👉The table of contents so far is here.
Chapter 17: Economic Transition Plan II: Initial Phase
17.4. Establishment of the Economic Planning Conference and Various Enterprise Entities
During the initial phase of the economic transition plan, the Economic Planning Conference—an institution essential for formulating and implementing the First Three-Year Plan (the first step)—will be created, and the enterprise entities that will serve as the agents of the economic plan ("planned enterprise entities") will be established.
This entails the formal launch of the various preparatory organizations that had been set up during the interim period. The planned enterprise entities will formally commence operations, comprising various production business organizations and consumer business cooperatives that serve as the agents of the economic plan.
Simultaneously, the initial phase will see a concentrated effort to establish new "free-production" enterprise entities—such as production business corporations, production cooperatives, and cooperative labor groups—responsible for free production outside the scope of the plan.
In this regard, while many private enterprises under a capitalist economic system take the form of joint-stock companies, such companies and stock markets have no place in a sustainable planned economic system—which presupposes the abolition of the monetary economy—because the practice of raising capital through shares ceases to exist. Consequently, joint-stock companies (as well as other forms of for-profit enterprises) will be simultaneously converted into one of the three aforementioned enterprise forms.
However, since the joint-stock company form remains in place during the interim period while the monetary economy persists, it is desirable to enact transitional legislation allowing enterprises to change their organizational form at their own discretion during this period.
17.5. Launch of the First Three-Year Plan
The final stage of the initial phase of the economic transition plan is the launch of the First Three-Year Plan. This represents the very first step toward a sustainable planned economy—a crucial initial move upon which the success or failure of the planned economy as a whole will hinge.
However, as previously mentioned, the initial phase assumes the continued existence of foreign trade conducted via currency; thus, the First Three-Year Plan will incorporate such trade plans. In this respect, it possesses characteristics distinct from the economic plans of the "completion phase"—the stage reached after the economic transition plan concludes. In this sense, the first three-year plan retains elements of a transitional phase; depending on international developments, it is possible that trade planning measures may persist into the second and subsequent three-year plans.
In any event, the first three-year plan represents the culmination of the initial phase, serves as a driving force toward the realization of a sustainable economic plan, and establishes a precedent for future economic planning; therefore, it must be formulated with care and precision.
👉The papers published on this blog are meant to expand upon my On Communism.
