ABSTRACT
The idea of total central planning, which most of the world had by then had adopted, collapsed, and almost all the former communist nations soon entered into constitutions guaranteeing freedom for private ownership. The world stood almost on the brink of world catastrophe when the communist side collapsed, resolving both the military and ideological threats. After the collapse of communism, the Soviet Union separated into fifteen nations and they, along with the other East European communist nations, began demolishing their collectivist systems and turning to private ownership and enterprise. The rate of unemployment in 1996 was below three percent-which means virtually full employment-because that nation's free market policies inaugurated subsequent to the communist collapse caused a high degree of labor market flexibility. As much as one-third of the Republic's work force changed jobs during the first three years of the transition from communism, and vigorous growth in employment opportunities and services alleviated the impact of contraction in manufacturing and agriculture.
