Lessons from the Economic Transition

1. Front Matter

   Pages i-xxix

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2. Main successes and failures in the transition strategy

   1. Front Matter

      Pages xxxi-xxxi

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   2. Transition approaches in retrospect

      • Salvatore Zecchini

      Pages 1-34

   3. The transition in Eastern Europe and the former Soviet Union: some strategic lessons from the experience of 25 countries over six years

      • Nicholas Stern

      Pages 35-57

   4. Transition to date: a comparative overview

      • Martha de Melo, Alan Gelb

      Pages 59-78

   5. From transition to market: evidence and growth prospects

      • Stanley Fischer, Ratna Sahay, Carlos A. Végh

      Pages 79-101

   6. Lessons to be drawn from main mistakes in the transition strategy

      • Kazimierz Laski

      Pages 103-121

   7. Adjustment without recession: a case study of Hungarian stabilization

      • János Kornai

      Pages 123-151

   8. The interplay between economic and political transition

      • Leszek Balcerowicz

      Pages 153-167

   9. Political constraints and the transition experience

      • Gérard Roland

      Pages 169-187

   10. Comments

       • Vincent Koen

       Pages 189-213

   11. General discussion

       • Salvatore Zecchini

       Pages 215-217

   12. Policy conclusions

       • Salvatore Zecchini

       Pages 219-221

3. Enterprise restructuring and private sector development

   1. Front Matter

      Pages 223-223

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   2. Comparing two Great Depressions: 1929–33 to 1989–93

      • Jacek Rostowski

      Pages 225-239

   3. Restructuring outcomes and the evolution of ownership patterns in Central and Eastern Europe

      • Philippe Aghion, Wendy Carlin

      Pages 241-261

   4. Corporate governance and the political effects of privatisation

      • Roman Frydman, Andrzej Rapaczynski

      Pages 263-274

   5. Large privatisation, restructuring and foreign direct investment

      • Gábor Hunya

      Pages 275-300

   6. The evolution of bank credit quality in Romania since 1991

      • Octavian V. Cãrare, Enrico C. Perotti

      Pages 301-314

   7. Comments

      • Salvatore Zecchini

      Pages 315-324

An attentive reader embarking on this book might wonder what "the" economic transition to which the title refers might be. In this century almost all countries have gone through periods of economic transition; but which period of economic history can claim to embody the notion or to represent the era of "the" transition? Definitely, no country or group of countries has experienced anything comparable to the economic upheavals that the fall of communism has brought about in a large portion of the world in just three years (1989 to 1991). No other "transition" to date has prompted more interest and more studies among economists, academics and policy-makers than has the transformation of centrally planned economies into market-based systems. It is this transformation that has come to define "the" transition. Early in the transformation process (in November 1990), with the support of the Centre for Co-operation with the Economies in Transition (CCET), I launched a conference to examine the challenges faced by these countries. About six years have gone by and a new economic landscape has emerged in that part of the world. The difficulties in transforming these economies have exceeded all expectations, and economic performances have varied considerably across countries. The time has come, therefore, to make a first evaluation of progress and problems, with a view to extracting useful policy lessons to guide policy-makers in successfully completing the transition in the near future.

• communism
• depression
• development
• Eastern Europe
• foreign direct investment
• growth
• labor market
• transformation
• unemployment

Policies and ethics