Branko Horvat

Abstract
A lot of confusion is caused by false or inadequate terminology. That is profitable for politics, but very harmful for science. False terminology leads to false theory.
Socialism – Etatism. Socialism is characterized by self-determination of every individual which presupposes self-management and the »withering away of the state« (as a mechanism of repression, not as a social service). Etatism is an aberation which greately increases the power of the state and establishes centralized decision-making in the society. Besides, socialism requires market cum planning, etatism requires administative governing of the economy. If the two are mixed up, this is a justification for capitalist market fundamentalism.
Transition – Restoration. Both concepts were coined in the 19th century. Restoration was introduced by historians as a scientific term desribing the return of ancient regime after the failure of the French Revolution. Transition was introduced as a scientific term by Marx and Engels to describe the transition from capitalism to a new social system, socialism. The current usage of calling the restoration of the old, formrly existing capitalism – transition, has the connotation of something new and progressive. And therefore desirable.
The Croatian Case shows all the contradicitons of applied terminology. That has extremely harmful consequences. Among other things, it has generated a protracted depression lasting for 16 years so far.

Key words: socialism, etatizam, transition, restoration, Croatia, state self-managment, democracy