All of this stopped with the Cold War measures to cripple the Soviet economy, which crippled the Soviet block countries and led to the fall of economies which couldn't support themselves and couldn't adapt to the free market environment.
You currently get a lot of money from the EU (which you can't seem to spend properly so they freeze future projects), and your workforce productivity level is higher than before. Your current problem is not economical, it's political. The people who rule the country can't do their job better.
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