Which Nation Has A Command Economy Brainly?

Where are these command economies located?

Command economies today mostly exist in politically isolated or authoritarian states. North Korea (40.3399° N, 127.5101° E), Cuba (23.1136° N, 82.3666° W), and Belarus (53.9632° N, 27.5795° E) all maintain centralized state control over major industries. (Honestly, this is where you’ll find the last strongholds of pure command economies.)

What makes these economies different from others?

Most countries have moved toward mixed economies blending public and private sectors. These three, though, still rely heavily on central planning. North Korea’s system is written right into its socialist constitution, while Cuba and Belarus inherited their state-dominated setups from Soviet-era policies. Compare that to neighbors like Poland or Vietnam, which long ago shifted to market-based models.

Which countries still have command economies?

Sources: Data aggregated from IMF 2025 estimates and Heritage Foundation 2026 Index of Economic Freedom.

How did command economies start?

This model goes back to 20th-century Marxist-Leninist theory, where state ownership of production was supposed to wipe out inequality. North Korea’s Juche system, for example, pushes self-reliance and has kept the country closed off for decades. Cuba’s economy used to be fully state-run, but since the 1990s it’s slowly opened up—though healthcare and energy stay nationalized. Belarus, meanwhile, keeps tight state control, especially in manufacturing and farming, under Alexander Lukashenko’s leadership.

After the Soviet Union collapsed in 1991, most countries ditched pure command economies. But a few isolated regimes held on. According to the Britannica, North Korea even tweaked its constitution in 2019 to mention "socialist corporate management." Observers say, though, that hasn’t really changed who controls resources.

Why do these countries still use command economies?

Political isolation plays a big part. These governments use centralized control to maintain power and resist outside influence. North Korea’s Juche ideology, for instance, makes self-sufficiency a core principle. Cuba and Belarus inherited their systems from Soviet times and have struggled to fully break away. (Frankly, it’s less about efficiency and more about keeping the system running as intended.)

What industries are state-controlled in these countries?

In North Korea, nearly everything—from energy to food production—falls under state control. Cuba keeps healthcare, energy, and major exports nationalized. Belarus dominates manufacturing, agriculture, and utilities. These sectors are non-negotiable in their economic plans.

How do these economies perform compared to others?

Not well, generally. North Korea’s GDP per capita sits around $1,300, and its people face chronic food and energy shortages. Cuba’s $10,700 (PPP) looks better, but inflation and limited opportunities drag it down. Belarus, at $7,200, has suffered since sanctions hit in 2022 after its support for Russia’s war in Ukraine.

What’s North Korea’s economic system called?

It’s called Juche. This ideology, introduced by Kim Il-sung, puts self-reliance at the center of everything. The idea? The country should depend on itself, no matter the cost. That’s why you won’t find much foreign investment or global integration there.

Has Cuba changed its command economy recently?

Yes, but slowly. Since the 1990s, Cuba has allowed some private businesses and foreign investment. Still, key areas like healthcare and energy stay fully nationalized. The government calls this "updating" the economy, but critics say it’s not enough to fix deep-rooted problems.

What’s Belarus’ economic approach?

Belarus mixes Soviet-style central planning with some market elements. President Alexander Lukashenko keeps a firm grip on manufacturing, agriculture, and energy. The government owns major companies and sets prices, though small private businesses do exist in limited sectors.

Do these countries allow foreign investment?

Very little. North Korea restricts it to carefully controlled special economic zones. Cuba allows some foreign partnerships, mostly in tourism and biotech, but the state still calls the shots. Belarus has opened up slightly since the 2000s, but foreign investors face heavy bureaucracy and political risks.

How do sanctions affect these economies?

Badly. North Korea’s been under sanctions for decades, which cripple its trade and access to technology. Cuba’s economy took a hit when the U.S. tightened restrictions in the 1990s and 2000s. Belarus, after supporting Russia’s war in Ukraine, faced fresh sanctions in 2022 that choked off trade and investment.

Can tourists visit these command economies?

Yes, but with major restrictions. North Korea only lets visitors on guided tours arranged by state-approved agencies. Cuba allows independent travel, but most services (hotels, transport) are run by the government. Belarus requires visas for most travelers and monitors foreign visitors closely.

What challenges do these economies face?

All three struggle with shortages, inefficiency, and isolation. North Korea deals with food and energy deficits. Cuba fights inflation and a brain drain of skilled workers. Belarus’ economy, tied to Russia, suffers from sanctions and energy cuts. (None of these are easy fixes, that’s for sure.)

Are there any signs of reform?

North Korea’s 2019 constitutional tweak mentioned "socialist corporate management," but real change hasn’t followed. Cuba’s made small steps, like allowing private taxis and restaurants, but the state still controls the big pieces. Belarus? Not much movement—Lukashenko’s government prefers the status quo.

What can we learn from these economies?

Mostly what *not* to do. Command economies can centralize resources quickly in crises, but they stifle innovation and efficiency. These countries prove that without competition or market signals, economies struggle to grow. (If you ask me, mixed models usually win in the long run.)