ABSTRACT
This chapter provides a survey of the fundamental concepts regarding the role of the plan and the market, based on experience in the organization of a socialist economic system, primarily with reference to Yugoslav practice. The experience of the socialist economy showed very quickly, however, that it was necessary to leave the market and the law of value more freedom of play than had been previously supposed. Planning ensures the indispensable efficiency of organization and discipline in social development. Some very important economic functions certainly fall within the predominant competence of the plan. This primarily relates to enlarged reproduction as regards both its tempo and material content. The cooperation of all economic units is a necessity in planning since without their participation it would be impossible to evaluate with precision their potentialities, which through their respective individual plans become obligations towards society.
