Institutional change and human development in transition economies
Transition economies (i.e. Central Eastern Europe Countries and Former Soviet Union Republics) have undergone an enormous transformation since 1989-1991. After the recession of the early 1990’s, some of these economies experienced a GDP recovery, at a different pace, with different outcomes in terms of economic growth and social performance (i.e. human development, employment, poverty, etc). The aim of this paper is to answer the following research question: was human development concurrent with economic growth during transition towards the market economy? I claim that economic growth is not always concurrent with human development: economic growth can contribute to increase the level of human development, but is not “the means” to human development. The income is not the final aim. On the contrary, the final aim is the well-being of individuals and the human development. Human development is considered to be a process which allows for an environment where people enjoy long, healthy and creative lives (as defined by the United Nations Development Programme, UNDP). Using an OLS model, human development variables were correlated with GDP per capita. I found out that, in transition economies, investing in human development is a sufficient, yet not a necessary condition for economic growth. GDP growth, then, requires human development. In this context institutions and institutional policies are crucial for a development process. In fact, for better distribution and access to resources as well as for social cohesion, well-designed institutions are needed.
|Date of creation:||Feb 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +39 06 57114612
Fax: +39 06 57114771
Web page: http://host.uniroma3.it/dipartimenti/economia/it/
More information through EDIRC
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.:
- Alberto Chilosi, 2003. "The Economic System As An End Or As A Means And The Future Of Socialism And Capitalism: An Evolutionary Viewpoint," Development and Comp Systems 0305003, EconWPA, revised 14 Sep 2003.
- Naqvi, Syed Nawab Haider, 1995. "The nature of economic development," World Development, Elsevier, vol. 23(4), pages 543-556, April.
- Coase, Ronald, 1998. "The New Institutional Economics," American Economic Review, American Economic Association, vol. 88(2), pages 72-74, May.
When requesting a correction, please mention this item's handle: RePEc:rtr:wpaper:0059. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Telephone for information)
If references are entirely missing, you can add them using this form.