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János KORNAI
Harvard University
The essence of post-socialist transformation can be easily summarized in a few words: a large set of countries moved from socialism to capitalism. This shift itself is the strongest historical evidence of the superiority of capitalism over socialism. Nevertheless, it is our obligation to continue the impartial and unbiased comparison of the two systems. All the more so since we are living in difficult times, and nostalgia for the failed old regime can be felt by a significant portion of the population. We must convince our fellow citizens that we are heading in the right direction. There are several arguments to support this optimistic belief. I would like to spell out only one virtue of capitalism: its innovative and dynamic nature. In the first part of the paper I argue that rapid innovation and dynamism are not a random phenomenon which may or may not occur, but a deeply rooted system-specific property of capitalism. The same can be said about its opposite, the socialist system. Its inability to create great revolutionary new products and delay in other dimensions of technical progress are not due to some errors in policy, but are a deeply rooted system-specific property of socialism.
Unfortunately, this highly visible great virtue of capitalism does not get the appreciation it would deserve. It is completely ignored by most people and even by most professional students of alternative systems – and I feel angry and frustrated watching that neglect, motivating me to choose the theme of this paper.
Entering the world of capitalism creates the conditions of innovative processes and faster technical progress, and also increases the chances that the country will take this opportunity. But it does not guarantee full success immediately. The second and third part of my paper will discuss problems of the transition period.

ŒCONOMICA no. 2/2010
Keywords: economic systems, transition, innovative process, technical progress
JEL: O31, O32, O33, P51
Inovaţie şi dinamism: despre interacţiunea dintre sistemele economice şi progresul tehnic