Centralization

Bradford DeLong jbdelong at uclink.berkeley.edu
Wed Jul 3 17:21:45 PDT 2002



>It's been a long time since I read Hewett and Nove and the like, but
>as I remember, the planning mechanism wasn't anything like the rigid
>top-down caricature it was rendered as in the West. There was
>"market" feedback - not in price form, but more in volume form
>(e.g., no one bought the hideous shoes). And there was more
>interplay between center and periphery than the caricature says. In
>a better world, they'd have experimented with opening up the
>process, democratizing it, adding in lots of computers too, instead
>of junking it, which was a disaster.
>
>Doug

They *are* experimenting with the process. How do you think something like AT&T or Toyota manages its own internal division of labor? I think the right point is not a Hayekian "planning is impossible" point, but instead a question of accountability: what (or whose) ends is the organization serving?

Brad DeLong



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