Centrally-planned economies can very much limit the abilities of the functioning economy to be able to fulfill its necessary role within the system in play. One of the largest pressing issues within a centralized economy is the presence of those deciding what rules to set, regulations to follow, and guidelines to maintain lack involvement in the actual ongoings of day to day events within set economical structures. Because of this, they are aware of little or no information regarding how any of the tasks required to maintain the economic system are handled. Without this crucial bit of knowledge, errors arise in the creation, implementation, and regulation of the economic system and operations. The errors that arise due to this issue with centralized control, can make it extremely difficult for those that are actively involved with daily tasks involving the economy and its systems, further hindering the economic advances and often even creating many setbacks resulting in lost time, effort, and resources.
One way of solving this problem is simply removing the centralization and creating a more decentralized form of government power and regulation over the economic system. By bringing in those who are involved with the daily ongoings to create the changes and bring forward new ideas, the changes made to the economic system would better improve on the quality of life, effectiveness of labor, and efficiency of resource usage. This would cause greater improvements on the effectiveness of the economy and work to encourage many advancements and foster growth among the many sectors involved within the economic system in place.
As for the freedoms and prosperity of the people involved in this process, they are left far better off because they now have representation within the controlling body of government and their lives are improved due to their peers being the ones in charge of making the changes. Because of their peers being the ones in charge, they can safely believe that their daily lives have a greater chance of being improved instead of deteriorating because the people making the rules have to return to do the necessary and important work with them.