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ECONOMIC TRANSFORMATION: STRONG AND WEAK SIDE; A Statement of Independent Czech and Slovak Economists

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Author Info

  • Oldrich Kyn

    (Boston University)

  • Jiri Slama

    (Osteuropa Institut, Muenchen)

  • Vladimir Benacek

    (Charles University, Prague)

  • Karel Kouba

    (Charles University, Prague)

  • Pavel Pelikan

    (Institute for Economic Development, Stockholm,)

Abstract

This is in support of the governement program of transformation from the Soviet-type economy, to the free market economy in Czechoslovakia after the fall of Communism. The basic lines of the government program, that was outlined by Vaclav Klaus, are defended against the leftis criticism that favored either market socialism or the so called 'Third Way'. On the other hand the statement sais that 'the current transformation strategy has several weaknesses....it is apparent that the Government realizes some of these but, under political pressure, continues in the wrong direction.' Among the weaknesses the following have serious negative implications: (1) insufficient attention to the development of small and medium enterprise; (2)'two years after the velvet revolution in the whole of Czechoslovakia, small privatization created only about one tenth of the desirable number of small private enterprises.' (3)'the prohibition of secondary market in privatization vouchers.' (4)'a timid attitude of politicians, Governments, and Parliaments toward foreign capital.' (5) ' the lack of support to the development of banking, tax, and legal institutions. ' The statement was supported by 14 representatives of the economic profession.

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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0510005.

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Date of creation: 05 Oct 2005
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Handle: RePEc:wpa:wuwpdc:0510005

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Related research

Keywords: Socialism; Market Socialism; Soviet-type economy; transition; Central Planning; Fall of Communism; Third Way; Vaclav Klaus; Strategy of transition; Voucher Privatization; Foreign Capital;

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