Chapter 4: The System of Economic Law
4.3. Economic Planning Law -part 2-
In the enforcement of economic planning law at the Zonal level, it is important to monitor compliance with economic plans and expose violations, especially the latter. In this regard, if we consider the types of violations of economic planning law, they can be broadly divided into (A) violations of plans and (B) unplanned production.
In the old-style planned economy, the latter, unplanned production, that is, the "black economy," was a major issue. This is because the old-style planned economy aimed to nationalize all economic activity, and private business activities were widely considered criminal acts.
However, in the new environmental planned economy, which aims for environmental sustainability, the planned economy is only applied to environmentally damaging industrial sectors, and other economic activities are left to the free economy. Therefore, the acts that are exposed as unplanned production are also limited.
Violations of plans can be divided into those on the producer's side and those on the consumer's side. Producer violations occur when a business entity subject to a planned economy intentionally overproduces or underproduces in violation of a plan. Therefore, if overproduction or underproduction occurs unintentionally and as a result of negligent management decisions, it does not constitute a violation of the economic planning law, although management may be held responsible under the business organization law.
Consumer violations occur when consumers (including business entities) monopolize products in violation of acquisition quantity limits. In that sense, this can also be called "antimonopoly," but of course this has a completely different meaning from antimonopoly as a market monopoly regulation under capitalism.
Unplanned production, on the other hand, occurs when a free production enterprise secretly carries out production activities in areas subject to a planned economy. This is a type of underground economy and is therefore subject to prohibition, but it is a relatively rare case.
The economic planning law are enforced by the Planning Inspection Department, a law enforcement agency established within the Economic Planning Conference Secretariat. The Planning Inspection Department functions as an economic inspection agency with the authority to conduct on-site inspections and compulsory investigations.
Penalties for violations of the Economic Planning Law are imposed through hearings by the Economic Planning Conference, and primarily consist of suspension of the business qualifications or civil rights of individuals involved in the violation.
Even if there is a systematic violation, because planned enterprises are involved in core production, it is inappropriate to dissolve the business entity itself, but also to impose penalties such as suspending operations. In the case of unplanned free enterprises, penalties such as suspension of operations or forced dissolution may also be imposed.
👉The table of contents so far is here.
👉The papers published on this blog are meant to expand upon my On Communism.
