The progress made by the USSR in the twenty years between 1945 and 1965 has been seen by some as proof that a state based on a centrally planned economy can be effective. However there is another side to the argument, which claims that the Soviet Union during this period shows the superiority of the market based economy favoured by western European countries and the USA. To answer the above question it is necessary to first define a centrally planned economy, then to look at both the successes and shortcomings of the Soviet Union during this time. Also, comparison between the USSR and similar countries as well as their main rival superpower, the USA, will help a conclusion to be reached.
A centrally planned economy "is one in which all economic decisions are taken by a central authority" where private ownership is minimal. …
