Overcentralization in Economic Administration: A Critical Analysis Based on Experience in Hungarian Light Industry

Overcentralization in Economic Administration, written by János Kornai, was the first book published in the West that openly criticized socialist central planning. It provides a clear and coherent account of the conditions in centrally planned economies and offers normative recommendations that influenced the Hungarian reform process, culminating in the economic changes of 1968. Kornai identified several systematic failures of the centrally planned economy and predicted weak economic performance and eventual disintegration.

Format: Paperback / softback
Length: 272 pages
Publication date: 29 June 2023
Publisher: Oxford University Press

Overcentralization in Economic Administration, a groundbreaking work published in 1959, stands as a pioneering effort by an Eastern European economist to critique socialist central planning in the Western world. Authored by the distinguished economist János Kornai, this seminal book marked the beginning of a lifelong exploration into the economic organization of centrally planned economies. Professor Kornai's overarching objective in this work was to observe the realities of the functioning socialist system, free from the distorting influence of Marxist political economy. Through meticulous research and analysis, he presented a clear and coherent account of the prevailing conditions, accompanied by normative recommendations that significantly shaped the Hungarian reform process. These reforms ultimately culminated in the economic transformations of 1968, marking a pivotal moment in Eastern Europe's economic history.

In his book, Professor Kornai identified several systemic flaws within the centrally planned economy. He astutely observed weak economic performance, ultimately leading to the disintegration of these systems. His argument for radical rather than partial change resonated strongly, emphasizing the need for fundamental reforms to address the underlying issues. This book serves as an essential resource for those interested in understanding the economics of transition in Eastern Europe, providing valuable insights into the challenges and opportunities faced by these nations during their transition from socialism to capitalism.

Overcentralization in Economic Administration is a testament to Professor Kornai's intellectual prowess and his commitment to promoting economic development and prosperity. His work continues to inspire economists and policymakers worldwide, as they seek to navigate the complexities of economic systems and strive for sustainable growth and prosperity.

Weight: 388g
Dimension: 235 x 156 x 15 (mm)
ISBN-13: 9780192894427