Editing Planned economy (section)

== Overview ==
In the [[Hellenistic period|Hellenistic]] and post-Hellenistic world, "compulsory state planning was the most characteristic trade condition for the [[Hellenistic Egypt|Egyptian]] countryside, for [[Indo-Greek Kingdom|Hellenistic India]], and to a lesser degree the more barbaric regions of the [[Seleucid Empire|Seleucid]], the [[Attalid kingdom|Pergamenian]], the southern [[Arabia]]n, and the [[Parthian Empire|Parthian]] empires".<ref>{{cite book|last1=Heichelheim|first1=Friedrich Moritz |author-link1=Fritz Heichelheim|year=1949|chapter=Commerce, Greek and Roman|editor1-last= Hammond |editor1-first=Nicholas G. L.|editor1-link=N. G. L. Hammond|editor2-last=Scullard|editor2-first=H. H.|editor2-link=Howard Hayes Scullard|title=The Oxford Classical Dictionary|edition= 2|location= Oxford|publisher=Oxford University Press|publication-date=1970|page= [https://archive.org/details/oxfordclassicald00hamm/page/274 274]|isbn=0198691173|chapter-url= https://archive.org/details/oxfordclassicald00hamm/page/274}}</ref> Scholars have argued that the [[Inca Empire|Incan]] economy was a flexible type of command economy, centered around the movement and utilization of labor instead of goods.<ref>{{cite journal|author= La Lone, Darrell E.|title= The Inca as a Nonmarket Economy: Supply on Command versus Supply and Demand|journal= Contexts for Prehistoric Exchange|year= 1982|page= 292|url= https://www.academia.edu/885136|access-date= 17 December 2018|archive-date= 19 October 2020|archive-url= https://web.archive.org/web/20201019175439/https://www.academia.edu/885136/The_Inca_as_a_nonmarket_economy_Supply_on_command_versus_supply_and_demand|url-status= live}}</ref> One view of [[mercantilism]] sees it as involving planned economies.<ref>{{cite book|editor1-last=Blaug|editor1-first= Mark |editor1-link=Mark Blaug|title=The Early mercantilists: Thomas Mun (1571–1641), Edward Misselden (1608–1634), Gerard de Malynes (1586–1623)|url=https://books.google.com/books?id=dua5AAAAIAAJ |series=Pioneers in economics|issue=4|publisher=E. Elgar Pub. Co.|date= 1991|page= 136|isbn= 978-1852784669 |access-date= 7 September 2018|quote=To this approach belongs at least in part an attempt to view mercantilism as ''economic dirigee'', a planned economy with national economic objectives – 'wealth', 'plenty' or simply 'welfare' within the framework of the nation and at the expense of other nations.}}</ref>

The Soviet-style planned economy in Soviet Russia evolved in the wake of a continuing existing [[World War I]] [[war economy|war-economy]] as well as other policies, known as [[war communism]] (1918–1921), shaped to the requirements of the [[Russian Civil War]] of 1917–1923. These policies began their formal consolidation under an official organ of government in 1921, when the Soviet government founded [[Gosplan]]. However, the period of the [[New Economic Policy]] ({{circa | 1921}} to {{circa | 1928}}) intervened before the planned system of regular [[Five-year plans of the Soviet Union|five-year plans]] started in 1928. [[Leon Trotsky]] was one of the earliest proponents of economic planning during the [[New Economic Policy|NEP]] period.<ref name=Twiss>{{cite book |last1=Twiss |first1=Thomas M. |title=Trotsky and the Problem of Soviet Bureaucracy |date=2014 |publisher=Brill |isbn=978-90-04-26953-8 |pages=88–113 |url=https://books.google.com/books?id=3o2fAwAAQBAJ&dq=Trotsky+economic+planning+1923&pg=PA135 |language=en |access-date=2023-10-27 |archive-date=2023-07-26 |archive-url=https://web.archive.org/web/20230726215733/https://books.google.com/books?id=3o2fAwAAQBAJ&dq=Trotsky%20economic%20planning%201923&pg=PA135 |url-status=live }}</ref><ref>{{cite book |last1=Day |first1=Richard B. |title=Leon Trotsky and the Politics of Economic Isolation |date=1973 |publisher=Cambridge University Press |isbn=978-0-521-52436-0 |page=109 |url=https://books.google.com/books?id=cGx-pzsksksC&dq=Trotsky+economic+planning+1923&pg=PA109 |language=en |access-date=2023-10-27 |archive-date=2023-07-26 |archive-url=https://web.archive.org/web/20230726214400/https://books.google.com/books?id=cGx-pzsksksC&dq=Trotsky+economic+planning+1923&pg=PA109 |url-status=live }}</ref><ref>{{cite book |last1=Deutscher |first1=Isaac |title=The prophet unarmed: Trotsky, 1921–1929 |date=1965 |publisher=New York, Vintage Books |isbn=978-0-394-70747-1 |page=468 |url=https://archive.org/details/prophetunarmed00isaa/page/468/mode/2up}}</ref> Trotsky argued that [[Economic specialization|specialization]], the concentration of [[Production (economics)|production]] and the use of planning could "raise in the near future the [[coefficient]] of [[economic growth|industrial growth]] not only two, but even three times higher than the [[Economy of the Russian Empire after the abolition of serfdom|pre-war rate]] of 6% and, perhaps, even higher".<ref>{{cite book |last1=Rogovin |first1=Vadim Zakharovich |title=Was There an Alternative? Trotskyism: a Look Back Through the Years |date=2021 |publisher=Mehring Books |isbn=978-1-893638-97-6 |pages=404–405 |language=en}}</ref> According to historian [[Sheila Fitzpatrick]], the scholarly consensus was that [[Joseph Stalin|Stalin]] appropriated the position of the [[Left Opposition]] on such matters as [[industrialisation]] and [[collectivisation]].<ref>{{cite journal |last1=Fitzpatrick |first1=Sheila |title=The Old Man |journal=London Review of Books |date=22 April 2010 |volume=32 |issue=8 |url=https://www.lrb.co.uk/the-paper/v32/n08/sheila-fitzpatrick/the-old-man |language=en |issn=0260-9592 |access-date=3 February 2024 |archive-date=3 February 2024 |archive-url=https://web.archive.org/web/20240203154004/https://www.lrb.co.uk/the-paper/v32/n08/sheila-fitzpatrick/the-old-man |url-status=live }}</ref>

After [[World War II]] (1939–1945) France and Great Britain practiced [[dirigisme]] – government direction of the economy through non-coercive means. The Swedish government planned public-housing models in a similar fashion as [[urban planning]] in a project called [[Million Programme]], implemented from 1965 to 1974. Some decentralized participation in economic planning occurred across Revolutionary Spain, most notably in Catalonia, during the [[Spanish Revolution of 1936]].<ref name="Wetzel">Wetzel, Tom. [http://libcom.org/files/workers-power-spanish-revolution.pdf "Workers Power and the Spanish Revolution"] {{Webarchive|url=https://web.archive.org/web/20201107225933/https://libcom.org/files/workers-power-spanish-revolution.pdf |date=2020-11-07 }}.</ref><ref name="Dolgoff">Dolgoff, Sam, ed. (1974). ''[[The Anarchist Collectives]]'' (1st ed.). Free Life Editions. p. 114. {{ISBN|978-0914156024}}.</ref>

=== Relationship with socialism ===
[[File:Albert Einstein Head.jpg|150px|right|thumb|Albert Einstein advocated for a socialist planned economy with his 1949 article "[[Why Socialism?]]"]]

In the May 1949 issue of the ''[[Monthly Review]]'' titled "[[Why Socialism?]]", [[Albert Einstein]] wrote:<ref>Einstein, Albert (May 1949). [http://www.monthlyreview.org/598einstein.php "Why Socialism?"] {{Webarchive|url=https://web.archive.org/web/20110317032934/http://www.monthlyreview.org/598einstein.php |date=2011-03-17 }}, ''[[Monthly Review]]''.</ref>
<blockquote>I am convinced there is only one way to eliminate these grave evils, namely through the establishment of a socialist economy, accompanied by an educational system which would be oriented toward social goals. In such an economy, the means of production are owned by society itself and are utilized in a planned fashion. A planned economy, which adjusts production to the needs of the community, would distribute the work to be done among all those able to work and would guarantee a livelihood to every man, woman, and child. The education of the individual, in addition to promoting his own innate abilities, would attempt to develop in him a sense of responsibility for his fellow-men in place of the glorification of power and success in our present society.</blockquote>

While [[socialism]] is not equivalent to economic planning or to the concept of a planned economy, an influential conception of socialism involves the replacement of capital markets with some form of economic planning in order to achieve ''[[ex-ante]]'' coordination of the economy. The goal of such an economic system would be to achieve conscious control over the economy by the population, specifically so that the use of the [[surplus product]] is controlled by the producers.<ref>{{cite book|last= Feinstein|first= C. H.|title= Socialism, Capitalism and Economic Growth: Essays Presented to Maurice Dobb|publisher= Cambridge University Press|year= 1975|isbn=0-521-29007-4|page= 174|quote=We have presented the view that planning and market mechanisms are instruments that can be used both in socialist and non-socialist societies. [...] It was important to explode the primitive identification of central planning and socialism and to stress the instrumental character of planning.}}</ref> The specific forms of planning proposed for socialism and their feasibility are subjects of the [[socialist calculation debate]].

=== Computational economic planning ===
{{further|Government by algorithm}}

In 1959 [[Anatoly Kitov]] proposed a distributed computing system (Project "Red Book", {{langx |ru| Красная книга}}) with a focus on the management of the Soviet economy. Opposition from the [[Ministry of Defense (Soviet Union)|Defence Ministry]] killed Kitov's plan.<ref>
{{cite book
 | last1                = Kitov
 | first1               = Vladimir A.
 | last2                = Shilov
 | first2               = Valery V.
 | last3                = Silantiev
 | first3               = Sergey A.
 | chapter              = Trente ans ou la Vie d'un scientifique
 | editor1-last         = Gadducci
 | editor1-first        = Fabio
 | editor2-last         = Tavosanis
 | editor2-first        = Mirko
 | title                = History and Philosophy of Computing: Third International Conference, HaPoC 2015, Pisa, Italy, October 8–11, 2015, Revised Selected Papers
 | url                  = https://books.google.com/books?id=nNY0DQAAQBAJ
 | series               = Volume 487 of IFIP Advances in Information and Communication Technology 
 | issn =1868-4238
 | date = 5 October 2016
 | location             = Cham, Switzerland
 | publisher            = Springer
 | publication-date     = 2016
 | page                 = 191
 | isbn                 = 978-3319472867
 | access-date          = 12 September 2021
 | quote                = [...] "Measures to overcome the shortcomings in the development, production and introduction of computers in the Armed Forces and national economy". Today this project is known among the specialists as the 'Red Book' project. It was the first project in the USSR, which proposed to combine all the computers in the country into a unified network of compter centers. In peacetime this network must have fulfilled both national economic and defense tasks [...].
}}
</ref>

In 1971 the socialist [[Presidency of Salvador Allende|Allende administration]] of Chile launched [[Project Cybersyn]] to install a telex machine in every corporation and organization in the economy for the communication of economic data between firms and the government. The data was also fed into a computer-simulated economy for forecasting. A control room was built for real-time observation and management of the overall economy. The prototype-stage of the project showed promise when it was used to redirect supplies around a trucker's strike,<ref name=":2">{{cite journal|author=Eden Medina|title= Designing Freedom, Regulating a Nation: Socialist Cybernetics in Allende's Chile|journal=J. Lat. Am. Stud.|number=38|pages=571–606|doi=10.1017/S0022216X06001179|year=2006|volume=38|publisher=Cambridge University Press|s2cid= 26484124}}</ref> but after CIA-backed [[Augusto Pinochet]] led a [[1973 Chilean coup d'état|coup in 1973]] that established a [[Military dictatorship of Chile (1973–1990)|military dictatorship]] under his rule the program was abolished and Pinochet moved Chile towards a more [[Economic liberalization|liberalized]] [[market economy]].

In their book ''[[Towards a New Socialism]]'' (1993), the computer scientist [[Paul Cockshott]] from the [[University of Glasgow]] and the economist Allin Cottrell from [[Wake Forest University]] claim to demonstrate how a democratically planned economy built on modern computer technology is possible and drives the thesis that it would be both economically more stable than the free-market economies and also morally desirable.<ref name=":1" />

=== Cybernetics ===
[[File:CyberSyn-render-106.png|right|250px|thumb|[[Project Cybersyn]] was an early form of computational [[economic planning]].]]

The use of computers to coordinate production in an optimal fashion has been variously proposed for [[socialist economies]]. The Polish economist [[Oskar Lange]] (1904–1965) argued that the computer is more efficient than the market process at solving the multitude of simultaneous equations required for allocating economic inputs efficiently (either in terms of physical quantities or monetary prices).<ref name=":3">{{cite web|url= http://www.calculemus.org/lect/L-I-MNS/12/ekon-i-modele/lange-comp-market.htm|title= The Computer and the Market|last= Lange|first= Oskar|publisher= Calculemus.org|date= 1979|access-date= 12 September 2012|archive-date= 17 April 2021|archive-url= https://web.archive.org/web/20210417151550/https://www.calculemus.org/lect/L-I-MNS/12/ekon-i-modele/lange-comp-market.htm|url-status= live}}</ref>

In the Soviet Union, [[Anatoly Kitov]] had proposed to the Central Committee of the Communist Party of the Soviet Union a detailed plan for the re-organization of the control of the Soviet armed forces and of the Soviet economy on the basis of a network of computing centers in 1959.<ref>{{Cite web|last=Kitova|first=O|others=Translated by Alexander Nitusov|title=Kitov Anatoliy Ivanovich. Russian Virtual Computer Museum|url=https://www.computer-museum.ru/english/galglory_en/Kitov.htm|access-date=2021-10-11|website=computer-museum.ru|archive-date=2023-02-04|archive-url=https://web.archive.org/web/20230204143509/https://www.computer-museum.ru/english/galglory_en/Kitov.htm|url-status=live}}</ref> Kitov's proposal was rejected, as later was the 1962 [[OGAS]] economy management network project.<ref>{{Cite book |isbn = 978-0262034180|title = How Not to Network a Nation: The Uneasy History of the Soviet Internet|last1 = Peters|first1 = Benjamin|date = 25 March 2016| publisher=MIT Press }}</ref> Soviet [[cybernetician]], [[Viktor Glushkov]] argued that his OGAS information network would have delivered a fivefold [[savings|savings return]] for the [[Soviet economy]] over the first fifteen-year investment.<ref>{{cite book |last1=Peters |first1=Benjamin |title=How not to network a nation : the uneasy history of the Soviet internet |date=2016 |location=Cambridge, Massachusetts |isbn=978-0262034180 |pages=114}}</ref>

[[Salvador Allende]]'s socialist government pioneered the 1970 Chilean distributed [[decision support system]] [[Project Cybersyn]] in an attempt to move towards a decentralized planned economy with the [[Viable system model|experimental viable system model]] of computed organisational structure of autonomous operative units through an [[algedonic feedback]] setting and bottom-up participative decision-making in the form of [[participative democracy]] by the Cyberfolk component.<ref>
[http://www.cybersyn.cl/ingles/cybersyn/cyberfolk.html "Cyberfolk"]. Project Cybersyn. {{webarchive |url= https://web.archive.org/web/20110512062330/http://www.cybersyn.cl/ingles/cybersyn/cyberfolk.html
|date=12 May 2011}}. Retrieved 6 August 2020.
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