From Command economy to Market economy

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Increase in living standard greater opportunities for economic growth

As government got slightly influence in the intervention of the market, producers are free to raise or lower their prices according to the demand of the consumers - encourages the incentives in both sides, as producers are able to produce in competitive prices and consumers have wider varieties of choices.

Wise and better use in recourses

Responses from the consumers give price signals to sellers: what to produce, how to produce and where to produce. (Reduce surpluses in unwanted goods; sellers know what products they should focus their resources on according the market condition.)

Reduction in the conflicts between government and the public

In command economies, governments set up rules and control everything in the market; this would surely worsen the relationship with the public. Their decisions usually despite the wants of the public and are not flexible to meet the needs of the people.

If the system is being abandoned, unnecessary conflicts must be avoid.


High inflation:~ Legal system: resources are being privatised, however all the good resources are being kept for the family or personal use, so they are used in the best way

~ Government debt: government cannot receive enough revenue from the profits of state-owned businesses. Hence the government speed up the money printing process.

Crimes:~ Gray market becomes popular (20% of GDP)

~ Car theft and drug manufacturers appear.

~ Sexual criminal increase due to the press freedom of explosion of new publication including pornography.

Environmental damage:~ Heavy concentrations of mining

~ Metal smelting industries and its profligate use of cheap energy and water

~ Towns had no sewage treatment facilities at all.

¦As a result of water being heavily polluted that they cannot even be used for industrial purposes.


Increase international flows...