Czechoslovakia: Crowning Failure

The frustrations and failures of rigid Communist economic planning are just as keenly felt in Czechoslovakia—perhaps because the Czechs have always known better. In prewar (and preCommunist) Czechoslovakia, "Made in Czechoslovakia" was a label of quality respected the world over. No longer. So shoddy have Czech goods become that in some cases even Moscow has re jected the output of its Comecon daughter.

For nearly 18 months, Prague economists and apparatchiks have been hard at work on "NEM"—a New Economic Model for the nation designed to liberate the Czech economy from the worst...

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