Central Planning and Small to Medium Business

摘要

Central Planning (CP) is a very important economic concept and, at the same time, a very controversial one. The controversy is based on emotions, historic bias and conflict of interests, ideology and propaganda. Today, at the time of the world economic crisis, CP becomes a vital alternative to the failed economies, if not the only one. This presentation tries, from a formal point of view, to prove that CP, applied in its modern form, decentralises the economy, creating a hierarchical structure of independent economic layers. Small to Medium Business (SMB) becomes an active component of the structure and significantly contributes to the development of the national economy as a whole. The main method of the formalisation is a parallel procedure of Linear Programming which allows direct evaluation of the importance of the optimisation constrains to the final solution. Consequently, the economic growth and the relevant socio-political objectives can be compared and examined in detail in order to choose the most suitable one for the national economy. The pure CP (at the time of wars, natural disasters, etc.) and the Free-market economic model could be considered the extreme cases of the proposed formalisation. Of course, the optimistic approach of the discussed method should be carefully applied, because of the human factor, but it should not be forgotten that "there are always two sides to everything".