On the Problem of Developing the Theory of Optimal Planning in the Present Stage

As we know, socialist planning is based on the knowledge and use of economic laws. Since the use of the economic laws operative under socialism is permeated with the optimum principle, the theory of planning must essentially be the theory of optimal planning. The optimum principle in the utilization of economic laws can be most accurately depicted only with the aid of appropriate mathematical and computational means. When the first socialist economy originated, these means were not available. For this reason, in the early stage of their development, both the theory and practice of socialist planning were compelled to use a relatively elementary quantitative analysis of effectiveness in order to enjoy the advantages of scientific analysis.