Gosplan

Background

Gosplan, an abbreviation for “Gosudarstvennyi Planovyi Komitet” (State Planning Committee), was the central planning agency in the former Soviet Union. It played a critical role in dictating the economic activities of the Soviet state. Established in 1921 by Vladimir Lenin, it became the backbone of the USSR’s planned economy until the dissolution of the Soviet Union in 1991.

Historical Context

After the Russian Revolution, the Soviet leadership sought to transition from a market-based economy to a planned economy. This shift aimed to eliminate the inherent inefficiencies and inequalities of capitalism. Gosplan emerged as the institutional embodiment of this new economic order, tasked with drawing up comprehensive five-year plans to guide the economic development of the country.

Definitions and Concepts

Gosplan was responsible for creating two types of economic plans:

Five-Year Plans: Long-term plans that set ambitious economic goals for various sectors, including industry, agriculture, and services, to achieve within five years.
Annual Operational Plans: Short-term, specific targets and initiatives designed to ensure the successful execution of the five-year plans.

The agency audited enterprises to ensure they adhered to these plans, adjusting directives as necessary to meet overall economic objectives.

Major Analytical Frameworks

Classical Economics

Classical economics, with its emphasis on free markets and limited government intervention, contrasts sharply with the central planning model adopted by Gosplan. The classical framework would argue against the efficiency and viability of such centralized systems.

Neoclassical Economics

From a neoclassical perspective, the lack of price mechanisms and market incentives in Gosplan’s framework is seen as a flaw that can lead to inefficiencies and resource misallocations.

Keynesian Economics

Keynesian economists might find some common ground with certain aspects of centralized planning, particularly during times of economic downturns. However, they would generally advocate for a mixed economy rather than a fully planned one.

Marxian Economics

Marxian economics would support the concept of a planned economy like the one managed by Gosplan. It aligns with Marxist ideologies that advocate for the abolition of capitalist modes of production in favor of a classless, stateless society.

Institutional Economics

From an institutional economics perspective, Gosplan represents an effort to create economic efficiencies through institutional reforms. The focus would be on how effectively these institutions achieve their goals and how they adapt to changing political and economic conditions.

Behavioral Economics

Behavioral economics would critique Gosplan by focusing on the human elements involved—such as the motivational implications for labor and management when operating under a centrally planned economy as opposed to market-driven incentives.

Post-Keynesian Economics

Post-Keynesians might view Gosplan as an extreme form of state interventionism but generally would advocate for more moderate and pragmatic governmental controls on economic activities.

Austrian Economics

Austrian economists are among the staunchest critics of Gosplan’s methods, citing their belief in the failed potential of economic calculation in socialism to solve the “calculation problem.”

Development Economics

Development economists might study Gosplan’s impact on Soviet economic growth and progress. Analyzing the results could yield insights into the efficacy of central planning in developing economies.

Monetarism

Monetarists would argue that Gosplan fails to consider the importance of monetary policy in controlling inflation and managing economic growth, overly relying on physical planning and allocation.

Comparative Analysis

Comparing Gosplan to other economic planning bodies reveals significant differences in approach and effectiveness. While some countries have adopted central planning with varying degrees of success, the complexities and scale of the Soviet model present unique challenges and lessons.

Case Studies

Examining specific case studies, such as the rapid industrialization under the First Five-Year Plan (1928-1932) or the focus on consumer goods in the later stages, provides insights into Gosplan’s capabilities and limitations.

Suggested Books for Further Studies

“Soviet Planning in Peace and War, 1938-1945” by Mark Harrison
“Soviet Economic Development from Lenin to Khrushchev” by R.W. Davies
“The Soviet System: Economic and Political Institutions” by John M. Montias

Five-Year Plan: A series of nationwide centralized economic goals set for five-year periods in the Soviet Union.
Central Planning: An economic system where decisions about production and investment are embodied in a plan formulated by a central authority.
Command Economy: An economy where the government has substantial, stringent control over the production of goods and services.