Planned Economy
계획경제
A Soviet-type economic system in which a central planning agency (Gosplan, the State Planning Commission) controlled investment, production, and distribution through material-balance methodology, based on state ownership of the means of production. Launched in earnest with the First Five-Year Plan in 1928, it demonstrated formidable productive capacity in industrialisation and wartime mobilisation, but the absence of price signals and bureaucratic rigidity produced chronic shortages, poor quality, and stagnant innovation. It was abandoned with the dissolution of the USSR in 1991, leaving a legacy of both mobilisational power and fundamental inefficiency.
Related historical events
Sources
- Wikipedia (EN) Soviet economy based on state ownership, administrative-command system, and central planning through Gosplan; five-year plans began 1928.
- Wikipedia (EN) Definition of planned economy; Soviet-type planning as a distinct form; relationship to command economy.
- pubadmin.institute Gosplan's role, the hierarchical planning process, material balances, and the strengths and weaknesses of the Soviet command model.