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Communism in Russia, particularly under the Soviet regime, led to the nationalization of industries and collectivization of agriculture, aiming to eliminate private ownership and promote state control over the economy. Initially, this resulted in rapid industrial growth and improved literacy rates, but it also caused significant inefficiencies, shortages, and a lack of innovation due to central planning. By the late 20th century, the rigid economic structure contributed to stagnation and ultimately played a role in the collapse of the Soviet Union in 1991, leading to a transition towards a market-oriented economy.

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