ABSTRACT

Creation of market relations is the cornerstone of the transition from a command to a commercial economy. But these relations cannot be legislated into existence. After the state ceases to be the principal purchaser of goods, entrepreneurs must forge new links between producers and consumers. Exchange values based on supply and demand have to be established. Potential entrepreneurs have to acquire confidence that supply and demand exists for a commodity, with profitable margins, before they can take the risk of entering the market.