From Shock to Therapy The Political Economy

This is the first comprehensive study of the economics and politics of postsocialism in thirty transition countries in Europe and Asia. The author, the architect of Poland's successful reforms, compares initial conditions, shifting target models, paths to reform, and progress to date. He offers sensible policy alternatives to the Washington Consensus.

Grzegorz W. Kolodko is Professor of Economics and Economic Policy at the Warsaw School of Economics.

Acknowledgements

xii

Introduction

1

(8)

Departure

Transition from Socialism: Where To?

9

(39)

What triggered the transition?

9

(2)

The conditions for market reform under socialism

11

(5)

`Socialist Friedmanism' or `Galbraith's socialism'?

16

(3)

The last experiment: the Polish reforms of the 1980s

19

(9)

The politics of `the worse, the better'

28

(2)

From market socialism to capitalist restoration

30

(13)

Transition targets: visions and illusions

43

(5)

Different Points of Departure

48

(21)

Geopolitics: initial position and final outcome

48

(5)

Economic systems and structures

53

(6)

Financial destabilization and the shortageflation syndrome

59

(4)

Growth cycles and stagnation in the socialist economy

63

(6)

Detours

Systemic Change and Economic Performance

69

(16)

Economic reforms and growth: China and Vietnam

69

(5)

Transition and contraction: Eastern Europe and the former Soviet republics

74

(6)

The drawbacks and merits of the postsocialist legacy

80

(5)

Transitional Recession: Expectations, Reality, Interpretations

85

(34)

Liberalization, stabilization, and the great slump of the 1990s

85

(10)

Policy mistakes

95

(6)

The failure of `shock therapy' and `creative destruction'

101

(10)

The systemic vacuum: neither plan nor market

111

(3)

The revolution in property rights and the decline in production

114

(5)

The Washington Consensus Revisited

119

(24)

Policy without growth: missing elements

119

(7)

Toward a new consensus

126

(8)

The means and the ends of economic policy

134

(9)

The Journey

Transition Policy and Development Strategy

143

(11)

Transition as a process of the redesign of systems

143

(3)

Transition as an instrument of development strategy

146

(2)

Institution-building: from shock failure to gradual therapy

148

(6)

Transition from Plan to Market: Concept and Implementation

154

(17)

Privatization, the new private sector, and corporate governance

154

(5)

Interest groups and the formation of a growth lobby

159

(3)

Informal institutions: corruption and organized crime

162

(9)

Financial Reform and Policy

171

(21)

The new fiscal system

171

(6)

Social security reform, savings, and growth

177

(7)

Exchange rate regimes

184

(3)

Financial sector development

187

(5)

The Redistribution of the Costs and Benefits of Transition

192

(37)

Privatization: the struggle over the distribution of wealth

192

(5)

Equity and equality: expectations and outcomes

197

(9)

The mechanisms of distribution

206

(3)

Equity issues in policymaking

209

(7)

The `nouveaux riches' versus the `nouveaux pauvres'

216

(7)

Income distribution and growth

223

(6)

Arrival

Marketization and Democratization

229

(22)

The compatibility of the market and democracy

229

(3)

The feedback loop

232

(11)

The dilemma of the `postcommunist constituency'

243

(8)

From Recovery to Sustained Growth

251

(19)

Market imperfections and crisis

251

(5)

Recovery and the new role of the state

256

(8)

The size of government, equity, and growth

264

(6)

The Internationalization of Postsocialist Economies

270

(51)

Transition and globalization: the issue of coordination

270

(3)

The role of international organizations

273

(4)

The special mission of the IMF and the World Bank

277

(7)

Integration with the world economy

284

(10)

The two faces of emerging markets

294

(5)

Economic aid, direct investment, and foreign capital

299

(10)

Openness, capital flows, and four policy dilemmas

309

(12)

The Future

The Long-term Perspectives

321

(27)

Alternative paths: stagnation, growth, sustainable development

321

(9)

Rosy forecasts, black scenarios, and wise policies

330

(9)

Detours and dead-ends

339

(4)

Is there a happy ending?

343

(5)

Doubts and Conclusions

348

(9)

Policymaking and the post-Washington consensus

348

(3)

Blind forces and sustainable development

351

(6)

Statistical Appendix

357

(70)

Part 1: Selected economic indicators, 1990--1998

359

(54)

Part 2: The forecast for 1999--2002

413

(14)

References

427

(16)

Index

443

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

FREE SHIPPING

Amazon no longer offers textbook rentals. We do!

From Shock to Therapy The Political Economy of Postsocialist Transformation

Summary

Author Biography

Table of Contents

Supplemental Materials