chapter  6
12 Pages

Planners' Preferences, Priorities and Reforms

One such concept, widely used in discussions in the West, is 'planners' preferences'. These are often contrasted with consumers' preferences, and we are told that Soviet prices could be, or should be, rational in terms of planners' preferences. Some critics refer to the conflict between the two types of preferences said to be inherent in a Soviet-type economy. It would follow that the recent reform discussions, associated with the name of Liberman, represent an attempt to substitute consumers' and planners' preferences, and that therefore this is a change which would challenge the very foundation of the planning system. In my view, this line of thought can lead to confusion.