What are some of the challenges faced by societies switching from a command to a market economy?

Traditionally, Cuba, China, and Russia were seen as command economies; however, over time, they have allowed some capitalism to enter their nations and operate without interference. However, these countries did face challenges in transitioning to a market economy, including:

Poor existing infrastructure
Erratic trade imbalances
Leery foreign investment
Lagging privatization of state-owned businesses
Rising prices from deregulation
Lack of market economy regulations
Insecurity from new cultural influences
Nonexistent social supports
Transition gap unemployment
Limited banking institutions
Transitioning to a market economy means that new answers must be found to questions that central planners used to answer. In particular, countries deal with high government unemployment, poverty level wages, and a lack of career opportunities. Because of employment uncertainty, growth is limited once central planners step away from controlling labor issues. It takes a great deal of time for a market to recover from this lack of control. Countries may need to find a transition plan to slowly reduce government payrolls and increase minimum wages. An investment in education and technology can help with creating jobs, and at the same time, open new career opportunities.

It is also important that an economy have at least basic financial, technological, and transportation infrastructures in place before central planners step away from their control. Growth in a market economy is dependent on banks, insurance, taxes and incentives to improve technological, communication, and transportation infrastructure. Without a base to support these systems, it will be difficult for citizens to feel confident enough to spend, borrow, and save their money.