Socialist Economic System

a planned system of social production, based on the socialist ownership of the means of production and on labor that has been liberated from exploitation. The material base of the socialist economic system is large-scale machine production. The economic system develops in accordance with the objective economic laws inherent in socialism so that the material and cultural needs of society may be satisfied to the maximum extent possible.

The socialist economic system includes the totality of social enterprises and branches and spheres of social production, which are linked by the social division of labor. It differs fundamentally from the capitalist economic system and has a number of important advantages over the latter that ensure a rapid and steady growth of its productive forces, the perfection of its production relations, and the systematic improvement of the population’s standard of living. The development of the world socialist economic system has accompanied the growth of the world socialist system.