How Planned was the Soviet Economy Essay - 1302 Words

How Planned was the Soviet Economy As Marxists claim that capitalism is anarchic, planless, inefficient and wastes human and natural resources, what with the modern advances made by Russia in such a short space of time, one would assume that the Soviet economy between 1924 and 1939 was meticulously planned and controlled. However, many facts would beg to differ and instead suggest the contrary. It is true that institutes of planning existed in Russia in the period concerned. As of July 1922, VSNKh operated its control over industry by methods of a production-planning character. The institution was responsible for the drafting of production and disposal plans amongst other things.†¦show more content†¦One must not overlook the timing of the First Plan and brand it an accident. The Left Opposition had originally proposed rapid industrialization to be the parts primary priority. Now that they had been defeated the government was able to adopt their industrialization policies without putting them in power. Industrialization also came hand in hand with collectivisation as machinery such as tractors had to be produced. 1921 to 1927 were the years of the NEP.VSNKh can be said to have just regulated the economy during the NEP as opposed to doing anything else. However in all fairness, it is difficult to even talk about a planned economy between the years of 1924 and 1928, whatever the role of the state planning institutions, as the state did not run the most effective parts of the economy. The states ability to plan was greatly hindered by the fact that it ran heavy industry and not agriculture. Between 1921 and 1927 the state industrial sector stagnated while agriculture flourished in the private sector. The 1921 famine had led to a decline in the amount of land sown in the following year due to a shortage of seed and peasants fit to work in the affected provinces. However, the harvest in 1922 was of an acceptable standard, with the land sown in the following year just short of 90 per cent of the pre-war level. Although at this time theShow MoreRelatedCommunist Union And The Soviet Union1196 Words   |  5 Pagestheir counties under a command economy, or â€Å"an economy in which production, investment, prices, and incomes are determined centrally by a government.† Command economies are more prevalent in developing countries, like on the continents of Africa and Asia. North Korea, Iran, Cuba, Myanmar, and Liberia currently have command economies and the Soviet Union and China used to have one. In the past, many countries including the Soviet Union attempted to implement command economies that would later fail. AsRead MoreMain Economic Characteristics Of A Free Market Econo my1506 Words   |  7 PagesThough there are three different types of economies that exist – free market economy, planned (also known as command) economy, and mixed economy, this essay will focus mainly on free market and planned economies. It will examine the main economic characteristics of each of the two economies and compare how they differ from each other, while in relation to the UK public sector. A free market economy is based on supply and demand and all major economic decisions are made by individual economic agentsRead More6 Step Financial Management Process745 Words   |  3 PagesAs of 2013, there are a total of 196 recognized sovereign countries in the world. The economies of each of these 196 countries all face the challenge of trying to tackle the central economic problem of scarcity. There is scarcity because people have infinite wants but the resources available to fulfill these wants are finite. 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Such assumptionsRead MoreSupply and Demand and Centrally Planned Economy Essay697 Words   |  3 Pages   | |   1.   | The hope of reward that encourages a person to behave in a certain way is a(n) _______.  Ã‚  Ã‚  Ã‚  Ã‚     incentive   | |   2.   | A bridge is an example of something that is usually provided as a _________.  public good    | |   3.   | To show how demand for a good will change at specific price points, economists use a ____.  Demand curve   | |   4.   | People will buy more of a good when its price falls and less when its price rises, according to the _______.  Ã‚  Ã‚  Ã‚  Ã‚     Law of demand   | |   5.  Read MoreThe Soviet Union and Nazi Germany in the 1930s as Totalitarian States1265 Words   |  6 PagesThe Soviet Union and Nazi Germany in the 1930s as Totalitarian States A totalitarian state usually refers to a country in which the central government has total control over almost all aspects of peoples life. 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