Podcast
Questions and Answers
What is the primary difference between economic planning and laissez-faire?
What is the primary difference between economic planning and laissez-faire?
- Economic planning involves government intervention, while *laissez-faire* allows the market to function freely. (correct)
- Economic planning uses statistical models to predict economic outcomes, while *laissez-faire* relies on historical data.
- Economic planning focuses on long-term economic goals, while *laissez-faire* prioritizes short-term gains.
- Economic planning targets specific industries for development, while *laissez-faire* encourages free market competition across all sectors.
Which country's central planning model faced difficulties in the late 1980s due to its economic inefficiency and waste?
Which country's central planning model faced difficulties in the late 1980s due to its economic inefficiency and waste?
- France
- Soviet Union (correct)
- Japan
- China
What approach to economic planning did Western European countries predominantly adopt?
What approach to economic planning did Western European countries predominantly adopt?
- Centralized planning similar to communist countries.
- Collaboration between the state and the private sector. (correct)
- A complete reliance on free market forces.
- Direct government intervention in individual firms.
How did economic planning evolve in communist countries during the mid-1950s?
How did economic planning evolve in communist countries during the mid-1950s?
What was the key factor that led to the introduction of economic planning in the Soviet Union after the Bolshevik revolution?
What was the key factor that led to the introduction of economic planning in the Soviet Union after the Bolshevik revolution?
In what way did the early Soviet Union's economic planning system function?
In what way did the early Soviet Union's economic planning system function?
What was a key difference between early Soviet economic planning and planning in Western European countries?
What was a key difference between early Soviet economic planning and planning in Western European countries?
Which country was NOT mentioned in the text as being influenced by the French model of economic planning?
Which country was NOT mentioned in the text as being influenced by the French model of economic planning?
What was a key factor that led to Great Britain's adoption of a five-year economic plan in the early 1960s?
What was a key factor that led to Great Britain's adoption of a five-year economic plan in the early 1960s?
What primary objective of planning in developed countries is highlighted in the text?
What primary objective of planning in developed countries is highlighted in the text?
What is a potential downside of economic policies that aim to stimulate economic growth and employment?
What is a potential downside of economic policies that aim to stimulate economic growth and employment?
Which of these is NOT a type of expenditure allocation considered in planning within developed countries?
Which of these is NOT a type of expenditure allocation considered in planning within developed countries?
What is the role of the Central Planning Bureau in the Netherlands as described in the text?
What is the role of the Central Planning Bureau in the Netherlands as described in the text?
What is a key characteristic of planning in developed countries?
What is a key characteristic of planning in developed countries?
Which of the following is NOT a mentioned objective of economic planning in developed countries?
Which of the following is NOT a mentioned objective of economic planning in developed countries?
What is the primary reason why Eastern European countries were compelled to adopt a free-market economic system starting in 1989-90?
What is the primary reason why Eastern European countries were compelled to adopt a free-market economic system starting in 1989-90?
Which of these is NOT a country mentioned as a developed country that adopted economic planning after World War II?
Which of these is NOT a country mentioned as a developed country that adopted economic planning after World War II?
What was the primary factor driving the shift towards economic planning in developed countries after World War II?
What was the primary factor driving the shift towards economic planning in developed countries after World War II?
Which of these events is directly linked to France's adoption of economic planning?
Which of these events is directly linked to France's adoption of economic planning?
What was the primary reason for the Labour government's introduction of a National Plan in Great Britain in 1965?
What was the primary reason for the Labour government's introduction of a National Plan in Great Britain in 1965?
Which of the following factors contributed to the increase in government intervention in the economy during the post-World War II period?
Which of the following factors contributed to the increase in government intervention in the economy during the post-World War II period?
What was the primary reason for the adoption of protectionist policies, cartel formation, and public spending during the Great Depression of the 1930s?
What was the primary reason for the adoption of protectionist policies, cartel formation, and public spending during the Great Depression of the 1930s?
What was the key difference in economic planning before and after World War II?
What was the key difference in economic planning before and after World War II?
What is a key challenge faced by developing countries when implementing economic planning?
What is a key challenge faced by developing countries when implementing economic planning?
What is the primary purpose of publishing development plans?
What is the primary purpose of publishing development plans?
What is a potential drawback of ad-hoc planning in newly independent countries?
What is a potential drawback of ad-hoc planning in newly independent countries?
What is an important step in creating a more systematic economic plan?
What is an important step in creating a more systematic economic plan?
What factor should be considered when selecting projects for inclusion in a systematic economic plan?
What factor should be considered when selecting projects for inclusion in a systematic economic plan?
Which aspect of economic planning is highlighted as essential for effective coordination?
Which aspect of economic planning is highlighted as essential for effective coordination?
Why is it crucial to pay close attention to the annual budget and the disciple of annual budgetary controls in implementing economic plans?
Why is it crucial to pay close attention to the annual budget and the disciple of annual budgetary controls in implementing economic plans?
In what way does economic planning help to improve coordination between different parts of the economy?
In what way does economic planning help to improve coordination between different parts of the economy?
What was the major economic policy implemented by Lenin in 1921?
What was the major economic policy implemented by Lenin in 1921?
Which of the following best describes the key difference between 'genetic' and 'teleological' planning?
Which of the following best describes the key difference between 'genetic' and 'teleological' planning?
What was the main goal of the First Five-Year Plan?
What was the main goal of the First Five-Year Plan?
What was the central planning organ responsible for translating political objectives into plan targets?
What was the central planning organ responsible for translating political objectives into plan targets?
What was the main characteristic of the 'command economy' implemented in the Soviet Union?
What was the main characteristic of the 'command economy' implemented in the Soviet Union?
What was the main consequence of the First Five-Year Plan's success?
What was the main consequence of the First Five-Year Plan's success?
What was the main role of the People's Commissariats (later renamed Ministries) in the Soviet planning system?
What was the main role of the People's Commissariats (later renamed Ministries) in the Soviet planning system?
Which of the following was NOT a major challenge faced by Gosplan in coordinating the Soviet economy?
Which of the following was NOT a major challenge faced by Gosplan in coordinating the Soviet economy?
What is the primary shift in planning approaches observed in developed countries during the late 1970s and 1980s?
What is the primary shift in planning approaches observed in developed countries during the late 1970s and 1980s?
Which of the following is NOT a common critique of planning in developed countries?
Which of the following is NOT a common critique of planning in developed countries?
What is a significant difference in planning approaches between developed and developing countries?
What is a significant difference in planning approaches between developed and developing countries?
What is a potential benefit of using planning models in a political context?
What is a potential benefit of using planning models in a political context?
How can planning contribute to resolving conflicts within a country?
How can planning contribute to resolving conflicts within a country?
What was the primary motive behind the shift towards more flexible planning in developed countries?
What was the primary motive behind the shift towards more flexible planning in developed countries?
In what way did the approach to regional development change in developed countries after the critiques of traditional planning?
In what way did the approach to regional development change in developed countries after the critiques of traditional planning?
Which of these is NOT a typical objective of development plans in developing countries after World War II?
Which of these is NOT a typical objective of development plans in developing countries after World War II?
Flashcards
Economic Planning
Economic Planning
A process where central governments make or influence key economic decisions.
Laissez-Faire
Laissez-Faire
An economic system where markets operate without government intervention.
Soviet Economic Model
Soviet Economic Model
A rigid economic structure characterized by central planning and state control.
Economic Planning Crisis (1980s)
Economic Planning Crisis (1980s)
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Marxist Critique
Marxist Critique
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Collaboration with Private Sector
Collaboration with Private Sector
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Bolshevik Economic Measures
Bolshevik Economic Measures
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Administrative Planning
Administrative Planning
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War Communism
War Communism
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NEP
NEP
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Genetic Planning
Genetic Planning
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Teleological Planning
Teleological Planning
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First Five-Year Plan
First Five-Year Plan
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Command Economy
Command Economy
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People's Commissariats
People's Commissariats
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Gosplan
Gosplan
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Free-Market System Adoption
Free-Market System Adoption
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Economic Planning in Developed Countries
Economic Planning in Developed Countries
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Labour Party's 1945 Victory
Labour Party's 1945 Victory
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French National Plan (1961)
French National Plan (1961)
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Origins of Economic Planning
Origins of Economic Planning
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Post-War Government Intervention
Post-War Government Intervention
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Moderate Left-Wing Policies in Scandinavia
Moderate Left-Wing Policies in Scandinavia
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Economic Crises and Planning
Economic Crises and Planning
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The French Example
The French Example
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National Economic Development Council
National Economic Development Council
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Five-year economic plan
Five-year economic plan
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Objectives of Planning
Objectives of Planning
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Balance of Payments Surplus
Balance of Payments Surplus
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Regional Development Imbalance
Regional Development Imbalance
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Public Discussion Forum
Public Discussion Forum
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Choice in Planning
Choice in Planning
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Coordination in Economy
Coordination in Economy
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Assessment of Economy
Assessment of Economy
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Development Plans Purpose
Development Plans Purpose
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Ad-hoc Project Lists
Ad-hoc Project Lists
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Misallocation of Resources
Misallocation of Resources
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Systematic Planning
Systematic Planning
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Project Prioritization
Project Prioritization
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Budgetary Discipline
Budgetary Discipline
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Government Spending
Government Spending
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Planning Models
Planning Models
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Conflict Resolution
Conflict Resolution
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Economic Growth Awareness
Economic Growth Awareness
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Flexible Planning
Flexible Planning
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Critique of Planning
Critique of Planning
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Development Plans
Development Plans
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Investment Goals
Investment Goals
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Study Notes
Economic Planning
- Economic planning is the process by which key economic decisions are made or influenced by central governments.
- It contrasts with the laissez-faire approach, which relies on market forces.
- By the late 1960s, most countries used national economic plans.
- The 1980s saw a crisis in economic planning theory and practice, particularly in developed market economies.
- Economic growth rates slowed, unemployment increased, and public confidence in government's ability to influence the economy diminished.
- In developing countries, less successful economic plans led to inefficient state bureaucracies and public enterprises.
- Market forces became more important in these countries, although state control remained.
- Attempts to introduce market solutions in the Soviet Union and eastern Europe proved largely unsuccessful. The inherent rigidity led to the collapse of communism in these areas starting in 1989.
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