The Soviet command economy, also known as the planned economy, was a economic system used in the Soviet Union from the 1920s to the 1980s. It was characterized by a centralized planning system, state ownership of the means of production, and a hierarchical decision-making structure.

Key features of the Soviet command economy:

1. Central planning: The government made all economic decisions, setting targets, allocating resources, and determining production levels for industries and enterprises.
2. State ownership: The state owned the majority of the means of production, including factories, land, and resources.
3. Command and control: The government exercised direct control over the economy through a network of ministries, departments, and committees.
4. Planned economy: The government planned and allocated resources to achieve specific economic goals, such as rapid industrialization and growth.
5. Lack of market mechanisms: The absence of market mechanisms, such as prices and profits, meant that incentives for innovation and efficiency were limited.

Impact on economic development:

1. Rapid industrialization: The Soviet command economy enabled rapid industrialization, with significant increases in steel production, coal mining, and other heavy industries.
2. High growth rates: The Soviet economy experienced high growth rates in the 1950s and 1960s, with an average annual growth rate of around 5%.
3. Increased social welfare: The Soviet government invested in social welfare programs, including education, healthcare, and social services, which improved living standards for many citizens.
4. Limited efficiency: The command economy’s lack of market mechanisms and incentives for innovation led to inefficiencies and waste in resource allocation.

Impact on social development:

1. Social equality: The Soviet government emphasized social equality, with a focus on reducing income inequality and promoting social mobility.
2. Limited individual freedoms: The Soviet government’s strict control over the economy and society limited individual freedoms, including speech, assembly, and travel.
3. Corruption and nepotism: The command economy’s centralized decision-making structure created opportunities for corruption and nepotism, which affected the distribution of resources and wealth.
4. Lack of consumer choice: The Soviet government’s control over the economy meant that consumers had limited choice in terms of goods and services.