Abstract
The collapse of socialism as a consequence of primarily economic inefficiency has raised in front of the post socialist countries the dilemma of choice (what a miracle) the path to capitalism. On this reversible, historical process, the leading Western countries have had a ready answer - the Washington Consensus. The strict implementation of the ten Washington reform economic policies conceived on the neoliberal doctrine led to the construction of the Anglo-Saxon development model of capitalism. The Washington narrative had the unreserved support in the measures and decisions of the International Monetary Fund and the World Bank, though it originally intended as a set of NEO-liberal crisis solution measures in Latin American countries. The consistent implementation of the Washington Regulations with the shock therapy method has had mostly negative consequences for the economic growth and development of both the transition and Latin American countries. Countries that have approached economic reforms in a gradualistic manner, respecting national characteristics and interests, such as the "East Asian tigers", have as a rule achieved economically respectable growth and social well-being.
Highlights
The strict implementation of the ten Washington reform economic policies conceived on the neoliberal doctrine led to the construction of the Anglo-Saxon development model of capitalism
Transition is the political and socioeconomic transformation of post-socialist states in a desirable capitalist model at the end of the 20th century. This historic reversible process is driven, on the one hand, by the economic inefficiency of the administrative economy in relation to the market, and, on the other, by the aspiration of Western ideology to make a definitive departure from the communist project of a society of equality and justice as utopian
The path to individualist capitalism was based on the Washington Consensus, that is, on a regional program of ten macroeconomic policies designed to solve the problems of Latin American countries
Summary
The demolition of the Berlin Wall in 1989 marked the symbolic beginning of the end of socialism as a socioeconomic and political system of social relations. The ex socialist countries started a reversible program of transforming political and economic institutions into a desirable capitalist model, bringing the wheel of history backwards. The transition of post-socialist states required radical changes on the ideological plane, changes of the political system, social change and, above all, tectonic economic transformation, confirming the thesis that the road to communism had failed. This decade-long social experiment, until unused in the history of civilization, has raised the dilemma - how to trace the most efficient transition path? The paper analyzes the basic premises for the application of the Washington “Manifesto”, the experience of Latin American countries, as well as alternative solutions that are present in a modern economic practice of East Asian countries that have undergone a sui generis transformation of their economic systems, achieving far more respectable economic results
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