A decentrally planned economy or decentralised planned economy (occasionally horizontally planned economy) is an economy where members of a society, acting with equal economic power, democratically plan economic activity in the absence of a central authority.

The 1970 Chilean computer controlled planned economy cybersyn was pioneered by Salvador Allende

Salvador Allende

Salvador Allende Gossens was a Chilean physician and politician who is generally considered the first democratically elected Marxist to become president of a country in Latin America....

's socialist government, in an attempt to move towards decentralised planning with the experimental cyberfolk component.

During the Spanish Revolution

Spanish Revolution

The Spanish Revolution was a workers' social revolution that began during the outbreak of the Spanish Civil War in 1936 and resulted in the widespread implementation of anarchist and more broadly libertarian socialist organizational principles throughout various portions of the country for two to...

 some Anarchist areas were run under decentralised planning following the principles laid out by Diego Abad de Santillan

Diego Abad de Santillán

Diego Abad de Santillán , born Sinesio Vaudilio García Fernández, was an author, economist and leading figure in the Spanish and Argentine anarchist movements.-Early years:...

 in the book After the Revolution http://membres.multimania.fr/anarchives/site/syndic/aftertherevolution.htm#local

Decentralised planning has been a feature in socialist and anarchist economics

Anarchist economics

Anarchist economics is the set of theories and practices of economics and economic activity within the political philosophy of anarchism.-Early views:...

. Variations of decentralized planning include participatory economics

Participatory economics

Participatory economics, often abbreviated parecon, is an economic system proposed primarily by activist and political theorist Michael Albert and radical economist Robin Hahnel, among others. It uses participatory decision making as an economic mechanism to guide the production, consumption and...

, economic democracy

Economic democracy

Economic democracy is a socioeconomic philosophy that suggests a shift in decision-making power from a small minority of corporate shareholders to a larger majority of public stakeholders...

 and industrial democracy

Industrial democracy

Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. While in participative management organizational designs workers are listened to and take part in the decision-making process, in organizations employing industrial...

, and have been promoted by various political groups, most notably libertarian socialists, guild socialists

Guild socialism

Guild socialism is a political movement advocating workers' control of industry through the medium of trade-related guilds. It originated in the United Kingdom and was at its most influential in the first quarter of the 20th century. It was strongly associated with G. D. H...

, Trotskyists, anarchists and democratic socialists.

Structure

The planning structure of a decentralized planned economy is generally based on a consumers council and producer council (a distributive cooperative), which is sometimes called a consumers' cooperative

Consumers' cooperative

Consumer cooperatives are enterprises owned by consumers and managed democratically which aim at fulfilling the needs and aspirations of their members. They operate within the market system, independently of the state, as a form of mutual aid, oriented toward service rather than pecuniary profit...

. Producers and consumers, or their representatives, negotiate the quality and quantity of what is to be produced. This structure is central to participatory economics

Participatory economics

Participatory economics, often abbreviated parecon, is an economic system proposed primarily by activist and political theorist Michael Albert and radical economist Robin Hahnel, among others. It uses participatory decision making as an economic mechanism to guide the production, consumption and...

, guild socialism

Guild socialism

Guild socialism is a political movement advocating workers' control of industry through the medium of trade-related guilds. It originated in the United Kingdom and was at its most influential in the first quarter of the 20th century. It was strongly associated with G. D. H...

, and economic theories related to anarchism

Social anarchism

Social anarchism is a term originally used in 1971 by Giovanni Baldelli as the title of his book where he discusses the organization of an ethical society from an anarchist point of view...

.

See also

• Self-managed economy
• Socialist economics
  Socialist economics
  Socialist economics are the economic theories and practices of hypothetical and existing socialist economic systems.A socialist economy is based on public ownership or independent cooperative ownership of the means of production, wherein production is carried out to directly produce use-value,...
  
  
• Market abolitionism
  Market abolitionism
  Market abolitionism is a belief that the market, in the economic sense, should be completely eliminated from society. Market abolitionists argue that markets are morally abhorrent, antisocial and ultimately incompatible with human and environmental survival and that if left unchecked the market...
  
  
• Horizontalidad
  Horizontalidad
  Horizontality or horizontalism is a social relationship that advocates the creation, development and maintenance of social structures for the equitable distribution of management power...
  
  
• Participatory economics
  Participatory economics
  Participatory economics, often abbreviated parecon, is an economic system proposed primarily by activist and political theorist Michael Albert and radical economist Robin Hahnel, among others. It uses participatory decision making as an economic mechanism to guide the production, consumption and...
  
  
• Inclusive democracy
  Inclusive Democracy
  Inclusive Democracy is a political theory and political project that aims for direct democracy, economic democracy in a stateless, moneyless and marketless economy, self-management and ecological democracy...
  
  
• Project Cybersyn
  Project Cybersyn
  Project Cybersyn was a Chilean attempt at real-time computer-controlled planned economy in the years 1970–1973 . It was essentially a network of telex machines that linked factories with a single computer centre in Santiago, which controlled them using principles of cybernetics...
  
  
• Economic democracy
  Economic democracy
  Economic democracy is a socioeconomic philosophy that suggests a shift in decision-making power from a small minority of corporate shareholders to a larger majority of public stakeholders...
  
  
• Economic planning
  Economic planning
  Economic planning refers to any directing or planning of economic activity outside the mechanisisms of the market, in an attempt to achieve specific economic or social outcomes. Planning is an economic mechanism for resource allocation and decision-making in contrast with the market mechanism...
  
  
• Anarchist Spain