Mueller - Chapter 04 | eBooks | Non-Fiction

Mueller - Chapter 04

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Party Rule in the Enterprise

The political control of the economy by the party and the plan, which in turn received its direction from the central committee of the SED (Socialist Unity Party of Germany), constituted the key difference between market and planned economy. The 'ideological work' undertaken by the party organization of the enterprise might appear as a completely superfluous task when seen from the perspective of the market economy. However, production in the planned economy was not separate from the state, and non-economic considerations, such as political control, social redistribution, and military strategies, were inseparably bound with productive aims. The ideological monopoly of the Communist Party stipulated state property and state monopoly over the economy, which in turn required bureaucratic control and coordination and the abolition of the market (Kornai 1992: 360).

Party Rule in the EnterpriseThe political control of the economy by the party and the plan, which in turn received its direction from the central committee of the SED (Socialist Unity Party of Germany), constituted the key difference between mark
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