Quote: "A planned economy is a type of economic system where the distribution of goods and services or the investment, production and the allocation of capital goods takes place according to economic plans that are either economy-wide or limited to a category of goods and services."
Economic systems in which the government controls the means of production and sets prices and production targets.
Central Planning: A command economy is one where the government centrally plans and controls all aspects of the economy.
Property ownership: The state owns all resources and means of production. The concept of private property is abolished.
Price controls: The state sets prices for goods and services.
Labor allocation: The government determines where people work and what they do.
Distribution of goods: The state decides how goods are distributed and who gets them.
Production quotas: The government sets production targets for companies and industries.
State-run enterprises: All businesses and industries are owned and run by the state.
Economic efficiency: There is a trade-off between efficiency and social benefit. Command economies may be inefficient but are able to redistribute wealth.
Market failures: Command economies are able to mitigate market failures, such as externalities and public goods.
International trade: Command economies struggle with international trade as property rights are not recognized.
Political control: Command economies may be used to subjugate political rivals.
Consumer surplus: Consumers have almost no role in a command economy.
Incentives: Command economies may struggle to incentivize workers and firms, leading to poor outcomes.
Resource allocation: In a command economy, the state must decide how resources are allocated.
Economic planning: Command economies require extensive economic planning at a national and local level.
Early forms of command economies developed in Soviet Russia (1917-1991) and Central and Eastern Europe after World War II: These economies were characterized by a complete government takeover of industry and agriculture, with no private ownership of the means of production.
Maoist China (1949: Also practiced command economy. Following the Revolution, the Chinese government seized control of all industries and resources.
North Korea (1948-present) also adheres to a communist command economy, with the government controlling all aspects of the economy, including consumption, production, and trade.: North Korea (1948-present) is a communist command economy with complete government control over consumption, production, and trade.
Cuba (1961-present) adopted a command economy after the communist revolution: Today, the Cuban government runs most of the country's industrial and service sectors.
East Germany(1949: After World War II, East Germany went under the control of the Soviet Union, and in 1949, the country established a centralized command economy.
Hungary(1956-1989): Hungary's command economy (1956–1989) was characterized by the absolute control of production, prices, and wages by the state.
Romania (1948-1989): Romania's command economy (1948–1989) was similar to that of the Soviet Union, with the state owning and controlling most of the country's industry.
Yugoslavia(1945-1992):Yugoslavia adopted a socialist economy in the aftermath of WWII: It was less centralized than the Soviet style of communism, with individual countries within the federation having control over their own economies.
Vietnam(1945-present): Vietnam has a socialist command economy, with the government controlling much of the country's industry, transportation, and banking.
Laos(1955–present): Laos is another country with a socialist command economy. The government owns and controls most of the economy, including industry, agriculture, and trade.
Quote: "A planned economy may use centralized, decentralized, participatory or Soviet-type forms of economic planning."
Quote: "Socialist states based on the Soviet model have used central planning."
Quote: "A minority such as the former Socialist Federal Republic of Yugoslavia have adopted some degree of market socialism."
Quote: "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."
Quote: "Planned economies contrast with unplanned economies, specifically market economies, where autonomous firms operating in markets make decisions about production, distribution, pricing, and investment."
Quote: "Market economies that use indicative planning are variously referred to as planned market economies, mixed economies, and mixed market economies."
Quote: "A command economy follows an administrative-command system and uses Soviet-type economic planning."
Quote: "This highlights the central role of hierarchical administration and public ownership of production in guiding the allocation of resources in these economic systems."
Quote: "The level of centralization or decentralization in decision-making and participation depends on the specific type of planning mechanism employed."
Quote: "The distribution of goods and services or the investment, production and the allocation of capital goods takes place according to economic plans."
Quote: "Market abolitionist socialism replaces factor markets with direct calculation as the means to coordinate the activities of the various socially owned economic enterprises that make up the economy."
Quote: "Autonomous firms operating in markets make decisions about production, distribution, pricing, and investment."
Quote: "Before most of these countries converted to market economies."
Quote: None mentioned in the paragraph.
Quote: "Public ownership of production" guides the allocation of resources in planned economies.
Quote: None mentioned in the paragraph.
Quote: "A minority such as the former Socialist Federal Republic of Yugoslavia have adopted some degree of market socialism."
Quote: "The level of centralization or decentralization in decision-making and participation depends on the specific type of planning mechanism employed."
Quote: "Some economists and computer scientists proposing planning mechanisms based on advances in computer science and information technology."