NCJ Number
115899
Journal
Social Justice Volume: 15 Issue: 3-4 Dated: (Fall-Winter 1988) Pages: 135-159
Date Published
1988
Length
25 pages
Annotation
This discussion of the unplanned economy in Eastern Europe focuses on its differences with the official, planned economy; its operation in Romania, the Soviet Union, and Hungary; and the reasons why those who rely most on the unplanned economy seem to be the least revolutionary.
Abstract
The unplanned or 'second' economy includes all the nonregulated, unreported, or private economic activities. Marxist doctrine views underground economies as criminal activity, whereas Westerners tend to view them as islands of capitalism that thrive despite a stifling bureaucracy and hostile ideology. Although Eastern European law enforcement agencies periodically crack down on second-economy behavior, the governments know how essential the second economy is. Therefore, this economy is not simply tolerated but is actually accepted. Romania's second economy is largely agricultural and illegal; however, government crackdowns have been largely ineffective. In contrast, the second economy in the Soviet Union has an ethnic and regional component, and Hungary has a large, legal private sector that is tolerated by the government. However, the social revolts in Eastern Europe over the last 30 years have shown that the peasants and retail and service workers, who are most dependent on the second economy, seem to be the least revolutionary, while the heavy industry workers, who are least able to use second-economy strategies, tend to be the most revolutionary. 47 references.