What is Transitional Economics?

posted 15 Mar 2010, 10:53 by Admin uk   [ updated 15 Mar 2010, 17:08 ]
In the debates in the 1920s in the USSR new ideas concerning the economics of the transitional era between capitalism and socialism emerged. Marx founded his theses of socialist revolution on the basis that the most advanced countries would begin the transformation, other countries would follow by example.

The fact that much of the economy, even in the richest countries, was not composed of advanced capitalist forms of large scale industry, meant that a gradual shift towards socialist production and workers' control would inevitably mean there would be an era of primitive accumulation of socialist capital. In this era elements of the old society would persist, a state, a "workers' state" would exist, money and inequalities would persist.

The exploitation of pre-socialist economic formations would be a primary source of socialist capital. How you accumulate this capital came to be known as primitive socialist accumulation.
The era since 1917 has shown that this epoch is a prolonged period in which there is no simple spell that can be cast to expropriate all pre-socialist forms of production and organise them successfully according to socialist plan.

This section of karlmarx.net returns to the fundamental question, how should a socialist economy emerging in our existing world be organised? What should be nationalised? Who should administrate? How will the workers' control? How will economically backward countries urbanize? How does one control corruption and the misuse of power? These and many more questions will be addressed.