 On Cuba's budgetary finance system. A critique of Helen Yaffe's accountAlejandro Agafonow International Journal of Management Concepts and Philosophy, 2011, vol. 5, issue 1, 27-39 Abstract: This article offers a critique of the budgetary finance system (BFS) conceived by Ernesto Che Guevara, as well as Helen Yaffe's recent account of it. We build on the economic theory of market socialism to analyse four key aspects of the BFS: investments, incentives, quality, and entrepreneurship. It is our contention that the BFS was virtually impossible, in the sense that it could not be reasonably expected that the BFS marginally allocated non-primary goods to those persons most in need or who valued them the most. We maintain that the unified control of factors of production rocketed 'diminishing returns to management' and weakened the effectiveness of the mixture of moral and material levers; that Cuban directors lacked entrepreneurship because, in the absence of a market, they were blind to their functions of running Consolidated Enterprises and, in addition, the system of moral compulsion fostered a powerful discouragement for them. Keywords: Cuba; budgetary finance system; BFS; Ernesto Che Guevara; feasible socialism; Helen Yaffe; market socialism; planning; Soviet economy; investment; incentives; quality; entrepreneurship; moral compulsion. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmcph:v:5:y:2011:i:1:p:27-39 Access Statistics for this article More articles in International Journal of Management Concepts and Philosophy from Inderscience Enterprises Ltd |
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