An economic view: Ever wondered?

MOSCOW- Russian's government takes control over the internet and non-profit organizations thus allows them to block websites that exposed dangerous to children and adjures nonprofits organizations to identify themselves as "foreign agents" if they receive financial from outside of Russia. It is considered by the government to be engaged with its political activities. Also, Russian's government imposes fines for people who participate in protests, and legislators voted criminal charges for slander prompting a warning to the United Nations human rights chief that Russia is sliding back into Soviet ways.

Have you ever stopped for a while in the world full of mystery and wonder how exactly do large and complex societies in Russia answer the basic questions of economic inputs and outputs? 

• Who links the agencies and institutions to one another?
• What gets produced?
• When information flows between them?
• How is the outputs produced?
• For whom it is produced?

In this post we shall explore how the economic systems work. There are three main economic system, command economy, free market economy and mixed economy but today I'm going to talk about command system. 

Command system is known as the centrally-planned economy. Initially, Russia adopts an oriented command country management but with the recent news (first paragraph) they are acting more as a perfect command economy system. In a perfect command system, the basic questions are all answered by the government, the central authority usually combine a group of top government officials that assume the natural, capital and labor resources are owned by them. The Russian government decides from top to bottom on the decisions making of the country without considering the market forces or its citizens opinions.In an oriented command economy, government at least allow market economies to function in different degrees and capitalists to own and expand their businesses to a large extent than before. 

Other countries that adapt the command economic system includes

Cuba

North Korea

The former Soviet Union

 In my opinion there are pros and cons of adapting this system in a country. Example, in North Korea there are more public goods provided. Besides that, the countries that comply this system have full employment and low inflation and have high level of savings and capital accumulation. Most importantly the distribution of wealth is equal, therefore there will no separation of wealthy and poor people. The cons of accustom this though are an occurrence of immense to plan when the company becomes more advance and complex, has no incentive to innovate thus produce little innovations. 

Written by:

Ameera Dyanah bt Mohd Kaisan