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

See all articles by David Lipka

David Lipka

Anglo-American University; International Centre for Economic Research (ICER)

Date Written: 2009

Abstract

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

Lipka, David, Could We Have Done Better? (2009). 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., Available at SSRN: https://ssrn.com/abstract=2450727

David Lipka (Contact Author)

Anglo-American University ( email )

Lazenska 4
11800 Praha 1
Prague 1, 11800
Czech Republic

International Centre for Economic Research (ICER) ( email )

Villa Gualino
Viale Settimio Severo, 63
10133 Torino
Italy

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