Soviet-type economies' strategy for catching-up through technology im ports—an anatomy of failure

Abstract

This article is a contribution to a more systematic explanation of the strategy failure of Soviet-type economies (STE's) in catching-up with the West through technology and related capital imports. The failure is put in system-specific terms, because these features have such an impact on the outcome of the said strategy. The theory underlying the Soviet-type economy is given where necessary. The official expectations of STE's with respect to technology imports, the absorbing of both imported and domestic technologies (comparatively) and the upgrading of any technologies, domestic or imported, are outlined. The unrealistic nature of central planners expectations with regard to the costs and benefits of the catching-up strategy is exposed. How STE's paid more in order to earn less is the topic of the final section of the article.