Kornai
Y. Centralization and the Capitalist Market Economy. // Economics of
contemporary Russia 2012. ¹2
(57) Ñ.1-7.
The
trend toward centralization and concentration of power, narrowing the
field of
autonomous activity in the economy and the transfer of
various activities under
state control, which emerged in the Hungarian economy during the recent
years,
is revealed. There are numerous examples
of mergers and consolidations in the
banking, fiscal, tax and other areas, including the introduction of
uniformity
of educational programs, suppressing
the autonomy of universities and enlarging
research institutions, indicating the presence of the identified
trends. The
characteristics of centralization
and decentralization are compared in terms of
regulatory and positive approaches. Based on this comparing the
conclusion of
the relative effectiveness
of the horizontally coordinated decentralization,
compared to the vertical integration in the long run is drawn. It is
considered
the example of Hungary
development in recent years, Various aspects of the
relationship between the government and the capitalist market economy
are
considered, basing
on the example of development of Hungary for the recent
years, are considered.
Keywords:
centralization, decentralization, vertical coordination, horizontal
coordination, regulatory approach, positive approach, governance,
market
economy.
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