ABSTRACT
The shortcomings of the administrative, directive system of planning and management in the circumstances that have evolved over the past decade are most fully expressed in the substantial loss of effectiveness shown by economic calculation; this, too, is the main reason why the system has been transformed from a growth factor into a barrier to growth. The outcome is to undermine the supreme principle, that of rational operation. Economic calculation is a set of evaluations that are essential if the economic agent is to conduct economic decision-making, i.e. choose the most rational method of attaining the goal of his activity. The endeavour to achieve the maximum result with given inputs (in other words, to achieve minimum inputs for a given result) expresses the principle of rational operation. Economic cal culation is the method of implementing this principle.
