Decentrally Planned Economy

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Via the Wikipedia:

"A decentrally planned economy is an economy where members of a society, acting with equal economic power, democratically plan economic activity.

The 1970 Chilean computer controlled planned economy cybersyn was pioneered by Salvador Allende's socialist government, in an attempt to move towards decentralised planning with the experimental cyberfolk component.

During the Spanish Revolution some Anarchist areas were run under decentralised planning following the principles laid out by Diego Abad de Santillan in the book After the Revolution.

De-centralised planning has been a feature in socialist and anarchist economics. Variations of decentralized planning include participatory economics, economic democracy and industrial democracy, and have been promoted by various political groups, most notably libertarian socialists, Trotskyists, Anarchists and democratic socialists."



Models, via the Wikipedia:

Negotiated coordination

"Economist Pat Devine has created a model of decentralized economic planning called "negotiated coordination" which is based upon social ownership of the means of production by those affected by the use of the assets involved, with the allocation of consumer and capital goods made through a participatory form of decision-making by those at the most localized level of production.[51] Moreover, organizations that utilize modularity in their production processes may distribute problem solving and decision making.

Participatory planning

The planning structure of a decentralized planned economy is generally based on a consumers council and producer council (or jointly, a distributive cooperative) which is sometimes called a consumers' cooperative. Producers and consumers, or their representatives, negotiate the quality and quantity of what is to be produced. This structure is central to guild socialism, participatory economics and the economic theories related to anarchism."


More Information

  • Prychito, David L. (31 July 2002). Markets, Planning, and Democracy: Essays After the Collapse of Communism. Edward Elgar Publishing. p. 72. ISBN 978-1840645194.

"Traditional socialism strives to plan all economic activities comprehensively, both within and between enterprises. As such, it seeks to integrate the economic activities of society (the coordination of socially owned property) into a single coherent plan, rather than to rely upon the spontaneous or anarchic ordering of the market system to coordinate plans."