centrally planned economy

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Related to command economy: mixed economy

centrally planned economy

or

command economy

or

collectivism

a method of organizing the economy to produce goods and services. Under this ECONOMIC SYSTEM, economic decision-making is centralized in the hands of the state with collective ownership of the means of production, (except labour). It is the state that decides what goods and services are to be produced in accordance with its centralized NATIONAL PLAN. Resources are allocated between producing units, and final outputs between customers by the use of physical quotas.

The main rationale underlying state ownership of industry is the view that the collective ownership of the means of production ‘by the people for the people’ is preferable to a situation in which the ownership of the means of production is in the hands of the ‘capitalist class'who are able to exploit their élite position to the detriment of the populace at large. State control of industry enables the economy as a whole to be organized in accordance with some central plan, which by interlocking and synchronizing the input-output requirements of industry is able to secure an efficient allocation of productive resources. Critics of state-owned economic systems argue, however, that in practice they tend to be ‘captured and corrupted’ by powerful state officials, and that their top-heavy bureaucratic structures result in a highly inefficient organization of production and insensitivity to what customers actually want. See PRIVATE-ENTERPRISE ECONOMY, MIXED ECONOMY, NATIONALIZATION, COMMUNISM.

References in periodicals archive ?
11) Regional variation might show up potential comparative advantages of the command economy as well as its limitations.
Yin lost no time in introducing a series of institutional reforms to turn Taiwan's dominant command economy into a private enterprise market economy.
Rent-seeking decentralizes a command economy, though it drives a market economy toward a more centralized allocation of resources.
I think they will really take off first in China, because it's a command economy, and they can say no more ICE vehicles beyond here.
During Lukashenko rule Belarus's command economy has been propped up by energy subsidies from chief ally Russia.
My first impression was of an area where there was an almost Soviet-style command economy with a large portion of the workforce being employed in mining, shipbuilding and heavy engineering.
Bremmer tracks the rise of state capitalism out of the ruins of the Soviet command economy and its present-day potential to unseat free markets and take control of the global financial system.
A robust Lebanese economy is nothing but a boon to the wobbly command economy supervised by Assad.
But Bousifi dismissed suggestions that apparatchiks who got rich from holding sinecures in Libya's command economy were blocking meaningful reform.
Sir Albert said: "It is just like a Stalinist command economy.
But rather than simply condemning the command economy model and stopping there, he explains both the causes as well as the repercussions of its failure.
Mr Jones said: "Almost overnight, every concern of Britain came under a command economy with all sections organised into various forms of National Service.

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