Crisis in Socialism or Crisis of Socialism?

The immediate causes of the current crisis in socialism are the highly authoritarian and extremely hierarchical political and economic structures created by Leninism. Yet the collapse of state socialism also appears to be part of a more general crisis of socialism, a crisis that includes even its potentially more democratic variants. At the core of this broader crisis lies the diminishing appeal of the publicly owned enterprise, an institution that has always been central to the very definition of socialism, but whose economic advantages are called into question by the recent and rapid development of global markets in factors of production and especially in assets. Consequently, communism's demise by no means signifies a victory for either democratic socialism or even social democracy.