The State and the Transformation of Economic Systems

Dallago Bruno

Chapter 8 in Transition from Socialist to Market Economies, 2009, pp 164-187 from Palgrave Macmillan

Abstract: Abstract Most Central and Eastern European countries (CEECs) did not properly recognize the role of the state in the transformation process, and so the conditions needed to realize an orderly and productive transformation were missing. They could not undertake political reform of the state before economic transformation. Their policies mostly disregarded the differences in political, social, and economic conditions, institutions, and their respective perspectives. This chapter purports to offer a classification of these differences and suggest how the role of the state should be adapted to these differences. Although it is desirable that the proper reform of the state precedes privatization and stabilization, the cases of some countries that confronted the economic transformation without the preceding political reform are also discussed.

Keywords: Market Economy; Economic System; Transition Economy; Creative Destruction; Fiscal Decentralization (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-24498-6_9

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DOI: 10.1057/9780230244986_9

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