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ATIONAL ECONOMIC PLANNINGATIONAL ECONOMIC PLANNING:-RESENTED BY:-RESENTED BYASUMI AMATYAASUMI AMATYA EEPANNITAEEPANNITAMOHANTYOHANTY
ARIM DUMBAARIM DUMBARVIND KUMARRVIND KUMAR
( gainst)
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IT IS THE STATE OR IT IS THEMARKET
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!S IT THE STATE !S IT THE STATE
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HISTORY OF STATEECONOMY
q
qSoviet union (1922)qqChina (1949)q
qIndia (1947)qqIraq (1979)
q
:te e co n o m y sta rte d in co u n trie s lik e
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State economy is aneconomic system in which
central government makesall decisions on theproduction andconsumption of goods andservices.
IS IT THE SATE
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An state economy where
supply and price areregulated by thegovernment rather thenmarket forces.
IS IT THE SATE
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In this state /governmentcontrols all the majorsectors of economy andformulates all decisionsabout the use ofresources and distribution
of output.
IS IT THE SATE
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q
qqCommand economy.qqCentrally planned economy.
qqControl economy.
IS IT THE SATE
t is most extensive form is:eferred to as
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q
qqState - owned enterprises .qqPrivate enterprises directed by
state.qqCombination of both
enterprises.
IS IT THE SATE
:la n n e d e co n o m y co n sist o f
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Advantages of stateeconomy
stability.
Meeting collective objective byindividual sacrifice.Comparison with capitalist
corporations.Possible advantages over mixed
economies.
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Disadvantages of stateeconomy
Inefficient resource distribution.Can not determine as well as
prioritize social goods better thenthe market can..Lack of incentives for innovation.
Suppression of economic democracyand self-management.
Corruption .
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!S IT THE MARKET !S IT THE MARKET
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It allocate resources based onlyon the interaction of market
forces like:qSupply.q
qDemand .
IS IT THE MARKET
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ADVANTAGES OF MARKETECONOMY
Competition between differentfirms leads to increased
efficiency.Foreign investment is attracted
as word gets out about the
new opportunities for earningprofit.
Most people work harder.
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The forces of production, or atleast those involved in making
those things people withmoney at home or abroad wantto buy, undergo rapiddevelopment.
A great variety of consumer
goods become available for
those who have the money to
ADVANTAGES OF MARKETECONOMY
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The size, power, and cost of the
state bureaucracy is
correspondingly reduced.
ADVANTAGES OF MARKETECONOMY
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DISADVANTAGES OF MARKETECONOMY
Distorted investment priorities.Worsening exploitation of
workers.
Overproduction of goods.
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Unused industrial capacity.
Growing unemployment.
Growing social and economicinequality.
DISADVANTAGES OF MARKETECONOMY
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h a r a c t e r i s t i c s o f M a r k e th a r a c t e r i s t i c s o f M a r k e tS y s t e m sy s t e m sREEDOM OFREEDOM OFENTERPRISENTERPRISE& CHOICECHOICE
PRIVATERIVATEPROPERTYROPERTY
OLE OFOLE OF-ELF INTERESTELF INTEREST COMPETITIONOMPETITION
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MARKETSARKETS& PRICESPRICES
REEDOM OFENTERPRISE& CHOICEPRIVATERIVATEPROPERTYROPERTY
,CTIVE BUTCTIVE BUT,IMITED,IMITEDGOVERNMENTOVERNMENT
OLE OFOLE OF-ELF INTERESTELF INTEREST COMPETITIONOMPETITION
h a r a c t e r i s t i c s o f M a r k e th a r a c t e r i s t i c s o f M a r k e tS y s t e m sy s t e m s
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. reedom of Enterprisereedom of Enterprise ( ) &usiness Choice) &usiness Choice,an move within the economy to any job to, .uy or sell property or start a business
. rivate Propertyrivate Property he right of individuals to.xercise control over things owned
. -ole of Self Interest-ole of Self Interesteachproducer r consumer ries to do what is est for themselvesest for themselves .
--Martart?
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.4 Competitionompetition economic rivalry of a large& .[
number of buyers sellers central mechanism of]market economy &onopolies become fat unresponsive&onopolies become fat unresponsive to
(consumers &igher prices fewer choices&igher prices fewer choices).
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. &arkets prices&arkets prices . .arkets bring the buyers and sellers into contact( .rices send signals Like HUGE NEON BILLBOARDS igh pricesigh pricessendignals to ncrease productionncrease production nd for other producers
onter the marketnter the market .ow pricesow prices end signals to ecrease productionecrease productionnd for producers to xit the marketxit the market .
. imited Government Interventionimited Government Intervention .n the economyhe role of government is one of .aissez faire.aissez faire [ andsandsffff ]
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The East
The soviet union government refused to letsoviet industries produce enoughconsumer goods.
For Eastern Europeans even food andclothing were source.
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The West
The western nations grew richer,Russia and its satellites grew
poorer.Westerners could buy a variety ofgoods.
The west spent more money on
science and technology andconsumer goods.
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Supply and demand
The forces that rule the market are:supply demand and competition.
The forces decide what products willbe made who will make them and
what their price will be.
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Who won the cold war?
The west won the cold war becausethey spent a lot of their money in
technology and providing goodsfor people. But the soviet unionused their money on farmequipment military weapons and
tractors.
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T IS THE STATE OR THE MARKETT IS THE STATE OR THE MARKET
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ECONOMIC CYCLE
http://www.wikinvest.com/image/Econ1.jpghttp://www.wikinvest.com/image/Econ1.jpg8/14/2019 Nep Presentation in Dec. 30th2
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PRESENT U.S.A G.D.P
: .Source world Bank
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PRESENT U.S.A G.D.P
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YEAR MARCH JUNE SEP DEC AVERAGE
2009 -3.30 -3.80 -2.30 -3.13
2008 2.00 1.60 0.00 -1.90 0.43
2007 1.40 1.90 2.70 2.50 2.13
2006 3.00 3.00 2.20 2.40 2.65
an 1st 006 to.ov 25th 2009
PRESENT U.S.A G.D.P
=ource bureau of economicanalysis
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PRESENT CHINA G.D.P
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YEAR GDP INDEXIN REALTERMS
GDP Rmbbillion atcurrentprices
GDPPERHANDRmb.
REALANNUALGROWTHRATE (%)
2009 21718 7.7
2008 30067.0 9.0
2007 24661.9 11.4
2006 21087.1 16084 11.1
2005 18386.8 14040 9.9
PRESENT CHINA G.D.P
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PRESENT BRAZIL GDP
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YEAR MARCH JUNE SEP DEC. AVERAGE
2009 -1.77 -1.16 - - -1.47
2008 6.12 6.20 6.81 1.27 5.10
2007 5.30 5.85 5.38 6.14 5.67
2006 4.39 2.19 4.68 4.65 3.98
:OURCE IBGE an 1st .6 to Nov 26th 09
PRESENT BRAZIL GDP
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PRESENT RUSSIA GDP
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YEAR MARCH JUNE SEP DEC. AVERAGE
2009 -9.80 -10.90 -8.90 -9.87
2008 8.70 7.50 6.00 1.20 5.85
2007 7.50 8.00 7.70 9.00 8.05
2006 6.60 7.60 7.80 8.50 7.63
PRESENT RUSSIA GDP
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!!!ONCLUSION !!!ONCLUSION
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