Briefly describe the serious drawbacks of the traditional system of economic management.

Answer: The serious drawback of the traditional system of economic management is that it is incompatible with some of the objective requirements of socialized mass production, cannot fully reflect the objective requirements of socialized mass production, and will inevitably bring about a very negative impact on the entire national economy of the USSR and the Eastern European countries. The main defects of the traditional economic management system are:

(1) the state through the directive plan of economic management is too centralized, the unification of too dead, the enthusiasm and initiative of the enterprise production and management is difficult to play.

(2) Neglecting the market mechanism and the role of economic levers, seriously hindering the improvement of economic efficiency, resulting in huge waste.

(3) The almost single form of ownership contradicts the multi-level economic structure required by the unbalanced development of productive forces.