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for leaders to adapt to changing levels of supply and demand. Because entities in an
economy are interdependent, small problems with over- or underproduction can have
a huge effect on the entire economy.
A second problem was that communist economies stagnated because workers did not
have incentives to produce high-quality goods, as employment was guaranteed and
their work was evaluated on quantity over quality.
V. Societal Institutions Under Communism
Communism sought to remake social institutions that it saw as part of the exploitive
superstructure. This included suppressing religion, envisioning the elimination of
marriage, providing greater work and political opportunities for women, and
eliminating ethnic and national identities.
The Collapse of Communism
During the 1980s, Mikhail Gorbachev initiated political and economic reforms in the
Soviet Union due to the internal economic stagnation and because of increasing U.S.
dominance. These reforms included glasnost (openness of public debate) and
perestroika (actual institutional reforms).
Initiating these reforms inspired Soviet-controlled Eastern European countries to
demand reforms of their own, and eventually undermined communist control of the
Soviet Union and Eastern Europe. By 1990, communism had ended in the East
European satellite states, and in 1991 the Soviet Union itself collapsed.
Resistance to communist control also emerged in China, but the state cracked down
harshly on reformers.
The Transformation of Political Institutions
Postcommunist countries have been faced with significant challenges after living with
authoritarianismhow to establish and maintain the rule of law, what shape their
democratic institutions should take (including electoral systems and the design of
executive-legislative relations), and how to guarantee civil rights.
The success of these transitions is mixed. Several of European postcommunist
countries score high on Freedom Houses ranking of the level of freedom; however,
several countries farther to the east, including Russia, provide less freedom and have
become less democratic since their transition.
Communism has remained in China, Laos, North Korea, Vietnam, and Cuba, and the
legacies of communism and the Cold War are still significant today.
The Transformation of Economic Institutions
For former communist countries, postcommunist transitions involve the establishment
of private property and free markets.
In some countries these transitions happened quickly (a process known as shock
therapy), while in others change was more gradual.
Again, the success of these reforms have been mixed. In Europe, those countries that
spent less time under communist control had closer ties to Western Europe and the
EU,and, with a stronger rule of law, have prospered more than others.
While limiting political reforms, China has instituted significant economic reforms
that have resulted in significant economic growth, though scholars debate whether this
growth is sustainable into the future.
The Transformation of Societal Institutions
In postcommunist societies, eliminating the all-encompassing ideology of
communism has created a social vacuum, and the social transition from communism
has been a wrenching process as people adjust to new realities and seek new
individual and collective identities.
Religion, ethnic identities, and nationalism, once suppressed by Communist parties,