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Inhaltsverzeichnis

Frontmatter

The Social Market Economy and the Varieties of Capitalism Introduction

The Social Market Economy and the Varieties of Capitalism Introduction

Abstract
The institutional setting of the market in the countries of the West varies. The differentiation of capitalisms in the West is indisputable. By the institutional setting or institutional framework of the market, the political and social institutions accompanying and supporting the market economy are described.
Peter Koslowski

Social Market Economy Contemporary Analysis and Theory

Frontmatter

The Theory of the Economic Order

Chapter 1. The Social Market Economy: The Main Ideas and Their Influence on Economic Policy

Abstract
One of the main outcomes of the “European Miracle”1 is the development of a liberal social philosophy beginning in the eighteenth century and lasting until today. The Scottish School of Moral Philosophy, the liberal classical economists from Adam Smith onwards to John Stuart Mill, as well as the French (J. B. Say) and German thinkers of the late eighteenth and early nineteenth century (I. Kant, Friedrich Schiller, W. von Humboldt) laid the foundations of a free society. After the “European Catastrophe”, the two World Wars (1914–18/1939–1945) and the establishment of totalitarian and authoritarian regimes in Western and Eastern Europe, an unexpected renaissance of liberal thinking began. It was lead by a small group of lawyers, economists and social philosophers in the Western World and its early origins can be traced back to the thirties and forties. It is to be hoped that this philosophy will also spread, following the annus mirabilis 1989, into Middle and Eastern Europe. Among the twentieth century scholars, who further developed the ideas of a free (or good) society, one could name Bresciani-Turroni, de Jouvenal, W. Eucken, F.A. von Hayek, Karl Popper, W. Röpke among others.
Christian Watrin

Discussion Summary

Abstract
The discussion was opened by a comment about the peculiarities and differences between the ordo-liberal theory of the School of Freiburg, Freiburger Schule, and the concept of the Social Market Economy as it was developed by Alfred Müller-Armack (Avtonomov). then, the dilemma of practical social policy was discussed. On the one hand, the concept of the Social Market Economy means that limits are set to the free market by social elements. On the other hand, there is always the danger that the practice of social policy reduces the performance and functional order of the market and therefore the success of the whole Social Market Economy (Avtonomov).
Norbert F. Tofall

Chapter 2. The Idea of Economic Order in Contemporary Russia

Abstract
The terms considered in the present paper do not seem to be generally accepted. They have not appeared yet in dictionaries and reference literature. Before starting the discussions of economic order, it must be necessary to point out that the basic concept has not been defined yet.1 Besides, the usage of the terms in German and Russian scientific communities differs both in contexts and in connotations. That is why the methodological and terminological basis of the presented research seems to quite essential.
Konstantin S. Pigrov

Chapter 3. Has the Market Economy Still a Chance? On the Lack of a Disciplining Challenge

Abstract
The question raised in the title may sound peculiar, the more so, if we remember how the two antagonistic social and economic systems have been developing. It seems that one of those systems finally turned out to be what competent analysts, like Ludwig von Mises and Friedrich August von Hayek expected on the basis of arguments which were neglected or played down for a long time, namely a blind alley in societal evolution. Within a dramatically short period of time practically all socialist systems have crumbled. The heritage they left was poverty, decay and potential conflicts, so that even the most hard-headed socialists in capitalist countries were at least temporarily dumbfounded. However, for systems based on a democratic political constitution and a market oriented economic constitution, the loss of the socialist challenge may aggravate immanent dangers. Von Hayek warned us about these dangers almost five decades ago in his political book “The Road to Serfdom”. And it was not a matter derision when he dedicated the book “to the socialists of all parties”. For him socialism as a model of society enjoying much sympathy in the West had already discredited itself a hundred years ago after the appearance of the Communist Manifesto.
Manfred E. Streit

Chapter 4. The Chances for Economic Order in Post-Soviet Russia

Abstract
The central conception of the paper is “order” (poriadok). One of the definitions of this term given in V. Dahl’s dictionary describes “order” as “correct organisation, adherence to proportion, to sequence, to certain arrangement of things”. The derivative conception, “orderliness”, (poriadochnost) adds to the main conception a moral connotation1. It is in these two contexts — rationality and morality — that the term will be applied in this paper.
Sergey A. Nikolsky

Chapter 5. The Social Market Economy: Social Equilibration of Capitalism and Consideration of the Totality of the Economic Order Notes on Alfred Müller-Armack

Abstract
The theory of the social market economy developed in the German tradition of economics particularly in the years after the end of World War II is a theory of the market economy and of capitalism that responded to the critique of capitalism in the Marxist and other traditions by taking up some of the points of this critique, by refuting its general critique of the market, and by reforming and extending the theory of the market.
Peter Koslowski

Discussion Summary

Abstract
The discussion was opened by asking whether there exist good and bad types of capitalism and what is the difference between social equality and social equilibration (Zimbuli)
Norbert F. Tofall

The Ethics of the Economic Order

Chapter 6. The Ethics of Business in Russia

Abstract
What is traditionally associated with the Russian soul is far both from ethics and entrepreneurship. Ilia Iliich Oblomov became a typical representative of the Russian personality due to the wide-spread intelligentsia myth about his lazily contemplative nature. It is not clear, whether this common idea is correct, however, it is quite true considering the investigations of our culture: we appear to know incredibly little about the specific character of the Russian ethos. Therefore, being aware of the necessity of the future analysis of the chances of the establishment of the capitalist entrepreneurship on the Russian soil at present, I shall dwell here upon more local and controllable issues.
Svetlana V. Simonova

Chapter 7. One’s Own, Proper What Is Property in its Essence?

Abstract
Privatisation, which is said to take place or to have taken place in Russia, is called criminal, Mafia-ridden, immoral, a menace to the rest of the world. More seldom are its positive evaluations. There is no need to align oneself with either opinion. The promptitude of judgement solidifies the principal and in the long run the decisive feature of the situation: the fact that property reforms are conducted blindly. There is no difference of opinion in this respect. An important or leading activist of the privatisation, recently sacked, has expressed his wish that it be conducted in a more thoughtful manner. The belated character of the wish confirms that the amplitude of unthoughtfulness in the whole affair is itself unthought of. Understandably, one is inclined to believe that a more detailed planning could have produced more success. Yet it is most probable that the process which started moving ten years ago takes place in a depth unattainable for any plan or project. It is not a mere coincidence that the preceding socialist volte-face in Russia, too, took a haphazard stance. A theorist of the state and historian, Nikolai Alekseyev, observed in 1928: “Wonderful as it may seem, the majority of contemporary socialists, while proposing a reform of property and calling for the abolition of the latter, wander in complete darkness and do not know for sure what they are striving at”1.
Vladimir V. Bibikhin

The Repersonalisation of Socialized Property

Chapter 8. Privatisation in the New Lands of the Former German Democratic Republic

Abstract
The Treuhandanstalt was the most significant institution created to manage the economic unification of Germany. Its principal aim after June 1990 was the rapid privatisation of eastern German industry, of real estate, of farmland and of forests.
Wolf-Dieter Plessing

Discussion Summary

Abstract
In Russia, a grave problem of economic crime exists. It is asked in which scale or extent economic crime was a problem of the reunification of Germany and of the privatisation in its Eastern part (Gromova)
Norbert F. Tofall

Chapter 9. Reprivatisation and Economic Transformation in the Countries of the Former Soviet Union

Abstract
The privatisation of the state and municipal property in the Russian Federation has become a unique state programme of the period of market reforms in Russia. The fact that its accomplishment has become possible, means that it won the support or at least neutral attitude of socially active layers of the population. The privatisation taking place in the country is of such a large scale, that it has been influencing essentially the economy of Russia, and it is evident that it will have impact on it in future.
Alexander I. Liakin

The Privatisation of the Agricultural Sector

Chapter 10. Independent Family Farms Versus Hierarchical Forms of Organisation

Spontaneous Emergence of Property Rights Structures in Russian Agriculture
Abstract
When in the former Soviet Union in 1990 within the framework of the thorough reorganisation of state and society and in consideration of the catastrophic supply problems it was decided to restructure the agricultural sector as well, the decision-makers were led by the model of agriculture both in Western Europe and the United States where only 2.4 per cent of all farms are not run by peasant families (C. F. Runge 1987, p. 35).The aim was to establish an agricultural system based on family farms and equipped with private property rights to land and other means of production which are not subject to interference by the state (I. Silajev cited in D. Van Atta 1993, p. 75).
Silke Stahl

Chapter 11. Russian Law and Land Privatisation

Abstract
It is doubtless that land privatisation is one of the aspects of establishing market relations and economic order in Russia. Besides the economic and legal significance, this problem has an essential ethical aspect, as only the combination of these three aspects and the investigation of them in their interrelations and their mutual development can give the desired result for the most efficient development of the society. The concept of real estate, as it is understood in Western countries now, involves land and buildings and constructions on land. In contemporary Russia, land and real estate are not identical categories. Probably, this diversity resulted from the process of privatisation, when first the property of enterprises was bought, then the buildings were bought, and only after that the land plots were bought out.
Evgeni F. Shepelev

The Economic Order in Private and in Public Law

Chapter 12. Law and Economic Order in the Structures of Russian Everyday Life

Abstract
Any tourist, even the most honest one, “smuggles” something he himself is not aware of. It is the weight of his attitudes and expectations, conceptual apparatus, as well as the complex symbolical machine of perception and understanding of the reality observed. As for scientific concepts, they appear fairly quickly and are usually supervised. It turns out to be much more difficult to analyse value preferences, social and moral norms of different sorts, and legal and economic differences as well. They are discovered with the accumulation of experience of the comparison of “ours” and “somebody else’s”, and this requires quite a labour-consuming study of the structures of everyday life in this or other visited and observed country. Acts of consciousness, efforts to establish distinctions between the beautiful and the ugly, the evil and the good, the convenient and the inconvenient, the decent and the indecent, eventually determine other networks of distinctions and differentiations, on which a scholar relies.
Boris V. Markov

Chapter 13. A Symbiosis with Reserve: Social Market Economy and Legal Order in Germany

Abstract
From the viewpoint of economy and economics, it is possible to characterize one or another country by certain economic models or visions or concepts. In the case of the Federal Republic of Germany, nobody will question the fact that the term ‘Social Market Economy’ would play the part of such a characteristic concept. We can also speak of a trade mark, as it were, of a quality label under which German history in the second half of our century could be studied and analyzed. Of course, no conception may escape criticism and disapproval, and therefore Social Market Economy has also been rejected for various reasons again and again. However, the majority among politicians and economists, and the majority of the population, to judge from the results of parliamentary elections, approve and support Social Market Economy, considering it even as an essential contribution to the legitimacy of their political system. It is therefore worthwhile to have a look at the concept of Social Market Economy and to review a few phases of its history.
Knut Wolfgang Nörr

Discussion Summary

Abstract
The discussion was opened by the question about the historical development of the Social Market Economy and the legal order in the Federal Republic of Germany since the end of the fifties (Soloviov).
Norbert F. Tofall

Social Market Economy Four Basic Texts

Frontmatter

The Theory of Economic Order

Chapter 14. The Principles of the Social Market Economy (1965)

Abstract
To many people, the Social Market Economy has appeared to be only a compromise — a practical formula for getting through a phase of reconstruction. Under the demands of the time, those who devoted themselves to this system succeeded only rarely in defining exactly its ideological basis. Misunderstandings were the result, and what had been achieved satisfied an easy conformism, while the intellectual efforts on behalf of the Social Market Economy system as a whole receded too far into the background. However, active and constructive organisations are needed for an idea, a style of social policy — which is how I would like to regard the Social Market Economy — if it is to hold its own in the changing circumstances of the times. The idea was taken as a convenient formula also by those parties which adopted the Social Market Economy as their slogan, and they made little effort themselves to understand, or to explain to others, the scope of the Social Market Economy concept. Their task will probably be to occupy themselves more profoundly, more systematically, more actively and more comprehensively with this concept of an order, applying their political will and the facilities available to them in collaboration with science. A social and economic order will only be able to hold its own in the changing circumstances of history, if it takes into account the changes in our overall situation.
Alfred Müller-Armack

The Ethics of the Economic Order

Chapter 15. The Ethical Content of the Social Market Economy (1988)

Abstract
For some time now there has been vocal criticism of the market economic order from both clerical and theological circles. As well as doubts as to the moral dignity of such an order, there has also been talk of structural evil and of idolatry. The tendency to exaggerate in this respect can, to a certain extent, be dismissed as nothing more than overstated demagogy but, nevertheless, if reputable sources are questioning the ethical legitimacy of our economic order it is something that we should take seriously. This is why I hold it to be one of the most important aspects of economic policy that, in addition to dealing with the purely economic problems of efficiency, it deals in a visible manner with the socio-critical questions that are asked in relation to our economic order.
Otto Schlecht

Attempts to Form a Broader Basis for the Ownership of the Means of Production in the Social Market Economy

Chapter 16. The Formation of Private Property in the Hands of Workers (1956)

Abstract
We stand for the institution of property as for the natural right institution necessary to attain order and prosperity of human society. However, we have to admit, that nowadays the institution of property is in danger, as well as two pillars supporting any social order — the family and the state. The attitude of many people to property is hostile, while too many others are indifferent and not interested in it. What has caused such a phenomenon, both strange and dangerous and worrisome? And what should be done to bring things in order again?
Oswald von Nell-Breuning

The Theory of Competition

Chapter 17. The Role of Competition in a Liberal Society (1979)

Abstract
A liberal polity, or — as Kant put it — the civil state, should be based on the liberty of individuals as human beings, on their equality as subjects and on their independence as Citizens1. Concern for liberty does not signify, however, state care for happiness; equality before the law does not mean equality of estate and wealth; independence does not mean rising above dependent labour. There exist these economic differences, which arise from the guarantee of civil rights and from the equality of opportunity ensured by them, on which the debate about the theoretical and political legitimacy of liberal principles was kindled. The social processes which generate the distinctions of wealth, of property and of influence are characterised by competition, rivalry and conflicts. It is not a matter here of unforeseen side-effects, of abuses or of degeneration; it is much more the competition for prestige and honour, influence and power, prosperity and riches that are regarded as necessary consequences arising from the natural inclinations of human beings. The love of self2, the amour-propre that draws parallels and the antisocial gregariousness of mankind3, Man’s constant and insatiable striving for power, ending only with death4, are viewed as the anthropological causes of the universal antagonism in society, of the struggle of all against all, ergo: the competition. Therefore the debates about the feasibility and the boundaries of liberal societies can be reduced to being debates about competition.
Ernst Joachim Mestmäcker

A Message of Greeting

A Message of Greeting from the Mayor of the City of Saint Petersburg

Abstract
I am greeting the participants of the Russian-German Conference “Social Market Economy. Theory and Ethics of the Economic Order in Russia and Germany”.
Anatoly A. Sobchak

Backmatter

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