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The Role of Political Constraints in Transition Strategies

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  • Roland, Gérard

Abstract

This paper trys to clarify the political economy arguments underlying the big bang and the gradualist approach to economic transition. The big bang approach emphasizes the importance of windows of opportunity when ex ante political constraints are less binding, whereas gradualist programmes are defended because of their higher ex ante political feasibility. Both approaches aim at achieving irreversibility, but through different means. The big bang approach emphasizes how speed in reforms may constrain a successor government, whereas the gradualist approach tries to design the sequencing of reforms so as to build, at each stage of transition, constituencies for further reform.

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  • Roland, Gérard, 1994. "The Role of Political Constraints in Transition Strategies," CEPR Discussion Papers 943, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:943
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    1. M. Dewatripont & G. Roland, 1992. "Economic Reform and Dynamic Political Constraints," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(4), pages 703-730.
    2. Dewatripont, Mathias & Roland, Gerard, 1995. "The Design of Reform Packages under Uncertainty," American Economic Review, American Economic Association, vol. 85(5), pages 1207-1223, December.
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    4. Dewatripont, M & Roland, G, 1992. "The Virtues of Gradualism and Legitimacy in the Transition to a Market Economy," Economic Journal, Royal Economic Society, vol. 102(411), pages 291-300, March.
    5. Roland, Gerard, 1994. "On the Speed and Sequencing of Privatisation and Restructuring," Economic Journal, Royal Economic Society, vol. 104(426), pages 1158-1168, September.
    6. Bertocchi, Graziella & Spagat, Michael, 1997. "Structural uncertainty and subsidy removal for economies in transition," European Economic Review, Elsevier, vol. 41(9), pages 1709-1733, December.
    7. Roland, Gerard & Verdier, Thierry, 1994. "Privatization in Eastern Europe : Irreversibility and critical mass effects," Journal of Public Economics, Elsevier, vol. 54(2), pages 161-183, June.
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    Cited by:

    1. John S. Earle & Scott Gehlbach, 2003. "A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic," Economics and Politics, Wiley Blackwell, vol. 15(1), pages 1-32, March.
    2. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    3. Micael Castanheira, 2003. "Public finance and the optimal speed of transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(3), pages 435-462, September.
    4. Pasquale Tridico, 2013. "Values, Institutions, and Models of Institutional Change in Transition Economies," Challenge, Taylor & Francis Journals, vol. 56(3), pages 6-27.
    5. Lyons, Robert & Rausser, Gordon & Simon, Leo, 1996. "Putty-Clay Politics in Transition Economies," CUDARE Working Papers 198638, University of California, Berkeley, Department of Agricultural and Resource Economics.
    6. Michalska, Grazyna & Goodhue, Rachael & Small, Arthur, 1995. "Implications of Gatt for Eastern Europe and the Baltics," CUDARE Working Papers 201478, University of California, Berkeley, Department of Agricultural and Resource Economics.
    7. Bernhard Reinsberg & Thomas Stubbs & Alexander Kentikelenis, 2022. "Compliance, defiance, and the dependency trap: International Monetary Fund program interruptions and their impact on capital markets," Regulation & Governance, John Wiley & Sons, vol. 16(4), pages 1022-1041, October.
    8. Kornai, János, 1996. "Négy jellegzetesség. A magyar fejlődés politikai gazdaságtani megközelítésben. Második rész [Four characteristic features. Development in Hungary from the aspect of political economy - II]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 1-29.
    9. Nikola Najman & Petr Rozmahel & Luděk Kouba & Ladislava Grochová, 2013. "Integration of Central and Eastern European Countries: Increasing EU Heterogeneity? WWWforEurope Working Paper No. 9," WIFO Studies, WIFO, number 46856, April.
    10. Maw, James, 2002. "Partial privatization in transition economies," Economic Systems, Elsevier, vol. 26(3), pages 271-282, September.
    11. Schmitz, P. Michael & Noeth, Cornelia, 1997. "Institutional and Organizational Forces Shaping the Agricultural Transformation Process: Experiences, Causes and Implications," 1997 Conference, August 10-16, 1997, Sacramento, California 197042, International Association of Agricultural Economists.
    12. Digdowiseiso, Kumba, 2010. "The transition of China and Ussr: A political economy perspective," MPRA Paper 22561, University Library of Munich, Germany.
    13. Erjon Luci & Marta Muco & Peter Sanfey, 2001. "Stabilization, monetary policy and financial institutions in Albania," wiiw Balkan Observatory Working Papers 16, The Vienna Institute for International Economic Studies, wiiw.
    14. Randolph Luca Bruno, 2006. "Optimal speed of transition with a shrinking labour force and under uncertainty," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(1), pages 69-100, March.
    15. Matija Rojec & Janez Sustersic & Bostjan Vasle & Marijana Bednas & Slavica Jurancic, 2004. "The rise and decline of gradualism in Slovenia," Post-Communist Economies, Taylor & Francis Journals, vol. 16(4), pages 459-482.
    16. Hillman, Arye L. & Ursprung, Heinrich W., 1996. "The political economy of trade liberalization in the transition," European Economic Review, Elsevier, vol. 40(3-5), pages 783-794, April.
    17. ELLMAN, Michael, 2012. "What Did the Study of Transition Economies Contribute to Mainstream Economics?," RRC Working Paper Series Special_issue_no.2, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    18. Litwack, John M. & Qian, Yingyi, 1998. "Balanced or Unbalanced Development: Special Economic Zones as Catalysts for Transition," Journal of Comparative Economics, Elsevier, vol. 26(1), pages 117-141, March.
    19. Gerard Rpland, 2001. "The Political Economy of Transition," William Davidson Institute Working Papers Series 413, William Davidson Institute at the University of Michigan.
    20. John Litwack & Yingyi Qian, "undated". "Balanced or Unbalanced Development: Special Economic Zones as Catalysts for Transition," Working Papers 97044, Stanford University, Department of Economics.
    21. Kornai, János, 1995. "Négy jellegzetesség. A magyar fejlődés politikai gazdaságtani megközelítésben. Első rész [Four characteristic features. Development in Hungary from the aspect of political economy. First Part]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1097-1117.
    22. Randolph Luca Bruno, 2003. "Speed of Transition, Unemployment Dynamics and Nonemployment Policies: Evidence from the Visegrad Countries," LEM Papers Series 2003/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    23. John Marangos, 2005. "A Political Economy Approach to the Neoclassical Gradualist Model of Transition," Journal of Economic Surveys, Wiley Blackwell, vol. 19(2), pages 263-293, April.
    24. Wunner, Norbert, 1996. "Trade liberalization during transition: A political economy perspective," Discussion Papers, Series II 298, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".

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    More about this item

    Keywords

    Eastern Europe; Political Economy; Sequencing; Transition;
    All these keywords.

    JEL classification:

    • H89 - Public Economics - - Miscellaneous Issues - - - Other
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General

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