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? 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. economic control was concentrated at the top, which discouraged new technologies and innovations that could improve productivity. manufacturing centers were often stifled by the lack of resources and the shortage of labor in the communist system.