which of the following things would not fall under soviet central economic planning? course hero

What is Soviet type economic planning?

Soviet-type economic planning ( STP) is the specific model of centralized planning employed by Marxist–Leninist socialist states modeled on the economy of the Soviet Union (USSR). Although there was significant variation among these economies, Soviet-type planning and Soviet-type economies refers to the major structural characteristics common ...

What was the objective of the Soviet economic plan?

The theoretical objective of the Soviet economic planning, as executed by Gosplan, was rational allocation of resources in a way that resulted in output of desired assortment of goods and services.

Why are neoclassical tools inappropriate for evaluating Soviet-type planning?

In contrast to this approach, scholars such as Pawel Dembinski argue that neoclassical tools are somewhat inappropriate for evaluating Soviet-type planning because they attempt to quantify and measure phenomena specific to capitalist-based economies. They contend that because standard economic models rely on assumptions not fulfilled in the Soviet system (especially the assumption of economic rationality underlying decision-making), the results obtained from a neoclassical analysis will distort the actual effects of STP. These other scholars proceed along a different course by trying to engage with STP on its own terms, investigating the philosophical, historical and political influences that gave rise to STP whilst evaluating its economic successes and failures (theoretical and actual) with reference to those contexts.

Why did the CMEA adopt a few initiatives in the 1970s?

In the 1970s, the CMEA adopted a few initiatives in order to continue economic growth and to modernize the economy. Firstly, the Eastern bloc heavily imported technology from the West in order to modernize, increasing the debt of the Eastern Bloc to the West dramatically.

What are the unique features of the Soviet economy?

The unique features of Soviet-style economy were an ideologically driven attempt to build a total economic plan for the whole society, as well as unquestioned paradigm of superiority of Marxian economy. Attempts to modify or optimize the former based on pragmatic analysis of economic outcomes were hindered by the latter. Dembinski describes the Soviet approach to Marxist economy as "quasi-religious" with economic publications by Marx and Lenin being treated as a "Scripture".

What was the CMEA's main goal in the 1970s?

In the 1970s, the CMEA adopted a few initiatives in order to continue economic growth and to modernize the economy. Firstly, the Eastern bloc heavily imported technology from the West in order to modernize, increasing the debt of the Eastern Bloc to the West dramatically. In 1971, the CMEA introduced the ‘complex program’, designed to promote further trade integration. This integration plan heavily relied on countries specializing in the production of certain goods and services, and parallel initiatives were discouraged and to be avoided. For instance, Hungary specialized in the manufacturing of buses for local and long-distance transport, which encouraged other member countries to trade with Hungary in order to acquire them.

What was the economic alliance between Eastern Bloc and the state monopoly?

During the 1950s, the economic alliance between members of the Eastern bloc and the state monopoly acted as a safety net in the face of Western sanctions being imposed. As a result, the Eastern Bloc countries started to develop autarkic tendencies which would last until the Soviet Union's dissolution.

What was Lenin's goal in the New Economic Policy?

The goal of NEP was to replace the failing economic approach known as War Communism. It was also

What were the main causes of the collapse of the Soviet Union?

All three of theses factors are interconnected and each contain several reasons why they contributed to the ultimate collapse of the Soviet Union. The first and most simple reason the Soviet Union failed can be attributed to their geographical challenges. The Soviet Union suffered two problems in regard to geographic challenges. Firstly the country

What was the purpose of Glasnost?

In employing glasnost, Gorbachev attempted to rid the Soviet Union of the lies that had been established as a result of The Leninist system that was previously in place. Ultimately, he wanted to bring transparency to the Soviet Government. Additionally, Gorbachev wanted to enable greater freedom in areas such as media, individual ideology, and religion.

What factors led to the breakup of the Soviet Empire?

What factors led to the breakup of the Soviet Empire? · By the 1980s, the Soviet system had failed to: (1) meet internal consumer demand;

What was the largest political unit in the world?

mindful Russia. Just over two decades ago, the Union of Soviet Socialist Republics (USSR) or as known by most, as the Soviet Union, was the largest political unit on earth. Not only was it the largest political unit, but also the largest in land mass;

What is central planning?

Central planning occurs when the state controls every aspect of economic production, consumption, investment, and decision. Central planning ensured that the communist party remained in total control of the economy. With the central planning system, leaders could effectively and rapidly organize resources in times of need (i.e., Nazi invasion). The historical efforts to establish a central planning economic system have led to many issues, one of the primary concerns being, Russia’s transition to a market economy. Today, prices are still fixed for certain goods and services by the Russian government.

Who won the Cold War?

between the United States and the Soviet Union, each known during this time as the "super powers". This conflict consisted of the differing attitudes on the ideological, political, and military interests of these two states and their allies, exte nded around the globe. A common political debate covers the issue of who, if anyone won the Cold War. Many believe the United States won the Cold War since (it) had resulted in the ultimate collapse of the Soviet Union. While others are to believe the

What was the economic plan of the Soviet Union?

The kind of economic planning that was practiced in the Soviet Union and in most other communist countries until the 1990s had developed during the 1920s and ’30s in the struggle to industrialize the U.S.S.R. The Bolsheviks had seized power in 1917 without any clear notion as to how an economy should be run. No guidance was to be found in the writings of Karl Marx other than the assertion that a socialist society would operate the economy for the common good, which suggested that it would create organs of economic administration to replace the market system of capitalism. In the future communist society there would be no money, no profit motive. No wages would be necessary to stimulate effort. It would be “from each according to his ability, to each according to his needs.” Economics, a science of exchange relationships or value, would wither away or be replaced by a kind of higher management. The Bolshevik leader N.I. Bukharin wrote in 1920:

What did Soviet critics point to?

Soviet critics increasingly pointed to the rigidity of prices, which did not reflect supply–demand conditions. The planners claimed that it was their task, not that of the price mechanism, to ensure balance between supply and demand, but the enormous complexity of their task made it impossible for them to do so.

What was Lenin's economic policy?

In 1921 Lenin introduced the New Economic Policy (NEP). Small-scale private manufacturing, private trade, and free sale of peasant surpluses became legal once again, while the state retained the “commanding heights” (e.g., large-scale industry, foreign trade, banking, transport). The state sector continued to be operated under the aegis of V.S.N.Kh. by trusts and enterprises with state-appointed managers. In 1921 the State Planning Committee ( Gosplan) came into existence to advise the government and its economic alter ego, the Council of Labour and Defense, but planning was still a shadowy process. Trusts and enterprises had considerable autonomy and were free to make agreements and grant credits to one another. The planners made forecasts, and government policy decisions influenced the level and direction of state investments; but there was no integrated system of production and allocation planning, even in the state sector, while the private sector was not directly planned at all. In 1924 only 35 percent of the national income, 1.5 percent of agricultural production, less than half of all retail trade, and three-quarters of industrial output were “socialized”; the rest was private.

What did planners do in the state?

The planners made forecasts, and government policy decisions influenced the level and direction of state investments; but there was no integrated system of production and allocation planning, even in the state sector, while the private sector was not directly planned at all.

What was the main goal of Gosplan?

It was Gosplan’s task to “translate” the politically determined objectives into a consistent set of plan targets. There had to be coherence between production and supply at all times, as well as between investment plans and the current production of capital goods. Foreign trade also had to be taken into account, as a drain on available resources (exports) and as a source of needed goods (imports). The planners proceeded by drawing up a series of material balances, which expressed anticipated supply of, and demand for, all key commodities. The successive versions of the plan were revised until a general balance was attained, since it was no use planning an increase in production of any item if the necessary additional machinery, raw material, and fuel could not be made available. The task was of special complexity in the short term (i.e., within a period of a year), since the plan had to take the form of millions of consistent instructions to thousands of enterprises to produce, deliver, transport, and process millions of commodities of a great many shapes, sizes, and types.

What was the purpose of the Gosplan?

In 1921 the State Planning Committee ( Gosplan) came into existence to advise the government and its economic alter ego, the Council of Labour and Defense, but planning was still a shadowy process. Trusts and enterprises had considerable autonomy and were free to make agreements and grant credits to one another.

What would happen in a future communist society?

In the future communist society there would be no money, no profit motive. No wages would be necessary to stimulate effort. It would be “from each according to his ability, to each according to his needs.”. Economics, a science of exchange relationships or value, would wither away or be replaced by a kind of higher management.

Overview

Soviet-type economic planning (STP) is the specific model of centralized planning employed by Marxist–Leninist socialist states modeled on the economy of the Soviet Union (USSR). Although there was significant variation among these economies, Soviet-type planning and Soviet-type economies refers to the major structural characteristics common to these economies.
Soviet-type planning is a form of economic planning involving centralized investment decisions, …

Characteristics

Analysis of Soviet-type planning

Features

See also