A decentralized-planned economy or decentrally-planned economy is a type of planned economy in which the investment and allocation of consumer and capital goods is explicated accordingly to an economy-wide plan built and operatively coordinated through a distributed network of disparate economic agents or even production units itself. Decentralized planning is usually held in contrast to centralized planning, in particular the Soviet Union's command economy, where economic information is aggregated and used to formulate a plan for production, investment and resource allocation by a single central authority. Decentralized planning can take shape both in the context of a mixed economy as well as in a post-capitalisteconomic system. This form of economic planning implies some process of democratic and participatory decision-making within the economy and within firms itself in the form of industrial democracy. Computer-based forms of democratic economic planning and coordination between economic enterprises have also been proposed by various computer scientists and radical economists. Proponents present decentralized and participatory economic planning as an alternative to market socialism for a post-capitalist society. Decentralized-planning has been proposed as a basis for socialism and has been variously advocated by democratic socialists, council communists and anarchists who advocate a non-market form of socialism, in total rejection of Soviet-type central economic planning. Some writers such as Robin Cox have argued that decentralized planning allows for a spontaneously self-regulating system of stock control to come about and that in turn decisively overcomes the objections raised by the economic calculation argument that any large scale economy must necessarily resort to a system of market prices.
Economist Pat Devine has created a model of decentralized economic planning called "negotiated coordination" which is based upon social ownership of the means of production by those affected by the use of the assets involved, with the allocation of consumer and capital goods made through a participatory form of decision-making by those at the most localized level of production. Moreover, organizations that utilize modularity in their production processes may distribute problem solving and decision making.
Participatory planning
The planning structure of a decentralized planned economy is generally based on a consumers council and producer council which is sometimes called a consumers' cooperative. Producers and consumers, or their representatives, negotiate the quality and quantity of what is to be produced. This structure is central to participatory economics, guild socialism and economic theories related to anarchism.
Some decentralised participation in economic planning has been implemented in various regions and states in India, most notably in Kerala. Local level planning agencies assess the needs of people who are able to give their direct input through the Gram Sabhas and the planners subsequently seek to plan accordingly.
Community participatory planning
The United Nations has developed local projects that promote participatory planning on a community level. Members of communities take decisions regarding community development directly.
