Centralized Planning

Centralized planning is an economic system where a central authority, such as the government, makes most or all decisions about what goods and services to produce, how to produce them, and how to distribute them. Instead of individual businesses or consumers deciding, the government sets plans and allocations to achieve specific economic goals, like growth or equality. This approach aims to coordinate resources efficiently and avoid waste or overproduction. While it can provide stability and targets, it may also reduce flexibility and responsiveness to consumer needs.