Command systems in the Soviet Union and Eastern Europe failed primarily because of coordination and incentive problems.

Question

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Command systems in the Soviet Union and Eastern Europe were characterized by centralized planning and control. However, this approach led to coordination and incentive problems, which ultimately contributed to the failure of these systems. Central planners were often unable to efficiently allocate resources and coordinate production, while workers lacked incentives to work hard and innovate due to the lack of market incentives and rewards. These problems undermined the productivity and performance of the command economies, leading to low growth rates, shortages of goods, and inefficiencies.

Command Systems in the Soviet Union and Eastern Europe Failed