planned economy: meaning, definition, pronunciation and examples
C1/C2Academic, Technical, Political, Journalistic
Quick answer
What does “planned economy” mean?
An economic system in which the government or state decides what goods are produced, how they are produced, and how they are distributed.
Audio
Pronunciation
Definition
Meaning and Definition
An economic system in which the government or state decides what goods are produced, how they are produced, and how they are distributed.
A centrally controlled economic structure where production quotas, pricing, and investment decisions are made by central authorities rather than by market forces.
Dialectal Variation
British vs American Usage
Differences
The term is identical in spelling and meaning. Usage frequency may differ in political discourse, being more common in US contexts as a contrastive term.
Connotations
In both UK and US mainstream media, the term often carries a negative connotation, associated with inefficiency and lack of freedom. In certain academic or leftist political circles, it may be used neutrally or positively.
Frequency
Comparably frequent in both dialects.
Grammar
How to Use “planned economy” in a Sentence
[Country] operates a planned economy.The transition from a planned economy to a market economy was difficult.Critics argue that a planned economy stifles innovation.Vocabulary
Collocations
Examples
Examples of “planned economy” in a Sentence
verb
British English
- The country planned its economy around heavy industry.
- They are planning the economy with new five-year targets.
American English
- The government planned the economy to prioritize military production.
- Central committees planned the economy down to the last detail.
adverb
British English
- The resources were allocated planned-economy style.
- It was managed very planned-economy-like.
American English
- Goods were distributed in a planned-economy fashion.
- The industry operated planned-economy rigidly.
adjective
British English
- The planned-economy model proved difficult to sustain.
- They lived under a planned-economy system for decades.
American English
- Planned-economy policies led to widespread shortages.
- He studied the collapse of planned-economy states.
Usage
Meaning in Context
Business
Used in comparative analysis and risk assessment for markets emerging from planned economies.
Academic
Core term in economics, political science, and history for discussing 20th-century socialist states and economic systems.
Everyday
Used in political discussions and news commentary to describe systems like the former USSR or North Korea.
Technical
Detailed analysis of resource allocation mechanisms, price controls, and production targets.
Vocabulary
Synonyms of “planned economy”
Strong
Neutral
Weak
Vocabulary
Antonyms of “planned economy”
Watch out
Common Mistakes When Using “planned economy”
- Using 'planed economy' (incorrect spelling). Confusing with 'mixed economy'. Using 'centrally planned economy' redundantly when 'planned economy' already implies central control.
FAQ
Frequently Asked Questions
China has transitioned to a 'socialist market economy', retaining significant state control in key sectors but incorporating substantial market mechanisms, so it is no longer a pure planned economy.
Proponents argue it can avoid wasteful competition, ensure full employment, direct investment towards social goals, and prevent extreme inequality.
Critics highlight inefficiency due to lack of price signals, slow innovation, susceptibility to bureaucratic errors, chronic shortages or surpluses, and restrictions on individual economic freedom.
The Soviet Union and its Eastern Bloc satellites (e.g., East Germany, Poland), North Korea, Cuba (to varying degrees), and pre-reform China and Vietnam.
An economic system in which the government or state decides what goods are produced, how they are produced, and how they are distributed.
Planned economy is usually academic, technical, political, journalistic in register.
Planned economy: in British English it is pronounced /plænd ɪˈkɒnəmi/, and in American English it is pronounced /plænd ɪˈkɑːnəmi/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “The five-year plan was the engine of their planned economy.”
Learning
Memory Aids
Mnemonic
PLANNED ECONOMY: Picture a PLANned city with a central office deciding where every shop and factory goes, instead of letting businesses choose freely.
Conceptual Metaphor
THE ECONOMY AS A MACHINE (to be designed and controlled by engineers).
Practice
Quiz
What is the primary alternative to a planned economy?