Soviet-type Economic Planning
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Soviet-type Economic Planning
Soviet-type economic planning (STP) is the specific model of Planned economy#Central planning, centralized planning employed by Marxism–Leninism, Marxist–Leninist socialist states modeled on the economy of the Soviet Union. The post-''perestroika'' analysis of the system of the Soviet economic planning describes it as the administrative-command system due to the ''de facto'' priority of highly centralized management over planning. An example of analytical approach to several stages of the Soviet political-economic model can be found in the works of Soviet economist Lev Gatovsky. Characteristics Institutions The major institutions of Soviet-type planning in the Soviet Union (USSR) included a planning agency (Gosplan), an organization for allocating state supplies among the various organizations and enterprises in the economy (Gossnab) and enterprises which were engaged in the production and delivery of goods and services in the economy. Enterprises comprised production a ...
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Planned Economy
A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, participatory or Soviet-type forms of economic planning. The level of centralization or decentralization in decision-making and participation depends on the specific type of planning mechanism employed. Socialist states based on the Soviet model have used central planning, although a minority such as the former Socialist Federal Republic of Yugoslavia have adopted some degree of market socialism. Market abolitionist socialism replaces factor markets with direct calculation as the means to coordinate the activities of the various socially owned economic enterprises that make up the economy. More recent approaches to socialist planning and allocation have come from some economists and computer scientists proposing planning mechanisms ...
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