It's difficult for central planners to get up-to-date information about consumers' needs. Inefficiencies: One characteristic of command economies is that they often produce too much of one thing and not enough of another.However, citizens find a way to fulfill their needs and desires, and this often results in a shadow economy or black market that buys and sells things the command economy isn't producing. Leaders' attempts to control this market weakens support for them. The goods produced aren’t always based on consumer demand.
Ignores consumer preferences: This rapid mobilization often means command economies mow down other societal needs. For example, the government tells workers what jobs they must fulfill, and this discourages them from moving.Since the fall of the USSR, the Russian state has transferred ownership of the largest companies to oligarchs. The Union of Soviet Socialist Republics (USSR) was also the longest-running command economy, lasting from the 1930s until the late 1980s. Russia: In 1917, Vladimir Lenin and the Russian Revolution created the first Communist command economy.Citizens of North Korea face ongoing famine and starvation issues. government considers North Korea's industrial capital stock to be nearly beyond repair due to mismanagement, underinvestment, and material shortages. North Korea: For decades, North Korea has had one of the world's most centrally planned economies.Libya: The Libyan economy is almost entirely dependent upon the oil and gas sector, and most Libyans work for the government.in 2018 after President Trump pulled out of the deal. These sanctions ended in 2015 under a nuclear trade deal, before being reimposed by the U.S. This control has created inefficiencies and recessions, and sanctions from the international community worsened these hardships. Iran: The government controls wide swathes of the economy through a mix of direct and indirect state control.The government is slowly incorporating market reforms to spur growth. The Soviet Union subsidized Cuba’s economy until 1990. Cuba: Fidel Castro's 1959 revolution installed Communism and a planned economy.They continue to create five-year plans to outline economic goals and objectives. The current leaders are moving toward a market-based system. China: After World War II, Mao Tse Tung created a society ruled by Communism.The government owns 80% of the country's businesses and 75% of its banks. Belarus: This former Soviet satellite is still a command economy.
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