On the theory of post-Communist economic transition to market
Author: Vladimer Papava
Source: International Journal of Social Economics, Volume 32, Numbers 1-2, 2005 , pp. 77-97(21)
Publisher: Emerald Group Publishing Limited
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Abstract:
Purpose - The paper investigates the utility of economic theory for post-Communist economic transformation. It serves to explain the main reasons for market reform failure in different post-Communist countries. Design/methodology/approach - A literature review suggests that after the collapse of the Communist system there was no economic theory of transition to market. Whenever one considers the transition of post-Communist economies to a market system (which, in fact, is nothing but post-Communist transition to capitalist economies), it has to be placed on record, as this kind of transition has no precedent in history. Findings - The main mistake of gradualists stems from their overlooking some very important conditions for successful transition: political guarantees and internal assets for reforms. And the success of shock therapy rests on the paradox, "the worse, the better". Originality/value - There is as yet no special economic theory of post-Communist transformation and it is just developing. This paper helps one to understand the main features of shock therapy and gradualism for designing the framework of such a theory. It is geared towards researchers and students interested in the theoretical aspects of the post-Communist economic transition to markets.Keywords: Economic Change; Marxist Economics; Capitalist Systems
Document Type: Research article
DOI: 10.1108/03068290510575658
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