ABSTRACT
The originality of the socialist economies as a historical system lies in the combination of two seemingly heterogeneous principles: state ownership and a single party system. The combination of state ownership and rule by a single party can be seen as the foundation, or institutional base, of the socialist systems, not centralized planning, which cannot exist without this institutional base. Outside of agriculture, the change from private to state ownership occurred rapidly everywhere. The Party's nomenklatura applies to all positions of responsibility, whether they involve "elected" or appointed officials. The practical impact of nomenklatura system is considerable as far as the state organs are concerned. Neither national government ministries nor the soviets in the USSR and the city governments in the other countries should be thought of as institutions independent of the Party hierarchy. The Party organs' decisions have priority over those of other organs.
