S. Numura
Osaka School of International Public Policy, Osaka University
Abstract:
Many eastern European countries have reformed their economic systems from a planned economy to a market economy and some of them succeed, and the others fail. It seems that there are two ways to secure the transition. The one is to execute large-scale privatization as quickly as possible. The other is to advance privatization gradually. The gradualists emphasize the importance of institutions such as legal system and financial infrastructure, and they would think that without the institutional infrastructure, privatization might lead to asset stripping rather than wealth creation.
How privatization could affect economic growth depends not only on its scale as well as speed, but also on economic policy adopted by countries and how much a given political regime has a wide range of options. Countries in Central and Eastern Europe and the former Soviet republics don’t have much a viable option, judging from recorded inflation levels and output losses. Given a severe breakdown in the central planning apparatus, they might not able to afford to postpone adjustment. In this case, it seems that rapid reform would be preferable to slow reform.
In our paper, we consider which approaches are best to secure the transition. We examine all the factors such as economic policies, initial conditions and quality of governance in our estimation. We believe our paper has made some advances over earlier literature untangling the various factors affecting success in transition.
Date: January 29, 2015
Time: 04:00 P.M.
Venue:
NIPFP Auditorium, Ground Floor, Old Building
National Institute of Public Finance and Policy,
18/2 Satsang Vihar Marg, Special Institutional Area,
New Delhi-110067(INDIA)
Location:
View Larger Map
Osaka School of International Public Policy, Osaka University
Abstract:
Many eastern European countries have reformed their economic systems from a planned economy to a market economy and some of them succeed, and the others fail. It seems that there are two ways to secure the transition. The one is to execute large-scale privatization as quickly as possible. The other is to advance privatization gradually. The gradualists emphasize the importance of institutions such as legal system and financial infrastructure, and they would think that without the institutional infrastructure, privatization might lead to asset stripping rather than wealth creation.
How privatization could affect economic growth depends not only on its scale as well as speed, but also on economic policy adopted by countries and how much a given political regime has a wide range of options. Countries in Central and Eastern Europe and the former Soviet republics don’t have much a viable option, judging from recorded inflation levels and output losses. Given a severe breakdown in the central planning apparatus, they might not able to afford to postpone adjustment. In this case, it seems that rapid reform would be preferable to slow reform.
In our paper, we consider which approaches are best to secure the transition. We examine all the factors such as economic policies, initial conditions and quality of governance in our estimation. We believe our paper has made some advances over earlier literature untangling the various factors affecting success in transition.
Date: January 29, 2015
Time: 04:00 P.M.
Venue:
NIPFP Auditorium, Ground Floor, Old Building
National Institute of Public Finance and Policy,
18/2 Satsang Vihar Marg, Special Institutional Area,
New Delhi-110067(INDIA)
Location:
View Larger Map
No comments:
Post a Comment