Was Communism Doomed? HUMAN NATURE, PSYCHOLOGY AND THE COMMUNIST ECONOMY SIMON KEMP Was Communism Doomed? Simon K emp Was Communism Doomed? Human Nature, Psychology and the Communist Economy Simon Kemp Dept of Psychology University of Canterbury Christchurch , New Zealand ISBN 978-3-319-32779-2 ISBN 978-3-319-32780-8 (eBook) DOI 10.1007/978-3-319-32780-8 Library of Congress Control Number: 2016951314 © Th e Editor(s) (if applicable) and Th e Author(s) 2016 Th is work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifi cally the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfi lms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Th e use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specifi c statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Th e publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Cover image © Jeff rey Blackler / Alamy Stock Photo Printed on acid-free paper Th is Palgrave Macmillan imprint is published by Springer Nature Th e registered company is Springer International Publishing AG Switzerland Prefa ce Th is book originated with a conversation with my friend Friedel Bolle. Friedel worked as an economics professor—he is now emeritus—at the Europa University Viadrina from shortly after the German reunifi cation. Th e university is in Frankfurt an der Oder in the most eastern part of present-day Germany. I had visited him there twice on lengthy visits sponsored by the Alexander von Humboldt Foundation and had been fascinated by the area and the remains of the old German Democratic Republic. As Friedel knew well, and as I came to realise, the old communist system there had been very largely a failure. To get back to the conversation, for some reason that I have now forgotten, I asked Friedel whether he thought a communist system could ever be made to work. He thought not and I agreed. I asked him why not, and he gave me two reasons—poor incentives and the coordination problem. I too had two reasons, but they were not the same ones: I thought of the lack of psychological ownership and learned helplessness. What stuck in my mind, and what led me to write this book, was that they were not the same reasons, and, quite simply, four fatal reasons seemed too many. Much of the book discusses these four reasons, and whether they really are fatal. Apart from describing the origins of the book, I have another reason for writing about our conversation. In my experience of reading books that are based on psychology but also contain a social message, as this book v vi Preface inevitably does, I have noticed that the science of psychology tends to come out in support of the particular political or social objectives that the author approves of. I make no claim that I have avoided bias in this book, but I can at least alert you to what my bias is, or, more accurately, what it was when I started to research the book. In brief, as you have probably guessed from the preceding paragraph, I thought that communism was a deeply fl awed system, and that attempts to implement it were likely to be psychologically damaging to the unfortunate citizens of whatever state tried it. Of course, despite this bias, I tried to approach the question fairly. If you want to discover whether I have changed my views as a result of the research I did for this book, you will have to read on. I have mentioned that sponsorship, by way of renewed fellowships, from the Alexander von Humboldt Foundation took me originally to Frankfurt an der Oder and gave me the opportunity to learn something of how the old German Democratic Republic had functioned. Th e Foundation also supported a visit to the Institute for Economic and Social Psychology in the University of Cologne in the spring and early summer of 2015, and I wrote a good part of this book then. I am very grateful to the Foundation for all of this support. I am also grateful to the University of Canterbury for giving me the time and facilities necessary to write this book. In addition, managerial and governance experiences at my university provided many insights into the diffi culty of making any reasonably sized organisation function. M any people have put up with my talking about aspects of this book, contributed ideas and anecdotes for it, and read drafts of it. For some years, my fourth year class in economic psychology at the University of Canterbury has patiently listened to me talk about bits of it, as well as occasionally contributing essays on what might happen if New Zealand elected a communist government. Th e comments of Lena Haarman and a seminar group at the University of Cologne led me to rethink the chapter on psychological ownership. My colleagues at the University of Canterbury contributed both ideas and tolerance. Friedel Bolle read and commented critically on the middle chapters of the book. Th ree busy people at the University of Cologne—Detlef Fetchenhauer, Jens Klemke, and Olga Stavrova—read through an entire fi rst draft, and I hope I have been able to do their sensible suggestions some justice in the fi nal version. Preface vii Th ree anonymous reviewers commissioned by Palgrave Macmillan all gave sympathetic and intelligent criticism on the proposal and some of the chapters. Paul Stevens, Nicola Jones, and Sharla Plant at Palgrave Macmillan were consistently encouraging about the book: I was amazed to once get an email reply from Sharla that was sent at 3 a.m. UK time. Th is was impressive! I am also grateful to Eleanor Christie, Subramaniyan Bhuvanalakshmi, and the production team. Finally, I should like to thank my wife, Cora Baillie, for her never failing interest and enthusiasm for the many aspects of the project that I have talked about with her. Christchurch , New Zealand Simon Kemp Contents 1 Introduction 1 2 Th e Aims of Communism 5 3 What Is Success for a Communist Economic System? 29 4 A Short History of Communism 55 5 Possible Psychological Flaws in Communism 93 6 Th e Coordination Problem 105 7 Incentives 135 8 Psychological Ownership 167 9 Learned Helplessness, Locus of Control, Self-Effi cacy 195 ix