Economics Command Economy Questions Long
A command economy, also known as a planned economy, is an economic system where the government has significant control over the allocation of resources and the production of goods and services. In this system, the government typically owns and controls the means of production, sets production targets, and determines the distribution of goods and services.
Several countries have implemented or experimented with command economies at different points in history. Here are some examples:
1. Soviet Union: The Soviet Union, under the leadership of Joseph Stalin, implemented a command economy from the 1920s until its dissolution in 1991. The government controlled all major industries, agriculture, and resources, and central planning agencies determined production targets and resource allocation.
2. China (during the Mao era): From the establishment of the People's Republic of China in 1949 until the late 1970s, China had a command economy under the leadership of Mao Zedong. The government controlled all major industries, agriculture, and resources, and implemented central planning through Five-Year Plans.
3. North Korea: North Korea is often cited as an example of a command economy. The government controls all major industries, agriculture, and resources, and central planning agencies determine production targets and resource allocation. The economy is highly centralized and tightly regulated.
4. Cuba: Cuba has had a command economy since the Cuban Revolution in 1959. The government controls all major industries, agriculture, and resources, and central planning agencies determine production targets and resource allocation. However, in recent years, Cuba has introduced some market-oriented reforms to stimulate economic growth.
5. Former Eastern Bloc countries: Several countries in Eastern Europe, including East Germany, Poland, Hungary, and Romania, had command economies under Soviet influence during the Cold War. These countries had centralized planning, state ownership of industries, and limited market mechanisms.
It is important to note that while these countries had or have elements of a command economy, the extent of government control and central planning varied. Additionally, many countries have transitioned away from command economies towards more market-oriented systems in recent decades.