DECENTRALIZED PROCEDURES FOR PLANNING,

The ideas presented in this paper were prompted by certain methodological questions arising in connection with French long-term planning. The discussion has direct relevance for the exchange of information that occurs between the Commis sariat du Plan and the large public enterprises when the former prepares the national plan and the latter determines their long term programs. The problems which may be posed in defining the collective choices to be made are not considered. The study is as relevant for authoritatively planned societies as for liberal societies in which planning complements and orients the market mechanism. In all cases, long-term plans should be so determined that they specify as ac curately as possible the most favorable develop ment option available to the country. Discus sion is restricted to cover operations on goods and services only. All difficulties are elim inated by using a model which does not include time as a variable. It is assumed that the central planning bureau operates with a complete, unaggregated list of commodities. The five parts include some general principles for the study of decentralized procedures, implications of the procedures covered by earlier theoretical re search, two new specific procedures, and sug gestions as to what is, in my view, the line to be followed by future research on the subject. Author