Prague Economic Papers 2001, 10(1) | DOI: 10.18267/j.pep.162
Ten years on (some lessons from the transition)
The article offers essential reflections on ten years of experience with the transformation of the former centrally planned economies into free market economies. Although there were large differences among individual transition countries, all of them faced similar challenges early in the 1990s. The unique initial conditions of the Central and Eastern European countries called for an approach fundamentally different from reforms applied in Latin America or Asia. CEE countries had to rebuild, from scratch, a private sector, create a market-compatible institutional environment, and correct the serious inherited deformations of the real economy. In addition, at the same time they were confronted with the international liberalization of flows of goods and capital. The article aims to distinguish and analyse both objective and subjective factors affecting the process of economic transformation.
Keywords: privatization, economic transformation, objective and subjective factors, institutional framework, financial sector
Published: January 1, 2001 Show citation
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