Why did the planned economy fail? Planned economy failed because there was no plan.
Strategically, the central government lacks a truly effective master plan (even if there is one, it is useless), the whole country is fragmented, the provinces and counties are fragmented, and even the economic layout is unscientific and the industrial structure is unreasonable, resulting in serious consequences such as waste of resources and high construction costs. For example, the production lines of color TV, refrigerator, air conditioner and video recorder in previous years. , wasted countless national funds. There are also groups of small nitrogen fertilizers, small cement and small chemical fertilizers everywhere, which have caused immeasurable damage to the environment. In order to control these sequelae, the country needs to spend hundreds of millions of dollars. Its bad influence is not limited to this, such as unreasonable layout and inconvenient transportation, which leads to high production cost. It has added a heavy burden to the enterprise. All these.
Tactically, local governments have no plans. Some local officials only want to be promoted to a higher position and make a fortune, without considering the interests of the whole country. When they engage in planned economy, they think about how to win projects and how to get funds, instead of carefully examining whether the selected projects are suitable or not, let alone paying attention to the management of enterprises. As a result, a lot of waste projects with bankruptcy completion date have been produced, and a lot of dying sunset industries have been produced, which has wasted hundreds of billions of people's hard-earned money. Tens of thousands of other promising state-owned enterprises have no plans because of poor management: they don't care about cost, quality, sales, development, democratic supervision and scientific decision-making, and even get into trouble or even go bankrupt.
There is no plan in the planned economy, and some people use the loopholes in the system to make trouble at will with the intention of profiting from it. For example, some enterprises specialize in buying fake and shoddy products that are several times and dozens times more expensive than normal prices; Some business leaders can be profligate and the financial system is in name only; The enterprise is bankrupt, but the leader is rich, and he can be promoted to a higher position and make a fortune; Some enterprises employ people: those who follow me prosper and those who oppose me perish. Flatterers say you can, you can, you can't; Real talent says you can't, so you can't, and neither can you. How can this be unbeaten? In fact, the planned economy has long existed in name only, and it has become a human economy, a corrupt economy and a private economy. Unfortunately, the practice of planned economy was destroyed by the nominal plan, but it was actually in the hands of fabricators, which was really heartbreaking. Some people say that the plan is not helpful to the economy, but they just make excuses for their incompetence and corruption and shirk their responsibilities.
Why is there no plan in the planned economy?
Why is there no plan for planned economy? This is due to misunderstanding of planned economy and imperfection of political system. China's planned economy completely followed the model of the former Soviet Union. They also completely inherited their wrong thinking about the planned economy, thinking that the planned economy only means state investment and state control, while ignoring the implementation process of the plan. This plan is not just for the state to invest in construction. It is not only planning, but also a systematic project, including preliminary investigation and study, overall planning, scientific demonstration, democratic decision-making, and finally clear responsibility, serious implementation, full monitoring during the period, and timely feedback and correction. Another reason for the misunderstanding of planned economy is the misinterpretation of Marxism, which only sees the opposition between capitalism and socialism and fails to see the inheritance between them. It is believed that capitalism and socialism cannot coexist, and capitalism must advocate socialism that should be spurned. Because it is too ideological and irrational, it completely ignores the characteristics of inheritance and continuity in social development. This is also due to the influence of the hostile cold war environment between the two camps at that time. Socialism will inevitably replace capitalism, which is inevitable in historical progress, but socialism will also inherit all the advantages of capitalism and reinterpret it, because these are the achievements of human civilization and progress, not unique to any system.
In the political system, because there is no perfect mechanism for selecting and employing people, no reasonable performance evaluation mechanism, no effective supervision system and no strict responsibility system, arrogant people can take advantage of it and let the little people succeed. Coupled with the lack of responsibility and supervision, bureaucracy and corruption are rampant. Under such circumstances, honest and upright people can't make progress in serving the country, and the flattery of the Ami people can rely on bribery. Obviously, the plan won't work!
What is a real planned economy?
Economy has its inherent operating rules, and market and planning are only means to control the economy, not the essence of the economy or the characteristics of the differentiated system. No matter which means, it must conform to the economic law to be effective. The mistake in the past was to completely oppose the plan to the market and ignore the law of economic operation.
So what is the real planned economy?
The real planned economy should be the benefit economy. The private ownership market economy is based on the maximization of profits and the principle of obtaining the maximum profits. Planned economy should be based on the principle of obtaining the best interests. Planned economy should also consider profits, but also social benefits, such as environmental protection, social stability and national security. Planned economy pursues the harmonious development of social and economic benefits. The sustainable development of environmental resources is not the development mode of market economy, but predatory, eager for quick success and instant benefit, and profit-centered. In the long run, its economic and social benefits will greatly exceed the market economy.
The real planned economy should be an efficiency economy. We must pay attention to cost and pursue quality.
The real planned economy should be a scientific economy. Planned economy should be based on careful investigation, scientific demonstration and democratic decision-making.
The real planned economy should be to control the economy. The basis of regulation and control is to grasp the objective law of economic operation and guide it according to the situation. The purpose of regulation is to avoid excessive waste of resources caused by disorderly competition and illegal activities. The method of control is to strengthen supervision and strict responsibility. Control must be carried out in all aspects, so as to monitor the whole implementation of the plan, give real-time feedback, find problems and correct them immediately.
The real planned economy should be a higher level market economy. Theoretically, the planned economy was put forward in view of the defects of the market economy. Therefore, in practice, the planned economy must have all the advantages of the existing market economy, such as competition and legal system, and it must also have new features that it does not have, such as democracy, human rights and morality.
The future of planned economy
The economic base determines the superstructure, and the superstructure affects the economic base. To do a good job in the planned economy, we must have a sound political system. This system must be able to eliminate bureaucracy, eliminate corruption, achieve political clarity, social justice, select talents, be strict in rewards and punishments, be scientific in decision-making, be efficient in administration, make the whole society full of vitality, and realize national democracy and individual freedom.
With the development of reform, China's legal system has been continuously improved, its political system has been gradually improved, and its understanding of Marxism has been deepened. It is foreseeable that the planned economy will have a bright future and will be reborn in time.
Interest rate control-in this case, the national monetary policy is not flexible enough.
Foreign exchange control-if a country's cooperation and trade with other countries in the international market are restricted, its status will not be promoted rapidly, and its domestic economy will develop slowly and cannot keep up with the international rhythm.
Strong protection policies for domestic enterprises and national enterprises-this has made many domestic enterprises lose their treasures, among which they have no sense of competition for a long time under the protection of national policies, can not actively develop, and breed corruption.