Third, the collapse of the command economy created private profit opportunities in the form of enormous rents that lured enterprise away from value-adding activity. This type of economy is usually a regulated command economy. This action reinforced the second economy and delivered a debilitating blow to the command economy.īut the point is that under the Soviet command economy, there is no question that the Russians dominated the local business. The port services market was liberalised soon after Estonia gained its freedom from the Soviet command economy. The former command economy has been developed into an efficient market economy. Under the command economy, the local people basically did what they were told. Unshackled from Saddam's command economy and 13 years of suffocating sanctions, the private sector is mushrooming. These measures are nothing less than an attempt to establish a Soviet-style command economy, and we all know how well that worked. Marketing and purchasing in a competitive economy, as in the United States, offers different strategies than a command economy. Under the old command economy there were shortages because people had money but there was little to buy.įirst, Soviet industry and workforce proved remarkable adaptable for a command economy long regarded as inherently inefficient and inflexible. The growth of output is based upon rates of accumulation even greater than during the heyday of the command economy.įascism is thus a command economy where massive centralized government is developed to regulate its citizens' lives. The command economy relied upon a vast and cumbersome bureaucracy in which there were few incentives for efficiency and innovation. It is a mistake for a command economy to train more than the job market requires. In a way, it is just an excuse to apply this control, to apply this movement towards a command economy.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |