"Jo.Hac." the
            process by which key economic decisions are made or influenced by central governments. It
            contrasts with the laissez-faire approach that, in its purest form, eschews any attempt to
            guide the economy, relying instead on market forces to determine the speed, direction, and
            nature of economic evolution.
            By the late 1960s the majority
            of the world's countries conducted their economic affairs within the framework of a
            national economic plan. But in the 1980s the theory and practice of economic planning went
            through a crisis. In the developed market economies the rate of economic growth slowed
            from the very high levels reached in the 1960s and '70s, and unemployment rose
            significantly. At the same time, public confidence in the ability of governments to
            influence for the better the performance of the economy diminished. As a result, the
            popularity of national economic plans waned and the scope left to the free play of market
            forces widened. In developing countries, forms of economic planning practiced earlier
            yielded disappointing results characterized by the growth of heavy state bureaucracies and
            inefficient public enterprises. In these countries also, although the role of the state
            remained preponderant, market forces were increasingly relied upon to improve economic
            performance. In the Soviet Union and its satellites, the backward state of the economy and
            widespread examples of waste and inefficiency led to attempts to introduce more market
            solutions into the process of economic planning. These attempts proved largely
            unsuccessful, however, and the inherent rigidity of the Soviet economic model proved an
            important factor in the collapse of Communism in eastern Europe and the Soviet Union
            itself, beginning in 1989.