Introductory note by the Editors There is a political controversy going on in Hungary between those who are supporting the actions and the rhetoric of the present government and those who are ...opposing them. The article by János Kornai is a contribution to this political controversy. It is not an academic treatise, equipped with footnotes and references. It was written for the readers of the daily newspaper Népszabadság, which has the largest circulation in Hungary, in a style accessible to all readers of the newspaper. In spite of the length of the article, quite unusual for a daily newspaper, the editors were willing to publish it in full in the 28 January 2012 issue. Economics of Transition is publishing the translation of the original article, without any changes. There were no footnotes in the original article; all the footnotes have been added by the author during the editorial process of Economics of Transition, mainly to explain the context of a term or an event for readers less familiar with the Hungarian situation, or to reference a book or paper mentioned in the text. The dates in the article have not been adjusted and should be read relative to the initial publication date of the article in Hungarian on 28 January 2012. Reprinted by permission of Blackwell Publishers
Self-provided housing is a major form of housing supply in nearly all the developed countries of W. Europe, N. America and Australasia. In many, like France or Germany, it accounted for the major ...part of housing output during the 1980s. Contrary to many opinions self-provision is not associated with backwardness, peripherality, or lack of market development. Rather, self-provided housing is often a major element in the expansion of European metropoles and sometimes reaches the heights of 'post-fordist' industrial organisation and product development. Self-provision lowers the money cost of housing and usually ensures higher quality, and in this way enlarges the housing choices of middle-income nuclear families. Materials and land costs remain substantial barriers to self-provision, and the more disadvantaged groups are usually unable to participate. However, the presence of a large self-provided sector can indirectly improve their housing position. Housing cycles will be calmed, spatial polarisation will be less severe, and there will be less competition from the more advantaged in rental markets. A significant self-provision sector can also have important effects on the housebuilding industry, both through direct competition and by presenting a different market environment. The net result is likely to be a decline in speculative behaviour and a concentration on longer-term efficiency. Finally, there are various 'models' for a successful self-provided housing sector, where the necessary social support is organised in different ways by different agencies. These will affect the level and distribution of self-provision. Given the importance of self-provided housing in all these ways, it merits considerably further research than has been the case so far.
Considers images of homelessness and whether it is an individual or a public issue, the result of inadequacies not of individuals but of the housing system. Reviews the debate over definitions of ...homelessness, using material from New Zealand, Australia, and the U.K. (Abstract amended)
In The Great Robbery of the South Michael Probsting analyses the super-exploitation and oppression of the semi-colonial world (often referred to as the 'Third World') by the imperialist powers and ...monopolies. He shows that the relationship between the small minority of rich capitalist countries and the huge majority of mankind living in the semi-colonial world forms one of the most important elements of the imperialist world system we are living in. The Great Robbery of the South shows that the past decades have been a complete confirmation of the validity of Lenin's theory of imperialism and its programmatic conclusions. The Great Robbery of the South elaborates the important changes in the relationship between the imperialist and the semi-colonial countries. Using comprehensive material (including 139 Tables and Figures), Michael Probsting elaborates that never before has such a big share of the world capitalist value been produced in the South. Adapted from the source document.
Argues that corporatist institutions develop in small countries with strong national labour movements and highly open economies. Uses a relatively large sample of 18 advanced capitalist countries, ...and applies several recently accessible statistical techniques. (JLN)
Proposes an approach linking the relative wage rates between occupations to the relative bargaining power of workers employed in them. Discusses the existence of unemployment as a necessary condition ...of profitability in capitalist society; the relation between training costs and relative wage rates; and possible political/cultural divisions within the class of wage laborers. (RSM)
The main proving ground for theories of public social spending has been the postwar experience of about 20 wealthy, democratic, capitalist countries. Theoretical arguments and propositions derived ...from case studies and comparative analyses of public spending innovations are critiqued.
It is often claimed that the post-World War II trading order has been relatively liberal, and much effort has been invested in explaining why it has not become more closed in the aftermath of Bretton ...Woods. Investigation of actual imports (as opposed to policy instruments designed to influence imports (reveals that the advanced capitalist states were no more open to imports or multilateral in their trading patterns in 1948-1972 than in 1921-1938 or 1881-1913. In the current (post-1972) era, openness in terms of trade volumes has increased substantially, but the increase in openness in terms of trade values has been more modest. Contrary to some recent theorizing, the degree of openness is generally unrelated to a number of plausible measures of "concentration" in the international system. It is, however, related in more recent eras to previously experienced rates of economic growth. Incomplete evidence for regionalization in trade flows shows little difference between 1948-1972 and the interwar period. Some measures of bilateral balancing in trade currently meet or exceed those experienced in the 1930s. Heterodox transactional forms--countertrade and intra-firm trade--have become a significant proportion of global trade. This development, rather than the achievement of a "liberal" order, seems to be the most noteworthy characteristic of the current era.
In underdeveloped countries, more than 70% of the population suffers from infectious and communicable diseases. These diseases are transmitted with the help of poor water, sanitation, housing, etc. ...Further, education and nutrition also affect the vulnerability of the individual. All these factors responsible for disease, are themselves dependent on income--the lower the income, the lower education and nutritional status, and the poorer quality the water, and housing. An increase in the absolute income for some, and a redistribution of income for all, are necessary to cure the ills of society. It is possible to increase the real income of individuals by giving them hand-outs or dealing with the problems of their 'basic needs'. However, these approaches do not take into account the underlying factors responsible for disease, and are severely limited in scope. The elite in a country, who, to a great extent, determine the role of the State and of the government, are only willing to give a certain amount of charity, and nothing more. They will, clearly never give to the poor, so much that their own (relative and absolute) position is threatened. The only way possible is through a government which works for the majority of the people, rather than for a small elite.
