The Missed Puzzle Piece for Economic Transition Success

Journal of Business Management and Economics 3: 4 April (2015).

12 Pages Posted: 16 Mar 2016

See all articles by Suzanna ElMassah

Suzanna ElMassah

Cairo University - Faculty of Economics & Political Science; Zayed University-College of Business

Ola Al-Sayed

Cairo University - Faculty of Economics & Political Science

Date Written: January 1, 2015

Abstract

Economic Transition has been an agenda since decades, Eastern Europe countries began their process of transition after the fall of Soviet Union. Economic transition refers to the process that shift from centrally planned economy to market economy aiming at improving the economic performance of the country. Moreover, political economics argument explains that the suitable political strategy to improve economic performance, should not be based on a central authority government, claiming that decentralization supports democracy because it reduces the vested interests power and allows for competition, transparency and innovation of subnational governments, additionally it would empower and engage minorities in the political power and hence reduces tensions and improves economic performance. Liberalization is considered as a corner stone in transition economies; where liberalizing the economy aims at achieving efficiency by all means. Results shows that, decentralisation has various benefits that differ from one country to another and has the power to improve the lives of people.

Keywords: Economic Transition, Decentralization, Eastern Europe Countries (EEC), Marketization and Human Development

Suggested Citation

ElMassah, Suzanna and Al-Sayed, Ola, The Missed Puzzle Piece for Economic Transition Success (January 1, 2015). Journal of Business Management and Economics 3: 4 April (2015)., Available at SSRN: https://ssrn.com/abstract=2748144

Suzanna ElMassah (Contact Author)

Cairo University - Faculty of Economics & Political Science ( email )

Cairo University
Giza, Giza
Egypt
00971555525059 (Phone)

Zayed University-College of Business ( email )

College of Arts and Sciences
Abu Dhabi
United Arab Emirates
00971555525059 (Phone)

Ola Al-Sayed

Cairo University - Faculty of Economics & Political Science ( email )

Cairo University
Giza, Giza
Egypt

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