Final answer:
Communism is a political and economic system aiming for government ownership of production means to create an equitable society. Planned economies under communist regimes are characterized by government control over all economic decisions. In practice, however, communism has often resulted in authoritarian rule and economic inefficiencies, leading some countries to shift towards market economies.
Step-by-step explanation:
Communism is a political and economic ideology that emerged from the works of Karl Marx and Friedrich Engels. It calls for the common ownership of all property and means of production, with the aim to prevent worker exploitation and create a society where economic inequalities are greatly minimized. Under communism, the government, or state, owns and controls property, businesses, and production, aiming for equitable distribution among citizens.
Communist governments shape economics by implementing a planned economy, where all economic decisions, including production, pricing, and distribution of goods, are centrally made by the state. This stands in contrast to market economies, where prices and production are determined by free market forces. Historically, countries under communist rule like the Soviet Union and the People's Republic of China followed such economic models, though the latter has since undertaken market-oriented reforms.
While communism aspires to create a classless and stateless society where everyone benefits equally, in practice, this has often resulted in authoritarian rule, where decisions are driven not by the proletariat but by the dictatorship or party leadership. The history of communism is, therefore, marked by instances of human rights violations and a gap between theoretical benefits and actual outcomes. In the past decades, several communist states have transitioned toward more market-based systems, reflecting the challenges and inefficiencies inherent in such centrally planned economies.