The command economy is a farming system that was popular in the Soviet Union, the states of Eastern Europe and a number of Asian and African countries.
General information
If we characterize the command economy, we can say that it has a number of features. But still among this diversity there is a zest. Thus, the most important feature of a command economy is public (in practice, state) ownership of the means of production and resources, which is realized through orders (orders). In addition, there is also the bureaucratization and monopolization of economic life, which take specific forms. And centralized economic planning is used as the basis of the relationship mechanism.
This can be transferred to online games in modern life. So what is the hallmark of a command economy? "Avatar" or any other similar entertainment gives a good understanding of the mechanisms used - it seems that there is freedom of action, but it is very limited. There is one room, but there is no opportunity to build a couple of houses. But nowlet's talk about this topic more seriously.
How does it work?
Let's look at the interaction scheme. The main feature of a command economy is the presence of a center that gives orders to economic entities about their pace of activity. This approach minimizes the independence of subjects. In addition, in order to exclude free market relations between individual farms, the process of production and distribution of products is fully controlled. And for this, administrative-administrative (command) methods are used as a managerial component. This creates the basis for other properties of this approach. The main feature of the command economy is both a source of significant advantages and disadvantages. But first things first.
Key implementation features
So, the hallmark of a command economy is (we are looking at the answer to this question) public property managed by teams. This provides direct management of all enterprises from one center. This approach is valuable in times of great challenge, when the country is facing a significant challenge, as all available resources are accounted for and spent on achieving the goal.
Since the state completely controls the production processes and the distribution of the result, it can transfer part of the capital, labor or scientific personnel to performspecific tasks. As a result, due to administrative-command methods of management, one can observe the absence of inflation (or its insignificant growth close to zero), weak social stratification, minimal unemployment and the absence of capitalist crises and competition in the manufacture of products. This can be considered an advantage. But there are also negative aspects - for example, it is very difficult to quickly respond to the needs of society, which may lead to a shortage of goods and services that are in demand. In addition, wrong investment decisions are often made. In addition, everything is often designed in such a way that manufacturers do not have incentives to use resources more efficiently, expand their product range and innovate.
Implementation specifics
Let's pay attention to a very important point - the control frames. In purely nominal terms, decisions about what will be produced, how it will be distributed, and by whom will be consumed by the state. In fact, this task is entrusted to the bureaucracy. The inevitable errors in this case create a large number of inconsistencies. In many ways, this depends on the unprofessionalism of the class of managers and their significant limitations. In addition, communication difficulties are also significant problems. Theoretically, with the involvement of highly professional specialists and numerous equipment to control and optimize the process of performing tasks, it is possible to minimize the negative aspects, but, alas, so far no one has been able to put this into practice.
Feature of administrative methods
The use of this approach provides that the cost of goods and services is assigned by the state and does not depend on the existing demand for them and the available supply. Profits and wages are set in advance.
It should be noted that in this case very little depends on the initiative and creativity of workers. Because of this, there is no incentive to work effectively and carry out innovative activities. As a result, negative moments arise, such as uninitiated workers who are not interested in the result of their actions, scientific and technological progress slows down, there is a shortage of the economy and dictate from manufacturers.
Since all rights to the means of production belong to the state, the property of citizens is limited to their personal property and minor household plots.
At the same time, the positive aspects of using administrative methods should also be noted. Initially, attention should be paid to the fact that a more resilient economy is being created. At the same time, people are relatively confident in the future, and the even distribution of life's blessings in society contributes to its solidity due to the achievement of less inequality. In addition, there are no problems with employment.
Conclusion
How does such an amazing combination come about? In general, many features of the command-and-control approach could be eliminatedwith greater efficiency. So, often due to delays in the scientific and technical process (this occurs because the center does not have time to process all the information), two people perform a task that one could successfully cope with. So while this unusual state of affairs is the hallmark of a command economy, it is still far from perfect. And we can confidently say that the planned management system will still offer more than one good solution.
