Chapter 15.3.

👉The table of contents so far is here.

Chapter 15: Economic Transition Planning

15.3. Transitional approach or Special Economic Zone approach?

During economic transitions, special economic zones are often established, granting specific regions special legal status and implementing different economic systems from other regions. This is often seen in the process of transitioning from a controlled economic system to a free-market economic system. China has utilized this most extensively.

This approach mitigates the economic chaos that often ensues when transitioning economic systems abruptly, and also has the significance of adapting the socio-economic system to the new economic system by first conducting trials in limited areas within the special economic zone.

Theoretically, such special economic zone systems can also be applied when transitioning from a free-market economy to a sustainable planned economy. For example, one could designate certain areas in urban and rural areas as "planned economic special zones" and conduct pilot trials of a sustainable planned economy in these limited areas.

However, regardless of the direction of the special economic zone system, granting special economic privileges to residents and registered corporations in designated areas violates the principle of equality before the law.

In particular, since a sustainable planned economy aims to abolish the monetary system, the unfairness of abolishing the monetary system only within special zones, and the resulting economic disruption, are not considered appropriate.

When transitioning to a sustainable planned economy, a uniform system transition across the entire region should be envisioned, rather than a special zone system. This approach can be called a "transitional approach" in contrast to a "special zone approach." A transitional approach is a method of systematically transitioning the economic system through stages, as we saw previously.

Incidentally, another method contrasted with the "transitional approach" is the "shock approach." This involves an immediate transition to the new economic system without stages, a kind of shock therapy. While there are examples of this being applied to Russia after the dissolution of the Soviet Union, when transitioning to a capitalist market economy, it resulted in significant economic disruption at the expense of citizens' lives.

In this respect, the disruption that would be expected from immediately abolishing the monetary economy would be far greater than that of a rapid shift to a market economy, making such an approach out of the question. Ultimately, a transitional system accompanied by a meticulous economic transition plan is considered to be the most effective way to ensure a smooth transition to a sustainable planned economy.

👉The papers published on this blog are meant to expand upon my On Communism.

Chapter 15.2.

👉The table of contents so far is here.

Chapter 15: Economic Transition Planning

15.2.  Duration of economic transition plans

Generally, a comprehensive transition of an economic system requires a certain amount of time. Therefore, unlike economic plans that are based on a few years, economic transition plans must be gradual and based on a fairly long-term perspective.

Furthermore, it will undoubtedly take an "era" to transition from a capitalist market economy, the ultimate goal of a monetary economy, to a sustainable planned economy, the ultimate goal of which is the complete abolition of the monetary economy, a historic transformation for humankind.

While it is difficult to quantify how long this period will actually take, generally speaking, the longer an economic transition plan will take in proportion to the level of progress made in the capitalist market economy.

Therefore, the more delayed a country's capitalist economic development is and the more likely it is to be classified as a "developing" country by current standards, the shorter the economic transition period. Conversely, the more "developed" a country (i.e., a developed capitalist country), the longer it will take to transition to a sustainable planned economy, becoming a "(reverse) developing" country. Although the length of each stage may vary, the economic transition planning process can be broadly divided into three stages: transitional, initial, and completion, with the stage at which a sustainable planned economy is fully established as the final goal. A "maturity stage" beyond completion is also conceivable, but given the nature of the transition process, it is out of the question here.

The initial transitional period is the very center of the economic transition planning process, as rushing through this phase could lead to economic collapse, so caution is required. It is particularly taboo to hastily abolish the monetary system, which modern "civilized people" have almost unconsciously ingrained in their bodies.

As we will discuss later, one issue at this stage is whether to introduce a regional pilot system such as a special economic zone system. In any event, this transitional period is the most critical stage, holding the key to the success of the economic transition.

The subsequent initial period is the period after the transitional period when the first three-year economic plan is implemented and the sustainable planned economy gets underway. During this period, the transition to a sustainable planned economy is probably still limited worldwide, with some countries still maintaining capitalist market economies, so the transition has not yet been complete.

On the other hand, although this period is the initial stage, insofar as a sustainable planned economy has already been launched, it could also be said that the period of the economic transition plan has passed. However, due to the circumstances mentioned above, the economic transition plan has not yet ended, and it could also be said to be an extension of the plan.

Once this initial stage has passed and a sustainable planned economy has been established worldwide, the completion period will begin. At this stage, the monetary economy will finally be almost entirely abolished worldwide, and the economic transition plan will come to an end.

👉The papers published on this blog are meant to expand upon my On Communism.

Chapter 15.1.

👉The table of contents so far is here.

PART 4: THE TRANSITION PROCESS TO A SUSTAINABLE PLANNED ECONOMY

Chapter 15: Economic Transition Planning

15.1. Overview

So far, we have looked at the details of sustainable planned economies that do not rely on monetary economies. However, in reality, the greatest challenge lies not in the operation of such planned economies themselves, but in the process of abolishing monetary economies and transitioning to sustainable planned economic systems.

Because monetary economic systems have traditionally been taken for granted, regardless of whether they are capitalist or socialist, humanity has never experienced the abolition of a monetary economy. Therefore, how to smoothly abolish a monetary economy is a truly uncharted territory.

That said, within the framework of a monetary economy, the process of transforming one economic system into another—whether the transition to a socialist planned economy following a socialist revolution, or conversely, the shift to a market economy after a de-socialist revolution—is one that many countries experienced in the 20th century.

Although both of these system transitions were solely within the framework of a monetary economy, they are remembered for bringing about considerable socioeconomic turmoil and economic hardship for the masses. Moreover, it is not surprising that there are concerns about the level of chaos that would result from abolishing the monetary economy, which has been taken for granted.

Counting back to the founding of the monetary system in ancient times, this would involve transforming an economic system that has likely continued for thousands of years, and it would certainly be a major transformation in the history of mankind.

For this reason, even if one supports the abolition of the monetary economy in principle, one may be forced to oppose it given the difficulties of the transition process. In fact, even in Russia after the socialist revolution, the most radical theorists envisioned the abolition of the monetary economy, but this did not become part of the economic policy of the revolutionary government, and the monetary economy was retained even after the planned economic system was completed.

Therefore, as an actual economic policy rather than merely an idea, in order to transition to a sustainable planned economy while minimizing the chaos that would accompany the abolition of the monetary economy, it is necessary to plan the transition process itself. This is called an "economic transition plan." It is, in other words, a roadmap for economic transition. This economic transition plan is not an economic plan per se, but a kind of normative program that aims to minimize the socio-economic disruptions that are common during the transition process by explicitly outlining the yearly process of economic transition. 

👉The papers published on this blog are meant to expand upon my On Communism.