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Transition to a Market System: Gradualism versus Radicalism?

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Author Info
Grzegorz W. Kolodko
Abstract

Years after commencement of the systemic reforms in Central East Europe and the former Soviet Union the main question on the way of conducting reforms remains: gradualism or radicalism? Unfortunately many countries decided to embark on a radical way of transformation which resulted in a number of cases in decrease of GDP. Transformation, however, in its very meaning is a gradual process. It consists of three main elements: liberalisation and stabilisation; institutional building; and macroeconomic restructuring. Completion of all three processes requires time, in particular as far as institutional building and microeconomic restructuring are concerned. In Poland, the economic systemic reforms here can be divided into four periods: “shock without therapy” (1989-1993), “Strategy for Poland” (1994-1997), overcooling (1998-2001) and from 2002 until now the period of accelerated growth. Results in economic performance are also dependent on the long-term development policy. The Chinese experience proves the importance of it.

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Article provided by Associazione Rossi Doria in its journal QA.

Volume (Year): (2004)
Issue (Month): 4 (November)
Pages:
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Handle: RePEc:rar:journl:0009

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Related research
Keywords: Capitalist Systems; Transitional Economies; Socialist Institutions and Their Transitions;

Find related papers by JEL classification:
P11 - Economic Systems - - Capitalist Systems - - - Planning, Coordination, and Reform
P21 - Economic Systems - - Socialist Systems and Transition Economies - - - Planning, Coordination, and Reform
P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General

Cited by:
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  1. Marcello Signorelli & Enrico Marelli, 2007. "Institutional change, regional features and aggregate performance in eight EU’s transition countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 37/2007, Università di Perugia, Dipartimento Economia, Finanza e Statistica. [Downloadable!]
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This page was last updated on 2009-12-13.


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