What were the main features of the Soviet planned economy?

The Soviet planned economy was characterized by central government control over all economic activities, with the state owning the majority of industries. This system relied on resource allocation through centralized planning, which aimed to achieve specific economic goals set by the government.

Central government control

In the Soviet Union, the government had complete authority over economic decision-making. This centralization of power allowed for the implementation of policies and directives to guide the economy towards desired outcomes.

State ownership of industries

The state owned and controlled the means of production in key industries, such as energy, manufacturing, and infrastructure. This state ownership ensured that the government could direct resources to meet the needs of the population and prioritize industrial development.

Resource allocation through centralized planning

Gosplan, the Soviet Union's central planning agency, was responsible for creating detailed economic plans that outlined production targets, resource allocation, and distribution quotas. This centralized planning system aimed to coordinate the activities of various sectors to achieve overall economic growth.

Economic impact

The Soviet planned economy led to rapid industrialization and economic growth, but it also resulted in inefficiencies, shortages, and lack of consumer choice. The focus on heavy industry and military production often came at the expense of consumer goods and quality of life.

Societal impact

The command economy of the Soviet Union had a significant impact on society, with the government controlling employment, wages, and access to goods and services. This centralized system limited individual autonomy and innovation, leading to a lack of economic diversity and technological development.