Economic Reforms and Constitutional Transition
AbstractThis 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 InfoPaper provided by Center for International Development at Harvard University in its series CID Working Papers with number 43.
Date of creation: Apr 2000
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constitutional transition; economic reform; division of labor; debate of shock therapy vs gradualism; debate of convergence vs institutional innovation;
Other versions of this item:
- K1 - Law and Economics - - Basic Areas of Law
- H1 - Public Economics - - Structure and Scope of Government
- B14 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Socialist; Marxist
- M40 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - General
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
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