Competition. Comparative characteristics of competition and planning mechanisms (the most important)

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Competition. Comparative characteristics of competition and planning mechanisms (the most important)

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36. Comparative characteristics of competition and planning mechanisms

The planned form of the functioning and development of the economy is determined by socialist ownership of the means of production, in contrast to the spontaneity characteristic of capitalism and pre-capitalist formations.

Planned - this is consistency, coordination of economic processes, subordinate to the formation of certain proportions in social production in accordance with the target orientation of its development.

Competition - this is a struggle between producers, between suppliers of goods (sellers) for leadership, for supremacy in the market.

Plannedness arises in embryonic form within the framework of the capitalist enterprise. Under conditions of free competition capitalism, it is in deep contradiction with the anarchy of production on the scale of society. Strengthening the processes of socialization of production - the deepening of the social division of labor, the development of specialization and the formation of an extensive system of organizational and economic relations - makes the individual links of the economy more and more interconnected. From this follows the objective need for the interconnected implementation of economic processes, for the systematic regulation of the national economic structure as a whole. This necessity is intensified at the monopoly stage of capitalism, and especially under conditions of state-monopoly regulation of the economy. However, an insurmountable obstacle remains in the way of comprehensive planning - private ownership of the means of production.

Positive aspects of competition:

1) competition makes you constantly look for and use new opportunities in production;

2) competition requires the improvement of equipment and technologies;

3) competition stimulates the improvement of the quality of goods;

4) competition forces to reduce costs (and prices);

5) competition requires suppliers of goods (sellers) to reduce prices for the offered goods;

6) competition focuses on the range of high-demand goods;

7) competition improves product quality (the customer is always right);

8) competition introduces new forms of management.

Planned regulation presupposes a clear organization of production on the scale of the national economy and in all its links, the establishment of scientifically based standards for the costs and distribution of the social product, the conscious management of structural changes and scientific and technological progress.

Planning plays an essential role in the implementation of the law of saving time and ensuring high rates of economic progress.

Author: Ilyina V.N.

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