Description: Transition, The First Ten Years : Analysis and Lessons for Eastern Europe and the Former Soviet Union

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Transition, The First Ten Years : Analysis and Lessons for Eastern Europe and the Former Soviet Union

This study looks at lessons to be drawn from the ten-year experience of the transition countries in Eastern Europe and the former Soviet Union in the period 1991 to 2000. The World's Bank "world Development Report 1996: From Plan to Marke...

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Bibliographic Details
Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	ANTICORRUPTION ASSET STRIPPING AUDITING BANKING CRISES BANKING SECTOR BANKING SYSTEM BUDGET CONSTRAINTS BUSINESS ENVIRONMENT CAPITAL ADEQUACY CAPITAL REQUIREMENTS CAPITALIZATION CIVIL LIBERTIES COLLATERAL COMMAND ECONOMY COMPETITIVE MARKETS COMPETITIVENESS CORPORATE GOVERNANCE CORRUPTION DEBT DIRECT INVESTMENT ECONOMIC GROWTH ECONOMIC POWER ECONOMIC REFORM ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIES IN TRANSITION ECONOMISTS EMPIRICAL ANALYSIS EMPLOYMENT ENERGY CONSUMPTION ENTREPRENEURSHIP EXPORT GROWTH EXPORTS FINANCIAL CRISIS FINANCIAL DEEPENING FINANCIAL MARKETS FISCAL POLICY FOREIGN EXCHANGE GDP GINI COEFFICIENT GROSS DOMESTIC PRODUCT GROWTH PERFORMANCE GROWTH RATES HARD BUDGET CONSTRAINTS HEALTH EXPENDITURES HOUSING HUMAN CAPITAL INCOME INCOME INEQUALITY INSTITUTIONAL CAPACITY INTEREST RATE INTERGOVERNMENTAL FISCAL RELATIONS INVESTMENT CLIMATE LABOR MARKETS LABOR PRODUCTIVITY LEGISLATION LEVEL PLAYING FIELD LOCAL GOVERNMENTS MARGINAL TAX RATES MARKET DISCIPLINE MARKET ECONOMIES MARKET ECONOMY MARKET TEST MONOPOLIES MOV OIL OPERATING COSTS PER CAPITA INCOME PER CAPITA INCOMES POLICY ENVIRONMENT POLITICAL COMMITMENT POLITICAL CONTESTABILITY POLITICAL ECONOMY POLITICAL RIGHTS POVERTY LINE PRIVATE SECTOR GROWTH PRIVATIZATION PRODUCT MARKETS PRODUCTIVITY PROPERTY RIGHTS PUBLIC EXPENDITURES PUBLIC GOODS PUBLIC SECTOR MANAGEMENT REAL GDP REGULATORY INSTITUTIONS RENT SEEKING RULE OF LAW SALES OF ASSETS SECURE PROPERTY RIGHTS SOCIAL POLICIES SOCIAL SAFETY NETS SOCIAL SECURITY SOFT BUDGET CONSTRAINTS STATE BANKS STATE ENTERPRISES SUBSIDIARY TAKEOVER TAX REFORM TRADE LIBERALIZATION TRADEOFFS TRANSITION ECONOMIES TRANSPORT VALUE ADDED VESTED INTERESTS WAGES WEALTH WEALTH CREATION
Online Access:	http://documents.worldbank.org/curated/en/2002/01/1675547/transition-first-ten-years-analysis-lessons-eastern-europe-former-soviet-union http://hdl.handle.net/10986/14042

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Summary:	This study looks at lessons to be drawn from the ten-year experience of the transition countries in Eastern Europe and the former Soviet Union in the period 1991 to 2000. The World's Bank "world Development Report 1996: From Plan to Market" focused on the transition process during the first half of this period. It recognized that while initial conditions are critical, decisive and sustained reforms are important for recovery of growth and should be accompanied by social policies designed to protect the most vulnerable groups until growth takes hold. Many of the prescriptions of the 1996 World Development Report continue to be valid today. The present study confirms that while initial conditions were critical for explaining the output decline at the start of transition, the intensity of reform policies explains the variability in the recovery of output thereafter. Beyond this, important new lessons highlight some key tradeoffs facing countries in transition that can be translated into priorities for policy. First, this study highlights the key role of the entry and growth of new firms in generating economic growth and in creating employment. A second lesson concerns the need to develop or strengthen legal and regulatory institutions to oversee the management and governance of both private and state enterprises. A third lesson involves recognizing that winners from the early stages of reform may oppose subsequent reforms when these reduce their initially substantial benefits.