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Intangible Factors in the Eastern European Transition: A Socio-Economic Analysis


  • John Tomer


Transition has generally been conceived of as a substitution of the organisational structures and the legal, financial and political relationships of capitalism for those of socialism, a replacement of 'hard' features. This conception leaves out 'soft' factors such as attitudes, behavioural orientations, values and beliefs which, for successful socio-economic performance, must mesh with the hard elements. When all the hard features are changed quickly without attention to the soft features, as in the neo-liberal radical reform strategy, the result is inevitably a deep shock greatly retarding the transition process. To avoid this, sufficient attention should be paid to intangible capital formation that creates new soft features. The socio-economic theory developed here (1) explains the differing degrees of transition success in Eastern Europe and (2) suggests alternatives to neo-liberal transition strategy.

Suggested Citation

  • John Tomer, 2002. "Intangible Factors in the Eastern European Transition: A Socio-Economic Analysis," Post-Communist Economies, Taylor & Francis Journals, vol. 14(4), pages 421-444.
  • Handle: RePEc:taf:pocoec:v:14:y:2002:i:4:p:421-444 DOI: 10.1080/1463137022000032664

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    References listed on IDEAS

    1. Jànos Kornai, 2000. "What the Change of System from Socialism to Capitalism Does and Does Not Mean," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 27-42, Winter.
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    12. Berta Heybey & Peter Murrell, 1999. "The relationship between economic growth and the speed of liberalization during transition," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 3(2), pages 121-137.
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    Cited by:

    1. Ichiro Iwasaki & Taku Suzuki, 2016. "Radicalism Versus Gradualism: An Analytical Survey Of The Transition Strategy Debate," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 807-834, September.
    2. Baliga, B.R. & Santalainen, Timo J., 2006. "Transformation of state-owned enterprises in Estonia and India: An examination of the relative influences of cultural variations," Journal of International Management, Elsevier, vol. 12(2), pages 140-157, June.
    3. Anatoly I. Pilyavsky & William E. Aaronson & Patrick M. Bernet & Michael D. Rosko & Vivian G. Valdmanis & Mikhail V. Golubchikov, 2006. "East-west: does it make a difference to hospital efficiencies in Ukraine?," Health Economics, John Wiley & Sons, Ltd., vol. 15(11), pages 1173-1186.

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