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Michael Kaser
Michael Kaser (born in London in 1926) is a British economist who specialises on Central and Eastern Europe and the USSR and its successor states. He is Reader Emeritus in Economics at the University of Oxford and Emeritus Fellow of St Antony's College, Oxford, and formerly a Fellow of Templeton College, Oxford. He is also Honorary Professor in the School of Social Sciences at the University of Birmingham.〔http://www.sant.ox.ac.uk/russian/kaser.html Retrieved 11 October 2013〕 In a trio of books published between 1965 and 1970 Kaser presented a detailed picture of the workings of the socialist planned economies at enterprise, national and international levels. His work has sought to apply Keynesian economic theory to the analysis of the socialist planned economies and he identified the systemic problems that were neglected by the ruling communist parties, and which contributed to the disintegration of the economic system at the end of the 1980s.
==Major works==
''Soviet Economics'' (1970) gives an overview of the economic system of the Union of Soviet Socialist Republics (USSR) from its foundation until the cautious economic reforms of Khrushchev and Brezhnev. The study examines the evolving political priorities of the communist party leadership in the context of the Marxist theoretical framework; the challenges of the Civil War; foreign intervention and the 1941 invasion; post-war reconstruction; and the attempt to gain military and economic parity with the USA. At each point, Kaser describes how the internal dialogue between enterprises, consumers and the state apparatus influenced the strategies adopted for economic growth and agricultural and industrial development. Kaser highlights the contributions made to the internal debate by N I Bukharin, G V Plekhanov, E A Preobrazhensky, N D Kondratiev, A V Chayanov, V G Groman, L V Kantorovich, Ye G Liberman, G A Feldman, V V Novozhilov, Branko Horvat and A G Aganbegyan. He is critical of the approaches of Western Marxists (for example, Paul A. Baran and Paul M Sweezy) and of Joan Robinson as presenting an over simplified picture of the way decision-making operated and of tending to conflate state ownership with control over resources. He argues that because the planning procedures had changed little since the first Five Year Plan (1928–32), enterprises were forced to engage in numerous deals over the composition and timing of their supplies and deliveries that in turn manifested itself in both chronic shortages and persistent waste. The "three laws of socialism" promulgated by Stalin, which in effect meant that heavy industry was given preference over the production of consumer goods, along with a high rate of saving and the maintenance of a stable proportion in the shares of national output between agriculture and industry, held back the growth of national income in comparison with market oriented industrial countries, notably the USA. Kaser explains how the invention of mathematical tools to achieve balance in a planned economy were swept aside under Stalin and continued to be viewed with suspicion until the 1960s. Even so, he doubts whether such computerised techniques could in practice generate efficient pricing and assure balanced growth and general economic equilibrium in the USSR.
In ''Planning in East Europe'' (1970) Kaser and Janusz Zieliński describe the management of industry in Eastern Europe as comprising typically several tiers of organisation: the central planning and control authorities, the enterprise or combination (or group) of enterprises, the material-technical supply organisations and the banks, and domestic retail and foreign trade organisations. The authors analyse the scope of planning and of markets, the tension between directives and competition, price-setting and the relations between managers and workers. The book covers the context and options for economic reform in Albania, Bulgaria, Czechoslovakia, Eastern Germany, Hungary, Poland, Romania and Yugoslavia.
In ''Comecon'' (second edition, 1967), Kaser presents the history and prospects of the Council for Mutual Economic Assistance (CMEA), or Comecon, which published the barest minimum about itself. The study includes extracts and summaries of the CMEA charter and principles, its internal organisation and procedures and its approach towards pricing, technical co-operation, investment and integration based upon specialisation and the division of labour within the socialist bloc. The political context of the CMEA's activities are set out, as are the theoretical considerations in which Kaser includes an extended discussion of the role of international and internal markets in the bloc's aim of "developing and consolidating a world economic system of socialism", and intended to include eventually the developing countries of Asia and Africa. Kaser highlights the difficulty facing an economy planned on a national basis has in integrating trading relations and foreign direct investment without devolving decision-making to enterprises and without establishing a clearing mechanism for transactions or introducing currency convertibility. He identifies as a key problem the contradictory objectives set for the CMEA of maintaining a balance of payments, cost-minimization and the development of domestic resources without providing for the transfer capital between richer and poorer CMEA members or the alignment of internal prices with world prices.
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