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Features of command economies
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- Words:
- 1525
- Submitted:
- Sun Dec 15 2002
... Essay In this essay I will discuss the features of command economies such as those which used to exist in Eastern Europe before 1989 and why they wanted to change their command economies into a market economies, and what has the transition delivered. It is first necessary to make a few general points about this particular economic system. A command economy is one in which the fundamental economic questions-what, how, and for whom to produce, are answered by reference to state determined priorities rather than the interaction of supply and demand in the market place. Such systems were introduced in eastern Europe in the period from the end of the Second World War until 1989, and all of these are in the process of transition to more market orientated systems, with varying degrees of determination and success. Command systems are also to be found in China and other parts of
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