The economic history of planning

Abstract

The aim of the thesis was to introduce the history ofplanning both as an economic system and as an economic tool.An overall view was presented about different conceptualizationsof planning within capitalism and socialism.Sinceplanning has a very crucial role in socialism,main emphasiswas given to the planning in socialist economies.In the capi ta) ist system, planning 1S used only insmall-scale for setting targets for growth, investment, consumptionand so on within a specific private or state ownedcompany.Moreover, planning often functions as a tool for determininggeneral near future trends in such economies. Incapitalism planning is considered to be an ordinary economictool among the others.On the other hand, it was shown that many theoreticiansagreed that planning has been the backbone of the socialisteconomy.It functions as a means of organizing the transferand the utilization of resources in order to achieve macroeconomictargets. Although planning is widely acceptedwithin socialism. there are different views about the degreeand the feasibility of planning and the relationship betweenplanning and market.The discussions between the Austrianschool.the Marxists and the market socialists outline thesevarious planning models.As mentioned in the introduction. there is a strong convictionand consensus over the planning issue arguing thatplanning is no more an alternative economic system.The collapseof the East European Block and the Soviet Union conceivedthe concrete experience of planning inevitably laidthe ground on which such arguments were based.To questionthe theoretical and historical consistency of the argumentsare beyond the scope of this thesis.My main concern was tofocus on different theoretical positions on the concept ofplanning itself.especially on the socialist theory.In additionto a short case study on the Soviet economic history inthe 1917-38 period.the Soviet planning model and the indus-·trialization debate were analyzed.