Questions what is the main features of the socialist economy?

Problems of transition economies?

Key words: subsidy, inflation, corruption

Rising unemployment

Transition process involves in privatisation of firms. The newly privatised firms face competition from other firms, and thus try to be efficient.

Rising inflation

Many transition economies also experienced price inflation as a result of the removal of price controls imposed by governments.

Inequality

Transition economies probably had a fairly equal distribution of wealth(atleast in the theory) among the people.

Corruption and consumer abuse

As the economy starts the transition, the legal system is usually not adequate to prevent corruption.

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