Question

Why did the inability of the Soviet economy to provide for the needs of its citizens lead to the collapse of the system during the Reagan administration? The vast size of the Soviet Union made it difficult to transport raw materials to isolated manufacturing centers. Citizens who controlled local productivity found it difficult to compete in a global market, which led to many unused goods. Economic control was concentrated at the top, which discouraged new technologies and innovations that could improve productivity. Manufacturing centers were often stifled by the lack of resources and the shortage of labor in the Communist system.

Answer 1

The correct answer is that Soviet found it difficult to compete in the international market. The United States gained control in the exports of the grains and the fuel prices also hiked. Thus, Soviet's economy was ruined and it had to borrow money from the West. Soviet was also technologically backward and was not having up to the mark machinery for production and corruption prevailed at the top levels, which discouraged the advent of new technologies. Soviet had plenty of natural resources, but they were not able to utiltize them fully and more of their funds were wasted on arms and military.