Yup, this is a very important point to be made. Central planning works very well when there is free association, that is, there is a market for people to pick organizations to associate with. A failure by planners leads to people quitting working there, downsizing, less business, all things that cannot happen in an organization where there's no alternative for people, such as a nation state. There is no low friction feedback mechanism for a state that enables it to reorganize as needed, mainly because we don't get to decide what state we are a citizen of.