Centrally planned economies in the context of "Investment (macroeconomics)"

The economy of the Inca Empire, which lasted from 1438 to 1532, established an economic structure that allowed for substantial agricultural production as well as the exchange of products between communities. It was based on the institution of reciprocity, considered the socioeconomic and political system of the Pre-Columbian Andes. This model has been variously described by scholars throughout the 20th century, but an academic consensus has emerged using the general frameworks of Austrian economist Karl Polanyi.

Inca society is considered to have had some of the most successful centrally organized economies in history. Its effectiveness was achieved through the successful control of labor and the regulation of tribute resources. In Inca society, collective labor was the cornerstone for economic productivity and the achieving of common prosperity. Members of an ayllu (the basic unit of socio-territorial organisation) developed various traditions of solidarity to adapt to the Andean environment. The economic prosperity of the Inca State caused the Spanish conquerors to be impressed by the foreign forms of organisation. According to each ayllu, labor was divided by region, with agriculture centralized in the most productive areas; ceramic production, road construction, textile production, and other skills were also tasks distributed among members of an ayllu. After local needs were satisfied, the state apparatus gathered all surplus that is gathered from ayllus and allocated it where it was needed. Populations of local chiefdoms in the Inca Empire received clothes, food, health care, and schooling in exchange for their labour.

Democratic socialism is a left-wing economic and political philosophy that supports political democracy and some form of a socially owned economy, with a particular emphasis on economic democracy, workplace democracy, and workers' self-management within a market socialist, decentralised planned, or democratic centrally planned socialist economy. Democratic socialists argue that capitalism is inherently incompatible with the values of freedom, equality, and solidarity and that these ideals can only be achieved through the realisation of a socialist society. Although most democratic socialists seek a gradual transition to socialism, democratic socialism can support revolutionary or reformist politics to establish socialism. Democratic socialism was popularised by socialists who opposed the backsliding towards a one-party state in the Soviet Union and other countries during the 20th century. In Scandinavian countries as well as others, people often use "social democracy" and "democratic socialism" interchangeably to describe leftist movements aiming for gradual, democratic reform.

The history of democratic socialism can be traced back to 19th-century socialist thinkers across Europe and the Chartist movement in Britain, which somewhat differed in their goals but shared a common demand for democratic decision-making and public ownership of the means of production and viewed these as fundamental characteristics of the society they advocated for. From the late 19th to the early 20th century, democratic socialism was heavily influenced by the gradualist form of socialism promoted by the British Fabian Society and Eduard Bernstein's evolutionary socialism in Germany.