After World War II, a number of European countries, including Czechoslovakia, began to plan their economic development. In Czechoslovakia, the Communist Party overtook its political partners and on the eve of the 1946 May elections developed the concept of a two-year economic recovery plan, which was immediately adopted by the government following the party’s victory at the elections. It applied a combination of indicative planning with some elements of Soviet planning methodology, and incorporated the business management system used at Baťa. On the basis of the communist concept of the plan, the government established the Central Planning Board composed of national economic experts from different political parties where, but for few exceptions, Communist national economists tended to predominate and advocated the strategic objectives of their party (for instance, orientation towards the Soviet Union). The approved law on the two-year plan didn’t anticipate any structural changes in industry. However, the process of fulfilling the plan laid the foundations for such changes (with special emphasis on heavy industry). Although the plan originated in the conditions of a mixed economy, the central allocation of production resources (energy and raw materials) became one of the instruments for restricting private business after the rise of the Communist dictatorship in 1948. Contrary to its original objectives, instead of restoring the balance in Czechoslovak economics, the two-year plan contributed to deepening its unevenness.
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