What is the role of economic planning in a communist system?

Economics Communism Questions



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What is the role of economic planning in a communist system?

In a communist system, economic planning plays a central role in determining the allocation of resources and production decisions. The government or central planning authority is responsible for setting production targets, determining the distribution of goods and services, and coordinating economic activities. Economic planning aims to achieve the goals of equality, social welfare, and collective ownership of the means of production. It involves detailed plans and directives that guide the production process, resource allocation, and pricing decisions. The objective is to prioritize the needs of the society as a whole rather than individual profit motives.