Planøkonomier

Planøkonomier, or planned economies, are economic systems in which a central authority plans and directs most economic activity. The state typically owns the major means of production and uses a centralized plan to determine what goods and services should be produced, in what quantities, and how resources are allocated. Prices and wages may be set by the plan rather than by market forces.

In practice, planned economies rely on planning agencies or ministries to prepare production targets, budgets, and timelines. Five-year or annual plans are common devices to coordinate investment, industrial output, agriculture, and consumption. Central planners estimate demand, allocate inputs, and monitor performance, often using bureaucratic channels rather than price signals to guide decisions. Some economies combine planning with market mechanisms, but a fully centralized system aims for comprehensive direction of economic activity.

Historically, planned economies are most closely associated with socialist and communist states of the 20th century, such as the Soviet Union and its allies, as well as parts of Eastern Europe, China before market reforms, Cuba, and North Korea. These systems sought to achieve rapid industrialization, full employment, and social equality, while avoiding the perceived inefficiencies of market competition. They faced recurring issues, including information problems, incentive distortions, bureaucratic overhead, and mismatches between plans and consumer needs, which could lead to shortages or surpluses and slow innovation.

Many planøkonomier transitioned toward mixed or market-based systems from the late 20th century onward, incorporating greater market signals while retaining some state planning in strategic sectors. The term remains a reference point for debates about economic coordination, efficiency, and central planning versus decentralization.