INSEAD Library

Includes bibliographical references and index

Digitized

Building Capitalism The Transformation of the Former Soviet Bloc Contents List of Tables and Charts Acknowledgments List of Abbreviations Introduction The Options of Postcommunist Transformation Major Ideas of This Book The Structure of This Book Region and Period of Study Methodological Traps Treacherous Statistics 1. What Communism Actually Was The Ideas of Communism Real Socialism High Growth Rates but Little Welfare 2. The Decline and Fall of Socialism The Decline of Socialism The Demise of Communism in Central Europe The Collapse of the Soviet Union What the Collapse Was about 3. Strategic Policy Choices Historical Legacies and Intellectual References The Radical Reform Program Gradual Reform Programs Major Issues of Dispute 4. Changes in Output and Their Causes Sharp Decline in Recorded Output The Myth of Output Collapse Causes of Decline and Growth in Transition page viii xi xvii 1 2 5 7 11 12 15 20 20 23 34 39 40 51 57 66 70 72 76 82 106 113 114 121 140 vi Long-Term Growth Prospects Radical Comprehensive Reform Best but Often Not Tried 5. Liberalization Strategy of Deregulation Domestic Liberalization External Liberalization Problems of Energy and Natural Monopolies Troublesome Agriculture Big Bang Is Vital in Deregulation 6. Financial Stabilization A Multitude of Macroeconomic Problems The Disastrous Ruble Zone Exchange Rate Policy Radical Fiscal Adjustment Was Key A New Tax System Monetary Policy: From Loose to Strict Barter and Arrears Stabilization after All 7. Privatization Alternative Views of Privatization Small-Scale Privatization: If Started, Swiftly Done Large-Scale Privatization: The Biggest Headache Privatization of Land, Real Estate, and Housing New Enterprise Development Enterprise Performance Extent and Success of Privatization 8. Social Developments and Policy Incomes: Differentiation and Poverty Life and Health Education Adjusting to Demand Unemployment and Labor Market Reform Social Transfers and Pensions Conventional Wisdom Little but Prejudice 9. State and Politics in the Transformation Corruption and Governance For Whom Is the State Working? Reform of the State Elections and Reform Political Stability and Reform Civil Society and Elite Competition The People Needed to Assume Control over the State Contents 153 156 159 160 165 170 182 191 194 197 198 203 207 214 227 234 244 248 255 256 267 268 282 283 287 295 304 305 316 323 327 338 345 348 349 359 367 377 383 389 393 Contents 10. Role of the Outside World Conflicting Outside Interests Successful Cooperation in Central Europe and the Baltics Western Role in Unsuccessful Stabilizations Limited International Financial Flows International Support and Its Execution Lessons and the Remaining Agenda 11. Conclusions How Far Has Transformation Proceeded? Why Have Some Countries Proceeded Further Than Others? Why Rent Seeking Has Been So Costly Dangerous Underreform Traps The Benefits of Shock Is the Situation Changing? Bibliography Index vii 396 397 401 404 411 417 438 441 441 444 446 449 450 453 457 491