Could We Have Done Better?
In: NIEMANN, Ulrich, KALOYANOVA, Neli. 1989-2009-2029. 20 Years ago, 20 Years ahead – Young Liberal Ideas. Sofia : Friedrich Naumann Foundation for Freedom, 2009, pp. 22–31.
9 Pages Posted: 24 Jun 2014
Date Written: 2009
Economic transition in the Czech Republic was a success. Yet, it could have been done better. I argue that the untimely closure of a “transformation window” was due to inflated expectations based on the lack of understanding of the nature of institutional change. The prevailing attitude that the change in formal rules will quickly translate into new social equilibria was wrong and misleading. The ensuing frustration and at least partial rejection of liberal policies was a natural consequence of such misunderstanding. I argue that successful economic transition requires intellectual entrepreneurs explaining the nature of free market economic system.
Keywords: Economic Transition, Czech Republic, Informal Institutions, Expectations
JEL Classification: P36, P21, P26
Suggested Citation: Suggested Citation