An alternative theoretical framework for the state-economy interactions in transforming economies

This paper is built on the premise that frameworks of representation and worldviewsare important for reflection and decision in economic policymaking, becoming moreimportant as the stakes are high and the future is uncertain, as in Central and East Europeancountries. There appears to be a growing feeling of discrepancy between the errors that weremade, though based on a rather unified body of scientific economic theory, and differingviews advocating more pragmatism and less overconfidence in economic analysis. The latterhowever are scattered and suffer from the absence of a unified theoretical framework althoughsharing several basic features which are not perceived. This paper attempts to reflecton such alternative. JEL Classification: O20: P11.