We all point the failure of Soviet Union to 3 main reasons – over-stretch of royalty, economic inefficiency and bankruptcy. However, Israeli historian Yuval Noah Harari quotes the downfall due to the use of using organised economics and dictatorial government for processing data. According to him, Capitalism won in the cold war because distributed processing of data has better results than centralised processing.
But, the Big data revolution in the modern world can help in making better managerial resolutions and decrease the information disparity between a planned economy and a market economy. Centralised planning systems can use such tools to process data more efficiently.
The technology of today generates billions of unused data on our economic demands, and requirements. If these are utilised in proper methods, the planned economy of olden times can up-rise again. And thus meeting our demands effectively while the governing body centrally controls the production, investments, costs and revenue.
We already know that with IoT and artificial intelligence, our market shall uncover new depths and horizons. And the data gathered in these processes will not only help us to make better economic decisions, but also plan the way we invest and utilise it.
This not only effects in better managerial decisions but also optimum use of resources, in both corporate and government sectors. This also helps in future planning for long-term foundations and even supervising healthcare systems.
However, this new planned economy holds big clarifications and doubts of whether it can be implemented in today’s world.
- Firstly, collecting various data and putting them to good use are two different arguments. This theory can be given numerous examples of failed government projects around the world.
- Secondly, how much will the economy have to be inventive to get a data demand for a yet un-existing project. For all dreams of our can never be realised.