Planning paradigms throughout economic history
Abstract
Planning has always been an essential part of scientific and practical activities, driven by the need for purposeful development in science, technology and society. The paper focuses on the study of the development of planning in the context of the history of economics and economic thought. The purpose of the paper is to study the formation of planning paradigms throughout economic history as a reflection of the features of the socio-economic processes that dominated from the late 19th century to the early 21st century. To achieve this purpose, general scientific (analysis, synthesis, induction and deduction, generalization of literary sources) and special (historical-retrospective, chronological, historical-typological, historical-systemic) methods were used. The results of the study showed the main driving force of the genesis is a change in the level of environmental stability, the degree of socio-economic processes predictability and the level of uncertainty in their future development. The historical process of the formation of planning paradigms divided into three periods of dominance: I. The dominance of the neoclassical paradigm (from the late 19th century to the 1970s); II. The dominance of the neo-institutional paradigm (from the late 1970s to the late 1980s); III. The dominance of the evolutionary paradigm (from the late 1980s to the early 21st century). The formation of the neoclassical paradigm was due to the development of capitalism in Europe and was based on the assumption of socio-economic processes dynamics predictability. It allowed the use of optimization planning by continuing established trends into the future. The need to consider the current and future conditions of institutions and their impact on the activities of the economic agents (entrepreneurs, companies, states) led to the formation of a neo-institutional planning paradigm. Recognition of the environmental instability led to the formation of an evolutionary planning paradigm based on considering the trends in the changing world and their dynamics, as well as the ability of economic agents to adequately respond (adapt) to them. One of the main factors in the formation of new planning paradigms was the deepening of the gap between planning theory and practice. As a result, it was impossible to obtain reliable long-term forecasts. One of the features of the genesis of planning paradigms is the parallel use, which allows ensuring their development considering the socio-economic processes that have developed.
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