Central Planning

In central-plan economies, major policy decisions are made in advance by the government. Most of the central plan economies were socialist or Communist countries such as the Soviet Union, China, and most of Eastern Europe. However, central plans or elements of such plans also appeared in the fascists states of Italy and Germany. The time span of central plans may vary, but three- and fiveyear plans were the most common in Communist economies of eastern Europe. Decisions in central planning are focused on the volume and growth of production, consumption, and construction. In almost all cases, planned economies existed for a longer or shorter period in Communist countries. Such plans are still coordinating the economies of Cuba and North Korea. Central-plan economies are usually regarded ...

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