The Socialist countries under consideration have passed through three stages with regard to the method of determining investment projects. Up to about the mid-1950s (1952 in Yugoslavia), investment decisions in practically all their details were made at the central level and imposed on individual enterprises. The decisions were essentially based on overriding macrosocial considerations, with little attention given to efficiency. In fact, the planned economic development by stages left little scope for choice in respect of major investment schemes.
KeywordsInterest Rate Industrial Enterprise Bank Credit Socialist Country Investment Efficiency
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