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The Socialist SystemThe Political Economy of Communism$
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Janos Kornai

Print publication date: 1992

Print ISBN-13: 9780198287766

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198287763.001.0001

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(p.461) 20 Self‐Management
The Socialist System

János Kornai (Contributor Webpage)

Oxford University Press

The introduction of self‐management into firms in public ownership is an important tendency during the process of reform of classical socialism, although it is less radical than the intrusion of the private sector. Its basic principle is that the head of the firm is chosen by the workers rather than appointed from above as in a state‐owned firm; the workforce also disposes over the residual income after costs and taxes. The chapter discusses self‐management as an intellectual and political trend; political relations in self‐management—whether it is voluntarily initiated or imposed from above (as in the case of Yugoslavia, which is described); the economic effects of self‐management; relations between manager and workers; and ethical coordination.

Keywords:   classical socialism, political relations, public ownership, reform, self‐management, socialist systems, Yugoslavia

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