ABSTRACT
The starting points for the marketizing countries are the labor-relations institutions of communist dictatorships. Communist labor-relations policies contributed greatly to the failure of their economies. They produced excess demand for labor, poor work effort, and distorted wage structures-all of which contributed to economic inefficiency. In addition, communist governments sought to restrict labor mobility and occupational choice and enrolled all workers in official communist unions that were "transmission belts" for authorities rather than the voice of workers.
