Impact of the Communism Collapse on Countries` Economic Systems Essay

Impact of the Communism Collapse on Countries` Economic Systems - Essay Example Economic factors were linked to political and psychological factors. 1 Aerospace Power Journal - spring 2001.pp 100-113 As the Soviet economist Latsis said at the time, "the gloomy background of the worsening market situation ... has a depressing effect on people." Now that the Soviet Union, with its centralized political and economic system, has ceased to exist, the fifteen newly formed independent countries which emerged in its aftermath are faced with an overwhelming task. They must develop their economies, reorganize their political systems, and, in many cases, settle bitter territorial disputes. A number of wars have developed on the peripheries of the former Soviet Union. Additionally, the entire region is suffering a period of severe economic hardship. Democracy is a political model and communism is an economic one. By the beginning of the 21st cent. traditional Communist party dictatorships held power only in China, Cuba, Laos, North Korea, and Vietnam. China, Laos, Vietnam, and, to a lesser degree, Cuba have reduced state control of the economy in order to stimulate growth. Although economic reform has been allowed in these countries, their Communist parties have proved unwilling to submit to popular democratic movements. The policies of most Communist Parties in both Eastern and Western Europe had been governed by the example of the Soviet Union. Communist economic system is associated with an authoritarian government system, which means that a government elite enhances its economic, judicial and political freedoms and suppresses those who are led by them. There is no theoretical reason for communism to be associated with... This essay aims to establish all gamut of impacts of the communistic ideology on the economic systems of democratic countries. In theory communism should create a classless society and freedom, in which all people would enjoy equal economic status. That may be a theory of what communism should be like but in practice the government cared little for the working class citizens and only wanted to preserve their own power. The immediate cause of the Soviet collapse was economic, as the Soviet Union lost the arms race and international competition with the West. The US was able to profit from its imperialist exploitation of other countries, while socialism could only lose economically in that competition. Economic factors were linked to political and psychological factors. Nowadays traditional Communist party dictatorships held power only in China, Cuba, Laos, North Korea, and Vietnam. China, Laos, Vietnam, and, to a lesser degree, Cuba have reduced state control of the economy in order to stimulate growth. Although economic reform has been allowed in these countries, their Communist parties have proved unwilling to submit to popular democratic movements. With the Cold War over, politicians, economists and others promoted unfettered free trade and free market ideology. Various factors such as political decisions, military might, wars, imperial processes and social changes throughout last few decades and centuries have pulled the world system in various directions. Today's world is based on 'Global Politics and Economics.'