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Transition
Prokopijevic, Miroslav |
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| This paper considers some of the basic questions concerning transition from the socialist system towards a free market system in Eastern Europe. Using the time reference of the ten years since the changes began and reviewing the substantial literature that has been produced and numerous cases that have emerged, the author attempts to explain why nearly all the policy recommendations made by both western experts, or eastern experts that come from a similar point of view, have not been successful. A notable example of this was the advice given to the Slovenian Government to favor the European Union market and offer subsidies to firms wishing to do business there. Consequently, profits fell in other areas as these markets were neglected, despite historical ties and knowledge of how business should be conducted there. It is this simple imitation of developed countries which the author recommends should be avoided, and a more thorough examination of local conditions and circumstances made before implementing new policies in the move to a market economy. |
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| Contributor: |
Free Market Center - http://www.fmc.org.yu |
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| Topic: |
Economy and Development |
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| Country: |
CEE |
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| Document Type: |
Policy Analyses |
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| Year: |
2001 |
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| Keywords: |
Democracy, Economic Reform, Foreign Trade, Market Economy |
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