I’ve just heard this from my cousin about how countries like China and Cuba implement these ‘5 YEAR PLANS’ For economic growth? What excatly are they, who invented them and do they work? Personally I am skeptical about such ideas as I can’t plan anything!
That’s a socialist economy for you. Centrally planned, with a master plan that is devised every 5 years. Based on data collected from around the country. Differenent bureaus and ministries decide what should be produced, what raw materials they should get, etc. A pretty inefficient system.
China still has 5 year plans, but nowadays the plan is basically focused on government spending. IIRC about 20% of the Chinese economy is the old style state owned enterprises, and the proportion of the economy they represent continues to shrink. Most of these state owned enterprises no longer produce goods according to the 5 year plan but according to the free market.
China essentially now has a capitalistic economy, but still has holdovers from the central planning stage.
What does IIRC mean?
If I recall correctly, it means “if I recall correctly”.
Just ask the Soviet Union how well central planning works for economics…
Why do such things if they don’t work is seems to me that they don’t even know basic economics?
Should of said:
Why do such things if they don’t work? It seems to me that they don’t know basic economics?
Well, they pretty much proved that centrally planned socialist economics was not an efficient method.
Comrades! I am pleased to announce that, under the support and guidance of our Great Leader Cecil and the Straight Dope Science Advisory Board, we have surpassed all planned post quotas over the former Five Year period. Let us thank Comrade Cecil for his inspired leadership which has made all this possible!