Abstract:

One of the most important factors for the healthy functioning of a country's development level is the system or model preferred. In this context, the market economy and its implementers as they increase manufacturing and welfare won the race against the planned economy during the cold warand entered into the process globalization, which is inevitable in the world. The race to transform centrally planned economies into market economies has led, twenty years later, to one group of countries approaching the finish line, others languishing at various points along the track, and a few barely off the starting blocks. Some Central and Eastern European economies (CEE) and the Baltics are knocking on the doors of the European Union. But in many economies in the Commonwealth of Independent States (CIS), including Russia, there has been uneven progress and prospects remain murky. The main objective of this study is to analyze the reasons of abandonment of socialism and comparison with the free market economy.

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