Wednesday, April 12, 2006

Communist Economics

It has been amazing watching this ship building company in Vietnam build this ship for Partners In Progress. We are constantly surprised by their systems and techniques. For instance, although the cabinet makers have detailed plans for each room, they never seem to follow the design we have given them! It seems that after the installation is done, they have to be removed and adapted in some way to meet their intended use. It seems so wasteful and time consuming! I can’t figure it out.
Bill told me recently, about a German engineer he met in Germany in the 1970’s. This man, who worked for a large airplane manufacturing operation, explained the Communist theory to him. He explained that the company did not know how much each plane cost to make! They did not care! The Communist didn’t care if an individual ministry or industry lost money or not. It only mattered if the countries entire budget came out in the black or red! Maybe that explains the cabinets.

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