Planekonomi

Planekonomi, or planned economy, is an economic system in which most production and distribution decisions are made by a central authority according to a comprehensive plan rather than by market forces. The state typically owns the means of production and uses plans, quotas, and pricing rules to allocate resources, determine what will be produced, in what quantities, and at what prices goods and services will be exchanged. Plans can cover multi-year horizons, such as five-year plans, and may specify investment, labor assignments, and output targets across sectors.

In practice, planned economies rely on government ministries or agencies to collect information, forecast demand, and coordinate activity across farms, factories, and infrastructure. While intent is to achieve coordination, social objectives, and rapid industrialization, planners must solve complex optimization problems with imperfect information, leading to inefficiencies such as shortages, surpluses, and bottlenecks. Prices in such systems are often administratively set rather than determined by supply and demand, diminishing signals for innovation and consumer choice.

Historically, planned economies were most closely associated with the Soviet Union and its allied states, as well as Maoist China, Cuba, and some Eastern European countries. Experiences varied, but common criticisms include incentives problems, bureaucratic rigidity, and stagnation. In the late 20th century, many former planned economies reintroduced market mechanisms or restructured toward mixed economies.

Today, pure planekonomi is rare; planning tools are used within broader mixed economies and strategic sectors, sometimes complemented by central planning with market elements or evidence-based forecasting.