Transition in FSU and sub-Saharan countries: The role of institutions
AbstractThis study compares transition processes in countries of Central and Eastern Europe, the former Soviet Union (FSU) and sub-Saharan Africa. By widening the scope from most- to least-developed transition economies, the study establishes the importance of a strong state with evolved institutional capacity to protect citizens, enforce property rights and generate social capital. The evidence presented further argues that enforceable, credible property rights with associated market discipline are among the best antidotes to corruption, shadow economies, criminal injustice and poverty. The presence of accountable institutions also influences economic growth and the ability of a country to attract trade and foreign direct investment. Consequently, when institutions of FSU and sub-Saharan countries develop to the point they become attractive to traders and investors from rich countries, their governments need to focus on abolition of barriers to trade, investment and capital. The author commends the recent reorientation of the international donor community towards encouraging recipient governments to commit credibly to increasing capacities of their state institutions with a view to supporting property-based rule of law and social order.
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0209005.
Length: 66 pages
Date of creation: 17 Sep 2002
Date of revision:
Note: Type of Document - pdf; prepared on PC; pages: 66; figures: included
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sub-Saharan Africa; former Soviet Union; property rights; institutions; growth; international trade; development assistance;
Find related papers by JEL classification:
- F0 - International Economics - - General
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- K1 - Law and Economics - - Basic Areas of Law
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- P2 - Economic Systems - - Socialist Systems and Transition Economies
This paper has been announced in the following NEP Reports:
- NEP-AFR-2002-09-21 (Africa)
- NEP-ALL-2002-09-28 (All new papers)
- NEP-DEV-2002-09-28 (Development)
- NEP-LAW-2002-09-28 (Law & Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"Trade, Growth, and Poverty,"
Royal Economic Society, vol. 114(493), pages F22-F49, 02.
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"The Quality of Goverment,"
NBER Working Papers
6727, National Bureau of Economic Research, Inc.
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- Andrei Shleifer & Robert W. Vishny, 1998. "The Quality of Government," Harvard Institute of Economic Research Working Papers 1847, Harvard - Institute of Economic Research.
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