International Critical Thought has just published issue 5.1. I am taken with a couple of articles from the issue. The first is by Chen Ping, called ‘Has Capitalism Defeated Socialism Yet?—Kornai’s Turnaround on Liberalism, and the Evaporation of Myths about Eastern Europe’. The abstract reads:

The Hungarian economist Janos Kornai has warned the West of the possibility of a reversal of liberalization in Eastern Europe. He advocates a new policy of containment aimed at countries such as Russia and China. This prompts us to investigate the truth concerning the transition in Eastern Europe. After 1990 the West recalculated economic data from the former Soviet Union and Eastern Europe (FSUEE thereafter) before 1990, for creating an illusion that “shock therapy” had made progress in FSUEE. However, the Eastern Europeans including the Hungarians, who were enthusiastic for liberalization from socialism, soon discovered that joining the European Union (EU) was damaging the interests of the majority of people in Eastern Europe, while Western Europeans also came increasingly to oppose the financial burdens imposed by EU enlargement and immigration inflows. The short-sighted transition strategy carried out in Eastern Europe and the preoccupation with geopolitical interests have in fact exacerbated the EU’s economic crisis, triggering a civil war in Ukraine and causing Russia to become disillusioned with the West. Kornai’s theory of soft-budget constraints as well as his anti-Keynesian policies during the transition recession, is responsible for the economic downturn triggered by rapid liberalization in Eastern Europe. The reversal of the liberalization trend in Eastern Europe and the change in the mass psychology of Eastern Europeans towards the West together constitute an important rebuff to utopian capitalist thinking in China. Has capitalism defeated socialism, as Western propaganda claims? The success of China’s autonomous open-door policy and the failure of Eastern Europe’s unilateral opening indicate that the collapse of the FSUEE occurred mainly for political rather than economic reasons.

The second is an article review by Tony Andréani & Rémy Herrera, called ‘Which Economic Model for China?—Review of La Voie chinoise by Michel Aglietta and Guo Bai’. In their conclusion they observe:

Our analytical framework being different from that of Michel Aglietta and Guo Bai (2012), whose work is welcome, we interpret the Chinese reality differently. It seems to us that, in China, the socialist road has not been abandoned. At present, the public sector is gaining ground over the private sector—public companies are acquiring many private firms. Besides, the idea that the Chinese policy, including economic policy, can be explained by the will of a hierarchical, disciplined Communist Party to remain in power and, for this, to meet primarily the interests of a state bureaucracy that it dominates and on which it relies, does not seem to correspond to reality. First, it is quite normal that a party claiming to be itself in the line of a revolution seeks to remain in power in order to achieve the goals it thinks are of people’s interest. Second, we must look closely at the efforts of self-reform that this party has started. It is not afraid to expose its own deficiencies concerning its internal democracy, as well as the reforms of its political system step by step. Under these conditions, we can have a different reading of the Chinese political system. That said, there is—this is what we believe—a hidden struggle (not an open one, as during the Maoist era) inside the Party, universities and research centers, intellectual circles and even, more discreetly, within local media, between two political lines, namely, a social-democrat orientation (some people just say “liberal”) and a socialist one. The latter is attributed in part to the “new left,” which is placed in a certain continuity with the Maoist legacy. The socialist way far outweighs the social-democrat way in the strength of its argument—let’s add that, if it were to dominate, it would also experience its own internal struggles. In a sense, we can rejoice at this: nothing is worse in social discourse than monolithic thinking.