The `EXPLAIN` statement, or its variations like `EXPLAIN PLAN` or `EXPLAIN QUERY PLAN`, is a crucial tool for SQL developers. It allows you to see the execution plan of a query before it's actually run. This is invaluable for identifying potential bottlenecks and optimizing query performance. Understanding the query plan helps you see how the database intends to retrieve the data, including the order of operations, the tables involved, and the algorithms used. This information is critical for identifying inefficient queries, which can lead to slow response times and poor user experience. For example, if a query is joining tables in an inefficient order, or if it's using a full table scan instead of an index lookup, `EXPLAIN` can reveal this. By understanding the query plan, you can rewrite the query to use indexes, change the join order, or use other optimization techniques to improve performance. This is especially important in large databases with complex queries, where performance can be significantly impacted by inefficient query execution.