In a Communist economy, the government owns most of the means of production and will determine the allocation and provision of resources, products and services. In practice, this has led to the diversion of economic resources from the people, or consumers, to the industrial and military sectors.Know More
Another key characteristic of communist economies is an insistence on national self-reliance. Few communist states have been comfortable with international trade and investment.
Communism as a political theory and system was developed by Karl Marx and Frederick Engels in the 19th century. They rejected the principle of private ownership, which they considered a motivation for greed and competition. They also sought to return control of the economy to the people (or proletariat). The transition from capitalism to communism was to be led by the communist government, which would act as an economic steward on behalf of the people. Despite the noble aims of Marx and Engels, it has been far too easy for corrupt governments to abuse this transitional stewardship and exploit the people they are meant to serve.Learn more about Types of Government
Czechoslovakia, the Soviet Union, Bulgaria, Romania, East Germany, Poland and Albania were the countries that comprised the Communist Bloc during the Cold War. Politicians also referred to it as the Iron Curtain, the Eastern Bloc or the Soviet Bloc. The Communist Bloc was a matter of contention between Europe and the Soviet Union as the struggle between the Soviet Union and the United States developed.Full Answer >
The CIA lists Russia's current government as a federation. A federation is a group of autonomous states that are organized and unified by a central government.Full Answer >
Countries that are communist as of 2014 are Cuba, North Korea, Vietnam, China and Laos. China's communist system is tempered somewhat because it allows private entrepreneurship. Still, the state controls the country's heavy industry and is ruled by the Communist Party of China.Full Answer >
The major difference between the economy under Stalin and that under a capitalist economy is Stalin's policy of state ownership of the means of production. This was an extension of his particular interpretation of communism. With initiatives like the Five-Year Plan and the collectivization of agriculture, Stalin essentially brought all vital sectors of the economy under state control, something that theories of capitalism reject.Full Answer >