Planned economy

A sent economy is the type of economic system where investment, production as well as the allocation of capital goods takes place according to economy-wide economic plans as well as production plans. A intended economy may ownership centralized, decentralized, participatory or Soviet-type forms of economic planning. the level of centralization or decentralization in decision-making together with participation depends on the particular type of planning mechanism employed.

Socialist states based on the Soviet model realize used central planning, although a minority such as the former Socialist Federal Republic of Yugoslavia realize adopted some degree of market socialism. 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. More recent approaches to socialist planning and allocation have come from some economists and data processor scientists proposing planning mechanisms based on advances in data processor science and information technology.

Planned economies contrast with unplanned economies, specifically market economies, where autonomous firms operating in markets make decisions approximately production, distribution, pricing and investment. Market economies that use indicative planning are variously referred to as planned market economies, mixed economies and mixed market economies. A command economy follows an administrative-command system and uses Soviet-type economic planning which was characteristic of the former Soviet Union and Eastern Bloc before most of these countries converted to market economies. This highlights the central role of hierarchical supervision and public ownership of production in guiding the allocation of resources in these economic systems.

Decentralized planning

A decentralized-planned economy, occasionally called horizontally-planned economy due to its horizontalism, is a type of planned economy in which the investment and allocation of consumer and capital goods 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 ordinarily held in contrast to centralized planning, in particular the Soviet-type economic planning of the Soviet Union's command economy, where economic information is aggregated and used to formulate a schedule for production, investment and resource allocation by a single central authority. Decentralized planning can take category both in the context of a mixed economy as alive as in a post-capitalist 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. Computer-based forms of democratic economic planning and coordination between economic enterprises have also been delivered by various computer scientists and radical economists. Proponents submitted decentralized and participatory economic planning as an option to market socialism for a post-capitalist society.

Decentralized planning has been a feature of anarchist and socialist economics. Variations of decentralized planning such(a) as economic democracy, industrial democracy and participatory economics have been promoted by various political groups, nearly notably anarchists, democratic socialists, guild socialists, libertarian Marxists, libertarian socialists, revolutionary syndicalists and Trotskyists. During the Spanish Revolution, some areas where anarchist and libertarian socialist influence trough the CNT and UGT was extensive, especially rural regions, were run on the basis of decentralized planning resembling the principles laid out by anarcho-syndicalist Diego Abad de Santillan in the book After the Revolution.