@marinus18
You have a very different view from mine then. From everything I know communist planned economies have never worked right. That’s the reason China is doing much better for itself now, they replaced the planned communist economy with a market economy based on supply and demand, and just kept the one party dictator arrangement on top.
Neither of that is true. Planned economies have worked, the Soviet-Union was the world’s second largest economy throughout it’s existence. It managed to surpass Germany in that which is something the Russian empire never did.
Also China’s economy is still very centrally planned with massive investments, production quota’s and deliberate allocation of capital. The central planning of China is still there, they just build a market economy on top of it. More improtantly though they imported western tech and started exporting and offering themselves for cheap labor by foreign capitalists. They also started modernizing via massive state investments in infrastructure and crucial industry. It was done via a 5 year plan but in a slightly more hands off way, GDP growth was mandated and so targets had to be met.
China has a capitalist non-market economy in many factors. The economy of South-Korea is very similar to China’s, more similar than North-Korea’s is. South-Korea is also a very centrally ran economy with the megacorps being given all kinds of special favors and their day to day operations are closely monitored. This is why it grew so fast during it’s dictatorship cause the dictator made it grow and had the power to crush anyone who objected.
When it comes to economies it’s actually the opposite and no true market economy has ever worked. 1990’s Russia was the closest thing to it and it was a disaster. The Soviet economy which had problems but was functional was destroyed and nothing took it’s place. All successful “capitalist” economies were build by planning, regulation, subsidies and other such things. Germany’s economy was very strictly controlled, the British economy was closely tied to the aristocracy and regulations of land, France’s economy was very deliberately build with large investments and the US economy was build in a very similar way.
The Soviets when they were industrializing were very much taking Germany’s industrialization as a model though they pushed it a step further. And, it worked. They did duplicate Germany’s success and even surpassed them. The idea that you can surpass 1930’s Germany with an economic system that “doesn’t work” just makes no sense on any level.
The idea that China replaced a non working central economy with a working capitalist one is a gross oversimplification of a very complex reality. If central planning doesn’t work then it makes no sense that the countries to rule are the ones with strong centralized governments but that is the reality. China’s strong centralized government is a big reason it was able to make the investments to make it grow. It also allowed it to take advantage of foreign capital without becoming subservient to it like many other nations.
Building an economy doesn’t just mean letting markets work and then everything will happen by itself. It takes work, good governance, imports/exports, luck, an effective bureaucracy and much, much more.