CENTALLY-PLANNED OR CONTROLLED OR SOCIAIST ECONOMIC SYSTEM

Definition: A centally-planned or controlled or Socialist Economic System may be defined as one in which all or a large part of the means of production and distribution are collectively owned and controlled by the state (the government). In this Economic System, all the non-human materials of production are controlled and operated by the government on behalf of the citizens. Productive firms or public corporations that produce the goods and services used in the country are owned by the government. Goods and services are produced with the sole aim of satisfying the wants of the whole citizens of the country as opposed to the profits they will fetch.

   Citizens in a socialist country work collectively for the advancement of the country and the government, on the other hand, caters for every citizen. Goods and services are produced according to needs and distributed according to individual's contributions and wants.

   Private ownership of means of production and accumulation of wealth are virtually non-existent in a centrally-planned or Socialist Economic System. Countries that practice this type of Economic System otherwise known as the the second World include China, Soviet Union, Czechoslovakia, Bulgaria, Cuba, Romania, Albania, Poland, The German Democratic Republic,etc. Socialist economy is based on the central planning of all Economic activities as opposed to the Capitalist market mechanism. Karl Marx (1818-1883) was the founder of the modern Socialism. In Africa countries like Ethiopia, Tanzania, Angola, Burkina Faso, Guinea and Mozambique have experimented and some are still experimenting various shades of Socialism.

FEATURES OF CENTRALLY-PLANNED OR SOCIAIST ECONOMIC SYSTEM 

1. State (government) ownership and control of all or large portion of the means of production and distribution.
2. It is democratic in nature and therefore, greater number of the citizens participate in the decisions of what and how to produce and "who gets what, how and why".
3. Absences of Economic rivalry among producers on one hand and consumers on the other hand.
4. Goods and services are not produced mainly to yield profit, but to satisfy the needs of the citizens.
5. Equitable distribution of incomes; not according to people's ability to grab, but according to their contributions and needs. 
6. Labour is not a marketable commodity, no group of people earn their living entirely and solely from the sale of their labour power.
7. Non-market economy; all production is not intended for sales, all relationship and means of production are not established and means of production are not established and purchased in the market, etc.
8. Non price competition, involving sales promotion devices such as advertising and others.
9. All factors of production are fully employed in order to produce enough goods and services to meet people's want. 
10. Private firms play little or no role in the production and distribution of goods and services.

ADVANTAGES OF OR ARGUMENT FOR SOCIALISM

1. One of the advantages of Socialism is that it leads to equitable distribution of resources.
2. Socialism cater for the interest of all citizens.
3. It is also argued that Socialism bridges the gap between the rich and the poor. 
4. Socialism creates no room for hoarding. 
5. More goods are available to the citizens in country that adopts Socialist Economic System. 
6. Socialism acts as a unifying factor among those who participate in the Economic activities in the country. 
7. Economic rivalry especially unhealthy one is virtually absent in a socialist Economic system, it is argued. 
8. Socialism guarantees the rule of law in a country where it is adopted. 
9. It is also argued that Socialism makes for stability of government.
10. Socialism wipes away Economic exploitation of the consumers by few Economic desperadoes. 
11. Private monopoly is prevented in a socialist system. 
12. Socialism ensures job security. 
13. Finally, Socialism is democratic in nature.

DISADVANTAGES OF OR ARGUMENT AGAINST SOCIALISM

1. One of the argument against Socialism is that it suppresses individual initiatives. 
2. It is also argued that Socialism makes people lazy and unenterprising.
3. Socialism does not encourages faster Economic development because of the bureaucracy involved in planning by the state officials. 
4. Socialism is not self regulating and self functioning.
5. The system does not provide the people with alternative choice.
6. Absences of Economic competition in a socialist Economic System lowers the quality of goods produced.
7. Socialism does not encourage specialisation. 
8. Socialism leads to state monopoly which gives rise to ineffecient and ineffective production and distribution of goods and services. 
9. Finally, Socialism does not lead to invention and innovation because of the absence of competition.