In order to provide managers of state owned enterprises (SOEs) with the incentive to make sound economic decisions, command economies have:

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Command economies have started to use different ways to privatize SOEs to provide managers with the incentive to make sound economic decisions. This includes methods such as share offerings, employee buyouts, and voucher privatization. Providing managers with production targets or materials at subsidized prices does not necessarily incentivize them to make sound economic decisions, and preventing SOEs from becoming bankrupt may actually encourage managers to take on excessive risk without considering the long-term financial health of the company.

In Order to Provide Managers of State Owned Enterprises (SOEs)