2. Command (planned) economies

Ex. 1. Learn the pronunciation:

feature [ ] obsolete [ ]

resources [ ] advantage [ ]

obviously [ ] queue [ ]

receive [ ] enough [ ]

amount [ ] abandon [ ]

purchase [ ] precisely [ ]

Ex. 2. Read and translate the text:

Planned economies

Planned economies are sometimes called "command economies" because the state commands the use of resources (such as labour and factories) that are used to produce goods and services as it owns factories, land and natural resources. Planned economies are economies with a large amount of central planning and direction, when the government takes all the decisions, the government decides production and consumption. Planning of this kind is obviously very difficult, very complicated to do, and the result is that there is no society, which is completely a command economy. The actual system employed varies from state to state, but command or planned economies have a number of common features.

Firstly, the state decides precisely what the nation is to produce. It usually plans five years ahead. It is the intention of the planners that there should be enough goods and services for all.

Secondly, industries are asked to comply with these plans and each industry and factory is set a production target to meet. If each factory and farm meets its target, then the state will meet its targets as set out in the five-year plans. You could think of the factory and farm targets to be objectives which, if met, allow the nation's overall aim to be reached.

A planned economy is simple to understand but not simple to operate. It does, however, have a number of advantages.

• Everyone in society receives enough goods and services to enjoy a basic standard of living.

• Nations do not waste resources duplicating production.

• The state can use its control of the economy to divert resources to wherever it wants. As a result, it can ensure that everyone receives a good education, proper health care or that transport is available.

Several disadvantages also exist. It is these disadvantages that have led to many nations abandoning planned economies over recent years:

• There is no incentive for individuals to work hard in planned economies.

• Any profits that are made are paid to the government.

• Citizens cannot start their own businesses and so new ideas rarely come forward.

• As a result, industries in planned economies can be very inefficient. A major problem faced by command or planned economies is that of deciding what to produce. Command economies tend to be slow when responding to, changes in people's tastes and fashions. Planners are likely to underproduce some items as they cannot predict changes in demand. Equally, some products, which consumers regard as obsolete and unattractive, may be overproduced. Planners are afraid to produce goods and services unless they are sure substantial amounts will be purchased. This leads to delays and queues for some products.

Ex. 3. Give Russian equivalents to the following:

each factory is set a production target to meet; to divert resources to wherever it wants; new ideas rarely come forward; tend to be slow when responding to changes

Ex. 4. Give English equivalents to the following:

имеющиеся в распоряжении ресурсы; управлять использованием ре­сурсов; управление экономикой; отказываться от плановой экономики; иметь высокий жизненный уровень; иметь общие черты; подчиняться 5-летнему плану; значительное количество; ставить производственные задачи; полученная прибыль; стимул к эффективной работе; перебои и очереди; реагировать на изменения спроса; предсказывать изменения спроса; основная проблема, стоящая перед …

Ex. 5. Fill in the gaps with the words and expressions from the text:

1. The type of system chosen is ____ in ____, in which businesses operate.

2. An economic system is the way in which a country uses its ____ to satisfy the

demands of ____ for goods and services.

3. The more goods and services that can be produced, the higher the standard of

living ____ by the country's citizens.

4. The state factories, land and ____ .

5. Planned economies are economies with ____ of ____, when the government

____ all ____ decides ____ and ____.

6. The actual system employed ____ from state to state, but command or

planned economies have ____ .

7. It is ____ that there should be enough goods and services for all.

8. Industries are asked ____ these plans and each industry and factory is

set ____ .

9.The factory and farm targets are ____ which, if met, allow the nation's ____ to

be reached.

10. Nations do not waste resources ____ .

11. The state can use its control of the economy ____ to wherever it wants.

12. It is ___ that have led to many nations ____ planned economies over recent

years.

13. There is no ____ for individuals to work hard in planned economies.

14. Industries in planned economies can be very ____.

15. Command economies tend to ____ when ____ to changes in people's tastes

and fashions.

16. Planners are likely ____ some items as they cannot ____ changes in demand.

17. Some ____ and unattractive products may be ____.

18. This leads to ____ for some products.

Ex. 6. Translate into English:

1. Еслихозяйство плановое, то работа промышленности подчиняется плану, в котором государство определяет производственные задачи и планирует развитие на 5 лет вперед.

2. В плановой экономике покупатели лишены возможности влиять на производство товаров.

3. Поскольку значительная доля полученной прибыли должна быть выплачена государству, то в условиях плановой экономики стимулы ра­ботать эффективно невелики.

4. Промышленность часто выпускает непривлекательные и старомод­ные товары, поскольку невозможно предсказать изменения моды на 5 лет вперед.

5. Государство в условиях плановой экономики может гарантировать своим гражданам образование и медицинское обслуживание.

6. Все крупные решения, касающиеся объема используемых ресурсов структуры и распределения продукции, производства и потребления, принимаются центральным плановым органом.

Ex. 7. Make the following sentences Passive:

1. We sometimes call planned economies as "command economies".

2. The government takes all the decisions.

3. The state usually plans production and distribution for five years ahead.

4. The state can use its control of the economy.

5. Everyone receives a good education and proper health care.

6. Everyone in society receives enough goods and services.

Ex. 8. Agree or disagree with the statements:

1. In planned economies state commands the use of resources that are used to

produce goods and services.

2. There are some societies in the world which is completely a command

economy.

3. There is no incentive for individuals to work hard in planned economies.

4. Planning of this kind (by the government) is very simple.

5. Citizens in planned economies can't start their own business.

6. Planners are afraid to produce goods and services unless they are sure

substantial amounts will be purchased.

Ex. 9. Answer the questions:

1. What's a planned economy? What are its main features?

2. Give the advantages of a planned economy.

3. Give the disadvantages of a planned economy.

4. What causes delays and queues for some products?

5. What can you add to the list of advantages and disadvantages of a planned economy?

Learn the vocabulary:

inhabitants - жители, население

to own - владеть

natural resources - природные ресурсы

a large amount - большой объем

central planning and direction - центральное

планирование и руководство

consumption - потребление

obviously - очевидно

complicated - сложный

to have a number of common features - иметь ряд общих черт

intention - намерение

to comply with - подчиняться

a production target to meet - производственная задача,

которую надо выполнить

an objective - цель, задача

an overall aim - общая цель

to enjoy a basic standard of living - иметь основной уровень жизни

to duplicate production - дублировать

производство

to divert - отвлекать (напр.,

ресурсы на другие цели)

to abandon - отказываться от

чего-либо

changes in tastes and fashions - изменения вкусов

и моды

to underproduce - недопроизводить

to regard smth as - воспринимать что-либо,

относиться к чему-либо,

как...

obsolete (syn. out of date) - устарелый, вышедший

из употребления

to overproduce - перепроизводить

delays and queues - зд. перебои (с товарами)

и очереди

towaste- тратить, расточать

a major problem faced by command

or planned economies - основная про­блема,

стоящая перед командной или

плановой экономикой