The command economy is the management system that was popular in the Soviet Union, Eastern European countries and a number of Asian and African countries.
general information
If we characterize the team economy, then we can say that it has a number of features. But still, among this variety, there is also a highlight. So, the most important sign 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 still bureaucratization and monopolization of economic life, which take specific forms. And as the basis of the mechanism of relationships, centralized economic planning is used.
In modern life, this can be transferred to online games. So what is a sign 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 way to build a couple of houses. But now let's talk about this topic more seriously.
How is everything arranged?
Let's look at the interaction scheme. The main sign of a command economy is the presence of a center that gives orders to economic entities on their pace of activity. This approach minimizes the independence of the subjects. In addition, to exclude free market relationships between individual farms, the process of production and distribution of products is fully controlled. And for this, administrative and administrative (command) methods are used as a managerial component. This creates a basis for other properties of this approach. The main feature of a command economy is both a source of significant advantages and disadvantages. But first things first.
Key Implementation Features
So, a sign of a team economy is (we are considering the answer to this question) public ownership managed by teams. This provides direct management of all enterprises from one center. This approach is valuable in times of great trials, when the country faces a significant challenge, since all available resources that are spent on achieving the goal are registered.
Since the state fully controls the production processes and the distribution of the result, it can transfer part of the capital, labor or scientific personnel to perform specific tasks. As a result, due to administrative-command management methods, 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 attributed to the benefits. But there are also negative aspects - so, it is very difficult to quickly respond to the needs of society, because of which there may be a shortage of goods and services that are in demand. In addition, wrong decisions regarding investments are often made. In addition, often everything is built in such a way that manufacturers have no incentive to use resources more efficiently, expand their product range and introduce innovations.
Implementation specifics
Let's pay attention to a very important point - managerial personnel. Purely nominally, the decision is made on what will be produced, how it will be distributed and by whom it will be consumed. In fact, this task is assigned to the bureaucracy. Inevitable errors in this case create a large number of inconsistencies. In many respects, this depends on the unprofessionalism of the managerial class and the considerable limited possibilities of these. In addition, communication difficulties also cause significant problems. Theoretically, with the involvement of highly qualified specialists and numerous equipment to control and optimize the process of accomplishing tasks, the negative aspects can be minimized, but, alas, no one has yet been able to put this into practice.
Feature of administrative methods
Using this approach provides that the cost of goods and services is assigned by the state and does not depend on the demand for them and the available supply. Profit and salary 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 unemployed workers who are not interested in the result of their actions, scientific and technological progress slows down, and there is a shortage of the economy and dictates from manufacturers.
Since all rights to the means of production belong to the state, property of citizens is limited by their personal property and insignificant subsidiary plots.
At the same time, the positive aspects of using administrative methods should be noted. Initially, attention should be paid to creating an economy that is more resistant to external influences. At the same time, people are relatively confident in the future, and the even distribution of vital goods in society contributes to its solidity due to the achievement of lesser inequality. In addition, there are no problems with employment.
Conclusion
How is such an amazing combination? In general, many features of the command-administrative approach could be eliminated with greater efficiency. So, often because of 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 handle. Therefore, although the main sign of a command economy is such an unusual state of affairs, it is still far from perfect. And we can confidently say that the planned management system will still offer more than one good solution.