25 Years of Reforms in Ex-Communist Countries: Fast and Extensive Reforms Led to Higher Growth and More Political Freedom
32 Pages Posted: 5 Sep 2016
Date Written: July 12, 2016
The transition from socialism to the market economy produced a divide between those who advocated rapid, or “big-bang” reforms, and those who advocated a gradual approach. More than 25 years have passed since the fall of the Berlin Wall in 1989, providing ample empirical data to test those approaches. Evidence shows that early and rapid reformers by far outperformed gradual reformers, both on economic measures such as GDP per capita and on social indicators such as the United Nations Human Development Index.
Keywords: Post-Communist, Economic Reform, Economic Transition, Market Democracy
JEL Classification: P2, P5
Suggested Citation: Suggested Citation