The Economics of Transformation

1. Front Matter

   Pages i-xix

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2. The Political Economy of Transformation

   1. The Economics of Disintegration in the Former Soviet Union

      • Holger C. Wolf

      Pages 1-15

   2. The Transition to a Market Economy: Are there Useful Lessons from History?

      • Joachim Ahrens

      Pages 17-46

3. Price Liberalization

   1. A Model of Price Liberalization in Russia

      • Jonathan J. Morduch, Alan M. Taylor

      Pages 47-75

   2. The Initial Welfare Consequences of Price Liberalization and Stabilization in Poland

      • Bryan W. Roberts

      Pages 77-112

4. Privatization

   1. The Sale of Shares to Foreign Companies

      • Francesca Cornelli

      Pages 113-128

   2. Foreign Direct Investment and Privatization

      • Paul J. J. Welfens

      Pages 129-169

   3. The Political Economy of Privatization

      • Alfred Schipke

      Pages 171-189

5. Trade and Financial Markets

   1. European Integration: Lessons from the South and Prospects for the East

      • Oliver Fratzscher

      Pages 191-232

   2. Reforming the Financial System

      • Timothy D. Lane

      Pages 233-252

6. Social Implications of Transformation

   1. Human Development and Women’s Lives in a Restructured Eastern Bloc: Lessons from the Developing World

      • Stephan Klasen

      Pages 253-294

7. Industry Studies

   1. Foreign Direct Investment in Eastern Europe: The Case of Telecommunication

      • Sophia Eltrop

      Pages 295-316

   2. The Breakdown of the Soviet Oil Empire and its International Ramifications

      • Eugene M. Khartukov, Dmitry A. Surovtsev

      Pages 317-332

Janos Kornai The collapse of the socialist system in eastern Europe and the Soviet Union is one of the major events of this century, perhaps the most important of all. The transformation now taking place is without any precedent in history. The original development of capitalism was a process that lasted for centuries. The almost total liquidation of capitalism in the countries ruled by communist parties took place-in historical terms-in a very short period of time, but it was carried out by force and repressive methods. The transformation which has now begun is diverting these countries back onto the path of capitalist development and the hope is that the process will take place much faster than the original emergence of capitalism. And another hope can be expressed: that the governments of these countries will not resort during the process to the arsenal of political violence and repression in order to speed it up. Although the post -socialist transformation is a historically unique phenomenon, some components and features of it show a similarity with other processes or events that took place under other circumstances. Other empires before the Soviet empire collapsed. The political structures of other countries took the path from dictatorship to democracy. Under other conditions, state assets have been privatized, inflation has been curbed, foreign capital has flowed in, new oligopolies have formed, and so on. The uniqueness lies in the new, specific configuration of these component processes and may other phenomena.

• Eastern Europe
• European integration
• Integration
• Liberalisierung
• Liberalization
• Osteuropa
• Privatisierung
• Privatization
• Transformation
• economics
• economy
• financial markets
• foreign direct investment
• political economy
• systemic change

• Department of Economics, Harvard University, Cambridge, USA

  Alfred Schipke

• International Monetary Fund, USA

  Alfred Schipke

• Harvard Academy for International and Area Studies, Harvard University, Cambridge, USA

  Alan M. Taylor

• Department of Economics, Northwestern University, Evanston, USA

  Alan M. Taylor

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