Transforming Oligarchic Capitalism in Post-Soviet Space into Social-Democratic Capitalism: Words of Wisdom from Post-Keynesian Institutionalist Forerunners and Early Contributors

Abstract

That the predatory capitalist orders in the emerging markets of the former Soviet Union require progressive reform is evident. To outline a framework for starting that comprehensive reform, this article begins with key insights from the work of Post-Keynesian Institutionalist forerunners and early contributors. Since important features of many Post-Soviet economies have much in common with the earlier era of Western industrial capitalism on which the founders of traditional Institutionalism and originators of Post-Keynesian Institutionalism primarily focused, their analyses are particularly useful. The resultant template for progressive reform assumes as given that a forced fragmentation of large companies is unwise, given their important role in alleviating market uncertainties, stabilizing the economy, and promoting investment spending. Instead, the proposed reform includes comprehensive democratization of the relations of large-scale productive property, progressive regulation of industry by the democratic state, and the nurturance of all-encompassing participatory processes throughout the economy.