Laissez Faire, Free Market Economics, Market Economy
An economy directed by state authorities, rather than
market forces. There are a variety of command economies.
In the ancient world, command was found in agricultural
economies, especially those dependent on large scale systems of irrigation requiring
extensive regional planning and coordination. The power to control water resources gave
central authorities immense social and economic dominance. Mesopotamia and Egypt are
examples of such command economy. Large sectors of the economy were also commanded in
other ancient and medieval societies like Rome, China and among the Inca.
In modern times, command economies were dominant in the
Soviet-style communist societies, where state central planning agencies allocated capital
and resources, established production targets and fixed the levels of prices.
Command economies, because they rely on centralized
bureaucratic administration, appear to be inherently less efficient than market mechanisms
in allocating resources and stimulating economic growth.
Soviet-style central planning has now been generally
abandoned as a method of economic management.
The new global command economy - Mohameden Ould-Mey
Environment and Planning D: Society and Space 17(2) 155 180
Abstract. Although the process of globalization has brought about more liberalization and
decentralization of political economies at the national level, it has also created a far
more regimented and centralized economy and polity at the international level. This shift
of the center of gravity of political economy from the national to the international level
is what the phrase the new global command economy attempts to grasp. I begin with a
definition of geopolitical economy as a conceptualization of the complex interaction
between states and the world economy. I show how a few global institutions de facto
command the world economy with a level of centralization and regimentation similar to that
which the centrally planned economies used to exercise at the national level during the
Cold War era. I analyze how the new global command economy continues to perpetuate the
core - periphery divide through what the G7 economic summit has labeled a new global
partnership between developing countries, developed countries, and multilateral
institutions. The nonmarket forces are introduced as an often neglected factor (in
economic analysis) which strongly shapes market forces and the overall trajectory of the
Profiting from Government Stakes in a Command Economy: Evidence from Chinese Asset
Sales - Charles Calomiris, Raymond Fisman, Yongxiang Wang,
Abstract: The market response to an unexpected announcement of proposed sales of
government-owned shares in China. In contrast to the "privatization premium"
found in earlier work, we find a negative effect of government ownership on returns at the
announcement date and a symmetric positive effect in response to the announced
cancellation of the government sell-off. This results from the absence of a Chinese
political transition to accompany economic reforms, so that the positive effects on
profits of political ties through government ownership outweigh the potential efficiency
costs of government shareholdings.
The Stalinist Command Economy - PAUL R. GREGORY
The ANNALS of the American Academy of Political and Social Science, Vol. 507, No. 1,
This article outlines the key features of the traditional administrative command economy
model used by the centrally planned socialist economies to allocate resources. The
administrative command model permits the party leadership to set priorities and monitor
their fulfillment through the state economic bureaucracy and local party apparatus.
Command Economy - Richard E. Ericson
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
Abstract: The concept of a command economy, a construct in the theory of
comparative economic systems, is defined, and its origins, characteristics, and
consequences for any society in which it is implemented are explored. The impossibility of
the absolute centralization which it requires generates compromises with the market forces
it aspires to replace, fostering a symbiotic marketized second economy which
systematically undermines its foundations. Although initially appearing to be a true
alternative to the market economy, a command economy, most nearly realized in the Soviet
Union (193087), proved to be ultimately non-viable, collapsing under reforms
attempting to make it competitive with market systems.
Plan, siphoning and corruption in the Soviet command economy
Harrison, Mark, and Kim, Byung-Yeon
Working Paper. University of Warwick, Department of Economics, Coventry.
Abstract: This paper reconsiders Andrei Shleifer and Robert Vishnys suggestion that
a socialist industry will always prefer to cut both price and output relative to a
market-clearing equilibrium in order to maximise bribe income. The evidence from recent
archival studies of the Soviet economy does not support this conjecture.
Migration of railway freight transport from command economy to market economy: the case of
Xie R.; Chen H.; Nash C.
Transport Reviews, Volume 22, Number 2, 1 April 2002 , pp. 159-177(19)
Abstract: In recent years, Chinese railway freight transport has been facing great
challenges from transport market reformation and economic expansion. Although the total
volume of railway freight has been increasing, its market share has decreased greatly,
especially at the beginning of migration from command economy to market economy. It is
concluded that Chinese Railways has not yet adapted sufficiently to new economic
conditions, although in recent years progress has been made. Further reform will be
Dynamic instability of a command economy
Miyamoto Katsuhiro, School of Economics, University of Osaka Prefecture
Bulletin of University of Osaka Prefecture. Ser. D, Economics, business administration and
law 38 pp.1-13
Abstract: In 1991, the former Soviet Union collapsed. It was mainly because of an
inefficiency of the command economy of socialism. The command economy brought about a
downfall of productivity in all industries. The government of Russia and other counties of
the former Soviet Union are planning to shift from the centralized command economic system
to the market economic system. We will theoretically analyze that the centralized command
economic system has its own instability of socialism.
A State under Siege: Military Origins of Command Economies
Paper presented at the annual meeting of the American Sociological Association
Abstract: The purpose of my paper is to explain the phenomenon of modern command
economies. A command economy refers to direct state control over production, distribution
and consumption of resources. It involves not a market regulation but an administrative
regulation as a dominant form of economic organization. Scholars argue that command
economies were first instituted among the major belligerent powers in Europe during World
War One (Porter 1994, Scott 1998). I accept this argument as a central premise of my
study. My analysis shows that a resource dependence perspective offers the most consistent
interpretation. All interventionist measures of war socialism were implemented
under conditions of catastrophic shortage of war-related resources. An excessive demand
and wartime scarcity produce command economies. My war-centered explanation of command
economies is consistent with the Kornais (1980) description of state socialist
economies as resource-constrained systems, or economies of shortage.
TRANSITION FROM A COMMAND ECONOMY: RATIONAL EXPECTATIONS AND COLD TURKEY
Journal Article Excerpt, Journal article by Murray Wolfson; Contemporary Policy Issues,
Vol. 10, 1992
Although the transition from a command economy to a market economy is perilous, the author
advises policymakers that retarding the tempo of change will invite economic and political
Nations of the former communist world face an urgent question: How do they make the
transition from the command economy of direct planning, to the "market economy"?
While policymakers understand command economy only too well, they envision "market
economy" only imperfectly. Lack of experience and the remaining mists of dogma
obscure their vision of an economic system that, by any other name, is capitalism.
Seasonal anthropometric cycles in a command economy: The case of Czechoslovakia,
Tomas Cvrcek, Department of Economics, Vanderbilt University
Economics & Human Biology, Volume 4, Issue 3, December 2006, Pages 317-341
Abstract: Anthropometric evidence is used to shed light on the living standards in early
communist Czechoslovakia (19461966). Height and weight variation of adolescent boys
exhibit a pattern that is inconsistent with that for a normal healthy population. This
pattern arose from periodic food supply shortages, most marked in the spring of each year.
The boys in the sample display a remarkably slow growth during the spring but catch up
over the summer.
Managing human resources in a post-command economy: personnel administration or strategic
Thomas Garavan, Michael Morley, Noreen Heraty, Jacinta Lucewicz, Adam Suchodolski
Personnel Review 1998, Volume: 27 Issue: 3 Page: 200 - 212 ISSN: 0048-3486
Abstract: Reviews the changes in personnel/HRM practices within a post-command economy.
Explores personnel/HRM practices within 25 Polish companies and reports on the diversity
of personnel/HRM practices in evidence.
Priority, Duality, and Penetration in the Soviet Command Economy,
Ericson, Richard E.
Corporate Author : RAND CORP SANTA MONICA CA
Abstract : This Note analyzes characteristics of the Soviet economy that are
underemphasized in existing macroeconomic models of the Soviet Union. The analysis is
carried out in a series of simple two-sector macromodels of plan implementation in a
priority-driven command economy. The structure of the models reflects, albeit in highly
simplified form, the planned dual nature of the Soviet economy in terms of priority and
nonpriority sectors, allocational and technological rigidities, and the effect of priority
in determining the response to shocks during plan implementation. A number of empirically
verifiable implications that do not arise naturally in standard macroeconomic models stem
from this analysis.
Coercion, compliance, and the collapse of the Soviet command economy.
Economic History Review, Vol.55 (No.3). pp. 397-433. ISSN 0013-0117
Abstract: Are command systems that rest on coercion inherently unstable, and did the
Soviet economy collapse for this reason? Until it collapsed, the Soviet economy did not
appear unstable. Why, then, did it collapse?
From Command Economy to Hollow State? Decentralisation in Vietnam and China
Painter, Martin, City University of Hong Kong
Australian Journal of Public Administration, Volume 67, Number 1, March 2008 , pp.
79-88(10) DOI: 10.1111/j.1467-8500.2007.00570.x
Abstract: In Vietnam and China, decentralisation is a by-product, both by default and
design, of the transition to a state-managed market economy. A dual process of horizontal
and vertical decentralisation is occurring simultaneously in both the economic and
The command economy cometh
Donald C. Wellington
International Journal of Social Economics, Year: 2000, Volume: 27, Issue: 4, Page: 259 -
271, ISSN: 0306-8293
Abstract: The paper is a philosophical discourse on capitalism and its intellectual
rationalization, economic theory. Both blithely ignore the most fundamental character of
the human condition.
Increasing the Validity of Post Command Economy Research and Application
by Rene Dentiste Mueller and James D Mueller
Journal of East-West Business, ISSN: 1066-9868 Volume 3 Number 1 1996 page 7-26
Abstract: The demise of communism in the post command economies (PCEs) has created
considerable interest from both academics and practitioners. Post command economies
researchers have failed to consider fundamental issues related to
cross-cultural/cross-national research design. This paper highlights a number of problems
researchers face when investigating Post Command Economy regional phenomena.