Equalization of Regional Development in Socialist Countries: An Empirical Study

Abstract

The equality of economic development among geographic regions, regardless of how defined, is an important goal in any country's economic policy. This is particularly true under socialism for the following three reasons. First, according to Socialist ideology, this system can be introduced only in a country that is economically well developed. It follows that all regions of such a country must be equally advanced; otherwise it becomes illogical for some more advanced regions to be Socialist while less developed regions are not. Second, one of the main characteristics of socialism is egalitarianism; therefore all citizens, no matter in which region they reside, should be assured equal opportunity for a higher standard of living and for social advancement. Third, the Socialists believe that in a multinational state, in which various nationalities inhabit their own ethnic territories, the economic equality of these regions is a precondition for achieving political, social, and cultural equality.1 Furthermore, Socialists claim that regional equality can be achieved only under socialism. In simplest terms, this goal of equality will be advanced when the backward regions grow at a faster rate than do the more developed regions. The growth of underdeveloped regions depends on many variables, such as construction of new enterprises, provision of social overhead, urbanization, and population migration. In order that these factors become effective, they should be introduced on a large scale and at the same time. The massive deployment of resources and simultaneous decision making, according to this line of thinking, are possible only under socialism, in which the state is the owner of material resources and in which more or less centralized planning and management of the national economy exist. In contrast, Socialists are convinced, the market forces in capitalist economies are too weak and too slow to obtain results comparable with those under socialism.