asked 57.9k views
2 votes
Command systems in the Soviet Union and pre-reform China failed primarily because of:

A. Lack of natural resources
B. Excessive government intervention
C. Strong competition from other nations
D. Insufficient central planning

1 Answer

5 votes

Final answer:

Command systems in the Soviet Union and pre-reform China mainly failed due to excessive government intervention. Centralized government planning created inefficiencies and stifled innovation, as market incentives were absent.

Step-by-step explanation:

Command systems in the Soviet Union and pre-reform China failed primarily because of Excessive government intervention. These command economies, where a nation's government exerts control over the economy centrally, had very intensive planning mechanisms such as five-year plans that determined production, distribution, and the use of resources. However, this centralized planning often led to inefficiencies and a lack of innovation, as the absence of market mechanisms removed the incentives for improvement and adaptation which are typically present in market economies. Moreover, the concentration of power in the government discouraged the dispersion of decision-making, which could lead to more responsive and locally adapted economic outcomes.

answered
User Matthias Hamann
by
7.8k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.