Centralization in the context of "Economic planning"

Play Trivia Questions online!

or

Skip to study material about Centralization in the context of "Economic planning"

Ad spacer

⭐ Core Definition: Centralization

Centralisation or centralization (American English) is the process by which the activities of an organisation, particularly those regarding planning, decision-making, and framing strategies and policies, become concentrated within a particular group within that organisation. This creates a power structure where the said group occupies the highest level of hierarchy and has significantly more authority and influence over the other groups, who are considered its subordinates.

An antonym of centralisation is decentralisation, where authority is shared among numerous different groups, allowing varying degree of autonomy for each.

↓ Menu

>>>PUT SHARE BUTTONS HERE<<<

👉 Centralization in the context of Economic planning

Economic planning is a resource allocation mechanism based on a computational procedure for solving a constrained maximization problem with an iterative process for obtaining its solution. Planning is a mechanism for the allocation of resources between and within organizations contrasted with the market mechanism. As an allocation mechanism for socialism, economic planning replaces factor markets with a procedure for direct allocations of resources within an interconnected group of socially owned organizations which together comprise the productive apparatus of the economy.

There are various forms of economic planning that vary based on their specific procedures and approach. The level of centralization or decentralization in decision-making depends on the specific type of planning mechanism employed. In addition, one can distinguish between centralized planning and decentralized planning. An economy primarily based on planning is referred to as a planned economy. In a centrally planned economy, the allocation of resources is determined by a comprehensive plan of production which specifies output requirements. Planning can also take the form of indicative planning within a market-based economy, where the state employs market instruments to induce independent firms to achieve development goals.

↓ Explore More Topics
In this Dossier

Centralization in the context of Stateless society

A stateless society is a society that is not governed by a state. In stateless societies, there is little concentration of authority. Most positions of authority that do exist are very limited in power, and they are generally not permanent positions, and social bodies that resolve disputes through predefined rules tend to be small. Different stateless societies feature highly variable economic systems and cultural practices.

While stateless societies were the norm in human prehistory, few stateless societies exist today; almost the entire global population resides within the jurisdiction of a sovereign state, though in some regions nominal state authorities may be very weak and may wield little or no actual power.

↑ Return to Menu

Centralization in the context of Governorates of Egypt

Egypt is administratively organized under a dual system that may consist of either two or three tiers, with further subdivisions occasionally resulting in an additional layer. It follows a centralized system of local government, officially termed local administration, as it functions as a part of the executive branch of the government.

↑ Return to Menu

Centralization in the context of Factory system

The factory system is a method of manufacturing whereby workers and manufacturing equipment are centralized in a factory, the work is supervised and structured through a division of labor, and the manufacturing process is mechanized.Because of the high capital cost of machinery and factory buildings, factories are typically privately owned by wealthy individuals or corporations who employ the operative labor. Use of machinery with the division of labor reduced the required skill-level of workers and also increased the output per worker.

The factory system was first adopted by successive entrepreneurs in Britain at the beginning of the Industrial Revolution in the late-eighteenth century and later spread around the world. It replaced the putting-out system (domestic system). The main characteristic of the factory system is the use of machinery, originally powered by water or steam and later by electricity. Other characteristics of the system mostly derive from the use of machinery or economies of scale, the centralization of factories, and standardization of interchangeable parts.

↑ Return to Menu

Centralization in the context of Planned economy

A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, participatory or Soviet-type forms of economic planning. The level of centralization or decentralization in decision-making and participation depends on the specific type of planning mechanism employed.

Socialist states based on the Soviet model have used central planning, although a minority such as the former Socialist Federal Republic of Yugoslavia have adopted some degree of market socialism. Market abolitionist socialism replaces factor markets with direct calculation as the means to coordinate the activities of the various socially owned economic enterprises that make up the economy. More recent approaches to socialist planning and allocation have come from some economists and computer scientists proposing planning mechanisms based on advances in computer science and information technology.

↑ Return to Menu

Centralization in the context of Cephalization

Cephalization is an evolutionary trend in bilaterian animals that, over a sufficient number of generations, concentrates the special sense organs and nerve ganglia towards the front of the body where the mouth is located, often producing an enlarged head. This is associated with the animal's movement direction and bilateral symmetry. Cephalization of the nervous system has led to the formation of a brain with varying degrees of functional centralization in three phyla of bilaterian animals, namely the arthropods, cephalopod molluscs, and vertebrates. Hox genes organise aspects of cephalization in the bilaterians.

↑ Return to Menu

Centralization in the context of Political unitarism

Political unitarism designates various theories, concepts or policies that advocate or enforce a fully unified and centralized system of government, with ultimate goal in creating a unitary state. In practice, unitarism is often manifested as a political doctrine or movement within complex political entities (confederations, federations, and other political unions), advocating for the highest degree of political integration and unification, beyond mere administrative centralization.

One of the main goals of political unitarists (proponents of unitarism) is to abolish or substantially suppress all forms of regional self-government and autonomy, by transferring powers of confederated states, federal units, autonomous regions or cantons directly to the central government. Unitarization and regionalization are often confused with centralization and decentralization, respectively.

↑ Return to Menu