On The Sequencing Of Reforms In Eastern Europe

This paper discusses issues related to the sequencing of the reforms that are necessary to transform the economies in Eastern Europe into market economies. It is first argued that the transition path of these economies will be smoother and less costly if a clear statement of the ultimate goals of the reforms is made at the outset. Interdependence between different aspects of the reforms implies that an appropriate strategy is to move on a broad front from the very beginning of the transformation process dealing simultaneously with macroeconomic stabilization, price reforms and convertibility, and privatization of state enterprises. It is also argued that a rapid reform process is preferable to a gradual one.

This paper discusses issues related to the sequencing of the reforms that are necessary to transform the economies in Eastern Europe into market economies. It is first argued that the transition path of these economies will be smoother and less costly if a clear statement of the ultimate goals of the reforms is made at the outset. Interdependence between different aspects of the reforms implies that an appropriate strategy is to move on a broad front from the very beginning of the transformation process dealing simultaneously with macroeconomic stabilization, price reforms and convertibility, and privatization of state enterprises. It is also argued that a rapid reform process is preferable to a gradual one.

An evaluation of the efficacy of different forms of liberalization since the fall of communism in Eastern Europe, in the form of 13 essays on economic and political reforms. Following an extensive introductory essay (Economic Reform: Appropriate Steps and Actual Policies), the remaining essays are organized in three parts: fundamental components of economic reform; specific problems in reform; and comparisons and evaluations. Annotation copyright by Book News, Inc., Portland, OR

Comparison of reform and decentralization of economic administration in socialist countries, with some particular reference to Poland - covers investment, unemployment and migrant workers in CMEA countries, management development, price determination, profit motivation, profit sharing, the role of trade unions, problems in agriculture, etc. Bibliography pp. 186 to 202.

This text features interviews with three of the key human actors behind the reforms in Eastern Europe: Lesek Balcerowicz, Polish Deputy Prime Minister and Minsiter of Finance, 1990-91; Peter Akos Bod, President of the National Bank of Hungary and formerly Minister of Industry; and Vaclav Klaus, Prime Minister of the Czech Republic and Czechoslovakian Minister of Finance. The conversations include discussion about their personal and intellectual formation, their views of the development and design of the reform package, their initial expectations, the process of implementing the reforms and the prospects for the future.

Analysis of the ideologycal and political aspects of the reform of economic systems and economic administration in Eastern European countries - discusses the reform alternatives of a planned economy system, the extent of decentralization, particularly in respect of economic planning, the impact of the CMEA economic integration programme, etc. References.