command economic system, which has been characteristic of a number of countries, there are due to take place in the socialist revolution.The ideological banner of this system were the postulates of Marxism.This economic model has been developed by Lenin and Stalin - the leaders of the Communist Party of the Soviet Union.The roots go back to the same idea of the doctrine of social utopia.Implementation of the system is typical of countries in Eastern Europe and Asia in the first half and middle of the twentieth century.
command economy - a system of economic management, based on its management by administrative orders.According to Marxist theory, that such a device was to accelerate the process of improving the general welfare.This imperative was to eliminate competition, which allowed to conduct all business activities in accordance with the country's single Compulsory (policy) plan.Development features of development planning was carried out on the basis of the scientific leadership of the country.
In the 50-80-ies (the heyday of the communist camp) about a third of the Earth's population lived in countries that dominated the administrative-command economic system.The introduction of this way of life began with the practical suppression of personal freedoms, and throughout its existence was accompanied by a serious loss of human life.
command economic system of the Soviet Union was characterized by such features:
- State Planning Committee determined that the company should produce;
- line ministry determines how should be dictated production and technology, because it allocated funds;
- State Committee Purchasing decides where to be delivered and to whom to sell products, but also to determine where to purchase resources for new production cycles;
- State Committee on pricing expected selling prices that have not changed for decades;
- wage workers appointed by the State Committee for Labor and salary;
- disposal income was in the hands of the Ministry of Finance;
- State Committee for Construction defines the direction and volume of production will be developed;
- state banks set the amount that the company could have to take the same;
- Ministry of Foreign Trade dictate what goods can be exported and which should be implemented only on the domestic market.
command economic system - is, above all, the destruction of all forms of property, except state.This gives the authorities the right to command the use of economic resources.Against this background, there is a distribution of goods for personal use in the so-called right turn (or coupons).
In general, the idea of economic planning is quite reasonable, but within the same enterprise or, for example, farm.If we are talking about planning at the national level, it leads to a distortion of objective economic laws.Appropriately, it can only be in times of emergencies (wars, revolutions, natural disasters, etc.).
eventually socialism (command economic system) turned a disappointment, and countries had to deal with the revival of private property and the market system.
90s began totals for the Soviet Union and Eastern Europe in terms of assessment of what has been achieved by the introduction of a command economy.In the analysis it was found that the results of these have been very sad.Most products characterized by low quality and outdated design, why not in demand on the market;the life expectancy of citizens and their welfare level was lower than in the countries that have chosen the path of a market economy.The level of the manufacturing sector as a whole was also much lower than in Europe, and nature was much more contaminated.