planningstelsel

Planningstelsel, or planning system, is an economic and administrative approach in which production and allocation decisions are guided by a centralized plan rather than by market prices. In a planningstelsel, the state typically owns or controls major means of production, and a planning authority drafts multi-year and annual plans that set output targets, investment levels, and resource distribution across sectors.

Historically, planningstelsels are associated with socialist or communist states. The most well-known examples are the planned economies of the Soviet Union and its allies, where Gosplan and sector ministries prepared five-year plans that directed factories, farms, and infrastructure. China implemented similar centralized planning until reforms in the late 1970s and 1980s; other countries in Europe and Latin America experimented with planning to varying degrees.

Implementation usually involves central or regional planning agencies, input from producers, and a system of quotas, price controls, and public investment. In some variants, planning is supplemented by market mechanisms or indicative planning, which offers guidance without binding requirements.

Benefits attributed to planningstelsel include coordinated investment in large projects, rapid industrialization, and the ability to prioritize social objectives. Critics point to information bottlenecks, misallocated resources, lack of price signals, incentives distortions, and shortages or surpluses. Over time, many planningstelsels shifted toward decentralization, market reforms, or hybrid systems that retain some planning features while allowing market pricing.

Today, true comprehensive planning systems are rare in their pure form, though elements persist in various state-guided economies and in strategic sectors within mixed economies.