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A planned economy is a type of
economic system An economic system, or economic order, is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environm ...
where
investment Investment is the dedication of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance Finance is the study of financial institution ...
,
production Production may refer to: Economics and business * Production (economics) Production is the process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output). It is the act of ...
and the allocation of
capital good The economic concept of a capital good (also called complex product systems (CoPS), H. Rush, "Managing innovation in complex product systems (CoPS)," IEE Colloquium on EPSRC Technology Management Initiative (Engineering & Physical Sciences Research ...
s takes place according to economy-wide economic plans and production plans. A planned economy may use
centralized Centralisation or centralization (see American and British English spelling differences#iseize, spelling differences) is the process by which the activities of an organisation, particularly those regarding planning and decision-making, framing ...
,
decentralized Decentralization or decentralisation is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group. Conce ...
,
participatory Citizen Participation or Public Participation in social science refers to different mechanisms for the Public consultation, public to express opinions—and ideally exert influence—regarding political, economic, management or other social de ...
or Soviet-type forms of
economic planning Economic planning is a resource allocation In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Co ...
. The level of
centralization Centralisation or centralization (see spelling differences Despite the various English dialects Dialect The term dialect (from Latin , , from the Ancient Greek word , , "discourse", from , , "through" and , , "I speak") is used in tw ...
or
decentralization Decentralization or decentralisation is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group. Conce ...

decentralization
in decision-making and participation depends on the specific type of planning mechanism employed.
Socialist states Several past and present states have declared themselves socialist state A socialist state, socialist republic, or socialist country, sometimes referred to as a workers' state or workers' republic, is a sovereign Sovereign is a title which ca ...
based on the Soviet model have used central planning, although a minority such as the former
Socialist Federal Republic of Yugoslavia The Socialist Federal Republic of Yugoslavia, commonly referred to as SFR Yugoslavia or simply Yugoslavia, was a Socialist state, socialist country in Southeast Europe, Southeast and Central Europe that existed from its foundation in the afte ...
have adopted some degree of
market socialism Market socialism is a type of economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. ...
.
Market abolitionist Market abolitionism is the belief that the economic market should be completely eliminated from society. Market abolitionists argue that markets are ethically Ethics or moral philosophy is a branch of philosophy Philosophy (from , ...
socialism replaces
factor market In economics Economics () is a social science Social science is the Branches of science, branch of science devoted to the study of society, societies and the Social relation, relationships among individuals within those societies. ...
s with direct calculation as the means to coordinate the activities of the various
socially-owned Social ownership is the appropriation of the surplus product Surplus product (german: Mehrprodukt, links=no) is an economic concept explicitly theorised by Karl Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philoso ...
economic enterprises that make up the economy. More recent approaches to socialist planning and allocation have come from some economists and computer scientists proposing planning mechanisms based on advances in computer science and information technology. Planned economies contrast with
unplanned economies An unplanned economy is an economy where economic decisions regarding production, investment and resource allocation are not linked together through conscious economic planning Economic planning is a resource allocation mechanism based on a compu ...
, specifically
market economies A market economy is an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The ide ...
, where autonomous firms operating in
market Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finland and Sweden Art, entertainment, and media Films *Market (1965 film), ''Market'' (1965 ...
s make decisions about production, distribution, pricing and investment. Market economies that use
indicative planning Indicative planning is a form of economic planning Economic planning is a resource allocation In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), produ ...
are variously referred to as
planned market economies A mixed economy is variously defined as an economic system An economic system, or economic order, is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unifi ...
,
mixed economies A mixed economy is variously defined as an economic system An economic system, or economic order, is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unifi ...
and
mixed market economies A mixed economy is variously defined as an economic system An economic system, or economic order, is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unifi ...
. A
command economy A planned economy is a type of economic system An economic system, or economic order, is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A ...
follows an
administrative-command system The administrative-command system (russian: Административно-командная система, Administrativno-komandnaya sistema), also known as the command-administrative system, is the system of management of an economy An ec ...
and uses Soviet-type economic planning which was characteristic of the former
Soviet Union The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a that spanned during its existence from 1922 to 1991. It was nominally a of multiple national ; in practice and were highly until its final years. The ...
and
Eastern Bloc The Eastern Bloc, also known as the Communist Bloc, the Socialist Bloc and the Soviet Bloc, was the group of socialist state A socialist state, socialist republic, or socialist country, sometimes referred to as a workers' state or workers' ...
before most of these countries converted to market economies. This highlights the central role of hierarchical administration and public ownership of production in guiding the allocation of resources in these economic systems.


Overview

In the
Hellenistic The Hellenistic period spans the period of History of the Mediterranean region, Mediterranean history between the death of Alexander the Great in 323 BC and the emergence of the Roman Empire, as signified by the Battle of Actium in 31  ...
and post-Hellenistic world, "compulsory state planning was the most characteristic trade condition for the
Egyptian Egyptian describes something of, from, or related to Egypt. Egyptian or Egyptians may refer to: Nations and ethnic groups * Egyptians, a national group in North Africa ** Egyptian culture, a complex and stable culture with thousands of years of r ...
countryside, for Hellenistic India, and to a lesser degree the more barbaric regions of the
Seleucid The Seleucid Empire (; grc, Βασιλεία τῶν Σελευκιδῶν, ''Basileía tōn Seleukidōn'') was a Greece, Greek state in Western Asia, during the Hellenistic period, Hellenistic Period, that existed from 312 BC to 63 BC. The Sele ...
, the Pergamenian, the southern
Arabia The Arabian Peninsula (; ar, شِبْهُ الْجَزِيرَةِ الْعَرَبِيَّة, , "Arabian Peninsula" or , , "Island of the Arabs") is a peninsula of Western Asia, situated northeast of Africa on the Arabian Plate. At , the ...

Arabia
n, and the
Parthian
Parthian
empires". Scholars have argued that the
Incan The Inca Empire, also Quechuan and Aymaran spelling shift, known as Incan Empire and the Inka Empire, and at the time known as the Realm of the Four Parts,,  "four parts together" was the largest empire in pre-Columbian America. The admin ...

Incan
economy was a flexible type of command economy, centered around the movement and utilization of labor instead of goods. One view of
mercantilism Mercantilism is an economic policy The economic policy of government A government is the system or group of people governing an organized community, generally a state State may refer to: Arts, entertainment, and media Li ...

mercantilism
sees it as involving planned economies. The Soviet-style planned economy in Soviet Russia evolved in the wake of a continuing existing
World War I World War I, often abbreviated as WWI or WW1, also known as the First World War or the Great War, was a global war A world war is "a war engaged in by all or most of the principal nations of the world". The term is usually reserved for ...

World War I
war-economy as well as other policies, known as war communism (1918-1921), shaped to the requirements of the
Russian Civil War , date = October Revolution, 7 November 1917 – Yakut revolt, 16 June 1923{{Efn, The main phase ended on 25 October 1922. Revolt against the Bolsheviks continued Basmachi movement, in Central Asia and Tungus Republic, the Far East th ...
of 1917-1923. These policies began their formal consolidation under an official organ of government in 1921, when the Soviet government founded
Gosplan The State Planning Committee, commonly known as Gosplan ( rus, Госплан, , ɡosˈpɫan), was the agency responsible for economic planning, central economic planning in the Soviet Union. Established in 1921 and remaining in existence until ...
. However, the period of the
New Economic Policy The New Economic Policy (NEP) () was an economic policy of the Soviet Union proposed by Vladimir Lenin in 1921 as a temporary expedient. Lenin characterized the NEP in 1922 as an economic system that would include "a free market and capitalism, ...
( to intervened before the planned system of regular five-year plans started in 1928.
Nazi Germany Nazi Germany, (lit. "National Socialist State"), ' (lit. "Nazi State") for short; also ' (lit. "National Socialist Germany") officially known as the German Reich from 1933 until 1943, and the Greater German Reich from 1943 to 1945, was ...

Nazi Germany
's so-called
Four Year Plan The Four Year Plan was a series of economic measures initiated by Adolf Hitler in Nazi Germany in 1936. Hitler placed Hermann Göring in charge of these measures, making him a Reich Plenipotentiary whose jurisdiction cut across the responsibilities ...
of 1936 onwards involved elements of state planning in the Reich economy. After
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a global war A world war is "a war War is an intense armed conflict between states State may refer to: Arts, entertainment, and media Literatur ...
(1939-1945) France and Great Britain practised
dirigisme Dirigisme or dirigism () is an economic doctrine in which the state plays a strong directive role as opposed to a merely Regulation, regulatory or non-interventionist role over a capitalist market economy. As an economic doctrine, dirigisme is th ...
- government direction of the economy through non-coercive means. The Swedish government planned public-housing models in a similar fashion as
urban planning Urban planning, also known as regional planning, town planning, city planning, or rural planning, is a technical and political process that is focused on the development and design A design is a plan or specification for the construction o ...
in a project called
Million Programme The Million Programme ( sv, Miljonprogrammet) is the common name for an ambitious public housing programme implemented in Sweden Sweden ( sv, Sverige ), officially the Kingdom of Sweden ( sv, links=no, Konungariket Sverige ), is a Nordi ...
, implemented from 1965 to 1974. Some decentralised participation in economic planning occurred across Revolutionary Spain, most notably in Catalonia, during the
Spanish Revolution of 1936 The Spanish Revolution was a workers' social revolution Social revolutions are sudden changes in the Social structure, structure and nature of society. These revolutions are usually recognized as having transformed society, economy, cul ...
.Wetzel, Tom
"Workers Power and the Spanish Revolution"
Dolgoff, Sam, ed. (1974). ''
The Anarchist Collectives ''The Anarchist Collectives: Workers’ Self-Management in the Spanish Revolution, 1936–1939'' is a book of perspectives from the Spanish Revolution edited by Sam Dolgoff and published with Free Life Editions in 1974. Further reading * ...
'' (1st ed.). Free Life Editions. p. 114. .


Relationship with socialism

While
socialism Socialism is a political Politics (from , ) is the set of activities that are associated with Decision-making, making decisions in Social group, groups, or other forms of Power (social and political), power relations between individuals, ...
is not equivalent to economic planning or to the concept of a planned economy, an influential conception of socialism involves the replacement of capital markets with some form of economic planning in order to achieve ''
ex-ante The term ''ex-ante'' (sometimes written ''ex ante'' or ''exante'') is a phrase meaning "before the event". Ex-ante or notional demand refers to the desire for goods and services which is not backed by the ability to pay for those goods and services ...
'' coordination of the economy. The goal of such an economic system would be to achieve conscious control over the economy by the population, specifically so that the use of the
surplus product Surplus product (german: Mehrprodukt, links=no) is an economic concept explicitly theorised by Karl Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philosopher A philosopher is someone who practices philosophy ...
is controlled by the producers. The specific forms of planning proposed for socialism and their feasibility are subjects of the
socialist calculation debate The socialist calculation debate, sometimes known as the economic calculation debate, was a discourse on the subject of how a socialist economy Socialist economics comprises the economic theories, practices and norms of hypothetical and existi ...
.


Computational economic planning

In 1959
Anatoly Kitov Anatoly Ivanovich Kitov (9 August 1920, Samara - 14 october 2005) was a pioneer of cybernetics in the Soviet Union. Biography Early life The Kitov's family moved to Tashkent in 1921 as his father, Ivan Stepanovich Kitov, had served as a junio ...
proposed a distributed computing system (Project "Red Book", ru , Красная книга) with a focus on the management of the Soviet economy. Opposition from the
Defence Ministry {{unsourced, date=February 2021 A ministry of defence or defense (see American and British English spelling differences#-ce.2C -se, spelling differences), also known as a department of defence or defense, is an often-used name for the part of a go ...
killed Kitov's plan. In 1971 the socialist Allende administration of Chile launched
Project Cybersyn Project Cybersyn was a Chilean project from 1971 to 1973 during the presidency of Salvador Allende aimed at constructing a distributed decision support system to aid in the management of the national economy. The project consisted of four modul ...
to install a telex machine in every corporation and organisation in the economy for the communication of economic data between firms and the government. The data was also fed into a computer-simulated economy for forecasting. A control room was built for real-time observation and management of the overall economy. The prototype-stage of the project showed promise when it was used to redirect supplies around a trucker's strike, but after CIA-backed
Augusto Pinochet Augusto José Ramón Pinochet Ugarte (, also , , ; 25 November 1915 – 10 December 2006) was a Chilean Army The Chilean Army ( es, Ejército de Chile) is the land arm of the Military of Chile. This 80,000-person army (9,200 of which are con ...

Augusto Pinochet
led a coup in 1973 that established a
military dictatorship A military dictatorship is a dictatorship in which the military exerts complete or substantial control over political authority, and the dictator is often a high-ranked military officer. The reverse situation is to have civilian control of the m ...
under his rule the program was abolished and Pinochet moved Chile towards a more liberalized
market economy A market economy is an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The ide ...
. In their book ''
Towards a New Socialism ''Towards a New Socialism'' is a 1993 non-fiction book written by Scottish computer scientist Paul Cockshott, co-authored by Scottish economics professor Allin F. Cottrell. The book outlines in detail a proposal for a complex planned socialist e ...
'' (1993), the computer scientist
Paul Cockshott William Paul Cockshott (born 16 March 1952) is a Scottish computer scientist, Marxian economics, Marxian economist and a reader at the University of Glasgow. Since the 1993 he has authored multiple works in the tradition of scientific socialism, ...
from the
University of Glasgow The University of Glasgow (abbreviated as ''Glas.'' in Post-nominal letters, post-nominals; ) is a Public university, public research university in Glasgow, Scotland. Founded by papal bull in 1451, it is the List of oldest universities in continuous ...

University of Glasgow
and the economist Allin Cottrell from the
Wake Forest University Wake Forest University is a private Private or privates may refer to: Music * "In Private "In Private" was the third single in a row to be a charting success for United Kingdom, British singer Dusty Springfield, after an absence of nearly t ...
claim to demonstrate how a democratically planned economy built on modern computer technology is possible and drives the thesis that it would be both economically more stable than the free-market economies and also morally desirable.


Cybernetics

The use of computers to coordinate production in an optimal fashion has been variously proposed for
socialist economies Socialist economics comprises the economic theories, practices and norms of hypothetical and existing socialist Socialism is a political Politics (from , ) is the set of activities that are associated with making decisions In psych ...
. The Polish economist
Oskar Lange Oskar Ryszard Lange (27 July 1904 – 2 October 1965) was a Poland, Polish economics, economist and diplomat. He is best known for advocating the use of market (economics), market pricing tools in socialism, socialist systems and providing a mode ...
(1904-1965) argued that the computer is more efficient than the market process at solving the multitude of simultaneous equations required for allocating economic inputs efficiently (either in terms of physical quantities or monetary prices).
Salvador Allende Salvador Guillermo Allende Gossens (, , ; 26 June 1908 – 11 September 1973) was a Chilean physician and socialist Socialism is a political Politics (from , ) is the set of activities that are associated with making decisions I ...

Salvador Allende
's socialist government pioneered the 1970 Chilean distributed
decision support system A decision support system (DSS) is an information system An information system (IS) is a formal, sociotechnical, organizational system designed to collect, process, information storage, store, and information distribution, distribute informati ...
Project Cybersyn Project Cybersyn was a Chilean project from 1971 to 1973 during the presidency of Salvador Allende aimed at constructing a distributed decision support system to aid in the management of the national economy. The project consisted of four modul ...
in an attempt to move towards a decentralised planned economy with the experimental viable system model of computed organisational structure of autonomous operative units though an
algedonic feedback The viable system model (VSM) is a model In general, a model is an informative representation of an object, person or system. The term originally denoted the plans of a building in late 16th-century English, and derived via French and Italian ult ...
setting and bottom-up participative decision-making in the form of
participative democracy Participatory democracy or participative democracy is a model of democracy in which citizens are provided power to make political decisions. Etymological roots of ''democracy Democracy ( gr, δημοκρατία, ''dēmokratiā'', from ''dēm ...
by the Cyberfolk component.


Fictional portrayals

The 1888 novel ''
Looking Backward ''Looking Backward: 2000–1887'' is a utopian novel by Edward Bellamy, a journalist and writer from Chicopee Falls, Massachusetts; it was first published in 1888. It was the third largest bestseller of its time, after ''Uncle Tom's Cabin'' and ...

Looking Backward
'' by
Edward Bellamy Edward Bellamy (March 26, 1850 – May 22, 1898) was an American author, journalist, and political activist most famous for his utopia A utopia ( ) typically describes an imaginary community A community is a social unit (a group of liv ...
depicts a fictional planned economy in a United States around the year 2000 which has become a socialist utopia. The
World State World government or global government, sometimes called one-worldism or cosmocracy, is the concept of a single politics, political authority for all humanity. It generally entails some form of government through a single state (polity), state or ...
in
Aldous Huxley Aldous Leonard Huxley (26 July 1894 – 22 November 1963) was an English writer and philosopher. He wrote nearly 50 books—both novels and non-fiction works—as well as wide-ranging essays, narratives, and poems. Born into the prominent Huxl ...

Aldous Huxley
's ''
Brave New World ''Brave New World'' is a dystopian A dystopia (from Ancient Greek Ancient Greek includes the forms of the used in and the from around 1500 BC to 300 BC. It is often roughly divided into the following periods: (), Dark Age ...

Brave New World
'' (1932) and
Airstrip One Oceania, Eurasia and Eastasia are the three fictional superstates in George Orwell's 1949 dystopian novel ''Nineteen Eighty-Four''. All that Oceania's citizens know about the world is whatever the Party wants them to know, so how the world evolv ...
in
George Orwell Eric Arthur Blair (25 June 1903 – 21 January 1950) known by his pen name A pen name, also called a ''nom de plume'' () or a literary double, is a pseudonym (or, in some cases, a variant form of a real name) adopted by an author and printed ...

George Orwell
's ''
Nineteen Eighty-Four ''Nineteen Eighty-Four'' (also stylised as ''1984'') is a dystopian social science fiction novel and cautionary tale written by English writer George Orwell. It was published on 8 June 1949 by Secker & Warburg as Orwell's ninth and final boo ...
'' (1949) provide fictional depictions of command economies, albeit with diametrically opposed aims. The former is a
consumer economy A consumer economy describes an Economic system, economy driven by consumer spending as a percent of its gross domestic product, as opposed to the other major components of GDP (gross private domestic investment, government spending, and imports net ...
designed to engender productivity while the latter is a
shortage economy "Shortage economy" ( pl, gospodarka niedoboru, hu, hiánygazdaság) is a term coined by Hungarian economist János Kornai, who used this term to criticize the old Centrally planned economy, centrally-planned economies of the communist states of th ...
designed as an agent of totalitarian social control. Airstrip One is organized by the euphemistically named Ministry of Plenty. Other literary portrayals of planned economies include
Yevgeny Zamyatin Yevgeny Ivanovich Zamyatin ( rus, Евге́ний Ива́нович Замя́тин, p=jɪvˈɡʲenʲɪj ɪˈvanəvʲɪtɕ zɐˈmʲætʲɪn; 20 January (Julian calendar, Julian) / 1 February (Gregorian calendar, Gregorian), 1884 – 10 March ...
's ''We'' (1924), which influenced Orwell's work. Like ''Nineteen Eighty-Four'',
Ayn Rand Ayn Rand (; born Alisa Zinovyevna Rosenbaum;,  – March 6, 1982) was a Russian-American writer and philosopher. She is known for her two best-selling novels, ''The Fountainhead'' and ''Atlas Shrugged'', and for developing a philosophic ...

Ayn Rand
's dystopian 1938 story ''Anthem'' offered an artistic portrayal of a command economy that was influenced by ''We''. The difference is that it was a
primitivist Primitivism is a mode of aesthetic idealization that either emulates or aspires to recreate "primitive" experience. In Western art ''; by Johannes Vermeer Johannes Vermeer ( , , #Pronunciation of name, see below; October 1632 – December 16 ...
planned economy as opposed to the advanced technology of ''We'' or ''Brave New World''.


Central planning


Advantages

The government can harness land, labour, and capital to serve the economic objectives of the state. Consumer demand can be restrained in favor of greater capital investment for economic development in a desired pattern. In international comparisons, state-socialist nations compared favorably with capitalist nations in health indicators such as infant mortality and life expectancy. However, the reality of this, at least in regards to infant mortality, varied depending on whether official Soviet statistics or WHO definitions were used. In Socialist China under Mao China's growth in life expectancy between 1950 and 1980 ranks as among the most rapid sustained increases in documented global history. The state can begin building massive heavy industries at once in an underdeveloped economy without waiting years for capital to accumulate through the expansion of light industry and without reliance on external financing. This is what happened in the Soviet Union during the 1930s when the government forced the share of
gross national income The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP Gross domestic product (GDP) is a mone ...
dedicated to private consumption down from 80% to 50%. As a result of this development, the Soviet Union experienced massive growth in heavy industry, with a concurrent massive contraction of its agricultural sector due to the labour shortage.


Disadvantages


Economic instability

Studies of command economies of the
Eastern Bloc The Eastern Bloc, also known as the Communist Bloc, the Socialist Bloc and the Soviet Bloc, was the group of socialist state A socialist state, socialist republic, or socialist country, sometimes referred to as a workers' state or workers' ...
in the 1950s and 1960s by both American and Eastern European economists found that contrary to the expectations of both groups they showed greater fluctuations in
output Output may refer to: * The information produced by a computer, see Input/output In computing Computing is any goal-oriented activity requiring, benefiting from, or creating computing machinery. It includes the study and experimentation of alg ...
than market economies during the same period.


Inefficient resource distribution

Critics of planned economies argue that planners cannot detect consumer preferences, shortages and surpluses with sufficient accuracy and therefore cannot efficiently co-ordinate production (in a
market economy A market economy is an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The ide ...
, a
free price system A free price system or free price mechanism (informally called ''the price system'' or ''the price mechanism'') is a mechanism of resource allocation that relies upon monetary prices set by the interchange of supply and demand In microeco ...
is intended to serve this purpose). This difficulty was notably written about by economists
Ludwig von Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School economist, historian, logician, and Sociology, sociologist. Mises wrote and lectured extensively on the societal contributions of classical liberal ...

Ludwig von Mises
and
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist, and philosopher who is best known for his defence of classical liberalism. Hayek shared the 1974 Nob ...
, who referred to subtly distinct aspects of the problem as the
economic calculation problem The economic calculation problem is a criticism of using economic planning as a substitute for market-based allocation of the factors of production. It was first proposed by Ludwig von Mises in his 1920 article " Economic Calculation in the Soc ...
and
local knowledge problem In economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of plant l ...
, respectively.Hayek, Friedrich A. (1945). " The Use of Knowledge". ''American Economic Review''. XXXV: 4. pp. 519-30. Whereas the former stressed the theoretical underpinnings of a market economy to
subjective value theory The subjective theory of value is an economic theory Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology ...
while attacking the
labor theory of value The labor theory of value (LTV) is a theory of value that argues that the economic value In economics Economics () is a social science that studies the Production (economics), production, distribution (economics), distribution, ...
, the latter argued that the only way to satisfy individuals who have a constantly changing hierarchy of needs and are the only ones to possess their particular individual's circumstances is by allowing those with the most knowledge of their needs to have it in their power to use their resources in a competing marketplace to meet the needs of the most consumers most efficiently. This phenomenon is recognized as
spontaneous order Spontaneous order, also named self-organization Self-organization, also called (in the social sciences) spontaneous order, is a process where some form of overall order arises from local interactions between parts of an initially disordere ...
. Additionally, misallocation of resources would naturally ensue by redirecting capital away from individuals with direct knowledge and circumventing it into markets where a coercive monopoly influences behavior, ignoring market signals. According to
Tibor Machan Tibor Richard Machan (; 18 March 1939 – 24 March 2016) was a Hungarian-American Hungarian Americans (Hungarian language, Hungarian: ''amerikai magyarok'') are United States, Americans of Hungarian people, Hungarian descent. The U.S. Census ...
, " thout a market in which allocations can be made in obedience to the law of supply and demand, it is difficult or impossible to funnel resources with respect to actual human preferences and goals".


Suppression of economic democracy and self-management

Economist
Robin Hahnel Robin Eric Hahnel (born March 25, 1946) is an American economist and professor of economics Economics () is a social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (e ...
, who supports
participatory economics Participatory economics, often abbreviated Parecon, is an economic system based on participation (decision making), participatory decision making as the primary economics, economic mechanism for Resource allocation, allocation in society. In the ...
, a form of
socialist Socialism is a political Politics (from , ) is the set of activities that are associated with making decisions In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the Cognition, cognitive pr ...

socialist
decentralized planned economy, notes that even if central planning overcame its inherent inhibitions of incentives and innovation, it would nevertheless be unable to maximize economic democracy and self-management, which he believes are concepts that are more intellectually coherent, consistent and just than mainstream notions of economic freedom. Furthermore, Hahnel states:
Combined with a more democratic political system, and redone to closer approximate a best case version, centrally planned economies no doubt would have performed better. But they could never have delivered economic self-management, they would always have been slow to innovate as apathy and frustration took their inevitable toll, and they would always have been susceptible to growing inequities and inefficiencies as the effects of differential
economic power Economists use several concepts featuring the word power: * Market power is the ability of a firm to profitably raise the market price of a good or service over marginal cost. ** Monopoly power is a strong form of market power—the ability to set ...
grew. Under central planning neither planners, managers, nor workers had incentives to promote the social economic interest. Nor did impeding markets for final goods to the planning system enfranchise consumers in meaningful ways. But central planning would have been incompatible with economic democracy even if it had overcome its information and incentive liabilities. And the truth is that it survived as long as it did only because it was propped up by unprecedented totalitarian political power.


Command economy

Planned economies contrast with command economies in that a planned economy is "an economic system in which the government controls and regulates production, distribution, prices, etc.""Planned economy"
Dictionary.com. Unabridged (v. 1.1). Random House, Inc. Retrieved 11 May 2008).
whereas a command economy necessarily has substantial public ownership of industry while also having this type of regulation."Command economy"
''Merriam-Webster Online Dictionary''. Retrieved 11 May 2008.
In command economies, important allocation decisions are made by government authorities and are imposed by law. This goes against the
Marxist Marxism is a method of socioeconomic Socioeconomics (also known as social economics) is the social science that studies how economic activity affects and is shaped by social processes. In general it analyzes how modern society, societies soci ...
understanding of conscious planning. Decentralized planning has been proposed as a basis for
socialism Socialism is a political Politics (from , ) is the set of activities that are associated with Decision-making, making decisions in Social group, groups, or other forms of Power (social and political), power relations between individuals, ...
and has been variously advocated by
anarchists Anarchism is a political philosophy Political philosophy or political theory is the philosophical Philosophy (from , ) is the study of general and fundamental questions, such as those about existence Existence is the ability of ...
,
council communists Council communism is a current of communism, communist thought that emerged in the 1920s. Inspired by the German Revolution of 1918–1919, November Revolution, council communism was opposed to state socialism and advocated workers' councils ...
,
libertarian Marxists Libertarian Marxism is a broad scope of economic An economy (; ) is an area of the production Production may be: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of i ...
and other
democratic Democrat, Democrats, or Democratic may refer to: Politics *A proponent of democracy Democracy ( gr, δημοκρατία, ''dēmokratiā'', from ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which people, the people ...
and
libertarian Libertarianism (from french: libertaire, "libertarian"; from la, libertas, "freedom") is a political philosophy Political philosophy or political theory is the philosophical Philosophy (from , ) is the study of general and funda ...
socialists who advocate a non-market form of socialism, in total rejection of the type of planning adopted in the
economy of the Soviet Union #REDIRECT Economy of the Soviet Union#REDIRECT Economy of the Soviet Union The economy of the Soviet Union was based on state ownership of the means of production, collective farming, and industrial manufacturing. The highly centralized Sovi ...
. Most of a command economy is organized in a top-down administrative model by a central authority, where decisions regarding investment and production output requirements are decided upon at the top in the
chain of command A command hierarchy is a group of people who carry out orders based on others' authority within the group. It can be viewed as part of a power structure, in which it is usually seen as the most vulnerable and also the most powerful part. Milit ...
, with little input from lower levels. Advocates of economic planning have sometimes been staunch critics of these command economies.
Leon Trotsky Lev Davidovich Bronstein. ( – 21 August 1940), better known as Leon Trotsky; uk, link= no, Лев Давидович Троцький; also transliterated ''Lyev'', ''Trotski'', ''Trotskij'', ''Trockij'' and ''Trotzky''. (), was a Ukrainian ...

Leon Trotsky
believed that those at the top of the chain of command, regardless of their intellectual capacity, operated without the input and participation of the millions of people who participate in the economy and who understand/respond to local conditions and changes in the economy. Therefore, they would be unable to effectively coordinate all economic activity. Historians have associated planned economies with
Marxist–Leninist state A communist state, also known as a Marxist–Leninist state, is a one-party state that is administered and governed by a communist party guided by Marxism–Leninism. Marxism–Leninism was the Ideology of the Communist Party of the Soviet Un ...
s and the Soviet economic model. Since the 1980s, it was recognized that the Soviet economic model did not actually constitute a planned economy in that a comprehensive and binding plan did not guide production and investment. The further distinction of an
administrative-command system The administrative-command system (russian: Административно-командная система, Administrativno-komandnaya sistema), also known as the command-administrative system, is the system of management of an economy An ec ...
emerged as a new designation in some academic circles for the economic system that existed in the former
Soviet Union The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a that spanned during its existence from 1922 to 1991. It was nominally a of multiple national ; in practice and were highly until its final years. The ...
and
Eastern Bloc The Eastern Bloc, also known as the Communist Bloc, the Socialist Bloc and the Soviet Bloc, was the group of socialist state A socialist state, socialist republic, or socialist country, sometimes referred to as a workers' state or workers' ...
, highlighting the role of centralized hierarchical decision-making in the absence of popular control over the economy. The possibility of a digital planned economy was explored in Chile between 1971 and 1973 with the development of
Project Cybersyn Project Cybersyn was a Chilean project from 1971 to 1973 during the presidency of Salvador Allende aimed at constructing a distributed decision support system to aid in the management of the national economy. The project consisted of four modul ...
and by Aleksandr Aleksandrovich Kharkevich, head of the Department of Technical Physics in Kiev in 1962. While both economic planning and a planned economy can be either authoritarian or
democratic Democrat, Democrats, or Democratic may refer to: Politics *A proponent of democracy Democracy ( gr, δημοκρατία, ''dēmokratiā'', from ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which people, the people ...
and
participatory Citizen Participation or Public Participation in social science refers to different mechanisms for the Public consultation, public to express opinions—and ideally exert influence—regarding political, economic, management or other social de ...
,
democratic socialist Democratic socialism is a political philosophy Political philosophy or political theory is the philosophical Philosophy (from , ) is the study of general and fundamental questions, such as those about existence Existence is the ab ...
critics argue that command economies have been authoritarian or undemocratic in practice.
Indicative planning Indicative planning is a form of economic planning Economic planning is a resource allocation In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), produ ...
is a form of economic planning in market economies that directs the economy through incentive-based methods. Economic planning can be practiced in a decentralized manner through different government authorities. In some predominantly market-oriented and Western mixed economies, the state utilizes economic planning in strategic industries such as the aerospace industry. Mixed economies usually employ
macroeconomic Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole. For example, using interest rates, taxes, and ...
planning while micro-economic affairs are left to the market and price system.


Decentralized planning

A decentralized-planned economy, occasionally called horizontally-planned economy due to its
horizontalism Horizontalism is an approach to money creation Money creation, or money issuance, is the process by which the money supply In macroeconomics, the money supply (or money stock) refers to the total volume of money held by the public at a ...
, is a type of planned economy in which the
investment Investment is the dedication of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance Finance is the study of financial institution ...
and
allocation
allocation
of
consumer A consumer is a person or a group who intends to order, orders, or uses purchased goods, products, or Service (economics), services primarily for personal, social, family, household and similar needs, not directly related to entrepreneurial or bu ...
and
capital goods The economic concept of a capital good (also called complex product systems (CoPS), H. Rush, "Managing innovation in complex product systems (CoPS)," IEE Colloquium on EPSRC Technology Management Initiative (Engineering & Physical Sciences Research ...
is explicated accordingly to an economy-wide plan built and operatively coordinated through a distributed network of disparate economic agents or even production units itself. Decentralized planning is usually held in contrast to centralized planning, in particular the
Soviet-type economic planning Soviet-type economic planning (STP) is the specific model of centralized planning A planned economy is a type of economic system where investment, Production (economics), production and the allocation of capital goods takes place according to ...
of the
Soviet Union The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a that spanned during its existence from 1922 to 1991. It was nominally a of multiple national ; in practice and were highly until its final years. The ...
's command economy, where economic information is aggregated and used to formulate a plan for production, investment and resource allocation by a single central authority. Decentralized planning can take shape both in the context of a
mixed economy A mixed economy is variously defined as an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon ...
as well as in a
post-capitalist Post-capitalism is a state in which the economic system An economic system, or economic order, is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified w ...
economic system. This form of economic planning implies some process of democratic and participatory decision-making within the economy and within firms itself in the form of
industrial democracy Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority In the fields of sociology Sociology is the study of society, human social behaviour, patterns of social relationships, ...
. Computer-based forms of democratic economic planning and coordination between economic enterprises have also been proposed by various
computer scientists Computer science deals with the theoretical foundations of information, algorithms and the architectures of its computation as well as practical techniques for their application. Computer science is the study of computation Computation ...
and radical economists. Proponents present decentralized and participatory economic planning as an alternative to
market socialism Market socialism is a type of economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. ...
for a post-capitalist society. Decentralized planning has been a feature of
anarchist Anarchism is a political philosophy and Political movement, movement that is sceptical of authority and rejects all involuntary, coercive forms of hierarchy. Anarchism calls for the abolition of the State (polity), state, which it holds to ...
and
socialist economics Socialist economics comprises the economic theories, practices and norms of hypothetical and existing socialist Socialism is a political Politics (from , ) is the set of activities that are associated with Decision-making, making decisi ...
. Variations of decentralized planning such as
economic democracy Economic democracy is a socioeconomic Socioeconomics (also known as social economics) is the social science that studies how economic activity affects and is shaped by social processes. In general it analyzes how modern society, societies soci ...
, industrial democracy and
participatory economics Participatory economics, often abbreviated Parecon, is an economic system based on participation (decision making), participatory decision making as the primary economics, economic mechanism for Resource allocation, allocation in society. In the ...
have been promoted by various political groups, most notably
anarchists Anarchism is a political philosophy Political philosophy or political theory is the philosophical Philosophy (from , ) is the study of general and fundamental questions, such as those about existence Existence is the ability of ...
,
democratic socialists Democratic socialism is a political philosophy Political philosophy or political theory is the philosophical Philosophy (from , ) is the study of general and fundamental questions, such as those about existence Existence is the ab ...
,
guild socialists Guild socialism is a political movement advocating workers' control of industry through the medium of trade-related guilds "in an implied contractual relationship with the public". It originated in the United Kingdom The United Kingdom ...
,
libertarian Marxists Libertarian Marxism is a broad scope of economic An economy (; ) is an area of the production Production may be: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of i ...
,
libertarian socialists Libertarian socialism, also referred to as anarcho-socialism, anarchist socialism, free socialism, stateless socialism, socialist anarchism and socialist libertarianism,Carlson, Jennifer D. (2012). "Libertarianism". In Miller, Wilburn R., ed. '' ...
, revolutionary syndicalists and
Trotskyists Trotskyism is the political ideology and branch of Marxism developed by Ukrainian-Russian revolutionary Leon Trotsky and by some other members of the Left Opposition and Fourth International. Trotsky self-identified as an Orthodox Marxism, orth ...
. During the Spanish Revolution, some areas where anarchist and libertarian socialist influence through the CNT and UGT was extensive, particularly rural regions, were run on the basis of decentralized planning resembling the principles laid out by
anarcho-syndicalist Anarcho-syndicalism is a political philosophy and anarchist school of thought that views revolutionary industrial unionism or syndicalism as a method for workers in capitalist society to gain control of an economy and thus control influence in b ...
Diego Abad de Santillan Diego is a Spanish Spanish may refer to: * Items from or related to Spain: **Spaniards, a nation and ethnic group indigenous to Spain **Spanish language **Spanish cuisine Other places * Spanish, Ontario, Canada * Spanish River (disambiguati ...
in the book ''After the Revolution''.


Models


Negotiated coordination

Economist Pat Devine has created a model of decentralized economic planning called "negotiated coordination" which is based upon
social ownership Social ownership is the appropriation of the surplus product Surplus product (german: Mehrprodukt, links=no) is an economic concept explicitly theorised by Karl Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philos ...
of the
means of production The means of production is a concept that encompasses the social use and ownership Ownership is the state or fact of exclusive right In Anglo-Saxon law Anglo-Saxon law (Old English Old English (, ), or Anglo-Saxon, is the earliest record ...
by those affected by the use of the assets involved, with the allocation of
consumer A consumer is a person or a group who intends to order, orders, or uses purchased goods, products, or Service (economics), services primarily for personal, social, family, household and similar needs, not directly related to entrepreneurial or bu ...
and
capital goods The economic concept of a capital good (also called complex product systems (CoPS), H. Rush, "Managing innovation in complex product systems (CoPS)," IEE Colloquium on EPSRC Technology Management Initiative (Engineering & Physical Sciences Research ...
made through a participatory form of decision-making by those at the most localized level of production. Moreover, organizations that utilize
modularity Broadly speaking, modularity is the degree to which a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its ...
in their production processes may distribute problem solving and decision making.Kostakis, Vasilis (2019)
"How to Reap the Benefits of the 'Digital Revolution'? Modularity and the Commons"
''Halduskultuur: The Estonian Journal of Administrative Culture and Digital Governance''. 20 (1): 4–19.


Participatory planning

The planning structure of a decentralized planned economy is generally based on a consumers council and producer council (or jointly, a distributive cooperative) which is sometimes called a
consumers' cooperative A consumers' co-operative is an enterprise Enterprise (or the archaic spelling Enterprize) may refer to: Business and economics Brands and enterprises * Enterprise GP Holdings Enterprise GP Holdings was a midstream energy holding compan ...
. Producers and consumers, or their representatives, negotiate the quality and quantity of what is to be produced. This structure is central to
guild socialism Guild socialism is a political movement advocating workers' control Workers' control is Participatory management, participation in the management of factories and other commercial enterprises by the people who work there. It has been variously ...
,
participatory economics Participatory economics, often abbreviated Parecon, is an economic system based on participation (decision making), participatory decision making as the primary economics, economic mechanism for Resource allocation, allocation in society. In the ...
and the economic theories related to
anarchism Anarchism is a political philosophy Political philosophy or political theory is the philosophical Philosophy (from , ) is the study of general and fundamental questions, such as those about reason, existence, knowledge ...

anarchism
.


Practice


Kerala

Some decentralised participation in economic planning has been implemented in various regions and states in
India India, officially the Republic of India (Hindi Hindi (Devanagari: , हिंदी, ISO 15919, ISO: ), or more precisely Modern Standard Hindi (Devanagari: , ISO 15919, ISO: ), is an Indo-Aryan language spoken chiefly in Hindi Belt, ...

India
, most notably in
Kerala Kerala ( ; ) is a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The State'' (newspaper), a daily newspaper ...
. Local level planning agencies assess the needs of people who are able to give their direct input through the Gram Sabhas (village-based institutions) and the planners subsequently seek to plan accordingly.


Revolutionary Catalonia

Some decentralised participation in economic planning has been implemented across Revolutionary Spain, most notably in Catalonia, during the
Spanish Revolution of 1936 The Spanish Revolution was a workers' social revolution Social revolutions are sudden changes in the Social structure, structure and nature of society. These revolutions are usually recognized as having transformed society, economy, cul ...
.


Similar concepts in practice


= Community participatory planning

= The
United Nations The United Nations (UN) is an intergovernmental organization aiming to maintain international peace and international security, security, develop friendly relations among nations, achieve international cooperation, and be a centre for harm ...

United Nations
has developed local projects that promote participatory planning on a community level. Members of communities take decisions regarding
community development The United Nations defines community development as "a process where community members come together to take collective action and generate solutions to common problems." It is a broad concept, applied to the practices of civic leaders, activists ...
directly.


See also

*
Adhocracy Adhocracy is a flexible, adaptable and informal form of organization An organization, or organisation (Commonwealth English The use of the English language English is a of the , originally spoken by the inhabitants of . It i ...
*
Communist state A communist state, also known as a Marxist–Leninist state, is a one-party state A one-party state, single-party state, one-party system, or single-party system is a type of sovereign state A sovereign state is a political entity that ...
*
Creative destruction Creative destruction (German: ''schöpferische Zerstörung''), sometimes known as Schumpeter's gale, is a concept in economics which since the 1950s is the most readily identified with the Austrians, Austrian-born economist Joseph Schumpeter w ...
*
Critique of political economy Critique of political economy or critique of economy is a critique that questions the very object of the economy, and hence reject the axioms, institutions and social categories, abstractions as well as the entire paradigm In science Sci ...
*
Distributed economy ''Distributed economies'' (DE) is a term that was coined by Allan Johansson et al. in 2005.Johansson A, Kisch P, Mirata M., 2005Distributed economies - A new engine for innovation . Journal of Cleaner Production 2005;13:971-9 Definition There is no ...
*
Economic equilibrium In economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of plan ...
*
Economic interventionism Economic interventionism, sometimes also called state interventionism, is an economic policy position favouring government intervention in the market process with the intention of correcting market failure In neoclassical economics, market f ...
*
Inclusive democracy #REDIRECT Inclusive Democracy Inclusive Democracy (ID) is a project that aims for direct democracy; economic democracy in a stateless, moneyless and marketless economy; self-management (democracy in the socio-economic realm); and ecological ...
*
Input–output model In economics Economics () is a social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behav ...
*
Laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects hav ...
*
Material balance planning Material balances are a method of economic planning Economic planning is a resource allocation In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), pro ...
* Peer-to-peer economy *
Production for use Production for use is a phrase referring to the principle of economic organization and production taken as a defining criterion for a socialist economy Socialist economics comprises the economic theories, practices and norms of hypothetical and ...
*
Public ownership State ownership, also called government ownership and public ownership, is the ownership of an industry Industry may refer to: Economics * Industry (economics) In macroeconomics, an industry is a branch of an economy that produces a clo ...
*
Resource-based economy A resource-based or natural-resource-based economy is that of a country whose gross national product The Gross National Income (GNI), previously known as Gross National Product (GNP), is the total domestic and foreign output claimed by r ...
*
Social peer-to-peer processes Social peer-to-peer processes are interactions with a peer-to-peer dynamic. These peers can be humans or computers. Peer-to-peer (P2P) is a term that originated from the popular concept of the P2P distributed computer application architecture which ...
*
Steady-state economy A steady-state economy is an economy made up of a constant stock of physical wealth (capital) and a constant population size. In effect, such an economy does not grow in the course of time. The term usually refers to the national economy of ...
*
Technocracy Technocracy is a system of government A government is the system or group of people governing an organized community, generally a State (polity), state. In the case of its broad associative definition, government normally consists ...
*
Workers' self-management Workers' self-management, also referred to as labor management and organizational self-management, is a form of organizational management Management (or managing) is the administration of an organization An organization, or organisa ...
*
The Venus Project Jacque Fresco (March 13, 1916 – May 18, 2017) was an American futurist and self-described social engineering (political science), social engineer. autodidacticism, Self-taught, he worked in a variety of positions related to industrial ...
; Case studies (Soviet-type economies) *
Analysis of Soviet-type economic planning Soviet-type economic planning (STP) is the specific model of centralized planning employed by Marxism–Leninism, Marxist–Leninist socialist states modeled on the Economy of the Soviet Union, economy of the Soviet Union (USSR). Although there ...
*
Eastern Bloc economies The Eastern Bloc, also known as the Communist Bloc, the Socialist Bloc and the Soviet Bloc, was the group of socialist states of Central and Eastern Europe, East Asia, and Southeast Asia under the influence of the Soviet Union and its ideology ...
*
Economy of Cuba The economy of Cuba is a Mixed economy, mixed command economy dominated by state-run enterprises. Most of the labor force is employed by the state. Following the fall of the Soviet Union in 1991, the ruling Communist Party of Cuba encouraged the f ...
*
Economy of North Korea The economy of North Korea is a centrally planned economy A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production ...
*
Five-year plans of the Soviet Union The five-year plans for the development of the national economy of the Union of Soviet Socialist Republics (USSR) ( rus, Пятилетние планы развития народного хозяйства СССР, ''Pyatiletniye plany razvit ...
*
OGAS OGAS (russian: Общегосударственная автоматизированная система учёта и обработки информации, "ОГАС", "National Automated System for Computation and Information Processing") was ...
, a plan for creating a computer network to supervise the Soviet economy *
Project Cybersyn Project Cybersyn was a Chilean project from 1971 to 1973 during the presidency of Salvador Allende aimed at constructing a distributed decision support system to aid in the management of the national economy. The project consisted of four modul ...
, a project for a computer network controlling the economy of Chile under
Salvador Allende Salvador Guillermo Allende Gossens (, , ; 26 June 1908 – 11 September 1973) was a Chilean physician and socialist Socialism is a political Politics (from , ) is the set of activities that are associated with making decisions I ...

Salvador Allende
; Case studies (mixed-market economies) *
Five-year plans of China The Five-Year Plans () are a series of social and economic development initiatives issued by the Chinese Communist Party (CCP) since 1953 in the People's Republic of China. Since 1949, the CCP has shaped the economy of China, Chinese economy thr ...
*
Dirigisme Dirigisme or dirigism () is an economic doctrine in which the state plays a strong directive role as opposed to a merely Regulation, regulatory or non-interventionist role over a capitalist market economy. As an economic doctrine, dirigisme is th ...
(indicative planning in France) *
Economy of India The economy of India India, officially the Republic of India (Hindi Hindi (Devanagari: , हिंदी, ISO 15919, ISO: ), or more precisely Modern Standard Hindi (Devanagari: , ISO 15919, ISO: ), is an Indo-Aryan language s ...
*
Economy of Singapore The economy of Singapore is a highly-developed free-market economy A market economy is an economic system in which the decisions regarding investment, Production (economics), production and Distribution (economics), distribution are gui ...
*
First Malaysia Plan The First Malaysia Plan (1966–1970) was an economic development plan implemented by the government of Malaysia Malaysia ( ; ) is a country in Southeast Asia Southeast Asia, also spelled South East Asia and South-East Asia, and also ...
*
Five-year plans of Argentina The Five Year Plan was an Argentine Planned economy, state-planning strategy, during the first government of President Juan Perón, Juan Domingo Perón. First Five Year Plan (1947–1951) Preparations Early in the second half of 1946, the Tech ...
* Five-year plans of South Korea


Notes


Further reading

*Kaplan, Robert - see reference to his work on International Economics and Foreign Relations, where he addresses nature of “command economy”, a Weberian term. * Cox, Robin (2005)
"The Economic Calculation Controversy: Unravelling of a Myth"
''Common Voice'' (3). * Damier, Vadim (2012)
"The Economy of Freedom"
* Devine, Pat (2010). ''Democracy and Economic Planning''. Polity. . * Ellman, Michael (2014)
''Socialist Planning''
(3rd ed.).
Cambridge University Press Cambridge University Press (CUP) is the publishing business of the University of Cambridge , mottoeng = Literal: From here, light and sacred draughts. Non literal: From this place, we gain enlightenment and precious knowled ...
. . * Grossman, Gregory (1987): "Command economy". ''
The New Palgrave: A Dictionary of Economics ''The New Palgrave Dictionary of Economics'' (2018), 3rd ed., is an twenty-volume reference work on economics published by Palgrave Macmillan. It contains around 3,000 entries, including many classic essays from the original Inglis Palgrave Dictiona ...
''. 1. pp. 494–495. * Landauer, Carl (1947). ''Theory of National Economic Planning'' (2nd ed.). Berkeley and Los Angeles, California: University of California Press. * Mandel, Ernest (1986). ''In Defence of Socialist Planning''. ''New Left Review'' (159). * . * Nove, Alec (1987). "Planned economy". ''The New Palgrave: A Dictionary of Economics''. 3. pp. 879–885.


External links


"The Myth of the Permanent Arms Economy"


{{DEFAULTSORT:Planned economy Anarcho-communism Anarcho-syndicalism Communism Economic ideologies Economic systems Former communist economies Marxism Marxism–Leninism Schools of economic thought Socialism Socialist calculation