Theories of Socialist Planning

Theories of socialist planning describe how a socialist economy might organize production and resource allocation without relying on markets. They explore ways for the government or central authorities to plan economic activity, aiming to fulfill societal needs efficiently and equitably. Some models advocate detailed central planning, where a central body makes all decisions, while others suggest decentralized planning, involving local or sectoral plans coordinated together. These theories aim to balance resource distribution, avoid waste, and ensure fair access to goods and services, contrasting with market-based economies where prices and competition primarily guide economic activity.