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Economic transition in Eastern Europe and Russia : realities of reform

Author: Edward P Lazear
Publisher: Stanford, Calif. : Hoover Institution Press, ©1995.
Series: Hoover Institution Press publication, 425.
Edition/Format:   Print book : EnglishView all editions and formats
Summary:
The most obvious and controversial difference between reform strategies is in the pace of transition. Previous theories of development have focused on the slow growth of Third World countries into modern economies. Some experts have ascribed current failures in Eastern Europe to the instantaneous liberalization of economies and the forceful application of tight monetary policies. They argue for a more gradual  Read more...
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Genre/Form: Aufsatzsammlung
Additional Physical Format: Online version:
Economic transition in Eastern Europe and Russia.
Stanford, Calif. : Hoover Institution Press, ©1995
(OCoLC)654717745
Material Type: Internet resource
Document Type: Book, Internet Resource
All Authors / Contributors: Edward P Lazear
ISBN: 0817993312 9780817993313 0817993320 9780817993320
OCLC Number: 31606873
Description: 447 pages : illustrations ; 24 cm
Contents: Economic reform: appropriate steps and actual policies / Edward P. Lazear --
Macroeconomics in Russia / John H. Cochrane and Barry W. Ickes --
Democracy and economic reform: tensions, compatibilities, and strategies for reconciliation / Larry Diamond --
Privatization in the former Soviet empire / Thomas Gale Moore --
Revenue assignment and intergovernmental fiscal relations in Russia / Charles E. McLure --
Credibility, commitment, and Soviet economic reform / Peter J. Boettke --
Gradual versus rapid liberalization in socialist foreign trade / Ronald I. McKinnon --
Contract enforcement institutions: historical perspective and current status in Russia / Avner Greif and Eugene Kandel --
Publicly provided private goods and services in a transition economy / Edward P. Lazear and Sherwin Rosen --
The Red mafia: a legacy of communism / Annelise Anderson --
Defense conversion and economic reform in Russia / Susan Gates --
Employment and unemployment after communism / Simon Johnson --
China's nonconformist reforms / John McMillan.
Series Title: Hoover Institution Press publication, 425.
Responsibility: edited by Edward P. Lazear.

Abstract:

The most obvious and controversial difference between reform strategies is in the pace of transition. Previous theories of development have focused on the slow growth of Third World countries into modern economies. Some experts have ascribed current failures in Eastern Europe to the instantaneous liberalization of economies and the forceful application of tight monetary policies. They argue for a more gradual introduction of free markets, with the retention of some state control, in order to avoid declining outputs. But this theory is contradicted by the fact that the most successful Eastern European countries, Poland and the Czech Republic, are those that initiated the most dramatic and rapid reforms. The authors of Economic Transition show how educated, relatively modern societies can make major changes in political and economic institutions almost overnight. The goods that countries produced under communism are different from those that can be efficiently produced in a free market. Some industries will collapse while others will flourish, and during this adjustment period, there are inevitable declines in output and painful layoffs. Evidence shows that a significant increase in unemployment is an unavoidable consequence of economic reform whether the government is moving rapidly or gradually. This temporary problem can be partially cushioned by a social safety net.

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