... the information needed in order for it to organise production effectively. Firms produced what they were told to produce and were not meeting customer demands and needs. Pricing was also determined from above not reflecting scarcity or demand. In a highly centralised system, all major and minor decisions were made without informal knowledge of its effects and there was no means of finding out public opinions and no free elections to hold decision-makers accountable. The whole party system and mass organisations were controlled from above. Overall many communist economies (with the exception of the people's Republic of China during the 1980's) were not catching up with capitalist economies where quality and availability of consumer goods were far more superior. Some citizens gained relief through the existence of the black (semi-legal or Illegal) market to improve their access to scarce and often better quality goods. The very existence and success of ...

See this essay or coursework document in full right now