planned economy
Government-controlled economic system
A planned economy is an economic system in which a central authority—typically the government—makes decisions about production, distribution, and pricing rather than allowing market forces to determine them.
The term usually refers to socialist or communist systems like the Soviet Union's, where the state owned major industries and set output targets through five-year plans.
Cuba remains one of the few planned economies in the world.
Communal economic control
- communismCollective ownership system
- MarxismClass-based revolutionary philosophy
- LeninismVanguard-led revolutionary doctrine
- collectivismGroup primacy doctrine
capitalism · state socialism · Soviet model · Maoism · proletariat · bourgeoisie · class struggle · means of production
Planned manufacturing goals
- central committeeExecutive governing body
- quotaFixed assigned amount
- allocationDistribution of shares
- rationingLimiting distribution during scarcity
price controls · distribution · resource allocation · forecasting · prioritization · apportionment · scheduling · ceilings
Government acquisition of industry
- public sectorState-controlled economic portion
- state interventionPublic authority involvement
- collectivizationForced communal ownership transfer
- expropriationGovernment taking private property
heavy industry · industrialization · infrastructure · electrification · bureaucracy · ministry · state monopoly · public works
Suboptimal use of resources
- shortageDeficient supply of necessities
- black marketIllicit trading system
- corruptionDishonest abuse of power
- stagnationAbsence of flow or progress
misallocation · bureaucracy · hoarding · queuing · perestroika · liberalization · privatization
Government guidance of production
- fiscal policyState spending and taxation
- subsidiesFinancial aid from government
- protectionismShielding local producers
- import substitutionDomestic production over foreign goods
trade barriers · regulation · taxation · redistribution · welfare state · price fixing · wage controls · macroeconomics
socialism
Communal economic control
- communismCollective ownership system
- MarxismClass-based revolutionary philosophy
- LeninismVanguard-led revolutionary doctrine
collectivism · capitalism · state socialism · Soviet model · Maoism · proletariat · bourgeoisie · class struggle · means of production · public ownership
production targets
Planned manufacturing goals
- central committeeExecutive governing body
- quotaFixed assigned amount
- allocationDistribution of shares
rationing · price controls · distribution · resource allocation · forecasting · prioritization · apportionment · scheduling · ceilings · directive
nationalization
Government acquisition of industry
- public sectorState-controlled economic portion
- state interventionPublic authority involvement
- collectivizationForced communal ownership transfer
expropriation · heavy industry · industrialization · infrastructure · electrification · bureaucracy · ministry · state monopoly · public works
inefficiency
Suboptimal use of resources
- shortageDeficient supply of necessities
- black marketIllicit trading system
- corruptionDishonest abuse of power
stagnation · misallocation · bureaucracy · hoarding · queuing · perestroika · liberalization · privatization
industrial policy
Government guidance of production
- fiscal policyState spending and taxation
- subsidiesFinancial aid from government
- protectionismShielding local producers
import substitution · trade barriers · regulation · taxation · redistribution · welfare state · price fixing · wage controls · macroeconomics · stabilization
- GDR policiesstate ownership, Berlin Wall, travel restrictions, collectivization, border controls
- socialist statessingle-party rule, state property
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- communismMarx, Marxism, Leninism, Lenin, proletariat
- socialismMarxism, communism, proletariat, bourgeoisie, communal ownership
- Soviet EraUSSR, Soviet Union, Soviet rule, CCCP, Eastern Bloc
planned economymarket economy
Commerce-based economic system
free market · laissez-faire · capitalism · free enterprise · spontaneous order
planned economyprivate enterprise
Individually owned business operation
planned economyfree market
Commerce without state intervention
neoliberalism · classical liberalism · economic freedom · open market
plan, planned, economy, plans, planning, economic, planner, unplanned, economical