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We have been prompted to produce this book by a strong desire to reappraise our stand with regard to socialism as an economic system. Each of us in his own way had been in the past fascinated by the apparent ability of a socialist economy to overcome the irrationality of capitalism on a macroscale—the coexistence of excess capital, excess labour, and unsatisfied wants. At first the possibility of combining this ability with microeconomic efficiency seemed to be only a question of time, and would allow the perfection of planning techniques and the full development of cooperative behaviour by the new socialist beings. When the dismal experience of the command system in our native Poland and throughout the Soviet bloc made us look for the prospect of reform after the mid 1950s, we still strove for a compromise solution, blending macroeconomic central planning with autonomy of market‐regulated state enterprise. Subsequent continuous and careful observation of the tortuous reform process, including the Chinese one over the last ten years, brought us to the conclusion—not particularly original nowadays—that such a compromise was conceptually unviable, and that if marketization is the right direction of change it must be pursued consistently. In practice a tendency towards fully fledged market socialism began to manifest itself in the 1980s in most countries committed to economic reform.
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