Employment and Planning
The work of Adolph Lowe can be considered as a milestone in the construction of a theoretical framework in which the stability of full employment as well as its attainment become inseparable from the ex-ante planning of sectoral proportions. At the same time, the ex-post planning of the adjustment path is required whenever the initial quantitative assumptions turn out to be incorrect.1 The remarkable characteristic of Lowe’s approach consists in the fact that it permits formulating an argument for planning under conditions of economic maturity. This point is rather important because most works on planning have, so to speak, subsumed the historical fact that socialist planned economies grew out of a social transformation of hitherto “backward” societies. As a result, the emphasis was mainly laid on questions of capital formation in the sense of the mobilization of the existing economic structure in order to produce an altogether different one in a relatively short span of time. The dynamics of sectoral proportions has been analyzed mostly in terms of the speed in which the new structure can be built in a context where the “backward” sector is identified with an unlimited supply of labor.2 Hence, because of the historical link between planned economies and the emancipation from backwardness, intersectoral (Marxian) type models have been produced with the aim of studying issues concerning the possibilities of, and the obstacles to, accelerated accumulation.
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- 1.Adolph Lowe, “A Structural Model of Production,” Social Research 19 (1952);Google Scholar
- 2.Maurice H. Dobb, An Essay on Economic Growth and Planning (London: Routledge & Paul, 1960);Google Scholar
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- 5.Ibid., p. 213.Google Scholar
- 6.Ibid., pp. 220–221.Google Scholar
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