The former communist countries organized their economies as one big firm: there was no role for the market, all decisions were administrative ones. The fact that these countries are reverting to the market means that:

Question

Quizplus · Accepted Answer

The fact that these countries are now adopting market-oriented policies suggests that the central planning approach was not successful in promoting wealth creation. The lack of incentives and competition in centrally planned economies can be a hindrance to economic growth and development.

The Former Communist Countries Organized Their Economies as One Big