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This paper should examine communism’ historical economic performance. Explain the successes of the communist economy. Central planning did achieve remarkable successes, be it in education and in mortality decline but also in economic performance. In making use of the Fordist standardized mass production economic growth rates were initially high, but these countries saw later declining rates of growth. What were the raisons for its decline? The two most common explanations point to the system’s inability to innovate and its inability to substitute capital for labor.Elaborate on these arguments after reading the following articles: Sapir 1980 Economic Growth and Factor Substitution: What Happened to the Yugoslav Miracle. Economic Journal, 90 (358), 294-313. Carlin, Shaffer and Seabright (2012). Soviet Power plus Electrification: What is the long-term legacy of Communism? Explorations in Economic History, 50 (1), 116-147. Easterly & Fischer 1995 The Soviet Economic Decline World Bank Economic Review 9(3): 341-371. Vonyo 2017 War and Socialism: Why Eastern Europe fell behind between 1950 and 1989. Economic History Review 70 (1), 248-274.


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