Why did the inability of the soviet economy to provide for the needs of its citizens lead to the collapse of the system during the reagan administration? manufacturing centers were often stifled by the lack of resources and the shortage of labor in the communist system. economic control was concentrated at the top, which discouraged new technologies and innovations that could improve productivity. the vast size of the soviet union made it difficult to transport raw materials to isolated manufacturing centers. citizens who controlled local productivity found it difficult to compete in a global market, which led to many unused goods.

The answer is the second one,where Soviet economic control was concentrated at the top that discouraged new technology and innovations.
Since the control was tight,the locals cannot sell whatever they want to the market but do accordingly as the government say. Under communism,no matter how hard an individual work,they recieve income that is same with everyone. People would then lost motivation to create not only that it would not be approved but it won't give them any benefits.

In attempt to alter the situation, USSR adopted a new economic policy that allows free market. The change was so drastic and sudden that both the civilians and the market failed to adopt it. The economy only went downhill since then,leading to the instability of USSR’s governing.