Central planning is an economic system where the government or a central authority makes decisions about the production and distribution of goods and services. This approach aims to allocate resources efficiently and meet the needs of the population, often through detailed plans and regulations. Central planning is commonly associated with socialist and communist economies, where the state plays a significant role in managing the economy. In a centrally planned economy, the government sets prices, determines what to produce, and controls the supply of goods. This contrasts with market economies, where decisions are driven by supply and demand. While central planning can lead to equitable resource distribution, it may also result in inefficiencies and a lack of innovation.