The sign of the command economy is ... The main sign of the command economy

The command economy is called the management system, which was popular in the Soviet Union, the states of Eastern Europe and a number of Asian and African countries.

general information

If we characterize the command economy, then we can say that it has a number of characteristics. But nevertheless, among this diversity there is also a zest. So, the most important feature of the command economy is public (in practice state) ownership of the means of production and resources, which is realized through orders (orders). In addition, there is still bureaucratization and monopolization of economic life, which take specific forms. And as a basis for the mechanism of relations, centralized economic planning is used.

This can be transferred to online games in modern life. So what is the hallmark of the command economy ? "Avatar" or any other similar entertainment give a good understanding of the mechanisms used - like there is freedom of action, but it is severely limited. There is one room, but there is no way to build a couple of houses. But now let's talk about this topic more seriously.

How is everything arranged?

Let's consider the interaction scheme. The main feature of the command economy is the presence of a center that gives orders to economic entities about their pace of activity. This approach minimizes the independence of the subjects. In addition, in order to exclude free market interrelations between individual farms, the process of production and distribution of products is completely controlled. And for this, administrative-administrative (command) methods are used as a managerial component. This creates a basis for other properties of this approach. The main sign of the command economy is at the same time a source of significant advantages and disadvantages. But first things first.

Main features of the implementation

So, the sign of the command economy is (the answer to this question we are considering) is public property managed by teams. This provides management directly to all enterprises from one center. This approach is valuable in times of great trials, when the country faces a significant challenge, as all available resources are spent on accounting for the achievement of the goal.

Since the state fully controls the production processes and the distribution of the result, it can transfer part of the capital, labor or scientific personnel to specific tasks. As a consequence, due to administrative-command management methods, one can observe the absence of inflation (or its insignificant growth close to zero), weak social stratification, minimal unemployment and the absence of capitalist crises and competition in the production of products. This can be attributed to the benefits. But there are also negative sides - so, it is very difficult to react quickly to the needs of society, because of which there may be a shortage of goods and services that are in demand. In addition, incorrect decisions regarding investment of investments are often made. In addition, often everything is built in such a way that producers do not have incentives to use resources more efficiently, to expand the range of products and to introduce innovations.

Specificity of implementation

Let's pay attention to a very important moment - the managerial staff. Purely nominally the decision on what will be produced, how to distribute and who to consume, is taken by the state. In fact, this task is entrusted to the bureaucracy. Unavoidable errors in this case create a large number of discrepancies. In many respects, this depends on the non-professionalism of the class of managers and the considerable limitations of their capabilities. In addition, significant problems are also brought about by the complexity of communication. Theoretically, with the involvement of highly professional specialists and numerous techniques for monitoring and optimizing the process of accomplishing tasks, it is possible to minimize the negative aspects, but, alas, nobody has yet been able to implement it in practice.

Feature of administrative methods

The use of this approach provides that the cost of goods and services is determined by the state and does not depend on the demand existing on them and the available supply. The amount of profit and wages are set in advance.

It should be noted that in this case very little depends on the initiative and creativity of employees. Because of this, there is no incentive to work effectively and innovate. As a result, there are negative moments such as unemployed workers who are not interested in the result of their actions, scientific and technological progress is slowing down, there is a deficit of economy and dictates from the producers.

Since all rights to the means of production belong to the state, the property of citizens is limited to their personal property and a small subsidiary farm.

Simultaneously, positive aspects of the use of administrative methods should be noted. Initially, attention should be paid to the fact that the economy that is more stable to external influences is created. At the same time, people are relatively confident in the future, and a uniform distribution of life benefits in society contributes to its monolithic nature due to the achievement of lesser inequality. In addition, there are no problems with employment.

Conclusion

How do you get such an amazing combination? In general, many features of the command-administrative approach could be abolished with greater efficiency. So, often because of delays in the scientific and technical process (this arises because the center does not have time to process all the information), two people perform a task that one could successfully cope with. Therefore, although the main feature of the command economy is such an unusual state of affairs, it is still far from perfect. And we can confidently say that the planned system of management will not offer more than one good solution.