Statistical Sciences 2035 Study Guide - Quiz Guide: Financial Capital, Risk Society, Information Revolution
16 Oct 2018
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Based on state collectivisation, brought all economic resources (businesses) under control of party-state apparatus. Directive planning, five year plans, control of communist party. Yet, successful in building heavy industries and it removed homelessness, unemployment and absolute poverty. However, central planning problems: inefficient, resulting from the range and complicity of information that tis simply too difficult to handle. And it did little to promote enterprise or efficiency. And new social divisions of political or bureaucratic position, as elite (called state capitalism). (difference with state capitalism, where economy is less regulated). Yugoslavia or perestroika by gorbachev (permitted cooperatives and single businesses to become self-managing). Features: market environment produce a guarantee of consumer responsiveness and efficiency and dangers of bureaucratic power are also kept at bay. Weakness: self-management conflicts with market disciplines, since first interests of workforces. Belief that business and labour are bound together in an organic and spiritually unified whole.
