[lbo-talk] planned economy [was: Hamid Dabashi on Iran]

Joanna 123hop at comcast.net
Wed Jun 17 23:01:21 PDT 2009


Woj writes:

"But I do not think those standards apply. I do not think that the ultimate goal of planned economy was to produce consumer goods. In fact, these economies consciously restricted consumption. Instead, the ultimate goal was to overcome economic backwardness and facilitate accelerated development and industrialization (cf. Gerschenkron's work on economic backwardness) - or as we would say today, limit consumption and increase investment. By these standards, central planning performed quite well - far better than free markets would have done."

Indeed! The transition from massive illiteracy and poverty, from a decayed feudalism to a literate, skilled, healthy, and relatively comfortable population. I'd call that quite an achievement.

Yes, massive corruption, which continues to this day. But that had more to do with the cultural and historical context than with the absence of markets.

Joanna



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