4.6         ndian    onom
     upon the type of economic system prevalent in                the USSR, Poland, Hungary, Austria, Romania,
     the country.                                                 etc., and finally China. Basically, it was the
                                                                  migration of some of the great economists from
     1. Imperative Planning                                       the Soviet Bloc countries to Britain and the USA
     The planning process followed by the state                   that a proper study and discussion started on
     economies (i.e., the socialist or communist) is              the very nature and purpose of planning in the
     known as the imperative planning. Such planning              command economies. Many of these economists
     is also called as directive or target planning. Such         went back to their countries of origin after the
     planning had two main variants. In the socialist             Second World War to serve and in some measure,
     system, all economic decisions were centralised in           suffer the revolution there.13 It was their articulate
     the hands of the state with collective ownership             and contemporary economic thinking which
     of resources (except labour). In the communist               formed the basis for the idea of mixed economy
     system (i.e., China of the past) all resources were          in the post-War world. One among them was
     to be owned and utilised by the state (including             Oskar Lange, the famous Polish economist, who
     labour). Thus, communist China was the purest                after returning home to serve as the Chairman of
     example of such planning. In the case of the Soviet          the Polish State Economic Council (as India has
     Union a little bit of ‘market’ did exist—even after          the Planning Commission) suggested and coined
     the collectivisation of agriculture was enacted by           the concept of ‘market socialism’ in the 1950s. His
     Stalin in 1928 only 94 per cent of Soviet peasants           ideas of market socialism were cancelled by not
     could be included in the process.12 Basic features           only Poland but also by other state economies of
     of such planning are as under:                               the time.14
           (i) Numerical (i.e., quantitative) targets of                The peak of this type of planning was
                growth and development are set by the             reached in China after the Cultural Revolution
                plan. As for example, five lakh tonnes of         (1966–69), which led to an economic slowdown
                steel, two lakh tonnes of cement, 10,000          in the country, which had adopted a soviet-style
                kms of national highways, 5,000 primary           central planning system after 1949. Under Deng
                schools, etc., will be produced/built in          Xiaoping (1977–97), China decentralised a great
                the coming 5 or 6 years.                          deal of economic power with its announcement
          (ii) As the state controls the ownership rights
                                                                    13.   From Poland two great economists oskar lange
                over the resources, it is very much possible              (1904–65) and Michal Kalecki (1899–1970); from
                to realise the above-cited planned targets.               Hungary, William J. Fellner (1905–83), Nicholas
         (iii) almost no role for the market, no price                    Kaldor (1908–86), Thomas Balogh (1905–85) and Eric
                                                                          Roll (1907–95); from post-war Austria ludwig von
                mechanism with all economic decisions                     Mises (1880–1973), Friedrich A. von Hayek (1899–
                to be taken in the centralised way by the                 1992), Fritz Machlup (1902–83), Gottfried Haberler
                state/government.                                         (1900–96) and Joseph A. Schumpeter (1883–1950)
                                                                          [J.K. Galbraith, A History of Economics, Penguin
         (iv) no private participation in the economy,                    Books, london, 1987, pp. 187–90].
                only the state plays the economic role.             14.   It was blasphemous to preach in favour of market in the
           The Command Economies followed this kind                       socialist world at that time—he was not put behind the
                                                                          bars was a great mercy on him. oskar lange towards
     of planning. That is why such economies are also                     the end of his life told Paul M. Sweezy, the most noted
     known as the Centrally Planned Economies—                            American Marxist scholar, that during this period he did
                                                                          not retire for the night without speculating as to whether
       12.    Samuelson, P. A. and Nordhaus, W. D, Economics,             he might be arrested before the dawn (J.K. Galbraith,
              McGraw-Hill Companies Inc., N. York, 2005., p. 591.         A History of Economics, p. 189).