The concept of state economy includes, in addition to direct state regulation, the principles of full planning and a fairly rigid distribution. In general, when planned in the economy, the distribution of resources - any: material, financial, labor - is carried out exclusively centrally under the strict control of the state and ensures stable production and logistics chains throughout the country. For several decades (and to some extent quite successfully!) The economic mechanisms developed in the Soviet Union served as a good example.
The distribution of labor resources in a planned economy
"Cadres decide everything!" Over the years, this slogan has not lost its relevance. Indeed, the key to the success of the enterprise in a significant proportion is the skill level of its employees. However, educational institutions providing vocational training and retraining in the specialties involved in one enterprise, geographically can be located very far from each other. In a planned economy, in order to achieve a normal supply of qualified personnel, the following stages are implemented:
- HR planning by industry sectors;
- planning of training and retraining in necessary specialties in relevant educational institutions;
- subsequent distribution.
In the economy, this is a guarantee that for the planned future (short-, medium- or long-term) enterprises of a particular industry will be provided with qualified personnel and the necessary labor resources.
Distribution of material resources
The key to the stability of the supply of material resources in the economy is their distribution in a centralized way on the basis of a consolidated plan developed at the level of a single governing body. The formation of rigid chains of interaction between the supplier of materials and their consumers takes place over a sufficiently long period. Ideally, this should contribute to the absence of a shortage of materials and ensure the continuity of the production process. In reality, a whole series of factors are not going anywhere that lead to a possible failure in the entire supply chain (the same human error in logistics, for example).
Allocation of financial resources
In the state economy, it is assumed that the main share of the profits from the activities of all enterprises is controlled by their main and sole owner - the state, directing the main financial flows in one direction or another. In economics, this distribution is as follows:
- the state makes a decision on the basis of financial activities and withdraws part of the profit at its discretion for further disposal;
- the state plans for the long term the development of certain industries in accordance with the adopted strategy of socio-economic development;
- the state draws up a plan of investment flows.
The result of the activity is the direction of financial resources in accordance with the adopted plans. In this case, the state distributing the economy is line ministries and departments. They are responsible for the development of a particular industry.
Resource Allocation in a Market Economy
The market economy differs from the planned one in that the main regulatory mechanism in it is supply and demand for certain goods on the market. Accordingly, any centralized distribution in the market economy of any resources is absent as a fact. The enterprises build their local production plans after researching the proposed market for manufactured products.
After the planned volume of output is determined, the need for labor, material and financial resources is calculated and the possibilities of attracting them are determined. As a result, certain chains of interaction with suppliers and contractors are built. They can function both for a long period and for only one production cycle. In the case of loss of a link due to objective circumstances, its replacement is carried out at a very, very fast pace.
On the one hand, such a system seems quite flexible and optimal, but it can lead to an imbalance in the development of sectors of the country's economy as a whole.
