Globalization under hysteresis: A study of Eastern Bloc Countries, China and India

Sudhanshu K. MISHRA

Abstract


Abstract. This study is concerned with a great socio-economic experiment in history that replaced the naturally evolved market economy with the humanly designed command economy to achieve a socialist triumph over capitalism, experienced a setback and ultimately returned to the market economy for managing the material aspects of the society. Efforts to open the subject economies in the aftermath of the said experiment are on the contemporary agenda worldwide. Yet, the past pulls the present causing hysteresis that thwarts the momentum of globalization. Using KOF and AEMC indices of globalization (based on KOF data 1991-2014), the paper concludes that most of the countries to the south of Russian Federation (Armenia, Azerbaijan, Tajikistan, Kyrgyzstan, Kazakhstan) have performed rather poorly in globalization efforts. On the other hand, the countries in the north-western side of the Russian Federation (except Moldova) have on the whole performed better. In comparison, China has performed fairly while India lags behind. In spite of all proclamations, unless the political will to globalization is there, globalization cannot progress much further. However, such a political will has not been strong in India. India has remained protectionist of vested interests of politicians, industrialists, business houses and perhaps the intelligentsia, a coalition of the dominant proprietary classes that benefit from the status quo or stagnancy of the Indian economy and society. Globalization in India is under a strong spell of hysteresis on account of the pre-1991 pseudo-socialistic nostalgia as well as age-old internal contradictions.

Keywords. Globalization, KOF index, Equi-marginal, Shapley value, Global optimization, China, India, Eastern Bloc.

JEL. C43, C61, C71, F60, P52.

Keywords


Globalization; KOF index; Equi-marginal; Shapley value; Global optimization; China; India; Eastern Bloc.

Full Text:


References


Acemoglu, D., & Yared, P. (2010). Political limits to globalization. American Economic Review, 100(2), 83-88. doi. 10.1257/aer.100.2.83

Bardhan, P. (1984). The Political Economy of Development in India. Basil Blackwell, Oxford.

Bardhan, P. (2006). Globalization Hits Road Bumps in India. YaleGlobal Online, Yale University [Retrieved from].

Belykh, A.A. (1989). A note on the origins of input-output analysis and the contribution of the Early Soviet Economists: Chayanov, Bogdanov and Kritsman. Soviet Studies, 41(3), 426-429. doi. 10.1080/09668138908411823

Bottomore, T.B. (1991). A Dictionary of Marxist thought. Oxford, London.

Britanica, E. (2017). Union of Soviet Socialist Republics. [Retrieved from].

Caplan, B. (2004). Is Socialism really "impossible"? Critical Review, 16, 33-52. doi. 10.1080/08913810408443598

Dirlik, A. (1989). Post-Socialism? Reflections on “Socialism with Chinese Characteristics.” In A. Dirlik, & M. Meisner, (eds). Marxism and the Chinese Experience: The Political Economy of Socialism. ME Sharpe, New York.

Dreher, A. (2006). Does globalization affect growth? Evidence from a new index of globalization. Applied Economics, 38(10), 1091-1110. doi. 10.1080/00036840500392078

Dreher, A., Gaston, N., & Martens, P. (2008). Measuring Globalisation: Gauging its Consequences. Springer. New York.

Financial Express Economic Bureau (2008). Restrictive Trade Regime Gets India Poor WB ranking. The Financial Express, [Retrieved from].

Ghosh, A. (1958). Input-output approach in an allocation system. Economica, 25(97), 58-64.

Gronow, J. (2003). Caviar with Champagne: Common Luxury and the Ideals of the Good Life in Stalin's Russia. Berg Publishers, Oxford.

Harrison, M. (2003). Soviet industry and the Red Army Under Stalin: A military–industrial complex? Les Cahiers du Monde russe, 44(2-3), 323-342.

Harrison, M., & Davies, R.W. (1997). The Soviet military-economic effort during the second five year plan (1933-1937). Europe-Asia Studies, 49(3), 369-406. doi. 10.1080/09668139708412447

Hayek, F.A. (1944). The Road to Serfdom. Routledge, London.

Hayek, F.A. (1945). The use of knowledge in Society. American Economic Review. 35(4), 519-30.

Hayek, F.A. (1988). The Fatal Conceit: The Errors of Socialism. Routledge, London.

Huang, P.C. (2012). "State capitalism" or "socialist market economy"? - Dialogues among Western and Chinese scholars, V. Modern China, 38(6), 587-590. doi. 10.1177/0097700412459701

Kornai, J. (1980). Economics of Shortage. North Holland Press, Amsterdam.

Leontief, W. (1936). Quantitative input and output relations in the economic system of the United States. The Review of Economic Statistics, 18(3), 105-125. doi. 10.2307/1927837

Lightbody, B. (2004). The Second World War: Ambitions to Nemesis. Routledge, New York.

Mill, J.S. (1848). Principles of political economy with some of their applications to social philosophy. V.W. Bladen & J.M. Robson (eds), The Collected Works of John Stuart Mill, Vol. II-III, Univ. of Toronto Press, Toronto. 1965.

Mises, L. (1920). Economic calculation in the socialist commonwealth. In F.A. Hayek (ed). Collectivist Economic Planning, (pp. 87-130), Routledge, London.

Mishra, S.K. (2016). A note on construction of a composite index by optimization of Shapley value shares of the constituent variables. Turkish Economic Review, 3(3), 466-472.

Mishra, S.K. (2017). Almost equi-marginal principle based composite index of globalization: China, India and Pakistan. Journal of Economic and Social Thought, 4(3), 335-351.

Müller, R.D., & Ueberschär, G.R. (2009). Hitler's War in the East, 1941–1945: A Critical Assessment. Berghahn Books, No.89.

Myrdal, G. (1973). Against the stream: Critical essays on economics, Macmillan, London.

Plamper, J. (2012). The Stalin Cult: A Study in the Alchemy of Power. Yale Univ. Press, New Haven.

Roemer, K. (2016). Economic Computation and SFEcon Model 0. Unpublished Paper, [Retrieved from].

Rudra, A. (1989). Emergence of the intelligentsia as a ruling class in India. Indian Economic Review, New Series, 24(2), 155-183.

Suvorov, V. (2008). The Chief Culprit: Stalin’s Grand Design to Start World War II. Naval Institute Press, Annapolis, Maryland.




DOI: http://dx.doi.org/10.1453/jsas.v5i1.1463

Refbacks

  • There are currently no refbacks.




....................................................................................................................................................................................................................................................................................................................................... Journal of Social and Administrative Sciences - J. Adm. Soc. Sci. - JSAS - www.kspjournals.org

ISSN: 2149-0406. Editor : editor-jsas@kspjournals.org   Secretarial: secretarial@kspjournals.org   Istanbul - Turkey.

Copyright © KSP Journals