ABSTRACT
The Soviet-type approach of highly concentrating economic authority to mobilize resources for a limited sector of the economy proved, in both countries, to be much more successful in the early stages of development than subsequently, when the economic system, responding to the early successes, became much larger and more complex. Planning was carried out both regionally and centrally, with the State Planning Commission and State Economic Commission basing national plans in part on the local ones. The Maoist economic strategy, as noted, was marked by administrative control over economic activity. The key element in the reform is turning economic decision-making over to the direct producers, workers, and managers in both industry and agriculture. By transferring decision-making authority from political and administrative organs to producing units, the reform seeks to substitute their initiative for pure physical capital formation as the key motive force in economic growth.
