👉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.
