The advantages of centralized economy are that it increases system stability as the major sectors are controlled by the government and that means you can invest without fear. As the economy is planned it can be controlled and the government can direct funds to areas where it is needed the most. If you look at the disadvantages then it does not care for consumer preferences and does not allow people to have personal property. As the government is channeling the funds to sectors it thinks are important then some of the sectors may be neglected. As the production is not related to the demand, at times there may be shortages and markets will become inefficient. There is no incentive to innovate as even if you produce a new product the government may not be willing to assist its production. There are no personal rights and no individual freedoms. As the politicians have more power, they may become corrupt.
