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• W291471151 abstract "In the 1970s, a doctoral student in the economics department at Harvard could not understand a case study in which two aluminum factories with the same assets produced different outputs. tools to understand this were completely absent in the economics he mentioned later. His professor suggested that he might find the answer across the fiver at the business school, which he did. The main reason for the discrepancy turned out to be the management of the enterprises. Although it never claimed to be a science, not even a dismal one, the Sovietological profession has suffered from similar shortcomings, such as an inability to predict the imminent collapse of the USSR. Likewise, the debate on the reasons for the successes and failures of the postcommunist transitions at the time also seems to be deficient. As economics has, since the 1970s, learned much from management studies, so too should our profession. Renowned management guru Peter Drucker has noted that psychology is a central ingredient in management studies and in the management of corporations. The personality traits of the managers are routinely taken into account. Sovietology, transitology, and more specifically, political science and diplomacy should consider doing what has been obvious to journalists and other casual observers of the East-Central European transitions and emphasize more the personal background and motivations of the leaders. (1) This could go a long way in explaining those transitions and the performance of their governments. It could provide a framework to explain not only what happened in the last thirteen years but also what might happen when Belarus, Cuba, North Korea, Turkmenistan, and others begin their political and economic transitions. For example, can any other factor besides quality of leadership and management explain the different performances of the transitions in Estonia and Latvia, perhaps the two most similar countries in the region when their simultaneous transitions began (see table 1)? Could the differences in governance and quality of government in turn explain the difference in economic performance of both Baltic neighbors? Whereas the Estonian democrats in 1992 fully committed themselves to breaking with the past, with Soviet institutions, personnel, and economic practices, in Latvia the democrats and the nomenklatura essentially fused into Latvia's Way, the party that has governed the country for most of its post-Soviet period. Are Estonia and Latvia like the paradox of the two aluminum factories, especially since both are perceived to have applied similar macroeconomic policies? Surprise--there really are no tools in the economic profession (nor perhaps in transitology) to explain the paradox, although amateur observers of the Baltic transitions can readily point out the reasons. The Nomenklatura Phenomenon The mismanagement of transitions appears to be due not to lack of technical skills, as the IMF seems to assume, but to negative human capital and simple sabotage, as J. Michael Waller, Marshall Goldman, Anders Aslund, and others have insisted from the beginning. The reasons for this behavior, however, are rarely explored. A more elaborate study needs to be conducted on the psychology of the nomenklatura. It seems that a sequel to Michael Voslensky's classic book Nomenklatura: The Soviet Ruling Class is in order, perhaps called Nomenklatura: A Psychology of Power and Crime. A few authors have noticed the parallels between the structure and behavior of communist parties in the Russian region and those of criminal organizations in the United States and Palermo. To understand this phenomenon, we should note that of the ten personality disorders recognized by the American Psychiatric Association (APA), the label psychopath or antisocial, which is normally found in less than 2 percent of a general population, is over-represented among convicted criminals. …" @default.
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• W291471151 date "2003-01-01" @default.
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• W291471151 title "The Centrality of Elites" @default.
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