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Abstract: The Collapse of the Planned Economy – and Other Widespread Misconceptions of the Transitions in Russia and Eastern EuropeAccording to the prevailing view, the Soviet planned economy collapsed around 1990; it was a failure, because a planned economy cannot work. Comparing this common view, as it appears in numerous quotations from special and general sources, with basic empirical evidence reveals deep discrepancies. This also applies to other common conceptions regarding the transition in Russia and Eastern Europe e.g. environmental problems, agricultural crisis, poverty and inequality. The command economies in Eastern Europe and the Soviet Union did not collapse; they were dismantled, and until then they functioned and delivered growth rates comparable to those of western countries. The transition after 1989 was driven by marketliberalistic enthusiasm as a short cut to imitation of western prosperity and entailed a refusal of economic planning in the East and in the West. A more realistic evaluation of the planned economy is important for how we politically and economically address our two great challenges, the global environment, and the global distribution.