The administrative-command economy has long existed in the USSR, as well as in some countries of the eastern part of Europe. The main distinguishing feature of such a state system is the absolute power of the government and its influence in all spheres of society. Of course, officially all property belonged to society, and everything was in the hands of the population.
The state in the conditions of a command-administrative economy sought to achieve centralized influence, directive planning, and in some cases it came to despotism. In such circumstances, the owners of enterprises and organizations were deprived of the opportunity to function independently, because they completely depended on the state administration apparatus . If we talk about market relations, then supply and demand are formed not under the influence of free competition, but at the request and order of the ruling party. And this is not surprising, since regulatory authorities are engaged in the distribution and marketing of finished goods.
The administrative-command economy is organized in such a way that power is concentrated as much as possible in the hands of officials. And this, in turn, significantly exacerbates bureaucracy. Lack of competition and excessive pressure from government bodies impedes the development of industry, which leads to a decrease in production efficiency. Absolute monopolization explains the decline in sales and lack of products. Tension is growing in society due to the total shortage of food, clothing and other necessities.
The production plan was drawn up in advance directly by authorized state bodies. The government believed that trusting such a complex settlement mechanism to enterprise managers was irresponsible and impractical. The biggest mistake of the bodies of planned development is the principle of their calculation, since the estimate of production came from the established minimum needs of the population. It was supposed in advance that the person would not take the goods more than he needed. Although details and contingencies should have been present, perhaps this would improve the well-being of citizens.
The administrative-command economy also suppressed the activities of the media. During these times, there was strict censorship, ignoring which threatened not only responsibility in the form of imprisonment, but also threatened the life of a daredevil. The concept of freedom of speech did not exist then, and only material approved by the controlling services was given to the press.
The command and administrative economy is a system with both positive and negative sides. The disadvantage of this structure is primarily in the absence of development of the production sector, which significantly reduces performance indicators. In addition, the centralization of power lengthens the process of making any decision regarding the adjustment of the preliminary plan. As long as the request reaches the highest authority, then a review will be carried out and an official order will be issued with the acceptance of the proposal or rejection, a lot of time will pass.
However, the command economy has significant advantages. The government managed to achieve strict observance of the established disciplinary norms, because everyone knew what the violation would be. In addition, every citizen of the country could be confident in their own future. According to the slogans of that time, labor ennobled man. A working person will always be provided with food and housing, and parasites were usually re-educated.