% *hich to the regulating (agnitudes could be sought, pro,ided *e constructed the concept o% the latter), it is 2uite useless to try and (easure e(pirically the e2ui,alent o% the socially necessary labour, ,alue, prices o% production, and so on, by proceeding directly to (easure physical (agnitudes& Dhat is needed, be%ore anything else is atte(pted, in the social %or(ations *hich are in transition bet*een capitalis( and socialis(, is, *hen no spontaneously %or(ed price-syste( e/ists, to *or5 out theoretical concepts that enable one to thin5 out ho* to regulate e/panded reproduction and the trans%or(ation o% social relations, together *ith the la*s (a5ing it possible to secure the ut(ost sa,ing o% social labour& )hese theoretical concepts and 5no*ledge o% these la*s *ill enable us to build a price-syste( corresponding to the re2uire(ents o% the de,elop(ent o% this social %or(ation and to the political ai(s being pursued (in so %ar as a price-syste( li5e this can e/ist at all)&

#% this path is not ta5en, the ris5 arises, sooner or later, o% being te(pted to declare %or the Hre-establish(ent o% (ar5et pricesH,9"': that is, o% the ob7ecti,e structure than5s to *hich it is no longer either necessary or possible to subordinate the de,elop(ent o% the social %or(ation to de%inite political purposes, since this de,elop(ent is ensured spontaneously by the ,ery structure that (a5es possible the Hre-establish(ent o% (ar5et pricesH& Fo*e,er, re-establish(ent o% (ar5et prices is logically only the %irst step to*ards introducing Hregulating (agnitudesH *hich operate spontaneously& #n %act, these prices *ill not produce the e%%ects e/pected unless there are real (ar5ets a,ailable, not (erely %or consu(er goods but also %or (eans o% production, production %unds and labour-po*er& Fence the successi,e stages passed through by the Cugosla, He/peri(entH, the ,ery logic o% *hich has led to the re-establish(ent o% all these (ar5ets, and so o% the production-relations *hich their e/istence presupposes&9"6: )he irony o% history has brought it about that these production-relations are no* obstructing the de,elop(ent o% the producti,e %orces to an increasing e/tent, so that the underta5ing is not e,en getting the results that so(e
(a*e 221

people thought it *ould& #ts ulti(ate end can only be a co(bination o% (onopolistic structures *ith state capitalis(&9"6: )o a,oid beco(ing dra*n into an ad,enture o% this sort, the only path %or*ard is that o% *or5ing out, for the tran!itional economie!, the e2ui,alent o% the concepts by *hich Mar/ described the Hregulating (agnitudesH o% capitalis( and re,ealed their conne/ions and %unctioning& Dhat is needed is to *or5 out concepts that, in the structure o% these (odes o% production or social %or(ations, *ill occupy the !ame place as the corresponding concepts in $apital. .o(e o% the( (ay e,en bear the sa(e na(e, in so %ar as they can be di%%erentially *or5ed out on the basis o% the concepts gi,en in $apital. )his ob,iously cannot happen *ith all the concepts in $apital, since so(e o% the( re%er to production-relations *hich are speci%ic to the capitalist (ode o% production and the real relations they describe there%ore no longer e/ist under the ne* (ode o% production& #n the latter they are replaced by others *hich, *hile %ul%illing si(ilar %unctions, do this in a radically ne* *ay& )his is, %inally, the theoretical tas5 *hich an e(piricist proble(atic pre,ents us %ro( seeing, though the need %or it is sho*n by $apital itsel%, as soon as one stops loo5ing in that boo5 %or *hat is not and cannot be there, and instead loo5s %or *hat should be and is there; not, ho*e,er, in the e(pirical %or( o% ob7ects (erely needing to be disco,ered, but in that o% concepts, *hich are theoretical (eans o% production that ha,e to be set to *or5& )hough the theoretical (atri/ o% the concepts needed %or cognition o% the la*s o% the transitional econo(ies is to be %ound in $apital, this does not (ean that it is easy to *or5 out these concepts& )he tas5 is a huge one, since *hat is in,ol,ed is *or5ing out the theory o% a ne* (ode o% production&

Be,ertheless, as soon as one starts reading $apital in a theoretical and not an e(piricist *ay it beco(es clear that the road ahead lies open& )his is particularly true because o% *hat Mar/ tells us about prices& )hus, so early as hapter " o% ?oo5 #, he *ritesA H)he price-%or(, ho*e,er, is not only co(patible *ith the possibility o% a 2uantitati,e incongruity bet*een (agnitude o% ,alue and price, i&e&, bet*een the %or(er and its e/pression in (oney, but it (ay also conceal a 2ualitati,e inconsistency, so (uch so that, although (oney is nothing but the ,alue-%or( o% co((odities, price ceases altogether to e/press ,alue& & & & Fence an ob7ect (ay ha,e a price *ithout ha,ing ,alue& )he price in that case is i(aginary, li5e certain 2uantities in (athe(atics& !n the other hand, the i(aginary price-%or( (ay so(eti(es conceal either a direct or an indirect real ,alue-relation; %or instance, the price o% unculti,ated land, *hich is *ithout ,alue, because no hu(an labour has been incorporated in it&H (Mar/, Bo& '6, p& 112; 0ng& ,ersion %ro( $apital, #, p& 16&) Fere *e %ind (as also, o% course, in (any other passages in $apital ),9"1: essential pointers %or *or5ing out, on the basis o% the theory o% ,alue, a
(a*e 221

price theory *hich, gi,en di%%erential handling, is applicable to all the ,arious (odes o% production in *hich co((odity production goes on& )o e/pand this point *ould be to ta5e us too %ar %ro( our sub7ect& #t is *orth stressing, ho*e,er, that the propositions # ha,e 2uoted re,eal the need, i% the *or5ing o% any co((odity (ode o% production is to be understood, to grasp not only the speci%ic general la*s that deter(ine the average magnit%de o% prices, that is, the H(agnitudes *hich are regulati,eH in the last instance (,alue, price o% production and other trans%or(ed %or(s o% ,alue), but also the speci%ic la*s that deter(ine the correspondence or non-correspondence bet*een prices and these regulating (agnitudes& Dhen *e *ant to understand the %unda(ental tendencies o% a co((odity (ode o% production, 5no*ing the la*s that deter(ine the divergence! bet*een price and (agnitude o% ,alue, or any other regulating (agnitude, and the la*s that deter(ine ho* Hi(aginary pricesH are %or(ed, is doubtless not so essential as 5no*ing the la*s that deter(ine the a,erage (agnitude o% prices& )his is *hy Mar/ did not specially e/pand the re(ar5s he %or(ulated on ,arious occasions regarding the la*s that go,ern the di,ergences bet*een price and ,alue, or the %or(ing o% Hi(aginary pricesH& )hus, to an insu%%iciently attenti,e reader o% $apital, price-%luctuations appear to be (erely e%%ects o% the %luctuations o% HsupplyH and Hde(andH& Moreo,er, the day-to-day (o,e(ent o% prices is o% only secondary interest %or understanding the general la*s o% de,elop(ent o% a social %or(ation&

)he order o% i(portance o% these proble(s changes *hen the tas5 be%ore us is both to understand ho* %or(ations in transition bet*een capitalis( and socialis( actually %unction, and to concretely #or; o%t a price3policy. #t no* beco(es absolutely essential to 5no* all the la*s that go,ern the structure o% prices and deter(ine the ob7ecti,e properties o% this structure& #t is no* o% the highest i(portance to grasp the limit! *ithin *hich prices (ay vary *ithout ceasing to %ul%il their %unction, and also the effect! of the!e variation! on production-relations and the de,elop(ent o% the producti,e %orces& #n other *ords, *hile 5no*ledge o% the la*s deter(ining the a,erage prices o% the ,arious co((odities is su%%icient %or analysing the o,erall (o,e(ent o% a (ode o% production, this 5no*ledge beco(es inade2uate *hen the tas5 is to *or5 out a concrete price-policy, that is, to %i/ prices in accordance both *ith a structure and a con7uncture (*hich is not any longer that o% the H(ar5etH, but is *hate,er corresponds to the social and political priorities o% each period), so as to plan the(& #n these circu(stances the %act that it is not enough to 5no* the la*s that deter(ine a,erage prices (a5es itsel% %elt in a nu(ber o% *ays& )hus, i% a price policy is *or5ed out on the basis o% a 5no*ledge o% these la*s alone, the concrete decisions ta5en, in so %ar as they are going to be e%%ecti,e, o%ten appear to contradict these la*s& )he concrete prices then al(ost all see( to be He/ceptionsH to the la*s& )he latter then cease to loo5 li5e *hat they are, but see( (ere HrulesH (since la*s do not allo* o% e/cep(a*e 222

tions, *hereas rules call %or the(, in so %ar as the e/ceptions Hpro,eH the rules)& !ne o% the *ea5nesses o% the discussion on prices is, as *e ha,e seen, that it has been abo,e all concerned *ith the Hregulating (agnitudesH *hich deter(ine prices on the a,erage, that is, in the last instance, and has treated as HsecondaryH the la*s go,erning the divergence! bet*een prices and regulating (agnitudes& !nce again, then, *hen a price-policy has to be *or5ed out, that is, *hen concrete prices ha,e to be planned, it is essential to 5no* the la*s that deter(ine these di,ergences, their possible li(its, and the ob7ecti,e properties o% price structures *hich are (ar5ed by particular di,ergences bet*een prices and regulating (agnitudes& Dhat are needed at each (o(ent %or the planning and (anage(ent o% the econo(y are not Ha,erageH prices but concrete ones, *hether real or Hi(aginaryH, and *hich, i% they are real prices, (ust di,erge under ob7ecti,ely deter(ined conditions %ro( certain regulating (agnitudes& #% the la*s go,erning these di,ergences and their e%%ects9"8: ha,e not been grasped, one is easily induced to %i/ only Ha,erageH prices and lea,e the (ar5et to H%i/H the di,ergences %ro( the a,erage&

De thus see that the proble( o% planned ,ariations o% prices, and o% the ,alue-li(its o% these ,ariations, no* beco(es an essential one& )he concrete 2uestions that arise usually concern the limit! to ,ariations& )he proble(s that ha,e to be sol,ed at the le,el o% planning and (anage(ent usually arise in a %or( that calls %or in,ocation o% the li(its in relation to *hich a particular 5ind o% production, or a particular techni2ue, begins or ceases to be *orth *hile& Fere *e ha,e to do *ith e/tre(al proble(s or, (ore precisely, o% interconnected e/tre(a, *hich can there%ore not be sol,ed by (eans o% (ere a,erage (agnitudes& #n particular, *hen the (anage(ent o% an econo(y is subordinated not to the la* o% pro%it but to the principle o% sa,ing labour, *hat ha,e to be deter(ined are the conditions under *hich calculations in price ter(s can (a5e it possible to ensure the (a/i(u( sa,ing o% social labour in attaining targets *hich ha,e been decided on %or political and social reasons& Fro( all these points o% ,ie* the pointers gi,en in the passage %ro( Mar/ 2uoted abo,e are ,ery i(portant& Dithout going deeply into this (atter, it is enough to (ention that the proposition about Hthe i(aginary price-%or(H *hich H(ay so(eti(es concealH relations *hich are HrealH though HindirectH contains in ger( *hat price-theory needs in order to sol,e the proble( o% prices %or (eans o% production *hich are a,ailable in ade2uate 2uantity, and that o% the prices %or (achines *hich ha,e been used and are no longer being (anu%actured& More generally, *hat *e ha,e here in ger( is *hat has been partly redisco,ered, %ollo*ing a di%%erent route, by the (athe(atical econo(ists *ho ha,e sho*n the need to include in prices *hat they call Hcosts o% re,erse lin5ageH (Bo,o<hilo,, Bo& 6'), that is, the losses that the econo(y su%%ers %ro( the use o% a product in a particular acti,ity, *hen this use alters the conditions in *hich other branches or acti,ities %unction, %or
(a*e 227

e/a(ple, by increasing their costs o% production& )his is a point to *hich # shall ha,e to co(e bac5 in (y conclusion& )his sho*s ho* necessary it is to ta5e account o% all Mar/3s propositions regarding prices, throughout $apital. Cet these propositions ha,e o%ten been regarded as being o% secondary i(portance as co(pared *ith the analyses de,oted to ,alue and prices o% production& #% attention is paid in this *ay, gi,ing these propositions all the theoretical i(portance due to the(, *e see that e,erything ,anishes *hich, because $apital has been read in an e(piricist spirit, has led, in the discussion on prices, to the construction o% HrulesH that consist al(ost entirely o% e/ceptions& )his is so because, i% *e proceed in this *ay, *e shall read $apital (ore care%ully, and stop (i/ing up concepts *ith e(pirical (atters, and as a result o% this reading *e shall obtain concepts that *ill enable us to *or5 out the la* o% these alleged HirregularitiesH, *hich are thus seen to be irregularities no longer, but the e%%ect o% the la* itsel%&

/B The s(ecificity of the (rice (ro lem in the economy of transition #t is, o% course, one thing to possess the concepts needed to construct a price theory in social %or(ations in transition bet*een capitalis( and socialis(, and 2uite another actually to construct this theory, *ithout e,er losing sight o% the %act that the price-structure is dictated by all the a%thoritie! of the !ocial formation. Bo*, the action o% all the authorities o% the social %or(ation upon prices in,ol,es conse2uences that go ,ery (uch deeper in econo(ies in transition bet*een capitalis( and socialis( than in the capitalist (ode o% production, especially in the co(petiti,e stage o% the latter& At this stage, indeed, the capitalist (ode o% production is (ar5ed by a dual %or( o% con%or(ity bet*een the real-appropriation relations and the %or(al appropriation relationsA there is both con%or(ity bet*een the process o% e/traction o% surplus-,alue and the process o% appropriation o% surplus-,alue, and con%or(ity bet*een o*nership o% the (eans o% production and direction o% the labour-process& )his dual correspondence entails, as *e 5no*, relati,e autono(y o% the econo(ic instance,9"9: and this i(plies that the other instances o% the social %or(ation act only indirectly and in a hidden *ay upon the econo(ic one& =nder these conditions, prices the(sel,es see( to be entirely deter(ined by conditions peculiar to the econo(ic instance& )his can no longer happen in social %or(ations in transition bet*een capitalis( and socialis(A %irst, because, as social %or(ations in transition, they are (ar5ed by speci%ic %or(s o% non-correspondence bet*een the di%%erent social relations, including, o% course, at the le,el o% the production-structures, 9'0: *hich i(plies that the de,elop(ent o% these social %or(ations to*ards socialis( necessitates do(ination o% the econo(ic instance by the political one; secondly, because socialis( itsel% has to sub7ect the producti,e %orces to do(ination by the associated producers, *hich rules out spontaneity in the *or5ing o% the econo(ic le,el&
(a*e 229

As regards, (ore particularly, the %or(s o% non-correspondence *hich are speci%ic to present-day econo(ies o% transition, a decisi,e role is played by non-correspondence bet*een the social character o% o*nership and the (ode o% real appropriation *hich is not yet directly and *holly social& )his contradiction, or this non-correspondence, sho*s itsel% through the e/istence o% distinct econo(ic sub7ects that po!!e!! (eans o% production o% *hich the .tate is the o#ner. )his possession is based on the capacity the econo(ic sub7ects ha,e to operate e%%iciently the (eans o% production under their control& #n the industrial sector these econo(ic sub7ects are usually state enterprises& At the theoretical le,el, this ob7ecti,e situation in *hich o#ner!hip and po!!e!!ion are separate cannot be thought out in all its conse2uences *ithout

t*o related groups o% conceptsA on the one hand, concepts *hich account %or the role played by state o*nership as an ele(ent in the production relations, and so %or the planned character o% the transitional econo(ies, and thereby also %or the already highly socialised character o% their producti,e %orces; and, on the other, concepts *hich account %or the still Hco((odityH character o% these econo(ies, including concepts relating to the ,alue %or( and its trans%or(ed ,ersions, especially prices& )hese concepts, ho*e,er, (ust be speci%ic ones, that is, they (ust apply to the social %or(ation o% the transitional econo(y and there%ore (ust differ %ro( those *hich apply to the capitalist econo(y& Fere, too, *e see that the concepts accounting %or the co((odity character o% the transitional econo(y cannot be %ound Hready-(adeH in $apital. )hey ha,e to be *or5ed out di%%erentially on the basis o% that boo5& )his is possible because $apital contains the theoretical (atri/ o% these concepts& )he 5ind o% di%%erentiation that thus has to be carried out is deter(ined by the already planned character o% the econo(y& )here%ore the content o% this di%%erentiation has to be %ound, in part, by analysing the categories o% econo(ic planning and econo(ic calculation on the social scale& )his re2uires that these categories be reduced to an ade2uate conceptual content& #n doing this the necessary instru(ents *ill at the sa(e ti(e be obtained %or trans%or(ing the actual practices *ith *hich these categories are connected& Finally, the type o% co(ple/ity *hich is speci%ic to social %or(ations in transition bet*een capitalis( and socialis( re2uires that t*o sets o% concepts be *or5ed outA one *hich corresponds to the already highly socialised character o% the econo(y, due to the change in production relations, and another *hich corresponds to the still co((odity character o% this sa(e econo(y, due to the not yet %ully social character o% the producti,e %orces& )he %irst set o% concepts operates in the %ield o% planning& #t relates together not e/change-,alues and abstract labour, but use-,aluesA its %unda(ental category is that o% concrete labo%r. )he concepts that (a5e up this set correspond to the categories o% plan(a*e 22'

ning& !nce %ully de,eloped, they should (a5e it possible to thin5 out the conditions %or non3monetary econo(ic calculation, a Hdirect H 5ind o% econo(ic accounting *hich does not e(ploy a price-syste( and *hich enables the labour-ti(e socially necessary %or di%%erent 5inds o% production to be deter(ined directly&9'1: #n so %ar as the %ield o% this calculation is a highly co(ple/ social %ield, it is a radically ne* one& >elating together concrete %or(s o% labour and use,alues, it directly concerns *hat Mar/ called Hreal *ealthH, that *hich %or capitalis( is secondary&9'2:

)he second set o% concepts corresponds to the still co((odity character o% the transitional econo(y& )his set o% concepts should (a5e it possible to build a price-syste( by (eans o% *hich co(ple(entary econo(ic calculations can be underta5enXindirect calculations, in (oney ter(s, and subordinate in signi%icance, corresponding to the day-to-day (anage(ent o% the econo(y& #t is this second set o% concepts that, operating in the %ield constituted by a price-syste(, is bound up *ith the categories o% ,alue and abstract labour& )his is *here the discussion on prices has, or ought to ha,e, its centre& )he *or5ing-out o% these t*o sets o% concepts is (ade necessary by the speci%ic type o% non-correspondence bet*een so(e o% the social relations in social %or(ations *hich are in transition bet*een capitalis( and socialis(& #t is not co(plete until the *ay the t*o sets o% concepts are lin5ed together has also been speci%ied, and thus their unity established& Li,en this condition, it beco(es %ully possible to thin5 out the *ay the transitional econo(y *or5s, and so to do(inate it& )he unity and duality o% the conceptual syste( needed in order to do(inate in thought, and later in reality, the social %or(ations in transition bet*een capitalis( and socialis( thus results %ro( the particular %or( o% noncorrespondence bet*een property-relations and relations o% real appropriation, because it is this non-correspondence that is the source o% the particular co(ple/ity o% these social %or(ations in transition& )hus, a speci%ic %or( o% duality o% production-relations is behind the duality o% the types o% econo(ic calculation (direct econo(ic calculation, in use,alues and concrete labour-ti(e, and indirect econo(ic calculation, in (oney, prices and abstract labour)& )he proble( o% prices and o% their role in the planned econo(ies o% today cannot use%ully be dealt *ith unless account is ta5en o% this duality, since the latter is the e/pression o% non-correspondence e/isting at the le,el o% the production-structures& Dhat (a5es it indispensable to *or5 out theoretical concepts that *ill enable us to e/plain and do(inate the operation o% the transitional econo(ies is that, *ithout the(, there is constant danger o% being dra*n into gra,e practical errors, both in respect o% the planning o% production (*hich is then o%ten guided by prices that ha,e no econo(ic (eaning)9'": and in respect o% price-policy and (*hat can be e,en (ore serious) the place to
(a*e 22+

be gi,en to calculation in price ter(s and to the action o% the latter in the planning and (anage(ent o% the econo(y *ith the ai( o% building socialis(&

Mista5es (ade in these last-(entioned %ields, i% co(bined *ith the e%%ect o% other social and political %actors, (ay in %act lead to the *ithering a*ay o% the planned econo(y and the resurgence o% an entirely co((odity econo(y& #% there is such a danger, this is precisely because the social %or(ations no* in transition bet*een capitalis( and socialis( are not yet %ully constituted socialist econo(ies but only transitional ones& #t is because, being transitional econo(ies, they still ha,e a real (ode o% appropriation *hich is not co(pletely social, that the ,alue %or( e/ists and is actually a *ay in *hich Hco((odity relations (ani%est the(sel,esH& )hese relations are al*ays li5ely to de,elop and escape %ro( social control, i% the contradiction bet*een the (ode o% o*nership and the (ode o% appropriation is not correctly dealt *ith& ertain earlier %or(ulations9'': *hich sa* in calculation in prices and the ,alue %or( not the e/pression o% real production-relations but only a con,enient (ethod o% calculation ha,e contributed to underesti(ation o% the ris5 o% a resurgence o% increasingly autono(ous co((odity relations, e,en in dealings bet*een state enterprises& #t is especially *orthy o% e(phasis that, in a situation o% noncorrespondence bet*een the t*o %unda(ental relations in the econo(ic %ield, Hthe conne/ion bet*een the t*o relations no longer ta5es the %or( o% reciprocal li(itation, but beco(es the tran!formation of one of them by the other)! effect! H (?alibar, Bo& 9, p& "18)& )he trans%or(ation o% one relation by the e%%ects o% the other (ay, indeed, (ean either that the producti,e %orces are gradually raised to the le,el o% the production-relations, or that the opposite process ta5es place, na(ely, that the production-relations adapt the(sel,es to the le,el o% de,elop(ent o% the producti,e %orces& )he %irst o% these solutions is ob,iously the only one that corresponds to the needs o% building socialis( but it cannot ta5e place *ithout syste(atic inter,ention %ro( le,els other than the econo(ic, na(ely, the political and ideological le,els& Nuite concretely, inter,ention %ro( the political le,el de(ands real econo(ic planning and not (ere HguidanceH o% the econo(y& >estricting onesel% to the latter *ould (ean ensuring the gradual predo(inance o% co((odity categories, that is, o% the production-relations that these categories contain and necessarily de,elop through e/panded reproduction o% their o*n conditions o% operation& )he need %or inter,ention in the econo(ic le,el %ro( the political and ideological le,els is a general characteristic o% all periods o% transition, but it is especially i(perati,e in conne/ion *ith transition %ro( capitalis( to socialis(, since the end-result o% this transition is intended to be per(anent sub7ection o% the de,elop(ent o% the econo(y to the other instances o% the social %or(ation, so that the pseudo-independence o% the econo(ic le,el,
(a*e 22&

as e/pressed through sel%-regulation by the la* o% ,alue, disappears %ro( the historical scene& Fere # (ust (ention the har(%ul e%%ects not only o% an e(piricist tradition but also o% a certain theoretical tradition *hich clai(s to establish a direct and re,ersible relationship bet*een the e,olution o% the ,arious le,els o% a social %or(ation& )his tradition tends to reduce the *hole o% social de,elop(ent to the de,elop(ent o% the producti,e %orces, the changes at the other le,els being regarded as (erely He/pressionsH o% *hat is happening at the econo(ic le,el& )his conception is called Hecono(is(H& #t leads one easily to suppose that the principal, i% not the only proble( in building socialis( is to ensure the (ost rapid de,elop(ent possible o% the producti,e %orces& !n this basis one (ay be led into accepting that, in certain circu(stances, it *ould be pre%erable to cut do*n on the e%%ort o% planning in order to gi,e greater scope to the H(ar5et (echanis(sH, on the prete/t o% (a5ing the current %unctioning o% the econo(y (ore He%%icientH& #t is thus essential to deter(ine the limit! *ithin *hich the co((odity categories help a planned econo(y to %unction, and beyond *hich their action depri,es planning o% all possibility o% really in%luencing the content o% econo(ic de,elop(ent (as regards *hat is produced and as regards social relations)& ?y *or5ing out the theory o% social %or(ations in transition bet*een capitalis( and socialis(, and in particular by *or5ing out a theory o% prices and econo(ic calculation in these social %or(ations, *e shall *or5 out at the sa(e ti(e a theory of the limit! that the #or;ing of the commodity categorie! m%!t not over!tep, i% it is desired to pre,ent the beginning o% a process o% sel%-de,elop(ent o% these categories& )he proble(s (et *ith here ob,iously relate also to deter(ining the sphere o% operation o% the la* o% ,alue and the conditions under *hich the latter can be subordinated to the la* o% social regulation o% the de,elop(ent o% the producti,e %orces and the re2uire(ents %or trans%or(ing the production-relations& B Concl:sion )he study *e ha,e (ade o% the proble( o% prices in the social %or(ations in transition bet*een capitalis( and socialis(, and the balance sheet o% the discussion o% this 2uestion that has ta5en place in the socialist countries o% 0urope enables (e to %or(ulate a %e* re(ar5s that can be o%%ered by *ay o% conclusion& First, the proble( o% prices in these social %or(ations cannot be sol,ed i% one starts %ro( ready-(ade %or(ulae, especially %ro( those constructed on the basis o% theoretical concepts speci%ic to another (ode o% production, the capitalist (ode& )his has o%ten been %orgotten during the discussion # ha,e su((arised& .econdly, in any case, *hen it is a (atter o% *or5ing out a price policy and concretely %i/ing the prices o% di%%erent goods, the proble( to be sol,ed is not reducible to laying do*n HrulesH %or price-%i/ing& #t consists, in reality, o% dra*ing out the ob7ecti,e la*s to *hich the price-syste( (ust

(a*e 22,

con%or( in order to produce the e%%ects re2uired by the *ay the econo(y %unctions& )hese la*s are not (erely those *hich deter(ine the Hregulating (agnitudesH o% prices but also, and 7ust as (uch, those *hich deter(ine both the de,iations o% prices %ro( these Hregulating (agnitudesH, and also, e,en, Hi(aginary pricesH& )here is a certain price-structure *hich corresponds to the re2uire(ents o% a socialist planned econo(y, in the sense that there (ust be con%or(ity bet*een the ob7ecti,e conditions o% production, the targets o% the plans, and the price-structure& #t is ob,ious that this (eans that the pricestructure (ust be subordinated to the targets o% the econo(ic plans, so(ething that has o%ten been o,erloo5ed by so(e participants in the discussion on prices& )his leads to a third obser,ation, na(ely, that the proble( o% prices cannot be sol,ed i% it is regarded as a (ore or less sel%-contained one& )he search %or a satis%actory solution necessarily, and pri(arily, proceeds by *ay o% analysis o% the social relations, and, (ore particularly, o% the production-relations characteristic o% the social %or(ation in *hich the price syste( has to operate -- both those that e/ist at a gi,en (o(ent and those that the econo(ic plan ai(s to de,elop&9'6: )hese production-relations constitute a structure& )he price-syste( is itsel% an e%%ect o% this structure, and o% the changes ta5ing place in it, especially those %or *hich the i(petus co(es %ro( the political le,el& )he price-syste( cannot, %or all that, be HdeducedH %ro( the present and %uture production-relations& #t has to be built up, and this process de(ands that theoretical concept! be *or5ed out to e/press the ob7ecti,e re'%irement! to *hich the price-syste( is sub7ected, the f%nction! it %ul%ils, and their limit!. !nly *hen the theoretical concepts ha,e been *or5ed out can one *or5 out the technical concept! enabling one concretely to construct a price-syste(& )oo o%ten consideration has been gi,en only to the technical concepts& )he principal aspect o% the production-relations o% the social %or(ations in transition is the e/istence o% social o*nership o% the chie% (eans o% production& #t is because o% this social o*nership that it is possible to *or5 out a production plan that ta5es account directly o% use-,alues, and not o% e/change-,alues& Fo*e,er, the totality o% the production-relations o% the social %or(ations in transition is do(inated by the e/istence o% a %unda(ental contradiction, resulting %ro( the lac5 o% con%or(ity bet*een the property-relations and the real relations o% appropriation& )his is the structure deter(ined by the transitional character o% these social %or(ations, *hich is responsible %or the appearance o% the ,alue-%or(, and the need %or a price-syste( to operate& )his price-syste( ser,es to orientate the decisions o% the econo(ic sub7ects in %ields *here direct inter,ention, in the %or( o% detailed orders, by the political authorities, *ould be ineffective, or e,en har(%ul, because bringing about results other than those e/plicitly ai(ed at&

)he role played by the price-syste( in the social %or(ations in transition bet*een capitalis( and socialis( is thus not to ensure the Hautono(yH o%
(a*e 22%

the econo(ic sub7ects, *hich *ould presuppose the de,elop(ent o% (ar5et prices& #ts role is -- *ithin a structure ob7ecti,ely characterised by relative autono(y o% the econo(ic sub7ects -- to !erve a! a relay3!tation %or political inter,ention in the econo(ic %ield, *here,er this inter,ention cannot use%ully ta5e place in any other *ay& )his %or( o% inter,ention by the political authority is itsel% e%%icient only i% the price-syste( is coherent *ith the political ai(s pursued and i% it ans*ers the de(ands o% e/panded reproduction and the trans%or(ation o% social relations& )his i(plies a certain 5ind o% correspondence bet*een prices and Hsocial costsH, the latter ter( here assu(ing a !pecific (eaning, %or HcostsH cannot be e,aluated in the sa(e *ay regardless o% *hether the ai( o% production is to (a/i(ise pro%it or to satis%y social needs and build a ne* society& #n order to gi,e greater precision to *hat has been said, the %ollo*ing obser,ations (ay be addedA a) )he essential role o% the price-syste( in the social %or(ations in transition is to enable the econo(ic sub7ects to carry out calculations under conditions such that the day-to-day econo(ic decisions ta5en on the basis o% these calculations (ay, so %ar as possible,9'6: con%or( to *hat is (ost ad,antageous %or the de,elop(ent and changing o% the production-relations in the direction o% socialis(& b) Dhat is H(ost ad,antageousH %or the de,elop(ent and changing o% the production-relations in the direction o% socialis( can ob,iously not be deter(ined either by (ere econo(ic calculation or, a fortiori, by the econo(ic sub7ects operating through a (ar5et (or a pseudo-(ar5et) on *hich prices are %or(ed spontaneously& )here%ore, re-establish(ent, on a substantial scale, o% a syste( o% (ar5et prices cannot but hold bac5 e,olution to*ards socialis(& )his last obser,ation does not (ean that, *ithin li(ited %ields, certain prices (ay not be %or(ed by ta5ing account o% de(and e/pressed in (oney ter(s, or the indications o% a H(ar5etH largely controlled by social authorities& c) )he %unda(ental proble(s o% the de,elop(ent o% the social %or(ations in transition th%! do not depend directly on Heconomic calc%lation H b%t on H!trategic calc%lation H carried out at the le,el o% the central political and econo(ic authorities& )he content o% this strategic calculation is both econo(ic (in the sense that it concerns the production-relations and the producti,e %orces) and political (in the sense that it concerns relations bet*een classes and bet*een social strata)& Dhat corresponds to the econo(ic content o% the strategic calculation ta5es the %or( o% Hsocial econo(ic calculationH&

d) )hose o% the %unda(ental proble(s o% the de,elop(ent o% the social %or(ations in transition *hich depend on such social econo(ic calculation cannot be sol,ed by mean! of economic calc%lation in money term! (or, to use other e/pressions %or the sa(e thing, Hcalculation in pricesH, or Hin direct econo(ic calculationH) but only by (eans o% direct econo(ic calculation in the sense indicated in 0ngels3s %or(ulation, 2uoted earlier
(a*e 271

(0ngels, Bo& 21A see note 2 to this chapter)& )his 5ind o% calculation operates only *ith physical 2uantities (including stoc5s o% (eans o% production, land and labour-po*er considered concretely, that is, ta5ing account o% the *or5ers3 degree o% s5ill, *here they are, and so on)& )he ai( o% this calculation is to bring about that co(bination o% (eans o% production *hich, under the conditions considered best politically and socially, *ill ensure (a/i(u( satis%action o% social needs, the(sel,es e,aluated socially& )he end-result o% this calculation is the %or(ulating o% plans %or in,est(ent and production& )hus, it is the *or5ing-out o% such plans %or in,est(ent and production that ta5es priority o,er the calculation o% prices and their %i/ing, since, in principle, 9'1: these plans are dra*n up, independently o% any price syste(& ?ut a syste( o% Hsigni%icantH prices *ill be *or5ed out, at a certain (o(ent or %or a certain period, as so(ething derived %ro( the in,est(ent and production plan (*hich itsel% ta5es account o% present and %uture conditions, and there%ore gi,es e/pression, in real ter(s, to real social costs)& A syste( o% deri,ed prices li5e this is conse2uently only a translation into the language o% the price-%or( o% social costs as they result %ro( the present and %uture conditions o% production, the(sel,es inscribed in an econo(ic plan& )his is not 7ust a (atter o% pro,iding a picture to represent (echanis(s that cannot be grasped, but o% a proposition re%erring to de%inite techni2ues and procedures& )hese ha,e already been *or5ed out in principle, e,en i% their practical application on the social scale still gi,es rise to di%%iculties& .o(e o% the latter are connected *ith the need to pro,ide a better de%inition o% the group o% theoretical concept! *hich can alone %urnish the %oundation %or calculating a price-syste( li5e this& !thers are connected *ith the li(itations that the technical (eans a,ailable put in the *ay o% the large-scale calculations that are needed here&9'8: )he category o% Hd%al price! H re%ers to one o% the %or(s o% such prices, deri,ed %ro( a plan regarded as o%%ering the (a/i(u( bene%its& )he *or5s o% @antoro,ich (Bo& 28), Bo,o<hilo, (Bos& 6' and 66), Be(chino, (Bos& 61, 62 and 6"), Fedoren5o and Llush5o, (Bo& 22), @ornai (Bos& "" and "'), Frisch (Bo& 2") and (any other econo(ists and (athe(aticians ha,e opened *ide the road in this direction, at least %ro( the technical standpoint& .uch prices deri,ed %ro( plans (a5e it possible to allo* the econo(ic sub7ects to ta5e, in a certain n%mber of field!, decisions *hich, appearing to be the (ost ad,antageous %ro( the calculations *hich these econo(ic sub7ects

can carry out at their o*n le,el, that is, *ith the in%or(ation a,ailable to the(, are also the (ost ad,antageous %or the national econo(y, and this not in a narro*ly econo(ic sense but also in a HpoliticalH sense& )hese are there%ore HpoliticalH prices,9'9: *hich does not (ean prices %i/ed sub7ecti,ely or deter(ined in an arbitrary *ay, but, on the contrary, prices deter(ined ob7ecti,ely on the basis o% political and econo(ic needs, that is, ta5ing account o% the principle of maxim%m !aving of !ocial labo%r, so %ar as this can be applied, allo*ing %or social re2uire(ents as a *hole
(a*e 271

(especially %or the greater or less degree o% (obility o% the ,arious ele(ents o% production, in particular o% labour-po*er)& #n order to be prices o% this sort, prices (ust e/press not only the actual direct e/penditure o% labour de,oted at a gi,en (o(ent to the ,arious 5inds o% production, but also the potential indirect e/penditure, *hat Bo,o<hilo, (Bos& 6' and 66) calls Hcosts o% re,erse lin5ageH& )hey (ust there%ore %ul%il ,ery strictly one o% the %unctions that Mar/ so stri5ingly pointed out in the passage pre,iously 2uoted (see !%pra, p& 220A Mar/, Bo& '6, p& 112)& #n the construction o% a price-syste( %or the social %or(ations in transition bet*een capitalis( and socialis(, the concepts o% $apital play a %unda(ental roleA that o% (atri/ o% the concepts *hich are speci%ic to these social %or(ations& !n the theoretical plane, that is on the plane they clai( to be on, the contribution (ade by the so-called H(odern econo(ic theorie! H is thus absolutely nil, %or i% anything can be learnt %ro( the(, it is not in the theoretical but the technical %ield& Dhat these HtheoriesH can, and all that they can, pro,ide are e(pirical (ethods and procedures %or *or5ing-out relations bet*een econo(ic acti,ities& )hese (ethods and procedures, so long as one does not ta5e the( %or *hat they are not, can be used as help%ul tools in certain calculations& #% this can happen, it is, on the one hand, because today, in the (ost ad,anced capitalist countries, it has been necessary to try to sol,e, *ithin the li(its i(posed by e/isting production-relations, a set o% proble(s *hich de(and that account be ta5en o% inter-sectoral relations and that atte(pts be (ade to %orecast the i(pact o% any group o% econo(ic and political decisions on %uture econo(ic de,elop(ent& )he econo(ists o% the capitalist countries ha,e thus had to sol,e in ad,ance a certain nu(ber o% e/pected proble(s, *ithin the %ra(e*or5 o% o,erall econo(ic calculations& #% this can happen, it is, on the other hand, because the de,elop(ent o% (onopolistic %or(ations has created co(ple/ proble(s o% (a/i(ising pro%its (so(eti(es on the scale o% entire branches o% production), and, formally, these proble(s are o% the sa(e nature as those presented by (a/i(u( satis%action o% social needs& )he techni2ues o% calculation, and the technical concepts that calculation presupposes, are there%ore HtoolsH *hich can be used, pro,ided they are correctly (odi%ied&

Dhile, ho*e,er, so(e o% the econo(ic techni2ues *or5ed out in the capitalist countries can be used in the socialist ones, this is so only pro,ided *e not (erely re%rain %ro( con%using the( *ith the *ay they are presented ideologically, but also pro,ided they are cleansed o% the ideological pre(ises %ro( *hich they proceed& Moreo,er, because o% the %unctions they ha,e to %ul%il, they do not pro,ide solutions to the !pecific problem! o% socialis(, in particular to those *hich arise %ro( the need to carry out on the social scale a large nu(ber o% calculations in physical 2uantities& !ne o% the characteristics o% the calculations carried out in the capitalist countries is that they al(ost al*ays (a5e use, e/plicitly or i(plicitly, o% a price-syste(&
(a*e 272

#n the conditions o% the social %or(ations in transition, ho*e,er, there are, as *e ha,e seen, t*o le,els o% calculation *hich are 2uite distinct (e,en i% in practice they are %ar %ro( al*ays 5ept distinct)A calculation on the social scale, *hich deals, in principle, as has been said, only *ith physical 2uantities (including e/penditure in labour), and calculation per%or(ed at the le,el o% the econo(ic sub7ects, *hich is carried out in ter(s o% prices& )his duality o% calculation (in so %ar as it i(plies the %i/ing o% real prices, that is, prices that are actually to be paid) is the counterpart o% the noncorrespondence bet*een property-relations and relations o% appropriation& #n the conditions o% the transitional econo(ies, this non-correspondence, *hen the contradiction it bears is not properly handled, gi,es rise to a secondary contradiction bet*een Hpro%itabilityH %ro( the standpoint o% society960: and Hpro%itabilityH %ro( the standpoint o% the econo(ic sub7ects& A secondary contradiction li5e this can only be an e/pression o% inade2uate handling o% the %unda(ental contradiction& )he duality o% econo(ic calculation corresponds to the e/istence o% t*o le,els o% decision-(a5ing& )hese t*o le,els are situated di%%erently in relation to ti(eA direct econo(ic calculation (*ithout recourse to (oney categories) concerns decisions relating to the %uture, that is, central econo(ic planning; indirect econo(ic calculation (per%or(ed by (eans o% a price syste() concerns day-to-day econo(ic decisions, relating to the present and corresponding essentially to the management o% econo(ic sub7ects endo*ed *ith (eans o% production *hich ha,e been assigned to the( %or a (ore or less lengthy period o% ti(e& )he disappearance o% this duality re2uires a long process o% trans%or(ation o% the production-relations and a considerable ad,ance(ent o% the producti,e %orces, *hich (ust lead either to social integration o% the labour-processes or to a socially controllable degree o% interconne/ion o% these labour-processes& )he pre(ises o% such a change can already be seen *ith the %or(ation o% increasingly huge econo(ic sub7ects, so(eti(es e(bracing entire branches o% the econo(y (production o% electricity, oil, natural gas, rail*ays, etc&) and also *ith the interconne/ion o% an increasing nu(ber o% econo(ic sub7ects, through the setting-up o% calculation centres directly lin5ed *ith the

production-units and capable o% grasping their operations in Hreal ti(eH (Fedoren5o and Llush5o,, Bo& 22)& =ntil this trans%or(ation has been %ully acco(plished, there can be no doubt that the %nification of management and planning is still only so(ething %or the %uture& )he present situation there%ore de(ands that the t*o types o% acti,ity ((anage(ent and planning), *hile closely connected, *ith the %or(er strictly subordinate to the latter, should each de,elop under speci%ic conditions& At the le,el o% planning, though the actual use o% (ethods o% dra*ing up plans *hich *ould in,ol,e only calculations dealing *ith physical 2uantities is still only beginning, the !tr%ct%re o% these calculations can
(a*e 277

already be clearly percei,ed& #t is gi,en us by matrix calc%lation and linear and non-linear progra((ing calculations& Fere, too, *e (ust (ention the contributions o% @antoro,ich (Bo& 28), Bo,o<hilo, (Bos& 6' and 66), Fedoren5o (Bo& 22), .i(on (Bo& 26), @ornai (Bos& "", "' and "6), Frisch (Bo& 2") and (any others,961: including also the *or5s o% engineers and (athe(aticians *ho ha,e enabled us to go (ore deeply into the proble(s o% progra((ing, especially the *ritings o% L& ?& 4ant<ig and $h& Dol%e (Bo& 18)& 0,en i% so(e o% these *or5s call %or critical e/a(ination, so as to bring out those o% their pre(ises *hich are not in con%or(ity *ith the conditions o% de,elop(ent o% the social %or(ations in transition, they none the less %or( one o% the %oundations on *hich a *hole edi%ice *ill ha,e to be built& 0,en though, ho*e,er, *e ha,e already (astered essential principles regarding the calculations to be (ade on the social scale, ,ery great proble(s re(ain to be sol,ed, both on the plane o% operati,e techni2ues and on that o% their con%or(ity *ith real econo(ic processes& Further(ore, as regards electronic calculating (achines, *e are still %ar %ro( possessing the par5 o% %ast and po*er%ul (achines that *ould be needed to handle ade2uately the enor(ous a(ount o% data that *ould ha,e to be handled& For the (o(ent, there%ore, the calculations per%or(ed on the social scale deal *ith aggregated (agnitudes, and this depri,es the results o% these operations o% (uch o% their realis(& For this reason and so(e others (*hich relate particularly to the actual collection o% data), one is still obliged to use, e,en %or o,erall econo(ic calculations, a large nu(ber o% data e/pressed in price ter(s& )hese prices are later on, in so(e cases, (odi%ied in the light o% the results o% these calculations& )his leads to proceeding by *ay o% successi,e appro/i(ations and the ta5ing o% a path *hich one is not at all sure can lead to satis%actory results (at the purely technical le,el, because the con,ergence o% the calculations is not guaranteed)& Fo*e,er, this state o% practice should not cause us to lose sight o% the ne/t steps in a genuine process o% social direction o% the econo(y&

Dhile *aiting, there%ore, %or direct econo(ic calculation to beco(e capable o% de,eloping in co(plete independence o% any price-syste(, it is necessary to try and (a5e the (ost o% the procedures that enable us gradually to *or5 out a price-syste( *hich can be used %or certain planning calculations, and later %or (anage(ent purposes (@ornai and 8ipta5, Bo& "6; @ornai, Bos& "" and "'; Malin,aud, Bo& '1)& At the present stage it see(s i(possible to do *ithout procedures *hich e(ploy prices e,en at the le,el o% planning calculations, but this (ust not (a5e us lose sight o% the %act that the ai( (dictated by the structure o% the proble(s to be sol,ed) is to Hbring do*nH calculation in prices to the le,el o% the econo(ic sub7ects alone, and then, later on, to banish it altogether (unless it should see( con,enient, e,en at that stage, to use Hi(aginary pricesH *hich *ould there%ore not correspond to any H,alueH in the strict sense o% the *ord)& As regards indirect econo(ic calculation, *hile *aiting %or the ti(e
(a*e 279

*hen this can be done on the basis o% prices *or5ed out in relation to an in,est(ent and production plan, that is, on the basis o% prices strictly subordinated to this plan, because deri,ed %ro( it, it is clearly essential to establish a price-syste( *hich co(es as close as possible, so %ar as this can be 7udged, to *hat such a price-syste( *ould be& #t see(s that prices o% the Ht*ochannelH type (eet this de(and (ost closely, pro,ided that this syste( ta5es %ull account o% re,erse-lin5age costs, *hich are, in %act, one o% the *ays in *hich the priorities o% the econo(ic plan, that is, political choices, e/press the(sel,es& A price-syste( constructed in accordance *ith this conception *ould already be (ore suitable than present prices to the needs o% the transitional econo(ies& #t *ould (a5e it possible to subordinate the acti,ity o% the econo(ic sub7ects e%%ecti,ely to the re2uire(ents o% o,erall de,elop(ent in the direction o% socialis(, *hile restricting useless or ine%%ecti,e inter%erence in day-to-day (anage(ent& #t *ould (a5e it possible, there%ore, %or the econo(ic sub7ects to play the role that corresponds to their real capacities, and this role alone& onse2uently, it *ould (a5e it possible to si(pli%y the plan indices and to de,elop those direct lin5s bet*een enterprises *hich are necessary %or their success%ul *or5ing, the ai( o% this being al*ays the %ul%il(ent o% the plan and o% its indices (and not the satis%action o% a de(and ta5ing shape on a (ar5et *here prices could %luctuate %reely)& Finally, *hat the discussion on prices has sho*n is, %irst, the absolute inade2uacy o% H%or(ulaeH ai(ed at building price-syste(s according to si(pli%ied H(odelsH (%or none o% these H(odelsH can correspond to the nature o% the production-relations o% the social %or(ations in transition); secondly, the ,ery serious *ea5nesses o% the e/isting syste(s, *ea5nesses so great that they ha,e (ade so(e econo(ists turn to*ards the reconstitution o% (ar5et prices; and, %inally, the need to %or(ulate a theoretical proble(atic that *ill put the price proble( bac5 into the only %ra(e*or5 in *hich it can really be thought

out and sol,ed, that o% the speci%ic structures o% the social %or(ations in transition, and so, also, o% the re2uire(ents %or building socialis(& (.tudy published in -a Pen!&e, Bo& 1"", June 1961, pp& 26-66, and Bo& 1"', August 1961, pp& "6-66&) 23TES T3 C!-PTE. +
)his paper *as *ritten in conne/ion *ith the preparation o% a *or5 on the structures o% the transitional econo(ies and econo(ic calculation& )he nu(bered bibliographical re%erences relate to the bibliography gi,en at the end& 9p& 18': 2 Dhat 0ngels said on this point should be recalled hereA H4irect social production and direct distribution e/clude all e/change
1

(a*e 27'

o% co((odities, there%ore also the trans%or(ation o% the products into co((odities (at any rate *ithin the co((unity) and conse2uently also their trans%or(ation into val%e!. . . . H#t is true that e,en then it *ill still be necessary %or society to 5no* ho* (uch labour each article o% consu(ption re2uires %or its production& #t *ill ha,e to arrange its plan o% production in accordance *ith its (eans o% production, *hich include, in particular, its labour %orces& )he use%ul e%%ects o% the ,arious articles o% consu(ption, co(pared *ith each other and *ith the 2uantity o% labour re2uired %or their production, *ill in the last analysis deter(ine the plan& $eople *ill be able to (anage e,erything ,ery si(ply, *ithout the inter,ention o% the %a(ous 3,alue3&H (0ngels, Bo& 21, pp& "'8-9A 0ng& edn& =nti3D>hring, pp& ""9-'0&) 9p& 18': " 0,en the %e* large-scale Hprice-re,isionsH that ha,e been underta5en in the .o,iet =nion since the Fi,e-Cear $lans began ha,e not been based on theoretically *or5ed-out conceptions, but *ere in each case responses to a certain nu(ber o% practical pressures, (ainly connected *ith increasing gaps bet*een costs o% production and selling prices& 9p& 18': ' A description o% these (easures *ill be %ound in an article by !& )arno,s5y (Bo& 60)& 9p&
186: 6 )he

last re,ision o% .o,iet *holesale prices *as underta5en as %ar bac5 as 1966; in certain branches o% industrial production, notably in (achine building, (ore than 60 per cent o% production is no* (in 1966) sold at Hpro,isional pricesH, because no de%initi,e price has been laid do*n since 1962 %or ne* products (c%& A& @o(in, Bo& "1, p& 10)& 9p& 186: 6 )he %ollo*ing analysis, li5e the discussion on prices, is (ainly concerned *ith the proble( o% prices in the state industrial sector& Nuestions relating to prices on the collecti,e-%ar( or peasant (ar5ets, and the ,ery i(portant 2uestions relating to prices o% purchases %ro( and sales to the collecti,e %ar(s and the peasants, or the co-operati,es, are thus not dealt *ith, as such& )hese 2uestions belong, in part, to a di%%erent set o% proble(s %ro( those o% industrial prices, because the relations bet*een the *or5ing class and the peasantry are ,ery directly in,ol,ed& A description and a history o% the price-syste( o% the =..> as a *hole *ill be %ound in the boo5 by F& 4enis and M& 8a,igne (Bo& 19)& 9p& 186: 1 )hey *ere, indeed, Had(inisteredH or HregulatedH prices, rather than HplannedH prices, that is, prices deter(ined as part o% a plan& >eal planning o% prices de(ands the sol,ing o% a nu(ber o% theoretical proble(s *hich are only no* being tac5led& 9p& 186: 8 )hese organs ha,e ,aried %ro( period to period, and are di%%erent %ro( product to product& #t *ould be pointless to spend ti(e here on these organisational aspects& 9p& 186: 9 )he only Hprice re%or(H carried out on a %airly large scale *as that o% 19'9, but, on the one hand, this a%%ected, in the (ain, industrial products only, and, on the other, it *as largely inspired (li5e a less substantial Hre%or(H carried out be%ore the *ar) by budgetary considerations& Dhat

(a*e 27+

*as ai(ed at *as re-establishing so %ar as possible the %inancial pro%itability o% hea,y industry, on the basis o% a pro%it-nor( o% "-' per cent on the cost o% production& )hereby, industrial *holesale prices *ere increased by about 80 per cent, but the price-structure continued to lac5 (uch coherence& 9p& 186: 10 #n the .o,iet =nion these researches are being carried out (ainly in the #nstitute o% Mathe(atics Applied to the 0cono(y& )his #nstitute, *hich is attached to the =..> Acade(y o% .ciences, *as %ounded through the initiati,e o% the late Acade(ician Be(chino,& #t is no* directed by Acade(ician Fedoren5o& 9p& 189: 11 #t *ill be obser,ed that he spea5s o% Hthe (ost i(portant principleH, *hich ob,iously i(plies that it is not seen as the only principle, and there%ore that prices (ay Hde,iateH %ro( ,alue& 9p& 189: 12 #t should be noted that, e,en at the ti(e *hen there *as a rather close si(ilarity bet*een the procedures %ollo*ed by the di%%erent socialist countries o% 0urope, there *ere ne,ertheless a certain nu(ber o% di%%erences as regards the conditions o% price-%i/ing& )hese di%%erences related not only to Hstandards o% pro%itabilityH but also to the calc%lation of co!t! of prod%ction. osts o% production are, indeed, not ready3made ab!ol%te! A they are *or5ed out in accordance *ith de%inite rules (concerning the e,aluation o% production %unds, depreciation nor(s, allocation o% e/penditure co((on to co(ple/ %or(s o% production, etc&), and these rules ,ary not only %ro( one country to another but, e,en *ithin a single country, %ro( one period to another and e,en so(eti(es %ro( one industry to another& )hough these rules deter(ine the price le,el, *hene,er a conne/ion is established bet*een selling price and costs o% production (*hich (a5es the conditions %or calculating costs o% production e/tre(ely i(portant), the discussion dealt little *ith the rules %or *or5ing out costs o% production& )his is, ho*e,er, a proble( that is beginning to be gi,en (ore attention (e&g&, .itnin, Bo& 61, pp& '6-6)& 9p& 191: 1" # ha,e already pointed out that the proble( o% the HrulesH %or e,aluating these in,est(ents and the proble( o% HrulesH %or depreciation are both %ar %ro( ha,ing been sol,ed, and are gi,ing rise to a certain a(ount o% discussion& 9p& 19': 1' #n a passage in ?oo5 ### o% $apital Mar/ brings up the proble( o% changes in ,alue or price o% production as a result o% general la*s& Fe does this by e(phasising that the sale o% products at certain prices is bound up *ith a distribution o% social labour a(ong the ,arious acti,ities *hich is proportional to social needs& )hus, he *ritesA H#% this di,ision is proportional, then the products o% ,arious groups are sold at their ,alues (at a later stage 9bei #eiterer nt#ic;l%ng : they are sold at their prices o% production), or at prices *hich are certain (odi%ications o% these ,alues or prices o% production deter(ined by general la*s&H ( %& Mar/, Bo& '6, p& 686, corresponding to p& 6'8 o% +ol& 26 o% the 4iet< +erlag edn&A 0ng& ,ersion %ro( F&8&$&F& edn&, +ol& ###, p& 620&)

(a*e 27&

As *ill be seen, this idea is especially i(portant in that it stresses that prices *hich are modification! of val%e Hdetermined by general la#! H al!o expre!! the !ocially nece!!ary expendit%re of labo%r ; since production is co((odity production, a di!trib%tion of labo%r proportional to !ociety)! need! is possible only *hen e2ui,alent 2uantities o% social labour are e/changed& 9p& 196: 16 )he proble(s presented by calculating costs o% production, and HchoosingH signi%icant costs o% production, are the sa(e here as in the syste( o% Ho*n costsH (see abo,e, note 12)& A(ong the econo(ists *ho support a price-syste( o% the Hprice-o%-productionH type there reigns a great ,ariety o% attitudes to the sol,ing o% these proble(s& 9p& 191: 16 )he latter *rites, %or e/a(pleA H#t is easy to increase the rights o% the enterprises& ?ut it is (ore di%%icult to ensure that the interests o% those *ho *or5 in these enterprises shall coincide *ith those o%

the national econo(y, and, in a rational planned econo(y, independence can be gi,en to enterprises only in those %ields *here the interests o% the production-unit ha,e been brought into line *ith the plan& )o achie,e this, a co(ple/ syste( o% (easures is needed & & & *hich de(ands that centralised econo(ic direction be increased and i(pro,ed&H (Bo,o<hilo,, Bo& 66&) #n the sa(e article Bo,o<hilo, points out the (eagre a(ount o% in%or(ation contained in any price-syste( and the need, in conse2uence, to carry out calculations that e/plicitly ta5e into account use ,alues and social needs& 9p& 198: 11 )his rate o% about 10 per cent did not sa,e a nu(ber o% branches o% hea,y industry %ro( *or5ing at a loss& @o(in, *ho 2uotes the %igure o% 10 per cent, also sho*s that, in order to increase the pro%itability o% hea,y industry by 1 per cent, it is necessary to agree to an a,erage increase o% 2&2 per cent in the *holesale prices o% hea,y industrial products& )hus, an increase o% pro%itability by 6 per cent, e2ualised throughout all branches, *ould entail an increase o% 20 per cent in the general price-le,el& )his e/plains *hy there is no 2uestion, %or the (o(ent at any rate, o% e2ualising the rates o% pro%itability o% the di%%erent branches& #t is clear that as soon as one applies rates that di%%er bet*een branches, a Hprice-o%-productionH syste( in the e/act sense o% the *ord is no longer being applied& 9p& 199: 18 #n relations *ith the capitalist countries the socialist countries use the sa(e prices as the %or(er, e/cept *hen they *ish to accord to so(e o% the( (e&g&, certain Hde,elopingH countries) conditions *hich are (ore ad,antageous than *ould %ollo* %ro( application o% the prices current on the capitalist (ar5et& 9p& 201: 19 #ncredible as it (ay see(, this sort o% 2uestion o%ten co(es up in the discussion on prices, and is gi,en a *ide ,ariety o% ans*ers, so(eti(es HsupportedH by 2uotations %ro( $apital.
9p& 206:

As illustrations o% ho* these 2uestions arise concretely, here are so(e e/a(ples& #n the L&4&>& do*n to 1 April 196', *hen a ne* price-syste(
20

(a*e 27,

*as introduced %or %uel and po*er products, the price per ton o% lignite *as the sa(e, regardless o% 2ualityA "&61 4M, in the crude state, and 16-66 4M, in the %or( o% bric5s& )his *as because the cost o% production o% the di%%erent 2ualities *as the sa(e& A%ter April 196' the e/istence o% di%%erent 2ualities o% lignite *as recognised, *ith a price-range o% 6-9&2 4M %or a ton o% crude lignite and "0-'2 4M %or a ton o% lignite bric5s ()arno,s5y, Bo& 60)& Nuality *as de%ined by caloric po*er& Follo*ing the introduction o% the ne* prices -- *hich, it *ill be obser,ed, are higher than the old ones -- industry3s consu(ption o% units o% %uel and po*er has %allen (8e%ranc, Bo& "1, p& 88)& 9p& 206: 21 As # ha,e already (entioned, in the =..> the basis o% the price syste( *as, until recent years, the prices o% 1926-1; *hate,er the changes (ade since then in di%%erent indi,idual prices, the *eight o% this basis continues to be %elt in the syste( as a *hole& #n the L&4&>&, do*n to the recent re%or(, the HbasisH o% prices *as 19"1 in the engineering industry and 19'' %or %uel and po*er prices (8e%ranc, Bo& "1, p& 80)& 9p& 206: 22 )hus, in the L&4&>&, building the .ch*edt petroche(ical co(ple/ in,ol,ed the participation o% o,er ",000 enterprises (8e%ranc, Bo& "1, p& 89)& 9p& 201: 2" !n the grounds that only li,ing labour produces ,alue, so(e thought it right to conclude that only li,ing labour need be econo(ised to the (a/i(u(& 9p& 201: 2' !ne o% the positi,e results o% the discussion has certainly been to dra* attention to the inade2uacy o% past practices& )hus, $& ?unich *rote in 1966A H#t is inad(issable that a large nu(ber o% o%%ice *or5ers should be occupied in chec5ing on the presence or absence o% the *or5ers in a %actory *hile no account is ta5en o% the periods during *hich the (achinery is at a standstill; that e,ery 5opec5 paid in *ages should be counted (eticulously *hile in,est(ent %unds a hundred ti(es as big as the *ages bill are spent *ithout the necessary analysis; that entire o%%ices should be engaged on *or5ing out nor(s o% li,ing labour, *hile re,ision o% the nor(s %or return on production %unds and ,olu(e o% production-capacity is carried out in rando( and occasional %ashion&H (?unich, Bo& 16, p& 22&) 9p& 201: 26 As a *hole, though the annual rates o% gro*th o% their national inco(es ha,e noticeably %allen, these countries still en7oy gro*th-rates a little higher than the industrialised capitalist countries& Fo*e,er, in recent years the gro*th-rates o% these t*o groups o% countries ha,e co(e noticeably closer& #n the (ost highly industrialised socialist countries, rates o% gro*th

ha,e been as %ollo*s, since 1968A (see table on p& 2"9) ?e%ore 1968, the rates *ere o% the order o% 10-12 per cent; they are still at this le,el in >o(ania, Albania and ?ulgaria& )hey are 6-1 per cent (a,erage %or 1961-6) in $oland and Fungary, *ith a do*n*ard tendency in the latter country in 196' ('&1 per cent) and 1966 (2 per cent)& (.ourceA =nited Bations, Bo& 60, and ?abai5o,, Bo& 1)&

(a*e 27%

=nn%al gro#th3rate of the national income .,,R 1968 1969 1960 1961 1962 196" 196' 1966 1966
9p& 208:

$Decho!lova;ia 8&0 6&0 8&" 6&8 1&' 2&2 0&9 2&6 --

7.D.R. 11&0 8&6 '&6 "&6 2&2 2&9 '&6 '&1 --

12&6 8&0 8&0 6&8 6&1 '&1 9&0 6&0 1&'

A(ong *hich (ust be (entioned a reduction in rates o% accu(ulation& #n so(e years this reduction has lo*ered the absolute ,alue o% current accu(ulation& 9p& 208: 21 !n the notion o% an He(pirical conceptH, see 8& Althusser3s article, Bo& 2& 9p& 210: 28 #n France, %or instance, Maurice Lodelier, in his boo5 on econo(ic rationality (Bo& 26), has accepted a series o% propositions borro*ed %ro( $areto and de,eloped by the chie% theoreticians o% H*el%are econo(icsH, *ithout sub7ecting the( to the rigorous criticis( *hich is essential& 9p& 212: 29 )he article by A& B& 4& McAuley (Bo& '0) gi,es an interesting criti2ue, %ro( a non-Mar/ist point o% ,ie*, o% the pre(ises o% the theory o% H*el%are econo(icsH& Fe sho*s ho* ,ery narro* are the li(its *ithin *hich the Htheore(sH o% *el%are econo(ics are ,alid, bringing out, in particular, the point that a(ong these pre(ises are conditions that contradict presentday conditions o% production, since H*el%are econo(icsH theory assu(es continuity o% %unctions o% production, absence o% decreasing (arginal costs in all industries, no e/ternal costs, and so on& 9p& 212: "0 )o do this *ould be to respond to the de(and %or(ulated by 0ngels *hen he *roteA HDith these disco,eries 9by Mar/: socialis( beca(e a science, *hich had in the %irst place to be de,eloped in all its details and relationsH (Bo& 21, p& 68) (0ng& ,ersion %ro( =nti3D>hring, p& "")& 9p& 21": "1 )hus, Mar/ *ritesA
26

HAs the co-operati,e character o% the labour-process beco(es (ore (ar5ed, so, as a necessary conse2uence, does our notion o% producti,e labour, and o% its agent the producti,e labourer, beco(e e/tended& #n order to labour producti,ely, it is no longer necessary %or you to do (anual *or5 yoursel%; enough, i% you are an organ o% the collecti,e labourer, and per%or( one o% its subordinate %unctions&H (Mar/, Bo& '', pp& 18"-'A 0ng& ,ersion, $apital, +ol& ##, p& 611&) 9p& 211: "2 #n the $riti'%e of the 7otha Programme (Bo& '1), Mar/ replies to this stu%% *hen he *ritesA H8abour is not the source o% all *ealth& Bature is iust as (uch the source o% use,alues (and it is surely o% such that (aterial *ealth consistsT) as labour, *hich itsel% is only the (ani%estation o% a %orce o%

(a*e 291

nature, hu(an labour po*er& & & & )he bourgeois ha,e ,ery good grounds %or %alsely ascribing !%pernat%ral creative po#er to labour& & & &H (+p. cit., pp& 11-18A 0ng& edn&, pp& 1'-16&) 9p& 218: "" Atte(pts at (easuring, *ithin capitalist econo(y, certain e(pirical (agnitudes corresponding appro/i(ately to the theoretical concepts o% $apital, li5e Hprice o% productionH or Ha,erage rate o% pro%itH are, o% course, 2uite a di%%erent (atter& Fere it is a 2uestion o% mea!%rement carried o%t on, the ba!i! of price! #hich are already given, and not of mea!%rement of empirical magnit%de! other than price! in order to con!tr%ct a price3!y!tem. )his is *hy there is point in obser,ing the historical e,olution o% prices under capitalis(A it enables us to obser,e the ob7ecti,e tendencies o% a certain nu(ber o% (agnitudes *ithin a social %or(ation in *hich these (agnitudes e/press the(sel,es spontaneously through deter(ined concrete categories& 9p& 218: "' #% one is not in a position to sol,e theoretically the 2uestions that are raised by the establish(ent o% a price-syste(, one is easily led to lea,e these proble(s to settle the(sel,es in practice, through (ar5et (echanis(s& ?ut the prices that the (ar5et can set up are no longer those that correspond to the needs o% planned econo(ic de,elop(ent; they there%ore co(e into contradiction *ith planning, and so *ith the de,elop(ent o% the socialist (ode o% production& 9p& 219: "6 #ncluding the re-establish(ent o% %ree con,ertibility o% currency; and o% ban5ruptcy, as a *ay o% eli(inating Hunpro%itableH enterprises& 9p& 219: "6 #t should be obser,ed at this point that a distinction (ust be dra*n bet*een re-establishing H(ar5et pricesH (*hich i(plies a possible reaction by prices on 2uantities produced) and allo*ing so(e latitude to so(e social authority or other to (odi%y certain prices in order to ta5e account o% the le,el o% de(and (%or e/a(ple, selling-o%% perishable goods at relati,ely lo* prices, or doing the sa(e *ith stoc5s o% consu(er goods *hich cannot %ind custo(ers at the prices pre,iously %i/ed)& )hese are t*o 2uite di%%erent things& 9p& 220: "1 Botably in ?oo5 ###& !n this see note 1', !%pra. 9p& 220: "8 )o clari%y the abo,e re(ar5s, *e can illustrate the proble(s in,ol,ed by (eans o% so(e e/a(ples& 8et us ta5e the 2uestion o% the price o% electric po*er& #t is one thing to deter(ine the a,erage price at *hich po*er has to be sold to users, in order to con%or( to the la*s o% price deter(ination *hich go,ern e/panded reproduction and the de,elop(ent o% the producti,e %orces; it is 2uite another to %i/ the prices at *hich po*er *ill be sold depending on the hours bet*een *hich it is to be used, and by *ho(& #n the latter case, indeed (i% prices are to be used as one o% the *ays o% directing the econo(y and subordinating the decisions o% the enterprises to the targets o% the plan), it is necessary to deter(ine the di,ergences %ro( these a,erage prices, so that the capacity %or producing electric po*er (ay be utilised as %ully as possible throughout the day and throughout the year, and so as to render it less ad,antageous %or certain users to use po*er at certain ti(es, and (ore ad,antageous %or others, and so on&

(a*e 291

.i(ilarly, it is one thing, *here rail*ay charges are concerned, to %i/ the a,erage price per ton-5ilo(etre, and 2uite another to deter(ine the price *hich the enterprises o% a particular locality, producing a particular 5ind o% goods, *ill pay %or transport, and to do this in such a *ay that the truc5s are as %ull as possible, both co(ing and going& )his sort o% proble( arises continually& #t presented itsel% on a large scale *hen the =ral-@u<nets5 co(bine *as set up& )he price o% transport *as then %i/ed at a H,ery lo*H le,el, *hich *as regarded as Harti%icialH by so(e co((entators& #n reality the price corresponded, at least intuiti,ely, to the re2uire(ents o% (a/i(u( sa,ing o% labour, once the t*o centres o% production o% coal and iron ore had co(e into being, ha,ing been established during the .o,iet =nion3s First Fi,eCear $lan& 9p& 222: "9 %& 0& ?alibar, Bo& 9, especially pp& 212 et se2& 9p& 22": '0 # ha,e de,eloped this point earlier in ,arious articles (Bos& 12, 1" and 1')& 9p& 22": '1 .aying that one can thin5 out the conditions %or a certain calculation clearly does not (ean that one can actually per%or( the calculation; to do that the necessary conditions ha,e to be ob7ecti,ely realised& At the present ti(e, these conditions are as yet only partially a,ailable; this is precisely *hy the calculations that ser,e as the basis %or planning ha,e to be co(pleted by calculations carried on in prices, at the (anage(ent le,el& 9p& 226:

#t *ill be recalled that, in the 7r%ndri!!e, Mar/ (Bo& '8) e(phasises that the ,ery de,elop(ent o% large-scale industry tends to depri,e the ,alue %or( o% its content, by *ea5ening %urther and %urther the lin5 bet*een ,alue and labour-ti(e& Fe *rites in this conne/ionA HFro( the (o(ent *hen labour in its i((ediate %or( ceases to be the great source o% *ealth, labour-ti(e ceases to be its (easure, and (ust cease to be the (easure o% use-,alue& & & & )hereby, production based on e/change-,alue brea5s do*n&H (Bo& '8, p& 69"&) Dhen Mar/ spea5s here o% Hlabour in its i((ediate %or(H he (eans labour directly de,oted to producing an ob7ect, or to producing the (eans o% production used to obtain this ob7ect& #n large-scale industry, he says, the *ealth created depends less and less on this i((ediate labour and (ore and (ore Hon the general le,el o% science and the progress o% technology, the application o% science to productionH (Bo& '8, p& 692)& )he socialist econo(ies o% today ha,e not yet reached this le,el in the de,elop(ent o% their producti,e %orces, but their production-relations are already prepared %or it& )his is *hy, *hen plans are dra*n up, it is necessary to *or5 essentially in ter(s o% use-,alues and concrete labour and not in ter(s o% e/change-,alue; at the le,el o% planning and social calculation, e/change-,alue is already stripped o% (eaning& 9p& 226: '" #n practice, by pointless considerations o% %inancial Hpro%itabilityH& 9p& 226: '' J& +& .talin (Bo& 68)& 9p& 226: '6 )his obser,ation entails especially i(portant conse2uences as regards the prices at *hich e/change ta5es place bet*een the di%%erent HsectorsH
'2

(a*e 292

o% the econo(yA the state sector, the co-operati,e sector, the pri,ate sector, the capitalist sector, and so on& )his is a proble( *hich has not been specially e/a(ined in this article&
228: '6 )he

9p&

reser,ation e/pressed here is i(portant, because it see(s clear that it is not possible to build a price-syste( such that all the day-to-day econo(ic decisions that the econo(ic sub7ects (ay ta5e as a result o% calculations (ade in price ter(s *ill coincide *ith the politically decided ai(s %or the de,elop(ent o% the social %or(ation& Fence the need to co(bine a ,ariety o% %or(s o% inter,ention at the econo(ic le,el %ro( the political le,el& #n any case, calculations in price-ter(s carried out by the econo(ic sub7ects can ha,e point only in relation to day-to-day econo(ic decisions& )his e/cludes, in principle, decisions regarding in,est(ents& Dhere the latter are concerned, the ta5ing o% decisions that are coherent and ensure the best use o% accu(ulation %unds de(ands 5no*ledge o% H%uture econo(ic conditionsH, that is, o% all the decisions about in,est(ent that are being put into e%%ect, or *hich are to be i(ple(ented in the %orthco(ing period& )his is beyond the hori<on o% the econo(ic sub7ects and cannot be e/pressed by the price-syste(& 9p& 229: '1 )his is clearly only a principle& #n reality, gi,en the present state o% the techni2ues and (eans o% calculation, it is ine,itable that so(e o% the planning calculations ha,e to be (ade using a price-syste(& Fo*e,er, calculations (ade in this *ay (ust al*ays be seen %or *hat they are -- substitutes %or (ore %unda(ental calculations, the results o% *hich re2uire to be e,aluated socially and politically& 9p& 2"0: '8 )hese calculations re2uire, indeed, the sol,ing *ithin a li(ited period o% ti(e o% tens o% thousands o% si(ultaneous e2uations& .o(e years ago this tas5 *ould ha,e been i(practicable& #n 1966 %or instance, gi,en the solution codes a,ailable, it *as only possible to sol,e, as a practical proposition, in the %or( o% linear progra((es, proble(s o% so(e 60 e2uations and 100 ,ariables, and the solution too5 about ten hours to obtain& #n 1968 it beca(e possible to deal easily *ith proble(s o% "00 e2uations, and it began to be possible to ensure the (anage(ent and sel%-chec5ing o% the (atrices by the co(puters the(sel,es& #n 1960 proble(s in,ol,ing 600 e2uations *ere being handled *ith ease, and they *ere beginning to go o,er to lin5ed calculations *hich (ade it possible to deal, in acceptable conditions, *ith se,eral neighbouring %ields o% possibility, and to test the sensiti,ity o% the results to slight ,ariations in the data (*hich is necessary *hen the data relating to the %uture are (ore or less uncertain)& ?y 1962 they *ere dealing %airly easily *ith syste(s *ith 2,000 e2uations and "6,000 non-<ero coe%%icients& #n 1961 it is e/pected that it *ill be possible to handle proble(s in,ol,ing up to 8,000 e2uations; (oreo,er, studies *hich ha,e been underta5en in a nu(ber o% countries on deco(position algorith(s gi,e the prospect o% soon

sol,ing proble(s in,ol,ing 20,000 e2uations& )han5s to this progress *e are nearing the stage *hen co(puters *ill actually be able to deal in a really

(a*e 297

use%ul, that is, a su%%iciently concrete, *ay (bringing in only so (any a,erages and aggregates as are acceptable because they do not distort the nature o% the proble(s too (uch) *ith proble(s co,ering the *hole o% a national econo(y& #n addition to the i(pro,e(ent in codes and languages and the increase in the po*er and speed o% co(puters, t*o de,elop(ents should help to achie,e this resultA the techni2ues o% auto(atic generation o% (atrices on the basis o% prototypes, and abo,e all, the per%ecting o% an e%%ecti,e algorith( %or sol,ing proble(s in,ol,ing non-continuous ,alues& 9p& 2"0: '9 #t is ob,ious that today, in (ost o% the capitalist countries, the (ost i(portant prices are no longer (ar5et prices but political prices, that is, they result %ro( the HstrategyH o% certain capitalist groups and o% the state& Fere, too, this does not (ean that these prices are not deter(ined ob7ecti,elyA they are based on the ob7ecti,e econo(ic and political re2uire(ents o% state (onopoly capitalis(, including those that result %ro( the class struggle& 9p& 2"0: 60 )he e/pression Hpro%itability %ro( the standpoint o% societyH is ob,iously only a (etaphor the use o% *hich can be 7usti%ied not only by its con,enience but also by the contrast it enables one to stress, bet*een t*o le,els o% calculation& )his (etaphor should not, ho*e,er, lead us astray %or Hpro%itability %ro( the standpoint o% societyH is not (easured in ter(s o% surplus o% receipts o,er e/penses but in ter(s o% de,elop(ent o% the producti,e %orces and changing o% social relations& 9p& 2"2: 61 .o(e o% these *riters ha,e on occasion ta5en up positions %a,ourable to a ,ery e/tensi,e decentralisation o% econo(ic (anage(ent, but these positions are not logically bound up *ith their analysis o% the conditions %or signi%icant econo(ic calculation; 2uite the contrary& #t is there%ore (ista5en to proceed %ro( criticis( o% these positions to re%usal to recognise the i(portance o% the contribution (ade by these *riters to the solution o% serious proble(s in the %ield o% econo(ic calculation& 9p& 2"":

(a*e 299

-((endi; to Cha(ter +

Bi lio*ra(hy on the (ro lem of (rices in the socialist co:ntries of E:ro(e 1 =..> Acade(y o% .ciences, 6an%el d) conomie Politi'%e, In!tit%t d) conomie, $aris, 0ditions .ociales, 1966 (2nd edn&, 1968)& (0ng& ,ersionA Political conomy/ = textboo; i!!%ed by the In!tit%te of conomic! of the =cademy of ,cience! of the .,,R, 8ondon, 1961&) 2 8& Althusser, H.ur le tra,ail thGori2ueH (!n theoretical *or5), -a Pen!&e, Bo& 1"2, April 1961& " L& & Archibald, HDel%are 0cono(ics, 0thics and 0ssentialis(H, conomica, Bo,e(ber 1969& ' U& Atlas, H!n the pro%itability o% socialist enterprisesH (in >ussian), 9opro!y ;onomi;i, 1968, Bo& 1, pp& 116-28& 6 U& Atlas, H$ro%itability and ,alue in a socialist econo(yH (in >ussian), 9opro!y ;onomi;i, 1960, Bo& 10, pp& 11-82& 6 U& Atlas, H)he basic principle o% socialist econo(ic (anage(ent and its realisation in practiceH (in >ussian), 9opro!y ;onomi;i, 1966, Bo& 8, pp& 6619& 1 L& +& ?abai5o,, >eport to the =..> .upre(e .o,iet, 4ece(ber 1966& 8 A& ?achurin, H)he econo(ic re%or(A proble(s and %irst resultsH (in >ussian), ;onomiche!;aya 7aDeta, Bo& '6, S#, 1966, pp& 1-8& 9 0& ?alibar, H.ur les concepts %onda(entau/ du (atGrialis(e histori2ueH (!n the %unda(ental concepts o% historical (aterialis(), -ire le $apital, by Althusser, ?alibar, 0stablet and others, +ol& 2, $aris, Maspero, 1966& (0ng& edn&, Reading $apital, Be* 8e%t ?oo5s, 1910&) 10 D& J& ?au(ol, <elfare conomic! and the (heory of the ,tate, 2nd edn&, 8ondon, 1966& 11 +& 4& ?el5in, (!eny edinogo %rovnya i e;onomiche!;ie iDmereniya na i;h o!nove (H=ni%or(-le,el prices and econo(ic (easure(ents based on the(H) (in >ussian), Mosco*, 196"&
(a*e 29'

12 h& ?ettelhei(, HFor(es et (Gthodes de plani%ication socialiste et ni,eau de dG,eloppe(ent des %orces producti,esH (For(s and (ethods o% socialist planning and le,el o% de,elop(ent o% the producti,e %orces), -a Pen!&e, Bo& 11", 196'& (.ee hapter " o% this boo5&)

1" h& ?ettelhei(, H8es cadres socio-Gcono(i2ues et l3organisation de la plani%ication socialeH ()he social and econo(ic %ra(e*or5 and the organisation o% social planning), Probl?me! de Planification, Bo& 6, Ecole $rati2ue des Fautes Etudes, &0&$&.&, 1966& (.ee hapter 2 o% this boo5&) 1' h& ?ettelhei(, H8a onstruction du socialis(e problK(e de l3Gcono(ie de transitionH (?uilding socialis(A the proble( o% the transitional econo(y), t*o articles, -a Pen!&e, Bos& 126 and 126, February and April 966& (.ee hapters ' and 6 o% this boo5&) 16 A& ?rody, H)hree )ypes o% $rice .yste(sH, conomic! of Planning, Bo& ", +ol& +, 1966, pp& 68-66& 16 $& ?unich, H0cono(ic sti(ulation o% higher e%%iciency and pro%itability o% in,est(entsH (in >ussian), 9opro!y ;onomi;i, 1966, Bo& 12& 11 ?& si5os-Bagy, H)*o .tages o% the Fungarian 4ebate on $ricesH, =cta +economica, Acade(y o% .ciences, ?udapest, +ol& #, %ascicle "-', 1966, pp& 266-66& 18 L& ?& 4ant<ig and $& Dol%e, H)he 4eco(position Algorith( %or 8inear $rogra(sH, conometrica, 1961, Bo& 29, pp& 161 et se2& 19 F& 4enis and 4& 8a,igne, -e probl?me de! prix en .nion ,ovi&ti'%e, $aris, 0d& u7as, 1966& 20 A& 0((anuel, H8a 4i,ision internationale du tra,ail et le (archG socialisteH ()he international di,ision o% labour and the socialist (ar5et), Probl?me! de Planification, Bo& 1, Ecole $rati2ue des Fautes Etudes, &0&$&.&, $aris, 1966& 21 F& 0ngels, =nti3D>hring, trans& ?ottigelli, $aris, 0ditions .ociales, 1960& 22 Fedoren5o and Llouch5o, (Llush5o,), H$our appli2uer large(ent les techni2ues de calcul Y l3Gcono(ie nationaleH (For large-scale application o% calculation techni2ues to the national econo(y), Probl?me! de Planification, Bo& 6, Ecole $rati2ue des Fautes Etudes, &0&$&.&, $aris, 1966& 2" >& Frisch, H>ational $rice-Fi/ing in a .ocialistic .ocietyH, conomic! of Planning, Bo& 2, +ol& +#, 1966, pp& 91 et se2& 2' .& Lanc<er, H$rice alculations in Fungary on the ?asis o% Mathe(atical MethodsH, conomic! of Planning, Bo& ", +ol& +, 1966, pp& 61-19&
(a*e 29+

26 M& Lodelier, >ationalitG et irrationalitG en Gcono(ie, $aris, Maspero, 1966& (0ng& edn&, Rationality and Irrationality in conomic!, Be* 8e%t ?oo5s, 1912&)

26 L& .i(on, H0/-post 0/a(ination o% Macro-econo(ic .hado* $ricesH, conomic! of Planning, Bo& ", +ol& +, 1966, pp& 80 et se2& 21 J& @osta, H <echoslo,a5 0cono(ists 4iscuss Days o% #(pro,ing the .yste( o% $lanned Manage(entH, $Decho!lova; conomic Paper!, Bo& ', Acade(y o% .ciences, $rague, 196', pp& 1"9 et se2& 28 8& +& @antoro,itch, $alc%l &conomi'%e et %tili!ation de! re!!o%rce!, trans& & .ardou, $aris, 4unod, 196"& 29 0& @ats and A& >o<hans5y, H$rice-%or(ation ta5ing account o% the capitalintensity o% goodsH (in >ussian), 9opro!y ;onomi;i, 1966, Bo& 10, pp& ""-8& "0 )& @hachaturo, and 4& 8,o,, HFastening scienti%ic and technical progress and increasing the e%%iciency o% social productionH (in >ussian), 9opro!y ;onomi;i, 1966, Bo& 8, pp& " et se2& "1 A& @o(in, H$roble(s o% bringing *holesale prices up to dateH (in >ussian), Planovoye :hoDyai!tvo, 1966, Bo& 10, pp& 10-16& "2 )& & @oop(ans, (hree !!ay! on the ,tate of conomic ,cience, Be* Cor5, 1961& "" J& @ornai, HMathe(atical $rogra((ing as a )ool in 4ra*ing up the Fi,eCear 0cono(ic $lanH, conomic! of Planning, Bo& ", +ol& +, 1966, pp& " et se2& "' J& @ornai, 6athematical Planning of ,tr%ct%ral Deci!ion!, A(sterda(, 1961& "6 J& @ornai and )h& 8ipta5, H)*o-le,el $lanningH, conometrica, 1966, +ol& "", Bo& 1, pp& 1'1 et se2& "6 Ca& @ronrod, H)he econo(ic re%or( and so(e proble(s o% the political econo(y o% socialis(H (in >ussian), 9opro!y ;onomi;i, 1966, Bo& 10, pp& 19-"2& "1 $& 8e%ranc, H8a situation Gcono(i2ue et le nou,eau systK(e de plani%ication de la >&4&A&H ()he econo(ic situation and the ne* planning syste( in the L&4&>&), conomie et Politi'%e, June 1966, pp& 11-91& "8 0& 8iber(an, H!n the planning o% industrial production and (aterial sti(ulants to its de,elop(entH (in >ussian), :omm%ni!t, 1966, Bo& 10, pp& 1692& "9 90& 8iber(an:, H4iscussion on 98iber(an3s ,ie*s on: econo(ic sti(ulation o% enterprisesH (in >ussian), 9opro!y ;onomi;i, 1962, Bo& 11, pp& 81-1'2&

(a*e 29&

'0 A& B& 4& McAuley, H>ationality and entral $lanningH, ,oviet ,t%die!, +ol& S+###, Bo& ", January 1961, pp& "'0 et se2& '1 0& Malin,aud, Decentrali!ed proced%re for planning, a(bridge, #nternational 0cono(ic Association, 196"& '2 #& Malyshe, and +& .obol, H)he scienti%ic basis %or studying the social ist econo(yH (in >ussian), :omm%ni!t, 1961, Bo& 8, pp& 82-8& '" @& Mar/, -e $apital, $aris, 0ditions .ociales, +ol& #& '' @& Mar/, -e $apital, $aris, 0ditions .ociales, +ol& ##& '6 @& Mar/, Da! :apital, ?oo5 #, Mosco* and 8eningrad, Mar/-0ngels 8enin #nstitute, 19""& '6 @& Mar/, Da! :apital, ?oo5 ###, Mosco* and 8eningrad, Mar/ 0ngels8enin #nstitute, 19"'& '1 @& Mar/, $riti'%e d% Programme de 7otha, $aris, 0ditions .ociales, 1960& '8 @& Mar/, 7r%ndri!!e der :riti; der Politi!chen +e;onomie, ?erlin, 4iet<-+erlag, 196"& '9 0& J& Mishan, HA .ur,ey o% Del%are 0cono(ics, 19"9-69H, conomic Jo%rnal, June 1960& 60 =nited Bations, ,tati!tic! of the conomic $ommi!!ion for %rope, Lene,a, 1966& 61 +& Be(chino,, H.o(e 2uantitati,e relations in the reproduction %or (ulaH (in >ussian), 9opro!y ;onomi;i, 1962, Bo& 2& 62 +& Be(chino,, H+alue and price under socialis(H (in >ussian), 9opro!y ;onomi;i, 1960, Bo& 12, pp& 9' et se2& 6" +& Be(chino,, H.ocialist econo(ic (anage(ent and the planning o% productionH (in >ussian), :omm%ni!t, 196', Bo& 6, pp& 1'-81& 6' +& +& Bo,o<hilo,, HMesures de dGpenses (de production) et de leurs rGsultats en Gcono(ie socialisteH (Measure(ent o% costs o% production and their results in a socialist econo(y), trans& %ro( >ussian in $ahier! de l)I.,. .=., Bo& 1'6, February 196', pp& '"-291& 66 +& +& Bo,o<hilo,, H$roble(s o% planned price-%or(ation and the re%or( o% industrial (anage(entH (in >ussian), ;onomi;a i 6atematiche!;ie 6etody, 1966, +ol& ##, Bo& ", pp& "21-"9&

66 ?& >a5its5y, H)he lessons o% 5ho<raschet (business accounting)H (in >ussian), :om!omol!;aya Pravda, 19 !ctober 1966& 61 +& .itnin, H)he econo(ic re%or( and the re,ision o% *holesale prices o% industrial goods (in >ussian)& :omm%ni!t, 1966, Bo& 1', pp& "1 et se2&
(a*e 29,

68 J& +& .talin, -e! probl?me! &conomi'%e! d% !ociali!me en .R,, ( conomic Problem! of ,ociali!m in the .,,R), $aris, 0ditions du $& &F&, 1962& 69 .& L& .tru(ilin, H$rocesses o% price-%or(ation in the =..>H (in >ussian), Planovoye :hoDyai!tvo, 1928, Bos& 6, 6 and 1, article reprinted in the sy(posiu( *a planovom fronte (H!n the planning %rontH) (in >ussian, articles o% 1920-"0), Mosco*, Lospoliti<dat, 1968, pp& 60"-80& 60 !& )arno,s5y, H$rice-%or(ation in the industries o% the o(econ countriesH (in >ussian), 9opro!y ;onomi;i, 1966, Bo& 1& 61 B& A& )sagolo,, ed&, :%r! politiche!;oi e;onomii (HA course in political econo(yH) (in >ussian), +ol& ##, Mosco*, 196"&

/nde;

Accu(ulation %unds, 62, 81-8, 119, 180 Ad(inistrati,e centralisation, 2", 26, 86, 92; in planned econo(ies, "1, 1161; 2uality and 2uantity control in, 9" Ad(inistrati,e (anage(ent, bureaucratisation o%, 8", 86, 90-2; and econo(ic sub7ects, 1', 8", 86; role o%, 86 Ad(inistrati,e share-out, 66-1, 60 Ad(inistrati,e subordination, 82, 86, 90-" Agricultural cadres, 18 Agriculture, and econo(ic sub7ect, 1"-', 16; industrial products consu(ed by, '8-9; and nationalisation o% land, '6; ne* techni2ues in, 61; planning in co((unes, 18-9; transition period in, 12"-'; ,ertical integration in, 66-1; *or5ing groups in, 16-8; !ee al!o ollecti,e-%ar( sector Alienation, 166, 166 Althusser, 8ouis, 1", 1'-16, 1'', 166,

?ulgaria, 201 ?unich, $&, 2"8 ?ureaucratic do(ination, bureaucratisation, 62-", 6', 82; in ad(inistrati,e hierarchy, 90-1; and econo(ic sub7ects, 1', 8", 111 ?usiness accounting, 100, 116-16, 1"1, 11', 186; !ee al!o alculation, econo(ic ?uying and selling, 110; central o%%ice %or, 61-8, 6'; contracts %or, 86-1; 7oint ser,ices %or, 69; o% (eans o% production, 11'; planned obligations in, 6660; in state sector, 1""

alculation, econo(ic, 11, 80, 186-9 pa!!im, 212, 226, 229-"0, 2"2-'; electronic, 6', !ee al!o 0lectronic tools; internal, 19; re2uire(ents o%, "8, 61, 62; strategic, 229, 2'"

166 =nti3D>hring (0ngels), "", "', '", '8, 166 Appropriation, %or(al and real (ode o%, 2', 26-6, 29, 121-8, 1"', 226-6; ho(ology o% %or(s o%, 26-6; and le,el o% producti,e %orces, 162-" Authority, and e%%ecti,e capacity, '6 Auto(ation, 6', 10, 11', 116

?achurin, A&, 210 ?alibar, 0tienne, 16, 2', 26, 28, 226 ?an5ing syste(, and centralised allot(ents, 68-9; %unds %or in,est(ents o%, 102; o% state, "2, 88 ?erri, 8&, '9-60 ?ettelhei(, &, 180 ?Vh(-?a*er5, 161 ?olshe,i5 $arty, Binth ongress 1920, 181 ?onuses, 91, 101 ?ottigelli, 0&, 166, 16" ?rody, Andras, 202, 212-1" ?u5harin, Bi5olai, "1, 111, 126-6, 1"2, 160, 112

apacity, e%%ecti,e, to account and allot, 121-8, 129-"0, 168-9; and authority, '6; to dispose o% (eans o% production, '6, 1"0, 1'0; o% econo(ic sub7ect, 16 $apital (Mar/), 1', 161, 160, 16"-', 22'; on price-syste(s, 196, 208, 211-12, 21'-16, 218, 220, 22", 2"1, 2"6 apitalis(, capitalist (odes o% production, 1'-16; ?ritish, 16; calculation techni2ues in, 2"1; contradictions o%, 16'-6; dissolution o%, 20-1; %rag(entation under, #"6; hori<ontal concentration in, 66; labour-process in, 21118; price syste( o%, 196-6, 201, 211, 21", 2'0, 2'"; social %or(s o% o*nership in, '", 62, 16'; in socialist structures, 11; theoretical %oundations o%, 161, 212; transition to, 16, 2'-6; ,ertical integration in, 66-10 apitalist property, 16"-' entralisation, %unctional and bureaucratic, 6'-6 entralised allot(ents, 66-60, 62, 106, 110

(a*e 2'1

entralised econo(ic (anage(ent, 60-6, 1"'; o% oil re%ineries and rail*ays, 61, 1"; o% po*er sutions, 61, 1", 16 he(ical industry, integration in, 68-9 hina, agricultural re%or( in, 29; de,elop(ent o% co-operati,es in, 62; indi,idual production in, 1"1; people3s co((unes in, 6", 18-9, 96; planned econo(y o%, "2; state capitalis( in, 62 hou )i-chin, 19 hronological gap, 26 lass coalitions, 22 ollecti,e-%ar( sector, "6-6, "9-'0; direct planning in, '6; econo(ic le,ers in, '6-1; and le,el o% producti,e %orces, 128-9; and local (ar5ets, 1"1; (eans o% production o%, 108-9; (ergers in, 6"; prices o%, 2"6; transition to public property o%, 1"2; *or5 brigades in, 16-1 ollecti,e o*nership, 166-1 ollecti,isation, "6-6, '6, 61

bet*een producti,e %orces and organisational %or(s, 126 o-operati,e contracts, 88 o-operati,e production, 60, 61, 6" o-operation, 28, "6, 66, 61 osts, o% production, !ee $roduction costs; o% re,erse lin5age, 222-", 2"1, 2"'; social, !ee .ocial costs redit-appropriation syste(, 68, 69-60 redit contracts, 81-8 $riti'%e of the 7otha Programme (Mar/), "2-", "8, '1, 1"1, 169, 2"9 si5os-Bagy, '1, 208-10 uba, 19, 29, 168; ad(inistrati,e shareout in, 60; agricultural cadres in, 18; agricultural re%or( in, 1"1, 112; conditions %or socialist re,olution in, 16"; 3 onsolidados3 in, 6", 129; Bational .ugar o((ission, 11"; transition phases in, 1"1, 111 3 ultured capitalists3, 110 urreney to5ens, 62, 112

o(econ, 201 o((odity categories and co((odity production, 28, "2-", "'-6, 81, 221, 221; conditions %or disappearance o%, "9-'0, '6, '1, 61, 60-", 66, 10-1, 1"2; disappearance o%, '', 8', 110, 120, 1"'-6, 112-6; and %reedo( o% (anoeu,re, 1"6-1; reasons %or, '1-2, 118; *ithin state sector, "6-'2, 66-6, 69, 10', 101, 109-10, 1"0, 1"6-8, 116-6; and technico-econo(ic integration, 116 $omm%ni!t 6anife!to, 169 o(part(entalisation, 92, 11' onditions %or ne* (odes o% production, 19-21 on%or(ity, lac5 o%, 2"; !ee al!o Boncorrespondence on7unctures, structure o%, 21 onstitution, theory o%, 19-20 onsu(er goods, 116, 111, 182; as co((odity categories, "1-8; pro%itability standard o%, 19" onsu(ption, 111-18 onsu(ption %unds, 119, 202 ontractual relations, 86-8, 106-6, 11"-' ontradictions, 2", 26; analysis o%, 1'960, 162, 160-1; capitalist and socialist, 16'-6; bet*een co-operati,es and state organs, 6'; bet*een interest o% econo(ic sub7ects and collecti,e interest, 91-8; in Mar/ist dialectics, 1'66; and non-correspondence, 26; in planning targets, 100; principal, 1''-60, 16"-';

<echoslo,a5ia, "2, 61, 202, 209 4ant<ig, L& ?&, 2"" 4ecision-(a5ing centre, 66 4ecisions, 1", 16-6; econo(ic, 81-2, 101-8, 2"0, 2'2; (acro and (icro, 106, 108; nature o%, 88-90; and prices, 181; teehnical, 81, 89-90, 101; *or5ing-out o%, 8' 4e(and and supply, 69, 1"6 4irectors, 118, 128 4isposal and control, rights o%, 6' 4istribution, o% labour, 11"; o% (eans o% production, 11'; organisation o%, 1"18, 1'2 4i,ision o% labour, and econo(ic sub7ect, 1'; technical, 66, 81 4u(ont, >ene, 116 0cono(ic autono(y, disappearance o%, 61; o% econo(ic sub7ects, !ee 0cono(ic sub7ects; o% production-units, !ee $roduction-units, relati,e autono(y o% 30cono(ic le,ers3, '6-1, 8'-6 0cono(ic hierarchy, 82-", 89-90; types o%, 90-' 0cono(ic la*s, and producti,e %orces, 1"8; and socialis(, 126-6, 1"2, 1"", 1"6 0cono(ic (anage(ent, !ee entralised econo(ic (anage(ent 0cono(ico-7uridical sub7ects, contractual relations o%, 86-8; hierarchy o%, 16; loss o% autono(y o%, 90-1

(a*e 2'1

conomic and Philo!ophical 6an%!cript! (Mar/), 16'-1, 16" conomic Problem! of ,ociali!m in the .,,R (.talin), "'-6, "1-8, 101, 108, 126, 1"", 1"8, 189 0cono(ic structures, 16-18 0cono(ic sub7ects, 6', 69, 101, 22'; autono(y o%, 91-8, 102, 10', 106, 101-8, 110; and contractual relations,

Lanc<er, .&, 201 Ler(an 4e(ocratic >epublic, 61, 19', 2"1-8 Ler(any, 68 Lodelier, Maurice, 2"9 Lro*th rates, 2"8-9 Lue,ara, 3 he3, 16", 160 Fegel, Leorg D& 0&, 166, 168 Fori<ontal concentration, 66

106-6; dete((ination o%, 12-6, 80; and econo(ic decisions, 81-2, 2"0, 2'2; internal structure o%, 12, 16-82; in,est(ent %unds o%, 101-2; and 7uridical sub7ect, 11-2, 1'-6, 9"; ob7ecti,e conditions %or single sub7ect, 62', 1"'; and planning, 8"-6, 9"-101; reduction o%, 91, 101; subordination and hierarchy o%, 82-6, 118-9 0cono(ic surplus, 62 0cono(is(, 221 conomy of the (ran!ition Period, (he (?u5harin), "1 0ducation, role o%, 122 0lectronic tools, 6', 10, 116-11, 1"6, 1'2, 116, 20", 2"", 2'2-" 0((anuel, A&, 19' 0(piricis(, 1'", 1'1-9 pa!!im; and theory, 21!-11, 21'; and ,alue proble(, 216-18 0nclosure acts, 19 0ngels, Friedrich, 161, 16", 229; on co((odity production, "'-6, '2, '", 2"'-6; criticis( o% 0r%urt $rogra((e, 166; 0lber%eld speech, "2; on Mar/is( as ethics, 166-6; on producti,e %orces, '1-8, 122; on state o*nership, '", 166 02uilibriu( rate o% gro*th, 21" 0/change, %reedo( o%, 1"0-1, 1'1; organisation o%, 1"0-1; and socialist production, 1"2-1; !ee al!o Mar5et (echanis( 0/ploitation, syste(s o%, 21 Feudal (ode o% production, 16, 2' Feuerbach, 8ud*ig, 166, 166 Forecasts, and production targets, 10'6, 108, 110, 116; !ee al!o .ocial %orecasting Foreign trade, and co((odity production, "6, "1, 1'2 France, 69 Freedo( o% (anoeu,re, !ee 0cono(ic autono(y Fuel and po*er sector, ne* prices %or, 2"1-8; pro%itability rates in, 199200 Full e(ploy(ent, 62

Fu(anis(, 16'-6 Fungary, 61; Bational $rices !%%ice, 190; price calculations in, 188, 191, 192, 201-', 209 #ndia, 22 #ndonesia, 22 #ndustrial enterprises, integration o%, 61, 68-9; production o% consu(er goods by, 116-6, 182; socialisation o%, 110 )he #ndustrial >e,olution, 26 #ndustry, econo(ic sub7ect in, 1"; light, 19', 199-200; large-scale, 26; opti(u( si<e o% *or5ing groups in, 11; organisation o%, 181; pro%itability o%, 199; and ,alue %or(, 2'1 #n%or(ation, selection o%, 92; trans(ission o%, 1", 16, 80-1 #nno,ations, 10", 206; !ee al!o $roducts, ne* Introd%ction to a $riti'%e of Political conomy (Mar/), 1'' #ntegration, econo(ic, 11"-1', 116-1; %or(s o%, 66-11, 1""; technical, 1", 116-1 #n,est(ents, in,est(ent %unds, 119, 198, 201-8; depreciation o%, 20", 2"6; planning o%, 8', 116, 2'2; rate o% pro%it %or, 191-8, 200, 202-'; *ithout security, 101-"; une2ual intensity o%, 200; *aste o%, 198, 201 #,ano,, '1 Joint-stoc5 co(panies, 120, 16'-6 Joshua, #sy, 18" Juridical concepts, 1""-', 166, 169-10 Juridical po*ers, 109-10, 128-9 Juridical sub7ect, 6", 69-10; and econo(ic sub7ect, 11-2, 1'-6, 128; !ee al!o 0cono(ico-7uridical sub7ect @auts5y, @arl, 166 :hoDra!chet, 181 @hrushche,, Bi5ita, 19-80 @ronstadt re,olt, 2"

(a*e 2'2

8abour, labour-ti(e, actually

21, 60, 1"0, 1"6, 118, 221, 229,

e/pended, 216-11 pa!!im; calculation o%, 62, 111; concrete, 211, 22'-6; econo(ic, 211; internal organisation o%, 16; pay(ent %or, 111; socialisation o%, '8-9, 60, 1"8; socially necessary, 1"6, 112", 111, 189-90, 201, 216-16, 226; sub7ection to capital o%, 26, 218; and ,alue, 209, 210, 21", 216-11, 2'1 8abour contracts, 81 8abour-process, 2"9-'0; integration o%, 2"2; structure o%, 211 8abour-sa,ing, 202, 201, 211, 219; (ini(u( rate o%, 196; principle o%, 222, 2"0 -)alliance de la cla!!e o%vri?re et de la pay!annerie (8enin), "6 8and, nationalisation o%, '6 8ange, !s5ar, 100, 106, 121 8a* o% ,alue, "1, "9, '0, 100; and socialist society, 126, 121, 1"6, 196
)-eft3#ing) childi!hne!! and petty3bo%rgeoi! mentality (8enin), ''-6, 121, 169

8eisure, 118 8enin, +ladi(ir #lyich, 19, 2", 26; and ?u5harin, "1, 111, 126; on co((odity e/change, "6; on co-operation, "6; on econo(ic syste(s in >ussia, 11; on %ree e/change, 1"1, 1'1; on Fegel, 168; on industrial organisation, 181; and 8e%t*ing o((unis(, ''-6, 169; on Mar/ist analysis, 1'8; on (onopoly capitalis(, 166-6; on socialisation, ''-6, 121-8, 169-10; on socialist and pri,ate sectors, 12"; on state ban5, 88; on transitional stages, 111 8eninis(, 161 8eontie%3s table o% (atri/ relations, 212 8iber(an, 91, 100, 191-8 8isich5in, 210 8iu Jo-chin, 18-9 8u/e(burg, >osa, 126, 1"9 McAuley, A& B& 4&, 2"9 Manage(ent, 2uality o%, 181-8; re%or( o%, 200, 201 Manage(ent centres, 6' Manage(ent councils, 6' Mandel, 0rnest, 1'", 1'6-1, 1'9-60, 16", 161-9 pa!!im, 16", 166-6, 168, 112-" Manu%acture, 2' Mao )se-tung, 126, 1'6 Marginal utility, 209, 210

2'0 Mar/, @arl, 22, '1, 108, 161, 16", 168; analysis o% ,alue and prices, 21"1', 211, 218, 220-", 2"1, 2"6-1; analytical (ethod o%, 162; on bourgeoisie, 169; on co((odity production, "2", "8, '2; on distribution, 1"1; early hu(anis( o%, 16'-1; on %or(s o% o*nership, 16'-6; %or(ulation o% planned econo(ies, "'; on labour-process, 2"9'0, 2'1; on (odes o% appropriation, 2', 26; on (odes o% production, 16, 16, 19; and proble(s o% transition, 1'-16, 1'', and social %or(s o% production, 122, 1"9-'0 Mar/is(, 212; distortion o%, 1'", 1'1 Mar/ist dialectics, abstract and concrete in, 1'', 1'6-60, 169; and analysis o% contradictions, 1'6-60; and ideology, 16'-1; and price policies, 211; and social practice, 160-2 Material incenti,es, 1"8, 191; %und %or, 100-1 Matri/ calculation, 212, 2"" Means o% production, as co((odities, "1, 112-"; co((on or state o*nership o%, "2-", "'-6, "6, '"-', '8, 60, 6", 1"", 166-1, 228; distribution o%, 11'; e%%ecti,e capacity to dispose o%, '6, 1"0, 1'0; le,els and %or(s o% o*nership o%, 60-6; pri,ate o*nership o%, 16"-'; right to producti,e use o%, 109; socialisation o%, 10, 122, 166, 110; social origin o%, '8-9; and the *or5er, 2'-6 Mediations, 2", 26, 118; %or(s o%, 29 Mergers, in capitalist econo(ies, 11", 11'; o% co-operati,e units, 6" Modes o% production, 1'; concepts and reality o%, 16, 11-18; conditions %or ne*, 19-21; do(inant, 16-18, 20; %unda(ental contradiction in, 16"; 3i(purities3 or 3residues3 in, 16-16; interaction o%, 16-11; in *orld econo(y, 18 Money, 1"0; role o%, in socialist state sector, 68, 10', 110, 1"6, 11' Murato,, 4&, 11

Mar5et (echanis(, 2",26; and planning, 9', 11"-'; and prices, 182-", 20', 209-10, 21'; in socialist econo(ies,

Bational econo(ies, 18, 20 Bationalisation, !ee .tatisation Bational planning centre, 8', 86 Be(chino,, 102, 191-8, 2"6 Beo-colonialis(, 1", 29 B&0&$&, 26-8 pa!!im, 1'6, 186

(a*e 2'7

3Bet inco(e3 o% production, 190, 191, 19"; !ee al!o $ro%itability standard Be* techni2ues, rapid introduction o%, 61 Bon-correspondence, bet*een 7uridical relations and production-relations, 91; bet*een property %or(s and content, 6'; bet*een property relations and relations o% appropriation, 226-6, 228; in transition phase, 2'-1, 29, 22"-' Bo,o<hilo,, 196, 191-8, 2"1, 2"1

$ractice, contradictions o%, 162-'; %actors o%, 160-2, 160; and theory, 210 $ra/is, 166, 161 $rice-%i/ing, 20'-6, 209 $rice-(echanis(, 69, 61, 1"6, 111, 182; !ee al!o Mar5et (echanis( $rice policy, 99-101 pa!!im, 221, 221-8 $rice o% production, 196-201, 202, 21" $rices, based on labour ,alue, 212-1"; based on 3prices o% production3, 196201, 2"1; based on *orld prices, 2012; debate on, 188-202, 206, 208-9; dual or political, 2"0-1, 2'"; and eco!bligatory 3indices3, "1 no(ic calculation, 186-8; !ctober >e,olution, 18, 22, '6, 1'8 econo(ically !rders, 89-90; subordination to, 86; signi%icant, 86; i(aginary, 220-1, trans(ission o%, 1" 222, 228, 2""; and o*n costs, 191-', !rigins, theory o%, 21 2"1; planned ,ariation o%, 222, 2'0-1; proble(s o%, 18'-6; role o%, 18'; in state sector, 2"6; and ,alues, 111, $lanned econo(ies, co((odity 190-1, 202, 209, 218, 220 produc$rice-syste(s, di,ergencies in, 19", tion in, "1-'2; %reedo( o% (anoeu,re 199 in, 1"6; and (ar5et econo(ies, 18"; 200, 206-1; and econo(ic organisation o%, "1-2; organisational calculations, changes in, ""-'; planning authorities 186-9; e/ceptions in, 189-90, 221; in, 8"-' inter,ention in, %ro( political le,el, $lanning, '6, 66, 8'; capitalist, 166-6; 2'2; (athe(atical (ethods %or, 188consultation and participation in, 961; 9; contradictions in, 100; and and planned targets, 228, 2"0; propodistribution sals %or, 189-202; re%or(s o%, 19', o% (eans o% production, 11"-'; and 199-201, 206-1, 2"6-6; si(pli%icaelectronic tools, 1'2; and integration, tion o%, 188; in .o,iet =nion, 186-8, 10, 1""; internal technical, 69; 8iber199, 201, 209-10; structure o%, 186; (an3s proposals %or, 100-1; and (ar5- theories and concepts about, 210-1', et (echanis(, 9', 11"-', 2'0; prob218-19, 228; in transitional econo(ies le(s o%, 9'-101; socialist econo(ic, 219, 220, 22"-1, 228-9, 2""-'; 1""-', 119; in transitional econoand 3t*o-channel prices3, 202-', 2"' (ies, 22'-6, 2"2-" $ri,ate o*nership, 11', 16"-', 161; $lanning authorities, 8"-6; and produc- and producti,e %orces, 26; in transition tion targets, 10'-6 to collecti,e %or(s, 62 $lans, annual character o%,10"; degree $ri,ate production, and co((odity o% e/actness o%, 98-9; dra%t, 96, 91pro8, 10'; realisation o%, '6, 106-1; role duction, "6; and dictatorship o% proleo% econo(ic sub7ects in regard to, 9'- tariat, 12"; integration o%, 10 8; structure o%, "'; surpassing o%, 91; $roducer co-operati,es, "6, 81, 118, targets o%, 89, 99, 116, 118, 181; 1"6, 1"1

*or5ing-out o%, 8', 96, 161-8, 2"0 $oland, 61, 19', 202 $olitical econo(y, disappearance o%, 126-6; o% socialis(, 161, 162; !ee al!o 0cono(ic la*s $olitical subordination, 82, 86; and econo(ics, 1'0-1, 226; see also )ransitional econo(ies $olitical superstructures, 26 $olls, statistical, 106 $ost-colonial econo(ies, 1"-1', 21-2, 29; transition %eatures in, 21-8 $ractical concepts, 1"-1'

$roduction, productlon processes, centralised (anage(ent o%, 60-6; co-operati,e, 60, 61; di,ision o%, "9-'0; indi,idual, 1"0-1; integration o%, 1"'6; interdependence o%, 1""; socialisation o%, '8-9, 1"2-1; targets, 8', 10'-6 $roduction costs, 186-1, 188; and prices, 191-2, 19", 191, 20', 2"1; une,enness o%, 200, 206, 2"6 $roduction %unds, !ee #n,est(ent %unds $roduction-relations, 6', 1""-', 1"9'0; and co((odity relations, 1"1; 3e/plicit (odel3 o%, 118-9; and 7uridical relations, 91; nature o%, 121; and prices,

(a*e 2'9

$roduction-relations -- cont. 21"; and producti,e %orces, !ee $roducti,e %orces; and property, 121-"0; social %or( o%, '6; in state sector, 6611; in transitional econo(y, 226, 228-9 $roduction-units, under bureaucratic authority, 6"; and centralisation, 6'; and centralised allot(ent, 61-8; co(part(entalisation bet*een, 92; decisions by, "1, 90; disappearing autono(y o%, 61; and e%%ecti,e capacity, 129; interlin5ed or integrated, 61, 66-9, 90, 1"", 11"-', 116; relati,e autono(y o%, 66, 66, 68, 60, 1"6-1, 118, 2"1; role o%, ""; sel%-%inancing, 1"1; specialisation and regrouping o%, 61, 66, 66; and *or5er participation, 118-19 $roducti,e %orces, degree o% socialisation o%, 60-6, 8', 96, 101, 122-"; le,el o% de,elop(ent o%, '1, '1, 66, 10, 81, 101-8, 121, 1"1-8, 162, 168-9, 221; and production-relations, '1, 12', 1'6-8, 162-", 111-2, 219, 226; social do(ination, socialisation o%, '66, '1, '8, 6", 69-10, 111-18, 128-9; social nature o%, '1-60; underde,eloped, 1'6 $roducti,e use, right to, 109 $roducts, ad(inistrati,e share-out o%, 66-1; circulation o%, 62,86-1, 101; as co((odities, 21"; and labour, 11"; ne*, 99, 101, 186, 206; social destina-

3>egulated costs3, 186 3>egulating (agnitudes3, 219-22 pa!!im, 228 >egulations, 86, 89; breach o%, 91 3>e,olutionary consciousness3, 16', 161-8 >o(ania, 19' .e(i-%inished goods, supply o%, 116 .horuges, 66, 8", 106 .h,i5o,, C&, '9-60 .i(ulation techni2ues, 80, 116-11 .ingle state trust, "1, 1"2 .itnin, +&, 19" .ocial costs, (easure(ent o%, 21'-16; and prices, 196-6, 198, 200, 202, 20', 206, 229 3.ocial-econo(ic centre3, '0-2, 11, 1"2 .ocial %orecasting, 66, 60, 6", 89, 11"', 116 .ocialisation, o% (eans o% production, !ee Means o% production; o% producti,e %orces, !ee $roducti,e %orces; and social o*nership, 1"2; and statisation, ''-1, 169 .ocialis(, socialist (odes o% production, contradictions *ithin, 166; and econo(ic la*s, 126-6; integration in, 10; political econo(y o%, 161, 162; possibility and reality in, 161-9; proble(s o%, 28-9; social practice in building o%, 161; transition to, 20-1, 261 ; in

tion o%, '8, '9-60, 66, 81, 81; standardisation o%, 116 $ro%it, a,erage rate o%, 196-1, 21" $ro%itability, pro%it (argin, 102, 186-8 pa!!im, 192, 19', 198, 2"2, 2'"; rates o%, 191, 199-200, 20"-', 2"1; standard o%, 191, 19", 200 $rogra((ing calculations, linear and non-linear, 2"", 2'2-" $roletarian re,olution, !ee .ocialist re,olution $roletariat, dictatorship o%, '", 12"-' $roperty %or(s, "'-1, '1, 16"-'; adaptation o%, '1-66; co-operati,e and public, 6", 1""; and production-relations, 121-"0; state socialist, 129, 1"' Nualitati,e standards, 10"-' Nuality control, 68, 9", 98; neglect o%, 10"; and prices, 206-6 Nuantitati,e indices, 10"-' >abit<5y, ?&, 210 >a* (aterials, supply o%, 116

under-de,eloped countries, 16" .ocialist econo(ies, ""-' .ocialist re,olution, and principal contradiction, 1'6-1; theory o%, 161; trans%or(ation through, 16', 161-8 .ocialist sector, organisation o%, 12'"0; and pri,ate sector, 12" .ocialist trade, 1"6 .ocial needs, distribution in proportion to, 1"8; esti(ation o%, '0-1, 61-2, 10, 8', 108, 111-18, 1"6-6, 11", 116, 111; satis%action o%, 196 .ocial o*nership, lo*er le,els o%, 60; political and econo(ic criteria %or, 60-1; and socialisation, 1"2 .ocial relations, non-correspondence bet*een, 22"; and producti,e %orces, 2" .ocial utility, 111 .o,iet %ir(s or enterprises, 112-1", 129 .o,iet =nion, agricultural cadres in, 18; collecti,isation o% agriculture in, 29, 16, 16; 3co(bines3 in, 66, 61; de,elop(ent o% socialist sector in, 12'-6; Fi,e Cear plans, '6, 116, 180, 186;

(a*e 2''

.o,iet =nion -- cont. (ergers o% collecti,e and state %ar(s in, 6"; nationalisation o% land in, '6; pay(ent in sute %ar(s o%, 19; planned econo(y o%, "2, 96-6; postpone(ent o% price re%or( in, 186, 19"; po*er station net*or5s in, 61; price-syste( o%, !ee $rice-syste(s; .o,iet trusts, 6'; *or5 brigades in, 16-1 .o,nar5ho<y, 86, 98, 101, 119, 129 .pecialisation, 66 .talin, Joseph, 11, 101-9 pa!!im, 186; on co((odity production, "'-6, "1-8, "9, 1"2-", 1'1-2; on econo(ic la*s, 126, 1"8; on social contradictions, 1"9 .tate ban5ing, "2, 88 .tate capitalis(, 26, 29, 16'-6 pa!!im, 110, 220, 2'" .tate %ar(s, 6", 11, 19, 106 .tate inter,ention, 28; !ee al!o )ransitional econo(ies .tate o*nership, 128, 1"", 166, 22'; and econo(ic sub7ect, 12, 118-9; i(plications o%, '"-', 6", 109; as 7uridical %ra(e*or5, '1, 61

)rading co-operati,es, "6 )rading organs, 106, 182 )ransition, abstract and concrete concepts o%, 1'', 1'1-8; %or(s o%, 1"-1', 21-2, 221; ideal and historical, 20; %ro( the potential to the real, 161-9; proble(s o%, 22, 21, 166, 168-12; theory o%, 1'-19, 21, 22, 160-1 )ransitional econo(ies, co((odity character o%, 22'-6; concepts o%, 22'-6 %or(s o% non-correspondence in, 22"', 226-6, 228, 2"2; inter,ention o% political and ideological le,els in, 226, 229; and price-syste(s, 219, 220, 22"-1, 228-9, 2""-' )ransition phases, 22-"; %unda(ental %eature o%, 2'-8, 162; prolonged, 16"; stages in, 2"-' )sagolo,, 190 3)*o-channel prices3, 202-' =.A, 68 =..> Acade(y o% .ciences, 190

.tate po*er, 119; disappearance o%, '"', '1 .tate sector, "9-'0; di,ersity o% production units in, '1-2, '6, 62; 7uridical po*ers o%, 109; and price-syste(, 186; trading organs *ithin, 106 .tatisation, and e%%iciency, 1'0-1; and socialisation, ''-1, 169 .toc5s, 106 .tru(ilin, 190 3.ub7ecti,is(3, 189, 206 .upplier and user, direct lin5s bet*een, 68 ,%r la )moyenne ideale3 et le! forme! de tran!ition (Althusser), 1' .ur,i,als, 16-16, 6", 81, 109-10, 1"1 )argets, 99; planning, !ee $lans; %or production, 8', 10'-6; 2uantitati,e, 10"-' )a/es and ta/ rates, 181, 201, 20", 20' )a/ in 5ind, "6, 12" )echnical depart(ents, trans%or(ation into, 91, 101, 111 )er(inology, 19-2' )heory, and technical practice, 210-11 )rade, !ee Foreign trade; .ocialist trade

=..> entral .tatistical !%%ice, 198 =..> #nstitute o% Mathe(atics Applied to the 0cono(y, 2"6 +alue, labour theory o%, 209, 210, 21", 216-11, 220, 2'1; and prices, 111, 190-1, 202, 218, 221; !ee al!o 8a* o% ,alue +ertical integration, 66-11, 82 +ietna(, 4e(ocradc >epublic o%, "2 +laho,, #,an, 112 +on Beu(ann, 21" Dages, 1"1-8, 202-" Del%are econo(ics, 2"9 Dol%e, $&, 2"" Dor5ing groups, and decisions, 89-90, 101-8; and econo(ic sub7ect, 81; hierarchy in, 82,8'; and internal econo(ic calculation, 19; internal structuring o%, 16; opti(u( si<e o%, 11-9; pay(ent o%, 80; social personality o%, 16, 80, 116; in .o,iet agriculture, 16-1, 116 Dorld production-relations, and national econo(ies, 20; transition period in, 18-19 Cugosla,ia, 21, 6', 219-20

Anda mungkin juga menyukai