Financial reform in socialist economies in transition

Millard Long and Silvia B. Sagari

No 711, Policy Research Working Paper Series from The World Bank

Abstract: Neither in theory nor in practice have financial economists confronted a problem as all encompassing as the reform of financial systems in the socialist economies in transition (SET). In the economics literature, the impact of the financial system on the productive sectors has been a subject of much dispute, and the analysis has not been completely satisfactory. In particular, country experience has only involved the diagnosis and design of remedies for comparatively limited specific problems and the implementation of marginal changes in working systems. The problems being tackled today in the SET are hence beyond both our theoretical range and prior experience in country work. The purpose of this paper is to raise some of the important issues that emerge in the process of financial reform and venture some tentative suggestions. The discussion centers mainly on banking, which in the SET is the dominant segment of the financial sector. It considers the link between financial structure and the productive sector. It deals with a range of structural issues, including efficiency, contestability, ownership, separation of banking and industry and regulation. It also examines the transitional problems involved in implementing the new structure, and the sequencing of reforms.

Keywords: Banks&Banking Reform; Financial Intermediation; Financial Crisis Management&Restructuring; Environmental Economics&Policies; Municipal Financial Management (search for similar items in EconPapers)
Date: 1991-06-30
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www-wds.worldbank.org/external/default/WDSC ... d/PDF/multi_page.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:711

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().