The postsocialist transitions in comparative perspective: Policy issues and recent experience

Abstract

This paper examines the postsocialist transition in Eastern Europe, the reforms in China and the “ postdirigiste” transitions in Latin America. The paper analyzes: the initial conditions that gave rise to processes of reform in the different countries; the main strategies for economic reform—shock treatment, gradualism and mixed strategies—discussing their conditioning factors and rationale; the actual record of these policies in terms of key indicators of economic performance such as inflation, GDP growth, external sector sustainability, progress in privatization and the social costs of adjustment. In addition, the paper discusses interdependencies between economic and political reforms during the course of systemic transformation.