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Political Determinants of Economic Reforms in Former Communist Countries

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  • Marek Dabrowski
  • Radzislawa Gortat

Abstract

The results of the first decade of economic transition are very uneven and are distributed according to a sub-regional pattern. The group of "leading reformers" consists of middle-income countries of democratic capitalism of the Central Europe and Baltic region (CEB). The second group of less advanced reformers includes mainly lower- and lower-middle-income countries of the Commonwealth of Independent States (CIS) where both capitalism and democracy are still immature and sometimes heavily distorted. This differentiation can be explained mainly by the adopted transition strategies and political factors determining them. Also the perspective of the European integration has played an important leveraging role. Fast reforms allowed for shortening the period of a temporary system vacuum, breaking down the inertia of the old system, and exploiting maximally the initial political window of opportunity. The ability of individual countries to follow the effective (i.e. fast) reform strategy was determined by the scale of the initial political changes and further developments in the sphere of institutional and political reform. Generally, a very strong correlation between the progress in political and economic reforms could be observed. Looking at the role of specific institutional solutions one must underline the advantage of the parliamentary or parliamentary-presidential regime over the presidential or presidential-parliamentary system. The former helped to build the transparent and relatively stable system of the political parties while the latter contributed to political fragmentation, irresponsible legislature and oligarchic capitalism.

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Bibliographic Info

Paper provided by CASE-Center for Social and Economic Research in its series CASE Network Studies and Analyses with number 0242.

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Length: 46 Pages
Date of creation: 2002
Date of revision:
Handle: RePEc:sec:cnstan:0242

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Related research

Keywords: transition; political systems; democratization; elektoral systems; institutional reforms;

References

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  1. Anders Åslund & Peter Boone & Simon Johnson, 1996. "How to Stabilize: Lessons from Post -communist Countries," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(1), pages 217-314.
  2. Aslund,Anders, 2002. "Building Capitalism," Cambridge Books, Cambridge University Press, number 9780521805254.
  3. Aslund Anders, 1994. "Lessons of the First Four Years of Systemic Change in Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 19(1), pages 22-38, August.
  4. Dethier, Jean-Jacques & Ghanem, Hafez & Zoli, Edda, 1999. "Does democracy facilitate the economic transition : an empirical study of Central and Eastern Europe and the Former Soviet Union," Policy Research Working Paper Series 2194, The World Bank.
  5. Marek Dabrowski & Stanislaw Gomulka & Jacek Rostowski, 2001. "Whence reform? A critique of the stiglitz perspective," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 4(4), pages 291-324.
  6. World Bank, 2002. "Transition, The First Ten Years : Analysis and Lessons for Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 14042, February.
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Citations

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Cited by:
  1. Davide Furceri & Lorenzo E. Bernal-Verdugo & Dominique M. Guillaume, 2012. "Crises, Labor Market Policy, and Unemployment," IMF Working Papers 12/65, International Monetary Fund.
  2. Katarzyna Metelska-Szaniawska, 2009. "Constitutions and economic reforms in transition: an empirical study," Constitutional Political Economy, Springer, vol. 20(1), pages 1-41, March.
  3. Alexander Libman, 2005. "Russia's Integration into the World Economy: An Interjurisdictional Competition View," EIIW Discussion paper disbei134, Universitätsbibliothek Wuppertal, University Library.
  4. Marek Dabrowski, 2008. "Policy Challenges Faced by Low-Income CIS Economies," CASE Network Studies and Analyses 0375, CASE-Center for Social and Economic Research.
  5. Libman, Alexander, 2005. "Globalization and outcomes of institutional competition," MPRA Paper 11779, University Library of Munich, Germany.
  6. Bernal-Verdugo, Lorenzo E. & Furceri, Davide & Guillaume, Dominique, 2013. "Banking crises, labor reforms, and unemployment," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1202-1219.
  7. Alexander Libman, 2006. "Government-Business Relations and Catching Up Reforms in the CIS," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 3(2), pages 263-288, December.

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