centrally planned economy

Generally speaking, this term has been used as a synonym for communist economies. The factors of production are owned by the state. Their deployment is planned from the administrative capital which leads to the creation of an enormous bureaucratic superstructure. From there, the generalized plans will be broken into different sectors or regions. True central planning requires an enormous quantity of information which may be difficult to gather at the centre. Advocates of free market economics accuse central planning of inefficiency.