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Soc|a||st|c attern of Lconomy

SoclallsLlc paLLern of Lhe economy ls Lhe paLLern whlch ls based on Lhe prlnclples of soclallsm
Soclallsm has no flxed deflnlLlon buL Lhe guldlng prlnclples are flxed Soclallsm ls based upon Lhe
need Lo reduce Lhe dlsparlLles beLween Lhe 'haves' and 'havenoLs' Lo Lhe mlnlmum Soclallsm
baslcally focuses on adopLlng Lhe pollcles whlch prevenL Lhe concenLraLlon of resources and wealLh
ln Lhe hands of few people unllke Lhe CaplLallsL aLLern of Lconomy SoclallsLlc aLLern focuses on
Lhe welfare of Lhe general publlc lnsLead of focuslng on Lhe proflL generaLlon SoclallsLlc paLLern
sLresses more on Lhe producLlon of goods and servlces based on Lhelr uLlllLy Lo Lhe socleLy 1hus Lhe
producLlon ln a soclallsLlc paLLern of economy ls more planned and coordlnaLed lL doesn'L face Lhe
regular buslness cycle as faced by Lhe caplLallsLlc economy
1he ownershlp of Lhe means of producLlon varles ln dlfferenL soclallsLlc Lheorles lL can elLher be
based on Lhe publlc ownershlp by Lhe sLaLe auLhorlLy dlrecL ownershlp by Lhe users of Lhe
producLlve properLy by Lhe formaLlon of worker cooperaLlves or commonly owned by Lhe whole of
Lhe socleLy and managemenL ls delegaLed Lo Lhe people who use Lhe means of producLlon
Soc|a||st econom|c p|ann|ng
Lconomlc plannlng ls a mechanlsm for Lhe allocaLlon of economlc lnpuLs and declslonmaklng based
on dlrecL allocaLlon ln conLrasL Lo Lhe markeL mechanlsm whlch ls based on lndlrecL allocaLlon An
economy based on economlc plannlng approprlaLes lLs resources as needed so LhaL allocaLlon
comes ln Lhe form of lnLernal Lransfers raLher Lhan markeL LransacLlons lnvolvlng Lhe purchaslng of
asseLs by one governmenL agency or flrm by anoLher ueclslonmaklng ls carrled ouL by workers and
consumers on Lhe enLerprlselevel
Lconomlc plannlng ln soclallsm Lakes a dlfferenL form Lhan economlc plannlng ln caplLallsL mlxed
economles ln Lhe former case plannlng refers Lo producLlon of usevalue dlrecLly (plannlng of
producLlon) whlle ln Lhe laLLer case plannlng refers Lo Lhe plannlng of caplLal accumulaLlon ln order
Lo sLablllze or lncrease Lhe efflclency of Lhls process
Soc|a||st econom|c theor|es
O ub||c Lnterpr|se Centra||y |anned Lconomy ln whlch all properLy ls owned by Lhe SLaLe
and all key economlc declslons are made cenLrally by Lhe SLaLe eg Lhe former SovleL unlon
O ub||c Lnterpr|se StateManaged Market Lconomy one form of markeL soclallsm whlch
aLLempLs Lo use Lhe prlce mechanlsm Lo lncrease economlc efflclency whlle all declslve
producLlve asseLs remaln ln Lhe ownershlp of Lhe sLaLe eg soclallsL markeL economy ln
Chlna afLer reform
O A m|xed economy where publlc and prlvaLe ownershlp are mlxed and where lndusLrlal
plannlng ls ulLlmaLely subordlnaLe Lo markeL allocaLlon Lhe model generally adopLed by
soclal democraLs eg ln LwenLleLh cenLury Sweden
O ub||c Lnterpr|se Lmp|oyee Managed Market Lconom|es anoLher form of markeL soclallsm
ln whlch publlcly owned employeemanaged producLlon unlLs engage ln free markeL
exchange of goods and servlces wlLh one anoLher as well as wlLh flnal consumers eg mld
LwenLleLh cenLury ?ugoslavla
O ub||c Lnterpr|se art|c|patory |ann|ng an economy feaLurlng soclal ownershlp of Lhe
means of producLlon wlLh allocaLlon based on an lnLegraLlon of decenLrallzed democraLlc
plannlng An lnclplenL hlsLorlcal forebear ls LhaL of CaLalonla durlng Lhe Spanlsh revoluLlon
Soc|a||st|c pattern of economy |n Ind|a
1here are Lwo meLhods for brlnglng abouL such a paLLern llrsL force can be used as ls done ln
communlsL counLrles Secondly by persuaslon people can be won over Lo accepL Lhls paLLern lndla
has accepLed a democraLlc form of CovernmenL So force cannoL be used Cur
counLry paLLern cannoL be of Lhe communlsLlc Lype 1he reason ls slmple We aLLach qulLe as much
lmporLance Lo Lhe lndlvldual as Lo Lhe group Cur counLry can have only democraLlc soclallsm
uemocracy and soclallsm are noL opposed Lo each oLher 1hey can boLh go hand ln hand ln such
a socleLy Lhere wlll be soclallsm as well as lndlvldual llberLy lL ls pracLlcally qulLe sound Such
a paLLern comblnes Lhe vlrLues boLh of democracy and soclallsm
ln urban areas Lhe plan of progresslve naLlonallzaLlon musL be followed 1hls wlll brlng equallLy ln
lncomes 1he rlch musL be made Lo pay more Laxes So Lhrough a wellplanned sysLem of LaxaLlon
dlsparlLles should be removed Lvery care should be Laken Lo see LhaL Lhe producLlon gradually
CooperaLlon ls Lhe backbone of plannlng ln Lhe rural areas LxperLs are of oplnlon LhaL our land
problem can be solved only Lhrough a wlde appllcaLlon of cooperaLlve farmlng 1hls ls Lhe only way
of brlnglng abouL a soclallsLs paLLern of economy or socleLy ln Lhe vlllages A celllng on landholdlng
musL be lmposed Surplus land should be glven Lo Lhe anchayaL Lo be culLlvaLed by Lhe landless

lL may also be added here LhaL cooperaLlve farmlng and collecLlve farmlng are Lwo dlfferenL Lhlngs
ln collecLlve farmlng Lhe farmer ls reduced Lo a wage earner Pe en[oys no rlghLs of ownershlp on
land 8uL ln cooperaLlve farmlng Lhe farmer remalns Lhe owner of hls land Pe geLs a share ln Lhe
crop ln proporLlon Lo hls land
lurLhermore Lhe vlllage anchayaL should be glven execuLlve and flnanclal powers 1hey should be
formed Lhrough elecLlons So Lhe admlnlsLraLlon wlll be decenLrallzed 1hls wlll brlng self
governmenL Lo Lhe rural areas 1he governmenL would only gulde Lhem from a dlsLance lL wlll noL
lnLerfere wlLh Lhelr dayLoday worklng We are happy Lo noLe LhaL Lhe governmenL ls already Laklng
urgenL sLeps ln Lhls dlrecLlon now under a law elecLlons Lo Lhe vlllage anchayaL are Lo be held
regularly 1hey wlll noL be allowed Lo remaln dlssolved or superseded
We can safely conclude from Lhe above accounL LhaL Lhe success of Lhe soclallsLlc paLLern would
depend on Lwo Lhlngs on Lhe one hand upon Lhe success of Lhe anchayaL 8a[ and on Lhe oLher on
cooperaLlve farmlng ln recenL Llmes Lhe llfe of Lhe naLlon has been dlsLurbed by frequenL
ouLbursLs of vlolence 1hls comes ln Lhe way of democraLlc soclallsm lL musL be puL down
CorrupLlon and Lhe lack of a sense of responslblllLy on Lhe parL of Lhe governmenL offlcers are oLher
serlous obsLacles ln Lhe way PonesL and slncere workers are needed Lo make soclallsm a reallLy
uesplLe all Lhls Lhe counLry has been marchlng of Lhe road Lo soclallsm under Lhe leadershlp of laLe
Mrs Candhl our beloved rlme MlnlsLer Lhe counLry Look rapld sLeps Lowards Soclallsm 8anks
were naLlonallzed rlvy urses were abollshed Coal mlnes were Laken over by Lhe CovernmenL and
SLaLe Lradlng ln food gralns was lnLroduced lnequallLles have been reduced Lo some exLenL now
Lhere ls sLress on Lhe developmenL of coLLage lndusLrles LveryLhlng posslble ls belng done for Lhe
weaker secLlons of socleLy lndla ls well seL on Lhe road Lo soclallsm desplLe Lhe presenL sLress on
prlvaLlzaLlon and Lhe cruclal role LhaL has been chalked ouL for mulLlnaLlonals

Cr|t|c|sm of soc|a||st econom|es
CrlLlclsm of soclallsL economlcs comes from markeL economlsLs lncludlng Lhe classlcal neoclasslcal
and AusLrlans as well as from some anarchlsL economlsLs 8esldes Lhls some soclallsL economlc
Lheorles are crlLlclzed by oLher soclallsLs LlberLarlan soclallsL muLuallsL and markeL soclallsL
economlsLs for example crlLlclze cenLrallzed economlc plannlng and propose parLlclpaLory
economlcs and decenLrallzed soclallsm
MarkeL economlsLs generally crlLlclze soclallsm for ellmlnaLlng Lhe free markeL and lLs prlce slgnals
whlch Lhey conslder necessary for raLlonal economlc calculaLlon 1hey also conslder LhaL lL causes
lack of lncenLlve 1hey belleve LhaL Lhese problems lead Lo a slower raLe of Lechnologlcal advance
and a slower raLe of growLh of Cu