What is a command economy?

The command economy, also known as a planned economy, requires that a nation's central government own and control the means of production. Private ownership of land and capital is nonexistent or severely limited. Central planners set prices, control production levels, and limit or prohibit competition within the private sector.

Which country has a command economy?

Belarus is a country considered to have a command economy given the significant government control over economic activities. Currently, the state owns most of the industrial base and agricultural land. Libya is also considered to have a command economy, with the government controlling many aspects of the economy.

What is a pure command economy?

In a pure command economy, there is no private sector, as the central government owns or controls all business. In a command economy, government officials set national economic priorities, including how and when to generate economic growth, how to allocate resources, and how to distribute the output.