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Economic Sector 1960 1967
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Industry and handicrafts 24.4 32.9
Agriculture and forestry 31.8 22.0
Construction 7.6 11.1
Transport and communications 7.6 8.8
Trade 6.5 5.4
Housing 9.2 7.0
Government and other services 12.9 12.8
----- -----
Total 100.0 100.0
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Source: Adapted from U.S. Congress, 91st, 2d Session, Joint
Economic Committee, _Economic Developments in Countries of
Eastern Europe_, Washington, GPO, 1970.

PLANNING

As in all communist states, comprehensive economic planning has been a
basic element of the PCR's dogma. Planning is conceived of as an
indispensable tool for economic development. Traditionally, five-year
and annual plans for all segments and aspects of the economy have been
formulated by a central planning agency with the participation of
economic ministries, trusts, and enterprises. Planning has proceeded
from broadly defined goals set by the PCR to minute instructions for all
economic enterprises. In line with the established priorities, the main
planning effort has been devoted to industry.

The major problem in planning has been posed by the need to balance
supply and demand, not only with regard to the final consumers but also
at all stages of the production process and for each individual
enterprise. This task entails detailed decisions on the allocation of
thousands of different materials, machinery and equipment items,
specialized labor skills, energy, and investment funds. With the
expansion and growing complexity of the economy and, more particularly,
of industry, the balancing task has assumed dimensions that defy
solution by traditional means.

At the same time, the imposition of detailed operational prescriptions
deprived enterprises of the freedom to exercise constructive initiative
and of the flexibility needed to meet unforeseen contingencies. A
failure by an enterprise to fulfill its planned assignment necessarily
produces a chain reaction involving the production programs of
enterprises dependent upon the missing output. Failures of this nature
have been frequent.

The breakdown of the planning mechanism brou