I have followed this somewhat unfocussed debate on planning vs
markets with some interest since I had the opportunity to co-write
the EPE entry on Market Socialism and author two other related
items in the encyclopaedia. What I would suggest is that there
needs to be some deeper investigation at what is entailed in the
whole calculation debate and the evolution of thought on the
interaction between market and plan. I would also suggest that we
need look at the experience with market socialism -- i.e. the
Yugoslav experience -- to see why, or indeed if, it went wrong.
However, if one is interested in the interaction of market and
planning under socialism, I would suggest pen-l-ers would be
advised to read (or reread) Branko Horva'ts 1982 book, _The
Political Economy of Socialism_ (M.E. Sharpe) which I found to be
an inspiring vision of what could be, without any detailed blueprint.
Without being critical of David's work, I think Horvat's vision is
somewhat broader than Schweikart's.
For a scholarly review of the calculation debate, and a strong
defence of market socialism, see Bruno Jossa and Gaetano
Cuomo, _The Economic Theory of Socialism and the Labour-
managed Firm_ which I reviewed in a recent issue of ROPE.
Though their defence is highly theoretical (and neoclassical), they
also emphasize a strong moral argument for worker self-
management (i.e. democractic, bottoms up) market socialism. I
should point out that none of these market socialist type
approaches obviate the need for macro economic planning -- i.e.
the level of overall investment, the provision of infrastructure, social
programs, etc. where the market, necessarily, fails.
What dismays me a little in this debate is that most of the
protagonists on all sides seem to have little knowledge of the
literature, the proposals, the interpretations, the visions, of those
on the left who propose democratic market socialism. Without
this, the list begins to resemble the tower of Babel -- with little or
no communication.
Paul Phillips,
Economics,
University of Manitoba
