A command economy is a system where the government determines the allocation of goods and investment, according to an economic and production plan. The government also determines what goods will be produced, how much of them will be produced, and how much they should cost. It is one of the most recognizable elements of a socialist country.
The main goal of a command economy is to use land, labour and capital to serve the economic objectives of the country. These objectives are often directed towards economic and human development. It also includes the development of strong national industries without having to wait years for capital accumulation or external financing. As a result, socialist countries have achieved both massive growth in industry and significant improvement in health indicators.
