Features of a Planned Economy

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Features of a Planned Economy

If we have a look at the planned economies, say, Russian, Chinese or even Indian economy, we shall discover some common characteristics. Formulation of the plan and its implementation call for a certain type of economic and administrative organisation and a certain type of endeavor and set up. It is only natural, therefore, that the planned economies reveal some common features. The distinction between planned and unplanned economies rests largely on the dominant role played by the State in the planned economy and the malaise-afire doctrine swaying the State in the unplanned economy. State initiative, State regulation, State control of foreign trade, investment, price, etc., largely shape the economy under planning. The desire for accelerated economic development colors the social, political and economic outlook.The fortitude the people is to look at the economy as a whole rather than looking exclusively at their own individual affairs

Existence of a Central Authority. All countries, microeconomics planning, have at economic affairs a Planning or a Central Planning Angolan in the U.S.S. Planning Commission in India. has no meaning unless t rally planned. Planning by industries or organisations constitute plans and not successful and efficient central planning body is all planned economies distinguished modishness caves the plan, prepare suggests measures for its implement- ration, supervises the working and assesses the achievements. Only a central body can these functions so that it may economy as a whole.

Fixing Targets. Allied with the laying down of objectives is the fixing of targets. The objectives indicate the directions in which the economy is to move and targets are fixed for the realization of those objectives. Targets are fixed for each industry and for each sector of major industries, transport and communication, for imports and exports, and also in the field of education and public health. The target indicates the job assigned to each sector of the economy. When we take the aim carefully the chances are that we may hit the target. Thus, fixing to targets is essential to The following are some of the main features of a give a concrete shape to our aims and make each see planned economy: tor of the economy move on the road to progress with determination

Systematic and inordinate Effort, Adjectives has to be comprehensive and not isolated and piecemeal. Hence individualistic, isolated and Andean pendent action on the part of various sectors is sectional, rally out of place. All economic efforts aiming at factional celebrated economic development must be properly colorful ordinate. The plans of individual industries for achieving stance must be dovetailed. This will secure the  balance between the various parts of the plan.

Only an integrated and co-ordinates plan can bring a community nearer to the ‘objectives it has set before itself. The economic endeavor must be regular, sustained and systematic and riot haphazard. diffused. indiscriminate and fitful. Without co-ordination. a country will land itself into chaos and economic mess.

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Features of a Planned Economy