A decentralized economy or centrally planned economy (sometimes horizontally planned economy ) is a type of economic system based on decentralized economic planning, in which decision-making is distributed among various economic or local agents within the unit of production. Decentralized planning is held contrary to central planning in which economic information is collected and used to formulate plans for production, investment and resource allocation by central authorities. Decentralized planning can take shape both in the context of a mixed economy as well as in a post-capitalist economic system.
This usually implies some form of democratic decision-making in the economy or within the enterprise in the form of economic democracy or industrial democracy. Alternatively, the coordination of decentralized, computer-based or computer-managed coordination between economic firms has been proposed by various economists and computer scientists.
The latest proposal for decentralized economic planning has used the term "participatory planning" to highlight the cooperative and democratic character of this system and to distinguish it from central planning associated with the former Soviet Union. Proponents present decentralized and participatory economic planning as an alternative to marketing socialism for post-capitalist society.
Decentralization-planning has been proposed as the basis for socialism and has been advocated by democratic and anarchist socialists who advocated the non-market form of socialism while rejecting the central planning of the Soviet type. Some authors (eg Robin Cox) argue that decentralized planning makes it possible for spontaneously self-contained inventory control systems (relying only on the calculation of goods) to emerge and which in turn convincingly overcome the objections posed by the economic calculation argument that any large-scale economy is necessarily must use the market price system.
Video Decentralized planning (economics)
Model
Sibernetika
The use of computers to coordinate production optimally has been proposed for socialist economies. Economist Oskar Lange argues that computers are more efficient than market processes in solving many of the simultaneous equations needed to efficiently allocate economic input (whether in terms of physical quantity or monetary price).
The Chilean computer-controlled, controlled economy of 1970, Project Cybersyn was spearheaded by the socialist government of Salvador Allende in an effort to move toward decentralized planning with experimental Cyberfolk components.
Negotiated negotiations
Economist Pat Devine has created a model of coordination called "negotiated coordination", based on social ownership by those affected by the use of the assets involved, with decisions made by those in the most local production levels.
Participatory Planning
The planning structure of a decentralized decentralized economy is generally based on consumer councils and producer councils (or jointly, distributive cooperatives), sometimes called consumer co-operatives. Producers and consumers, or their representatives, negotiate the quality and quantity of what will be produced. This structure is the center of participatory economics, union socialism and economic theory associated with anarchism.
Maps Decentralized planning (economics)
Similar concepts in practice
Decentralized planning in Kerala and India
Some decentralized participation in economic planning has been applied in various regions and states of India, especially in Kerala. Local-level planning agencies assess the needs of people who are able to provide their direct input through Gram Sabhas (village-based institutions) and planners then look for suitable plans.
Community participatory planning
The UN has developed local projects that promote participatory planning at the community level. Community members make decisions about community development directly.
Political advocacy
Decentralized planning has become the hallmark of socialist and anarchist economics. Variations of decentralized planning include participatory economics, economic democracy and industrial democracy and have been promoted by various political groups, especially libertarian socialists, union socialists, Marxists, anarchists and democratic socialists.
During the Spanish Revolution, some areas where the anarchist and libertarian socialist influences through CNT and UGT are vast territories, especially rural areas, run on the basis of decentralized planning resembling the principles laid down by Diego Abad de Santillan in this book After Revolution .
See also
Note
Further reading
Source of the article : Wikipedia
0 Comments