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Policy Challenges Faced by Low-Income CIS Economies

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  • Marek Dabrowski

Abstract

In the 1990s, the CIS region experienced a painful transformation following the collapse of the USSR and the command economy. For the less developed republics of the former USSR, this process was even more dramatic as they lost subsidies from the Union's budget and some of them suffered devastating conflicts. In the 2000s, after overcoming the adaptation output decline and the consequences of the 1998-1999 financial crises, these economies started to grow rapidly, reducing poverty and macroeconomic imbalances. However, their future growth prospects are increasingly vulnerable due to their strong dependence on commodity exports, a poor business and investment climate, endemic corruption and weak governance. Quite recently, fighting high inflation has returned to the policy agenda. The modernization and diversification of the low-income CIS economies requires further market and institutional reforms aimed at overcoming the Soviet legacy of a repressive and inefficient state. The international community can help by resolving regional conflicts, assisting with trade and economic integration, and offering well-targeted development assistance.

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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 0375.

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Length: 54 Pages
Date of creation: 2008
Date of revision:
Handle: RePEc:sec:cnstan:0375

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Keywords: Commonwealth of Independent States; transition; low income countries; Southern Caucasus; Central Asia; trade; investment climate;

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References

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  1. International Monetary Fund, 2007. "Modalities of Moving to Inflation Targeting in Armenia and Georgia," IMF Working Papers 07/133, International Monetary Fund.
  2. Marek Dabrowski & Artur Radziwill, 2007. "Regional vs. Global Public Goods: The Case of Post-Communist Transition," CASE Network Studies and Analyses 0336, CASE-Center for Social and Economic Research.
  3. Aziz Atamanov & Roman Mogilevsky, 2008. "Technical Assistance to CIS Countries," CASE Network Studies and Analyses 0369, CASE-Center for Social and Economic Research.
  4. Marek Dabrowski & Radzislawa Gortat, 2002. "Political Determinants of Economic Reforms in Former Communist Countries," CASE Network Studies and Analyses 0242, CASE-Center for Social and Economic Research.
  5. Malgorzata Jakubiak & Anna Kolesnichenko & Wojciech Paczynski & John Roberts & Sinan Ülgen, 2007. "The New EU Frontier: Perspectives on Enhanced Economic Integration," CASE Network Reports 0071, CASE-Center for Social and Economic Research.
  6. Roman Mogilevsky, 2004. "CIS-7 Perspective on Trade with EU in the Context of EU Enlargement," CASE Network Studies and Analyses 0282, CASE-Center for Social and Economic Research.
  7. Polterovich, Victor & Popov, Vladimir, 2005. "Democracy and Growth Reconsidered: Why Economic Performance of New Democracies is not Encouraging," MPRA Paper 21606, University Library of Munich, Germany.
  8. Aziz Atamanov & Matthias Luecke & Toman Omar Mahmoud & Roman Mogilevsky & Kseniya Tereshchenko & Natalia A. Tourdyeva & Ainura Uzagalieva & Vitaly Vavryschuk, 2009. "Income and Distribution Effects of Migration and Remittances: an Analysis Based on CGE Models for Selected CIS Countries," CASE Network Reports 0086, CASE-Center for Social and Economic Research.
  9. Aslund,Anders, 2002. "Building Capitalism," Cambridge Books, Cambridge University Press, number 9780521805254, April.
  10. Vladimir Popov, 2000. "Shock Therapy Versus Gradualism: The End Of The Debate (Explaining The Magnitude Of Transformational Recession)," Comparative Economic Studies, Palgrave Macmillan, vol. 42(1), pages 1-57, April.
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Cited by:
  1. Pasadilla, Gloria O., 2010. "Financial Crisis, Trade Finance, and SMEs: Case of Central Asia," ADBI Working Papers 187, Asian Development Bank Institute.

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