 Two Competing Concepts of TransitionHubert Gabrisch and Jens Hölscher Chapter 2 in The Successes and Failures of Economic Transition, 2006, pp 20-41 from Palgrave Macmillan Abstract: Abstract Chapter 2 presents two different intellectual concepts of transition. On the surface, these concepts were initially identified with the debate about ‘shock-therapy versus gradualism’. However, the differences were deeper and rooted in different schools of economic thought. Behind the shock approach we find the so-called ‘Washington Consensus’, which dominated economic policy in transition countries for many years. This approach is based on liberalization, privatization and stabilization as cornerstones of the transition to a market economy. The contributors to this approach shared a deep belief in flexible prices, market transactions, and a minimalist state. The approach is contrasted with the ‘evolutionary-institutionalist’ concept, which emphasizes the role of informal institutions such as behavior and mindsets as well as formal institutions such as the rule of law. This approach takes into account that institution building is a time-consuming process, in particular when some institutions such as those of the financial sector within the transition countries have to be created from scratch. Keywords: Corporate Governance; Central Bank; Money Supply; Economic Transition; Excess Demand (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62658-4_3 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.