Chapter 18

👉The table of contents so far is here.

Chapter 18: Economic Transition Plan III: Completion Phase

The final stage of the economic transition plan is the completion phase. While this signifies the stage at which the system of a sustainable planned economy is fully established, the question remains: what constitutes "completion"?

Theoretically, the completion phase is the stage where all the institutions previously outlined are in place and subsequent economic plans (from the second phase onwards) are formulated and implemented smoothly. However, the minimum necessary conditions for declaring the system established can be summarized as follows:

(a) Establishment of a global economic plan

Since "sustainability" in a sustainable planned economy precisely refers to the "ecological sustainability of the global environment," the completed form of such an economy is a global-scale economic planning system centered on a World Commonwealth Economic Planning Organization.

Therefore, a prerequisite for completion is the founding of a "World Commonwealth" (WoCom)—a new transnational governance body to replace the United Nations—and the establishment of the WoCom Economic Planning Organization as its specialized institution. The system reaches its completed form only when successive economic plans are formulated and operated for each constituent Zone based on the global economic plan devised by the WoCom Economic Planning Organization.

(b) Establishment of a purely voluntary labor system

The fundamental essence of a sustainable planned economy lies in production and labor that do not rely on a monetary economy; thus, a system of unpaid, purely voluntary labor must be established. While this process begins during the initial phase—when the monetary system is abolished—it will likely take an entire era for the system to become fully entrenched and established.

During this process, certain occupations that previously relied on the wage system under a market economy may face a form of attrition and disappear. To compensate for this, necessary measures will include introducing a system of occupational allocation based on aptitude, promoting automation through robots and AI, and—in cases where such automation is difficult—designating the affected occupations as mandatory labor for all citizens on a provisional basis. 

(c) Establishment of a system for the free provision of goods and services

Under a sustainable planned economy—characterized by the abolition of wage labor and the separation of labor from daily life—it is necessary to establish a system for the free provision of the goods and services that sustain daily existence. While this system will begin operating during the initial phase, certain flaws—such as shortages of goods or distribution disruptions—may arise at that stage. By the time the system reaches maturity, however, such flaws must be rectified, ensuring the establishment of a smoothly functioning free-provision system.

In the interim, the system may be supplemented by customary practices of free exchange via barter occurring outside the free-provision framework; the sustainable planned economy does not classify such practices as an illegal "black market," and their continued existence alongside the formal system—as a legitimate free-exchange economy—is permitted even after the system has fully matured.

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

Chapter 17.4.＆17.5.

👉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.