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Economic Reforms and Constitutional Transition

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Author Info

  • Jeffrey D. Sachs
  • Wing Thye Woo
  • Xiaokai Yang

Abstract

This paper investigates the relationship between economic reforms and constitutional transition, which has been neglected by many transition economists. It is argued that assessment of reform performance might be very misleading if it is not recognized that economic reforms are just a small part of large scale of constitutional transition. Rivalry and competition between states and between political forces within each country are the driving forces for constitutional transition. We use Russia as an example of economic reforms associated with constitutional transition and China as an example of economic reforms in the absence of constitutional transition to examine features and problems in the two patterns of transition. It is concluded that under political monopoly of the ruling party, economic transition will be hijacked by state opportunism. Dual track approach to economic transition may generate very high long-term cost of constitutional transition that might well outweigh its short-term benefit of buying out the vested interests.

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Bibliographic Info

Paper provided by Center for International Development at Harvard University in its series CID Working Papers with number 43.

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Date of creation: Apr 2000
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Handle: RePEc:wop:cidhav:43

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Web page: http://www.cid.harvard.edu/cidwp/
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Related research

Keywords: constitutional transition; economic reform; division of labor; debate of shock therapy vs gradualism; debate of convergence vs institutional innovation;

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Cited by:
  1. Justin Yifu Lin, 2007. "Development and Transition : Idea, Strategy, and Viability," Development Economics Working Papers 22709, East Asian Bureau of Economic Research.
  2. Xiaobing Wang, 2009. "Regulation and Corruption in Transitional China," The School of Economics Discussion Paper Series 0920, Economics, The University of Manchester.
  3. Justin Yifu Lin & David Rosenblatt, 2012. "Shifting patterns of economic growth and rethinking development," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 15(3), pages 171-194, September.
  4. Shaomin Li & Kiran Karande & Dongsheng Zhou, 2009. "The Effect of the Governance Environment on Marketing Channel Behaviors: The Diamond Industries in the U.S., China, and Hong Kong," Journal of Business Ethics, Springer, vol. 88(3), pages 453-471, October.
  5. Jian Li & Kunrong Shen & Ru Zhang, 2011. "Measuring Knowledge Spillovers: A Non-appropriable Returns Perspective," Annals of Economics and Finance, Society for AEF, vol. 12(2), pages 265-293, November.
  6. Sean M. Dougherty & Robert H. McGuckin, 2004. "The Effects of Federalism and Privatization on Productivity in Chinese Firms," Development and Comp Systems 0411016, EconWPA.
  7. Liu, Wai-Man & Ngo, Phong, 2012. "Voting with Your Feet: Political Competition and Internal Migration in the United States," MPRA Paper 43601, University Library of Munich, Germany.
  8. Piet van Gennip, 2005. "Loan Extension in China: a Rational Affair," DNB Working Papers 037, Netherlands Central Bank, Research Department.
  9. Cheng, Wenli & Yang, Xiaokai, 2004. "Inframarginal analysis of division of labor: A survey," Journal of Economic Behavior & Organization, Elsevier, vol. 55(2), pages 137-174, October.
  10. Enrico Colombatto, 2006. "Law, Economics and the Institutional Approach to Development and Transition: towards an Evolutionary Perspective," ICER Working Papers 7-2006, ICER - International Centre for Economic Research.
  11. Sachs, Jeffrey & Yang, Xiaokai & Zhang, Dingsheng, 2000. "Globalization, dual economy, and economic development," China Economic Review, Elsevier, vol. 11(2), pages 189-209, December.
  12. Wang, Chan, 2012. "A very preliminary survey on growth and development," MPRA Paper 39037, University Library of Munich, Germany.

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