For decades after the 1917 revolution, Communist Party leaders claimed that the socialist economic system of the capitalist system was higher moral and economic grounds. By 1985, when Mikhail Gorbachev became general secretary of the Communist Party of the Soviet Union, the economic claims have been more contrary to fact. Soviet per capita income remains well below the level of the Western and Soviet growth rates declined steadily since 1960. Gorbachev was looking for a way out of this economic downturn has announced a policy of perestroika and glasnost. If Gorbachev had misdiagnosed the problem? If other options were to continue? This case describes the initial conditions for any attempts at economic reform of the socialist system. Describes the economic strategy of resource allocation at the command channel, not allowing the resources available in the markets and businesses. This is an example of planning leads to better understanding of planning forms observed in other countries. The successes and failures of the system have noted with particular attention to the aggregation and processing of information requirements for central planning. "Hide
by Alexander Dyck Source: Harvard Business School 23 pages. Publication Date: December 20, 1994. Prod. #: 795060-PDF-ENG
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