The Theory of the Socialist Enterprise

Abstract

The enterprise constitutes the basic productive unit in the process of social production, of which the dynamic elements are initiative and organization. The degree to which given resources of knowledge, information, materials, and manpower can be mobilized for the production of goods and services depends on the potential initiative and the state of organization. In a centrally-planned socialist economy the initiative for forming new branches of production and new enterprises rests with the chief planning institution, which, on its projections of consumption over a specified period, will decide on the structure of the productive capacity required. Enterprises established by virtue of a planning decision justify their existence as the instruments through which the planned future development of the country is achieved.

This paper was not available at the Conference; the discussion was based upon a verbal presentation by Professor Lipinski (Editor’s note).