2. Public vs. Private Sector:

The state controlled key heavy industries, provided industrial infrastructure, regulated trade and made some crucial interventions in agriculture. Critics argued that the planners refused to provide the private sector with enough space and the stimulus to grow. The enlarged public sector produced powerful vested interests that created enough hurdles for private capital by installing systems of licenses and permits for investment. With the restriction on imports, of goods, Production of such goods in domestic market with little or no competition in addition to no incentive to improve the quality of products. The state controlled more things than required which led to inefficiency and corruption.