The Socialist system by J.

Kornai
This book was written by an author who is one of the most influential critics of socialist
economies. He starts with Overcentralization in Economic Administration, this happened
in Hungary, Kornai explains the different problems that Economy has when there are
governments or the state organs administers the overwhelming share of resource.
These problems include: goods and services deficit, unemployment, misallocation of
resources and hidden inflation.
This explanation have been based on an analysis about socialist economic institutions, in
any socialist country the communist party and its ideology occupy a monopoly position for
a significant period of time.
Kornai make us known about 26 countries that are differentiated according to the period
when the communist took power.

In any of the countries listed in the table, system-specific phenomena is pervasive deficit of
goods, the cause of this is the dominance of the communist party and its intolerant
ideology with private property rights.
All the socialist systems are better-known as a pervasive state ownership and control of the
commanding heights of the economy such as heavy industry and banking. It is the lack of
private property rights that make possible a system of bureaucratic coordination to replace a
market system of resource allocation.
The relationship between the socialist political system and the problems of socialist
economies leads Kornai to draw a negative conclusion about the prospects for partial
reform of socialist economies: The socialist system economy must replace it.
The author said a lot of things that make us think about which the correct system is, what is
better communist or socialist?.
There are systems created by humans, therefore these systems are not perfect, each system
wants to receive a benefit although this damage the society.
The author said that socialist should be eliminated, but there is a question: why?.
However, as you known all the governments have problems, deficit, unemployment, but I
think it has to change in benefit of people.