1. Planned Economy to Market Economy - China and the Soviet Union
... of the SOEs like it is in China. Factory owners, local cadres, governments and the state all had their shares of a state owned enterprise. Despite the internal disputes, non-state businesses made up 78.5 per cent of total industrial output by the end of 1994 and government spending dropped from 47.9 per cent of GDP to 26.9 per cent between 1991 ... profits by buying goods at a capped official price and sold at the market price, the profits made from which were possessed by owners. Moreover, the lack of experience in running businesses under free market conditions meant that even if priv...
- Word Count: 1874
- Approx Pages: 7
- Has Bibliography
- Grade Level: Undergraduate