Advanced Search
MyIDEAS: Login to save this article or follow this journal

Putting the success stories in the post-communist world into a broader perspective

Contents:

Author Info

  • Vladimir Popov

    ()
    (New Economic School, Moscow, Russia)

Abstract

There are at least three reasons why many transition economies succeeded by pursuing policies that are very different from radical economic liberalization (shock therapy), which is normally credited for the economic success of Central European countries. First, optimal policies are context dependent, specific for each stage of development, so what worked in Slovenia cannot be expected to work in Mongolia. Second, even for countries at the same level of development, reforms needed to stimulate growth are different; they depend on the previous history and on the path chosen. The reduction of government expenditure as a share of GDP did not undermine significantly the institutional capacity of the state in China, but in Russia and other CIS states it turned out to be ruinous. It is the growth diagnostics that should reveal the missing ingredient of economic growth. Introducing this “missing ingredient” should not, however, result in the destruction of other pre-conditions for growth. The art of the policymaker is to create markets without causing government failure, like it happened in many CIS countries. Third and most importantly, there are long-term trajectories of development that are path dependent: once the country gets on a particular trajectory, it is sometimes better to stay on track because the costs of a transition to a seemingly superior trajectory may be prohibitively high.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.akademiai.com/content/n77l87110x4117r4/fulltext.pdf
Download Restriction: subscription

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Akadémiai Kiadó, Hungary in its journal Society and Economy.

Volume (Year): 32 (2010)
Issue (Month): 1 (June)
Pages: 83-102

as in new window
Handle: RePEc:aka:soceco:v:32:y:2010:i:1:p:83-102

Note: This article is partly based on Popov (2009a). Aversion of this paper also appeared in the Brazilian journal The Perspective of the World Review, No. 1, 2009.
Contact details of provider:
Web page: http://www.akkrt.hu

Order Information:
Postal: Akadémiai Kiadó Zrt., Prielle K. u. 21-35. Budapest, 1117, Hungary
Email:
Web: http://www.akademiai.com

Related research

Keywords: transition; growth diagnostics; path dependency;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:aka:soceco:v:32:y:2010:i:1:p:83-102. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andrea Pók) The email address of this maintainer does not seem to be valid anymore. Please ask Andrea Pók to update the entry or send us the correct address.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.