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Beyond Collectivism: Property Rights and the Transition to a Market Economy in the Soviet Union
| Article
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19639 |
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Section : |
MODERN THOUGHT
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| Issue
Date : |
10 / 1991 |
5,685 Words |
| Author
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Thomas K. Plofchan, Jr.
Thomas K. Plofchan, Jr., is a research assistant at the Center
for National Security Law, University of Virginia School of
Law. He is currently editing a book on treaty interpretation
and has just completed an article on self-defense rights under
the UN charter. |
The Soviet Union, once the second most powerful nation on earth, is disintegrating. Its economy has shattered, indicating that communism and socialism, or at least the Soviet manifestation of these theories, may not be viable as economic systems. Without a viable economy, the ability of the ruling party to maintain control over the country is destroyed. In an effort to stop the disintegration, Mikhail Gorbachev has attempted, over the past five years, to revitalize the economy and to refashion it along a market socialist perspective--a perspective that accepts a market economy but continues to advocate improvements in social welfare.
Success is dependent upon altering the Soviet system so that it protects the vital elements necessary for the flourishing of a market economy--property rights. This analysis briefly describes the status quo with regard to the definition of property rights and individual rights. Next, it assesses the Soviet government's ability to protect property through limits on government power at the union level. Finally, it assesses property protection with respect to power at the republic level. This paper focuses on the constitutional and legislative attempts at assuring separation of powers and federalism as instruments for guaranteeing the protection of property in the Soviet Union.
Status Quo
In Western societies with market economies, property is a legal institution that creates and protects certain private rights in wealth. One of several functions of property is to define the boundary between the public and private sectors. It also functions to maintain independence, dignity, and pluralism in society by establishing areas in which the majority has to yield to the power. Political rights depend on the existence of property rights because political rights presume independent action of individuals and groups--action that is defined by and maintained by property rights. Civil and political rights in turn define the limits of permissible governmental action.
Prior to perestroika, economic and social rights defined the limits of permissible action in the Soviet Union, with all rights being embedded in the state by default unless specifically granted to individuals. In establishing the policy of perestroika, Gorbachev recognized that the Soviet economy could both be saved without restricting both it and the government and establishing a society committed to the rule of law. He began the transition to a market economy. During this transition period, there exists a conception of social property rights that are
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