Privileges Sustained by Central Planning: An Analytical Method of Property Rights

One of the fundamental features of the centrally planned economy (CPEs) is that its operation is fully based on initial definition of distribution of privileges maintained by executive order, which is the basic system arrangement of central economic planning: urban and rural separation, the household registration system, farmers cannot change their identity, favorable planned price, unemployed professions, welfare subsidized by government, regions and industries that are given priority for development and resource allocation dictated by administrative orders, etc., are the various forms of privileges stemmed from the central planning. We call this type of privilege “planning privilege”.