Communist Planning versus Rationality: Mathematical Economics and the Central Plan in Eastern Europe and China

This book explores the concept of "optimal planning" in Soviet-type societies, which was based on the theory of "rational management" and sought to modernize the planned economy. The authors trace the rise and fall of this research program in eight Eastern European countries, arguing that it was doomed to fail due to its reliance on mathematical models and lack of rejection of optimal planning as "computopia." However, the book leaves room for future generations to experiment with Big Optimal Plans based on artificial intelligence and machine learning.

Format: Hardback
Length: 424 pages
Publication date: 15 May 2022
Publisher: Lexington Books

This comprehensive volume delves into the core principles of central planning, a fundamental aspect of political economy in societies akin to the Soviet model. It revolves around the concept of "optimal planning," which held great promise for a profound modernization of the Stalinist-style verbal planning approach. Fueled by cybernetic dreams in the 1950s and aligned with the strategic objectives of communist leaders during the Cold War, optimal planners presented a solution to the recurring crises plaguing the planned economy. At the same time, their planning endeavors showcased the pride of rational management and scientific superiority over the West. The authors meticulously trace the rise and decline of this research program across eight Eastern European countries, including the Soviet Union and China, exploring the reasons behind its eventual failure and the remarkably slow process of its demise.

The theorists of optimal planning played a significant role in revitalizing mathematical culture within economic research in the communist countries. This, in turn, led to a neoclassical shift in economics across the ex-communist world. However, by not outright rejecting optimal planning as a form of "computopia," there remains ample room for future generations to explore and experiment with new iterations of Big Optimal Plans. These plans, now grounded in artificial intelligence and machine learning, hold the potential to shape the future of economic planning and governance.

Weight: 794g
Dimension: 228 x 160 x 36 (mm)
ISBN-13: 9781793631770