People use the USSR in WW2 as an example of where central planning led to success, after all they mobilized the entire country for war and eventually won. However, the entire Soviet army was destroyed multiple times. Putting on a Russian army uniform was basically the same as suicide. The rest of the world didn't have the power to force their citizens into certain death, and as a result they thought harder and were able to find ways to fight the war without 90% casualty rates and having entire divisions destroyed to the last man.
Having to answer to your citizens leads you to be more prepared and more responsive to problems, not less.