The processuality of transition to the market economy
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The transition to the market economy has simple principles. But, the finding of technology and methods to attenuate as much as possible the divergences referring to institutional reform and reform programs, creates great difficulties. There are, therefore, mainly to be applied in a few ways - gradual transition, shock therapy or something mixed between them, depending on the specific conditions of each country that makes the transition from communism, to capitalism. The first path involves the transformation of the former command economy through a successive partial reform process. The second ...
The transition to the market economy has simple principles. But, the finding of technology and methods to attenuate as much as possible the divergences referring to institutional reform and reform programs, creates great difficulties. There are, therefore, mainly to be applied in a few ways - gradual transition, shock therapy or something mixed between them, depending on the specific conditions of each country that makes the transition from communism, to capitalism. The first path involves the transformation of the former command economy through a successive partial reform process. The second is to implement a reform program, in continuous dynamics which makes it possible to carry out as many reforms as possible in a short time. The third is a mix between the first two, as I said before. The experience of the Central and Eastern European countries shows that the elaboration and implementation of most of the property reform programs was dictated by discretionary political interests, in favor of various pressure groups. In fact, the development of a healthy private sector is not possible if the state-owned sector continues to exist.
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