When Socialism Comes One Country at a Time

What should a country that has rejected capitalism and is beginning to build a socialist economy do with regard to international trade and investment in today’s world where other countries still have capitalist economies, and there are very large differences in levels of economic development? Hoping to stimulate discussion, this article explores dilemmas such a country will face, and proposes concrete answers in the form of rules such a country might follow to (a) take advantage of opportunities that international trade and investment provide but (b) avoid undermining fundamental principles that are the backbone of its socialist economy. JEL Classification: F10, F13, F21, P21, P23